TechD Cybersec.
Q3 FY25 Earnings Call Analysis
IT - Services
fundraise: Nocapex: Yesrevenue: Category 1margin: Category 3orderbook: Yes
💰fundraise
Any current/future new fundraising through debt or equity?
- As of now, the company does not foresee any fundraising through debt or equity in the next one to two years.
- Post the two-year period, they may consider fundraising depending on operating expenses and future growth needs.
- The company recently got IPO proceeds and is focusing on utilizing those funds for international expansion and scaling operations.
- No immediate plans for raising additional capital were indicated during the discussed period.
🏗️capex
Any current/future capex/capital investment/strategic investment?
- The company is investing in human resources, including sales, pre-sales, delivery, and operations staff across different continents to support growth.
- There is a focus on building and expanding the Global Capability Center, increasing the facility from 400 to 600 people capacity to utilize university partnerships for talent sourcing.
- They have started their R&D vertical post-IPO to develop proprietary products, aiming to reduce dependency on OEM technologies via technology transfer and potential mergers/acquisitions of niche product companies in areas like DSPM, DevSecOps, and OT security.
- The company plans to incorporate a wholly-owned subsidiary in the GIFT IFSC as a global entity for handling international clients and operations.
- No immediate fundraising is planned for the next two years; future fundraising will depend on operational expenses and growth needs.
📊revenue
Future growth expectations in sales/revenue/volumes?
- The company targets 40-50% year-on-year revenue growth compared to the previous year.
- Long-term vision aims for $80-100 million in revenue by 2030.
- Future growth driven by expanding international operations in USA, UAE, and other global markets.
- H1FY26 showed 41% revenue growth compared to H1 FY25.
- Expect revenue split between domestic and international markets to be around 50:50 in the near future.
- From FY27 onwards, the company anticipates approximately 100% revenue growth fueled by global expansion.
- Focus on increasing average ticket size per client and shifting from audit-only clients to managed services, targeting 40% conversion.
- Customer base growing from 370+ to 500+ clients as of H1 FY26.
- Investment in human resources (sales, pre-sales, delivery) to support growth across continents.
📈margin
Future growth expectations in earnings/operating earnings/profits/EPS?
- Net profit grew from ₹3 crore in FY24 to ₹8 crore in FY25; further projections were not explicitly given, but positive growth trends are expected.
- The company aims for 50% year-on-year growth this year, though previous growth was around 100%.
- Vision 2030 goal: Revenue target of $80-100 million (~₹8200 million).
- EBITDA margins of ~49% achieved in H1 FY26 are expected to be maintained or improved, supported by operational efficiencies and reduced OEM cost dependence.
- Order book increased to ₹40 crore in H1, indicating strong revenue pipeline and execution.
- Domestic vs international revenue expected to balance around 50:50 with international revenues likely to grow faster and have higher ticket sizes.
- No dividend announced yet, but profit margins and operational excellence indicate scope for future shareholder returns.
- Overall outlook: strong growth path with IPO proceeds fueling global expansion and product development.
📋orderbook
Current/ Expected Orderbook/ Pending Orders?
- As of the RHP stage, the certified order book was ₹29 crore.
- Currently, the order book stands at ₹40 crore for the financial year.
- Out of this ₹40 crore, ₹18.1 crore has already been executed.
- The company aims to execute the remaining orders in the second half (H2) of the financial year.
- There is also a substantial sales pipeline expected to convert into orders within the financial year, though exact figures are not disclosed.
