Ceinsys Tech Ltd

Order book update

• SWSM cancelled allocation for 617 ZP schemes due to exhausted IoT funding.
• Pending orders reduced by Rs 112.42 Cr; revenue booked unaffected; order book now Rs 865 Cr.
• Earlier LOA for IoT deployment totalled Rs 580 Cr.
• Parties to the order are SWSM, WSSD, and Government of Maharashtra.

Financial Performance

• Consolidated revenue INR158 crores; YoY growth 1%.
• EBITDA INR39 crores; margins 24.4%, up 505 bps YoY.
• PAT INR31 crores; PAT margin 19.6%, down ~59 bps YoY.
• Geospatial Eng Services revenue INR94 crores; up 30% YoY.
• Technology Solutions revenue INR63 crores; down ~25% YoY.
• Fresh contracts inflows INR143 crores; order book INR990 crores.

Operating / Segment Update

• Geospatial Eng Services revenue up to INR94 crores; +30% YoY.
• Technology Solutions revenue down to INR63 crores; ~25% decline.
• Geospatial and Tech mix shifting; aim to push Tech share beyond 51% of segment revenue.
• International Geospatial Mobility shows momentum; new opportunities and awards.
• Approved JV with AI Fabric USA up to INR25 crores; 50/50; sovereign AI cloud.

Balance Sheet and Cash Flow

• Working capital cycle 164 days; in line with prior two quarters.
• Unbilled revenue (UBR) around INR320 crores as of 31 Mar FY26; to be billed in next 2 quarters.
• IoT debtors/UBR around INR100 crores; funds expected by end of Q3.
• Maharashtra govt GR to disburse IoT funds; improved collections outlook.

Projects and Capex

• AI cloud JV with AI Fabric USA; up to INR25 crores; 50/50; incorporation imminent.
• Madhya Pradesh urban admin contract for PMAY vertical; ~INR67 crores over 3 years.
• Amrut 2.0 water meters; INR17 crores; 12 months execution.
• Mobility: EKS InTec India order; INR4 crores for 4 production lines; 3 months.
• US subsidiary: beta development of hybrid power transfer case; INR4 crores.
• Aggregate PO value of these orders: INR30 crores.

Outlook and Guidance

• Management targets revenue growth and margin expansion; execution spread 12–18 months.
• No forward guidance due to policy; funnel remains robust.
• Margins to improve as mix shifts toward technology solutions; target ~24%+.

Q&A Highlights

• Question on INR1,000 crore funnel; answer: most orders execute in 12–18 months; some 3–6 months; O&M 2–5 years.
• Growth guidance: no exact figure; funnel robust; order book ~INR990 crores; execution 12–18 months.
• Margin drivers: shift to enterprise solutions; current quarter margin 24.4%; run-rate margins improving.
• Idle funds and acquisitions: no buyback; exploring AI cloud JV and profitable opportunities to protect margins.

Risks and Watchpoints

• Execution risk: majority of orders have 12–18 month timelines; some 3–6 months.
• Working capital risk: 164-day cycle; government disbursement could alter timing.
• UBR carry-forward: 320 crores; billing expected next 2 quarters.
• Acquisition funding risk: evaluating opportunities; not investing for the sake of deploying funds.
• JJM funds release: ~2 quarters; timing could impact near-term cash flows.

Google Cloud Partner Registration

• Ceinsys Tech Ltd is registered as a Google Cloud Partner.
• Areas include Google Cloud Co-sell and Google Cloud Services.
• Also covering Google Workspace Co-sell and Services.
• Google Cloud Technology and Google Workspace Technology are part of the partnership.
• Status attained on May 29, 2026; certificate dated August 14, 2026.
• Strengthens capability to deliver cloud-led, scalable digital solutions.

Meeting Details

• Date and time: August 14, 2026 at 11:30 IST.
• Type and mode: earnings call with analysts and investors; virtual audio conference.
• Organiser: Ceinsys Tech Limited.
• Key participants: company management will participate.
• Purpose: discuss Q1 FY2026-27 unaudited standalone and consolidated results.
• Availability: audio recording available on the company's website.

Business Overview

• Full-stack geospatial AI platform powering infrastructure assets.
• Targeting government schemes, infra projects, and international markets.
• Segments: Geospatial & Engineering Services, Technology Solutions.

Key Operational Highlights

• Q1-FY27 revenue 1,578 Mn; EBITDA 385 Mn; margin 24.4%.
• Fresh contracts INR 1,425 Mn; order book INR 9,903 Mn.
• JV investment authorization up to INR 250 Mn for Sovereign AI Cloud.
• International geospatial and mobility verticals improving; working capital 164 days.

Financial Performance

• PAT 310 Mn; PAT margin 19.6%; Diluted EPS 14.78 INR.
• YoY: revenue +0.8%; EBITDA +27.1%; PAT -2.2%.
• Q1 expenses 1,193 Mn; total comprehensive income 314 Mn.

Strategic Initiatives & Outlook

• Expand MEA, ASEAN presence; Saudi market entry planned.
• Capex focus and partnerships; Sovereign AI cloud development in India.
• Leverage government initiatives: ITMS, Jal Jeevan Mission; 340 GW renewable target.

Capital Structure & Liquidity

• JV investment planned; up to INR 250 Mn for AI cloud platform.

Risks & Mitigation

• Macro headwinds in international markets; government fund flows may ease working capital.

Meeting Details

• Date and time: August 14, 2026 at 11:30 IST.
• Type and mode: virtual group earnings call.
• Organiser: Arihant Capital Markets Ltd.
• Purpose: discuss Q1 FY2026-27 unaudited results.

Participants

• Representatives include: MD, India Operations; MD; CFO.

Issue Overview

• Type: Preferential issue of equity shares and convertible warrants.
• Total issue size revised downward due to undersubscription.
• Main objectives: acquisitions/investments abroad; expansion and delivery centre in India; working capital.

Utilisation of Proceeds

• Utilisation as disclosed in the offer document.
• Undersubscription caused revision of proceeds and object allocations.
• Object allocations revised by board in May 2026; further changes via postal ballot in July 2026.
• Acquisitions outside India: no utilisation; Expansion: no utilisation; Working capital: partial utilisation.
• Unutilised proceeds parked in fixed deposits across multiple banks.
• Cash balance maintained in a bank account.
• Total unutilised proceeds remain at quarter-end.

Governance and Compliance

• All requisite approvals obtained (EOGM, CA certificate, board resolutions).
• Undersubscription may affect viability of the objects.
• No other material events reported.

GCP

• GCP not applicable; no allocation or board approval required.

Deviation summary

• Mode of fund raising: preferential issue of equity shares and convertible warrants.
• Total funds raised: disclosed; revised downward due to non-availing allottee.
• Deviation in use of funds: yes; three objects revised in allocations.
• Reason for deviation: revised issue size after one allottee did not avail; proceeds reallocated.
• Shareholder approval: Not Applicable.
• Audit committee comments: No comments.
• Auditors' comments: No comments.
• Monitoring: Applicable; monitoring agency named in filing.
• Status of fund utilisation: Partly utilised; remaining funds in deposits/bank accounts.
• Objects and allocations: table shows original and modified objects for acquisitions, expansion, and working capital.

Standalone results

• Standalone revenue from operations: ₹14,790 Lakhs; total income: ₹15,308 Lakhs.
• Standalone PBT: ₹4,220 Lakhs; tax: ₹1,196 current; ₹(101) deferred.
• Standalone PAT: ₹3,125 Lakhs; EPS ₹14.93 (basic and diluted).
• Quarterly results reviewed; limited review performed; no audit opinion issued.
• AGM scheduled for Sep 26, 2026 at 11:30 AM via VC/OAVM.
• Record date for final dividend: Sep 19, 2026; books closed Sep 20–26, 2026.
• Unutilised proceeds from prior share issue: ₹21,204.93 Lakhs as at Jun 30, 2026.

Consolidated results

• Consolidated revenue from operations: ₹15,779 Lakhs; total income: ₹16,268 Lakhs.
• Consolidated PAT to owners: ₹3,095 Lakhs; total comprehensive income: ₹3,136 Lakhs.
• Consolidated EPS: ₹14.78 (basic).
• Subsidiaries not reviewed; four entities not material to the Group.
• Auditors' conclusion on consolidated results not modified.

Segment performance

• Geospatial & Engineering Services revenue: ₹9,433; Technology Solutions: ₹6,309; Others: ₹37.
• Geospatial & Engg segment profit: ₹3,633; Technology ₹684; Others ₹19.