💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 6.05% YoY from INR 91.17 Cr in FY24 to INR 96.69 Cr in FY25. Growth is driven by three core segments: E-governance, Cybersecurity, and Agri-tech, with E-governance remaining the primary contributor despite a strategic shift toward recurring revenue models.

Geographic Revenue Split

The core business is primarily domestic (India), with a strong market concentration in Maharashtra. The Agri-tech segment operates a 'Data as a Service' model with global traction, particularly through Scanit Technologies and InstaSafe Inc (USA), though specific regional percentage splits are not disclosed.

Profitability Margins

Consolidated Net Profit Margin improved from 16.81% in FY24 to 17.69% in FY25. Standalone Net Profit Margin grew from 18.92% to 19.30% YoY, reflecting improved operational efficiency in core e-governance projects.

EBITDA Margin

Operating margins are supported by annual maintenance and post-implementation contracts. Net Profit grew 11.6% YoY to INR 17.10 Cr in FY25 from INR 15.32 Cr in FY24. Return on Net Worth remained stable at 6.88% compared to 6.84% in the previous year.

Capital Expenditure

The company maintains a healthy financial risk profile with NIL debt. It invested INR 9 Cr in its associate company (Scanit) in FY25, with a planned further outflow of INR 20-25 Cr to support Agri-tech operations until they become self-sufficient.

Credit Rating & Borrowing

CRISIL assigned a Long-Term rating of 'CRISIL BBB+/Stable' and a Short-Term rating of 'CRISIL A2+'. Interest coverage is exceptionally high at 63.26 times for FY25, as the company has no long-term debt obligations.

⚙️ Operational Drivers

Raw Materials

As an IT services firm, the primary 'raw material' is human capital. Employee benefit expenses are the largest cost component, supporting a headcount of 561 employees in FY25, up 9.8% from 511 in FY24.

Import Sources

Not applicable for IT services; however, the company sources sales talent and technical expertise globally, particularly for its Silicon Valley-based Agri-tech and US-based InstaSafe Inc operations.

Key Suppliers

Not disclosed as the company is service-oriented; however, it utilizes partners for project implementation and Oracle for ERP migration services.

Capacity Expansion

The company is expanding its service capacity by increasing headcount by 9.8% (to 561) and shifting from purely in-house implementation to a partner-led model to scale project execution without proportional fixed cost increases.

Raw Material Costs

Not applicable. Human resource costs are the primary driver; the company introduced ESOS 2024 to align employee interests with long-term wealth creation and manage talent retention costs.

Manufacturing Efficiency

Not applicable. Operational efficiency is measured by the Debtors Turnover Ratio, which was 2.22 times in FY25 (Standalone), and the Current Ratio, which remains high at 7.53 times.

Logistics & Distribution

Not applicable; services are delivered digitally or via onsite deployments at government/client locations.

📈 Strategic Growth

Expected Growth Rate

30%

Growth Strategy

Growth will be driven by a strategic shift to predictable implementation cycles and recurring revenue. Key tactics include targeting budget-approved government schemes (Agritech, education, tourism), widening solution offerings to include OBPAS and LMS, and collaborating with trusted partners for implementation to increase scalability.

Products & Services

E-governance software, Online Building Plan Approval (OBPAS), Double Entry Accounting System (DEAS) migration, Smart Classrooms, Learning Management Systems (LMS), Cybersecurity-as-a-Service (SaaS), and Agri-tech Data-as-a-Service.

Brand Portfolio

ABM Knowledgeware, InstaSafe (Cybersecurity), Scanit (Agri-tech).

New Products/Services

New offerings include OBPAS, DEAS, and Smart Classrooms/LMS. The company is also focusing on Power Sector and Oracle ERP migrations to diversify its e-governance portfolio.

Market Expansion

Expanding beyond core Maharashtra e-governance into national-level schemes and global Agri-tech markets. The company is specifically promoting Scanit offerings in India during the current fiscal year.

Market Share & Ranking

Established market leader in Maharashtra e-governance for over two decades; specific market share percentage not disclosed.

Strategic Alliances

Strategic shift to collaborate with 'trusted partners' for project implementation rather than relying solely on in-house resources to improve execution speed.

🌍 External Factors

Industry Trends

The industry is shifting toward Cloud & SaaS, 5G, and IoT. E-governance is evolving toward digital transformation, while Cybersecurity is seeing rising investment due to increased data breaches globally.

Competitive Landscape

Competes with large IT firms and niche e-governance players. Competitive advantage is derived from deep domain expertise in urban administration and utility software.

Competitive Moat

Durable moat built on a 20-year track record in the specialized e-governance niche and customized in-house software products. This is sustained by long-term annual maintenance contracts which provide high-margin recurring revenue.

Macro Economic Sensitivity

Sensitive to government policy changes and budget allocations for e-governance. Economic volatility and geopolitical tensions are cited as factors impacting global investment cycles for the Agri-tech and Cybersecurity segments.

Consumer Behavior

Shift toward 'IT-enabled citizen services' is driving demand for the company's core e-governance platforms.

Geopolitical Risks

Geo-political tensions impact the investment cycles of the global IT industry and can disrupt the 'Data as a Service' model in the Agri-tech segment.

⚖️ Regulatory & Governance

Industry Regulations

Subject to SEBI (SBEB) Regulations for its ESOS 2024 scheme. Agri-tech business is subject to evolving data localization and GDPR-style data privacy laws due to its 'Data as a Service' model.

Environmental Compliance

Not a high-impact sector; CSR obligation of INR 34.66 Lakhs was fully met with a total spend of INR 35.25 Lakhs in FY25.

Taxation Policy Impact

The company adheres to standard Indian corporate tax rates; specific effective tax rate % not provided.

Legal Contingencies

No material legal contingencies or significant pecuniary relationships between Directors and the company were reported for the period.

⚠️ Risk Analysis

Key Uncertainties

The modification of the core business model to a partner-led strategy may take 2+ years to bear fruit, potentially impacting short-term profitability by an undisclosed percentage.

Geographic Concentration Risk

High revenue concentration in India, specifically Maharashtra, for the e-governance segment, making it vulnerable to regional policy shifts.

Third Party Dependencies

Increasing dependency on implementation partners under the new strategic shift, which could impact project quality and reputation if partners fail to perform.

Technology Obsolescence Risk

Fast evolution of technologies like AI and Quantum computing poses a threat to existing software architectures if not continuously updated.

Credit & Counterparty Risk

High credit risk from government clients, reflected in receivables of 172 days. Gross Current Assets (excluding cash) stand at ~260 days, indicating significant capital locked in the working capital cycle.