💰 Financial Performance

Revenue Growth by Segment

Overall revenue from operations grew 38.88% YoY, reaching INR 21.04 Cr in FY25 compared to INR 15.15 Cr in FY24. Growth is driven by a strategic shift into hardware support and system integration alongside core software services.

Geographic Revenue Split

Not specifically disclosed in available documents, though the company is headquartered in Navi Mumbai and services Indian clients like BSNL and Paytm.

Profitability Margins

Net Profit Ratio remained stable at 20% (0.20) for FY25. PAT increased 41.33% YoY to INR 4.24 Cr from INR 3.00 Cr, benefiting from higher scale despite a shift toward some lower-margin hardware business.

EBITDA Margin

EBITDA margin stood at 27.95% in FY25, a slight decrease from 28.88% in FY24. Absolute EBITDA grew 27.69% to INR 5.58 Cr, reflecting the impact of lower-margin hardware sales (10-15% EBITDA level) blended with high-margin software.

Capital Expenditure

Not explicitly disclosed as a fixed asset figure, but capital employed increased significantly due to an issue of share capital and an increased CC loan limit from Union Bank, resulting in a ROCE of 28% in FY25 compared to 55% in FY24.

Credit Rating & Borrowing

The company utilizes a Cash Credit (CC) loan facility from Union Bank of India; the limit was increased at the end of FY25 to support working capital for the hardware vertical.

⚙️ Operational Drivers

Raw Materials

Hardware components and IT equipment for system integration and EMS represent the primary procurement cost, though specific component names are not listed.

Import Sources

Not specifically disclosed, though the company notes sensitivity to India-China trade relations for certain high-quality global tech products.

Key Suppliers

Not disclosed; the company purchases products from third-party vendors for its system integration business.

Capacity Expansion

The company is expanding its operational reach by establishing Olatech Digital Solutions Private Limited to focus specifically on digital marketing and SEO services.

Raw Material Costs

Not disclosed as a specific percentage of revenue, but inventory grew from zero in previous years to a significant level in FY25 to support the new hardware support business unit.

Manufacturing Efficiency

Not applicable as the company is primarily service and system-integration oriented; efficiency is measured by project execution and order book conversion.

Logistics & Distribution

Not disclosed as a specific percentage of revenue.

📈 Strategic Growth

Expected Growth Rate

137%

Growth Strategy

The company aims to reach INR 50 Cr turnover in FY26 by leveraging its INR 35 Cr order book and increasing its focus on hardware sales to build 'credentials and eligibility' for larger government and enterprise tenders. It is also scaling its proprietary 'Epiphany' brand products.

Products & Services

Software development, Hardware sales, EMS, Digital Marketing, SEO, and proprietary products including DCIM (Data Center Infrastructure Management) and NMS (Network Management System).

Brand Portfolio

Epiphany (proprietary software tools), Olatech Solutions.

New Products/Services

Expansion of the 'Epiphany' product suite and a new dedicated vertical for Digital Solutions under a separate subsidiary.

Market Expansion

Targeting larger enterprise and government tenders by using increased turnover from hardware sales to meet higher eligibility criteria.

🌍 External Factors

Industry Trends

The industry is shifting toward integrated 'Software + Hardware' solutions. Olatech is positioning itself as a full-stack provider (System Integration) rather than just a software vendor to capture larger market share.

Competitive Landscape

Competes with other SME-focused IT service providers and system integrators in the Indian market.

Competitive Moat

The moat is built on proprietary IP (Epiphany brand) and ISO 9001 certified processes. Sustainability depends on the ability to transition from low-margin hardware to high-margin recurring software licenses.

Macro Economic Sensitivity

Highly sensitive to government IT spending and digital transformation trends in the SME and enterprise sectors.

Consumer Behavior

Enterprises are increasingly seeking one-stop-shop vendors for both digital marketing and infrastructure management.

Geopolitical Risks

India-China relations are a critical factor; management notes that if relations improve, certain business segments could grow 5-fold to 10-fold due to better product access.

⚖️ Regulatory & Governance

Industry Regulations

Compliant with Companies Act 2013 and SEBI (LODR) Regulations; maintains audit trail (edit log) facilities in books of account as per latest amendments.

Taxation Policy Impact

Not specifically detailed beyond standard corporate tax compliance.

Legal Contingencies

The company has disclosed the impact of pending litigations as of March 31, 2025, in its financial statements, though specific INR values for these cases are not provided in the summary.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the timing of large project executions, as evidenced by H2 FY25 revenue being impacted by a postponed order.

Geographic Concentration Risk

Concentrated in the Indian market, particularly with large PSU (BSNL) and fintech (Paytm) clients.

Third Party Dependencies

High dependency on third-party hardware vendors for the system integration vertical, which operates on thin 10-15% EBITDA margins.

Technology Obsolescence Risk

Mitigated by continuous development of the Epiphany product line and expansion into digital marketing services.

Credit & Counterparty Risk

Exposure to large clients like BSNL; receivables quality is critical for maintaining the working capital cycle.