Ceinsys Tech - Ceinsys Tech

📊 BSE: 538734 🏢 Computers - Software & Consulting 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Technology Solutions revenue grew 147% YoY to INR 83.9 Cr in Q2 FY26, contributing 54% of total turnover. Geospatial and Engineering Services revenue grew 39% YoY to INR 75.4 Cr in the same period. For FY24-25, standalone revenue increased 71% to INR 399.73 Cr, while consolidated revenue rose 65% to INR 418.06 Cr.

Geographic Revenue Split

Not explicitly disclosed by percentage, but the company maintains a strong international presence in the mobility sector through its subsidiary AllyGrow Technologies.

Profitability Margins

PAT margin for Q2 FY26 was 15.72%, representing a growth of 120% YoY. For H1 FY26, the PAT margin improved to 17.93%, a growth of 143% YoY. Standalone net profit ratio for FY24-25 improved to 20.36% from 15.40% in the previous year due to higher sales realization.

EBITDA Margin

EBITDA margin for Q2 FY26 was 21.77%, up 310 bps YoY. For H1 FY26, the EBITDA margin was 20.56%, up 226 bps YoY. The improvement is attributed to the completion of older, lower-margin projects and the execution of new, high-margin technology-driven projects.

Capital Expenditure

Not explicitly disclosed in absolute INR Cr for future plans, but the company utilized cash credit limits in FY24-25, increasing the debt-equity ratio from 0.02 to 0.09.

Credit Rating & Borrowing

CARE Ratings revised the long-term bank facilities rating to CARE BBB; Positive (from Stable) as of August 2025. Short-term bank facilities were reaffirmed at CARE A3.

⚙️ Operational Drivers

Raw Materials

As a technology and engineering services firm, the primary 'raw materials' are skilled talent (human capital) and digital infrastructure (advanced processing capabilities and software).

Capacity Expansion

The company is expanding its capabilities in high-value digital initiatives like IoT, AI, and ML. The total order book as of September 30, 2025, stands at INR 1,092 Cr, providing high visibility for future execution.

Raw Material Costs

Not applicable as a percentage of revenue for this service-based business; however, human resource costs are the primary operational expense.

Manufacturing Efficiency

Not applicable; however, operational efficiency improved as H1 FY26 revenue (INR 320 Cr) already surpassed the full FY23-24 consolidated revenue (INR 254 Cr).

📈 Strategic Growth

Expected Growth Rate

95%

Growth Strategy

Growth is driven by a strategic shift toward high-margin technology projects (IoT, AI, ML) and expansion into the mobility sector via AllyGrow Technologies. The company is focusing on high-value digital initiatives which now contribute 54% of turnover. Management expects to surpass targets if government projects like the Jal Jeevan Mission (JJM) accelerate.

Products & Services

Geospatial intelligence services, data analytics, decision support systems, enterprise web solutions, and mobility engineering services.

Brand Portfolio

CS Tech Ai (recently rebranded), Ceinsys Tech Limited, AllyGrow Technologies.

New Products/Services

Focus on technology-advanced projects like IoT, Artificial Intelligence, and Machine Learning (ML) which contribute to higher weighted average EBITDA margins.

Market Expansion

Strategic expansion into the mobility sector and international markets through the 2022 acquisition of AllyGrow Technologies.

Strategic Alliances

Partnership with Valorem Advisors for investor relations and Arihant Capital for earnings call hosting.

🌍 External Factors

Industry Trends

The geospatial industry is evolving toward immediate insights via AI and ML. There is a global shift toward green investments and ESG-led business strategies, which aligns with the company's focus on water and sustainable infrastructure.

Competitive Landscape

The company operates in a highly competitive industry, requiring constant innovation and talent acquisition to maintain its edge.

Competitive Moat

The moat is built on the intersection of core engineering, AI, geospatial intelligence, and mobility. This multidisciplinary expertise is difficult to replicate and is sustained by a healthy INR 1,092 Cr order book.

Macro Economic Sensitivity

Sensitive to government policy and spending on digital infrastructure and sustainable development goals (SDGs) like climate action and energy transition.

Consumer Behavior

Increasing demand from governments and corporations for net-zero pathways and intelligent infrastructure decisions.

Geopolitical Risks

Uneven global trade recovery and policy reforms in cross-border data flows affect the international mobility engineering segment.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act, 2013, and SEBI (Listing Obligation & Disclosure Requirements) Regulations, 2015. Financials are prepared under Indian Accounting Standards (Ind AS).

Environmental Compliance

The company focuses on Sustainable Development Goals (SDGs) including climate action and energy transition as part of its business strategy.

Taxation Policy Impact

The standalone PAT margin was slightly impacted in FY24 by higher tax outflows, though it recovered significantly in FY25.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the timing of receivables from government projects, which management expects to clear within 2-3 months of the Q2 FY26 report.