💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 20.97% YoY to INR 215.11 Cr in FY2024 from INR 177.82 Cr in FY2023, driven by engineering design and GIS services for telecommunication and utility segments. However, FY2025 revenue is projected to decline to INR 100.82 Cr due to project execution delays and customer defaults.

Geographic Revenue Split

The US market is the primary revenue driver, contributing the majority of revenue through the subsidiary Apex Advanced Technology LLC (AAT), in which Cadsys holds a 52% stake. Operations are heavily concentrated in the Southeastern U.S. region.

Profitability Margins

Operating margin improved to 12.65% in FY2024 from 8.96% in FY2023. Net Profit Margin (NPM) was 6.45% in FY2024 but turned sharply negative to -68.12% in FY2025 due to a significant write-off of unbilled receivables amounting to INR 20.40 Cr.

EBITDA Margin

EBITDA for FY2024-25 was reported at a loss of INR 28.76 Cr, representing an EBITDA margin of approximately -28.5% on revenue of INR 100.82 Cr, compared to a positive operating margin of 12.65% in the previous fiscal.

Capital Expenditure

The company acquired additional office space in Hyderabad in early 2025 to support a scale-up of 300 new professionals. Specific INR value for this expansion was not disclosed.

Credit Rating & Borrowing

CRISIL BB+/Stable (Long Term) and CRISIL A4+ (Short Term). Ratings were migrated to 'Issuer Not Cooperating' in October 2025. Bank limit utilization averaged 41.24% through March 2024, with interest coverage at 3.63 times in FY2024.

⚙️ Operational Drivers

Raw Materials

As an ITES provider, the primary 'raw material' is human capital (skilled engineers and CAD technicians), representing the largest operational cost. The company recruited 300 new professionals in March-April 2025.

Import Sources

Not applicable as the company provides services; however, talent is primarily sourced from Hyderabad, India, to support US-based offshore services.

Key Suppliers

Not disclosed as the business is service-oriented; however, strategic alliances are formed with regional 'Turf Vendors' in the US to mitigate operational disruptions.

Capacity Expansion

Expanded workforce by 300 professionals (undergoing training as of April 2025) and acquired new office space in Hyderabad to handle a significant new design and engineering contract for a US portfolio company.

Raw Material Costs

Employee costs are the primary driver; the recruitment of 300 staff members is expected to significantly increase the fixed cost base in FY2025-26.

Manufacturing Efficiency

Efficiency is measured by project execution timelines; Hurricane Milton and adverse weather in late 2024 led to a slowdown in Southeastern U.S. project execution.

Logistics & Distribution

Not applicable; services are delivered digitally via GIS and CAD software platforms.

📈 Strategic Growth

Expected Growth Rate

21%

Growth Strategy

Growth is targeted through a strategic alliance with a US private equity partner (FVLCRUM) whose portfolio company acquired a major telecom turf vendor. Cadsys will provide comprehensive design and offshore engineering services to this entity, supported by a 300-person headcount increase.

Products & Services

Engineering design, CAD services, Geographic Information System (GIS) mapping, and project management support for telecommunication, gas, and electric utilities.

Brand Portfolio

Cadsys (India) Limited, Apex Advanced Technology (AAT).

New Products/Services

Expansion into the wireless segment and wireline OSP/ISP (Outside Plant/Inside Plant) deployments for two leading U.S. telecommunications providers.

Market Expansion

Expansion into new U.S. regions through organic growth and repeat orders from existing customers in early 2025.

Market Share & Ranking

Not disclosed; however, the company faces intense competition in the ITES segment which constrains pricing flexibility.

Strategic Alliances

Partnership with FVLCRUM (US-based PE investor) and strategic alliances with regional Turf Vendors in the Southeastern U.S.

🌍 External Factors

Industry Trends

U.S. fiber deployment grew 13% in 2023 but slowed in 2024. The industry is shifting toward Municipal Networks and Electric Cooperatives gaining popularity for fiber rollouts.

Competitive Landscape

Intense competition in the ITES segment from both large global players and niche engineering service providers.

Competitive Moat

Moat is based on the 20-year track record of promoters in workflow design and process re-engineering, and a 52% stake in a US-based executing arm (AAT) which provides local market access.

Macro Economic Sensitivity

Highly sensitive to U.S. infrastructure spending and inflation; high inflation and uncertainty regarding BEAD (Broadband Equity, Access, and Deployment) funding slowed growth in 2024.

Consumer Behavior

Shift toward high-speed internet demand is driving telecom providers to invest in fiber, though spending is currently subdued due to macroeconomic uncertainty.

Geopolitical Risks

Exposure to U.S. regulatory changes and federal funding shifts (BEAD), though funding is expected to continue across administrations.

⚖️ Regulatory & Governance

Industry Regulations

Subject to U.S. telecommunications regulations and federal funding guidelines (BEAD and ACP). The Affordable Connectivity Program (ACP) provided $14.2 billion in subsidies affecting the end-user market.

Environmental Compliance

Operations were adversely impacted by environmental factors, specifically Hurricane Milton in October 2024, which caused project execution delays.

Taxation Policy Impact

Not disclosed; however, the company operates in both Indian and US tax jurisdictions.

Legal Contingencies

The company secured a favorable U.S. court judgment for $1.44 million (approx. INR 12 Cr) in accounts receivable recovery. It is also initiating legal proceedings against another counterparty for a $4 million (INR 34 Cr) outstanding payment.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the realization of $4 million in doubtful receivables from a US counterparty; any further write-offs will directly impact the group's net worth and profitability.

Geographic Concentration Risk

High concentration in the U.S. market, specifically the Southeastern region, making the company vulnerable to regional weather events and U.S. telecom policy changes.

Third Party Dependencies

Heavy reliance on a single US-based PE partner (FVLCRUM) and their portfolio companies for order flow and revenue visibility.

Technology Obsolescence Risk

Risk is mitigated by continuous recruitment and training in the latest CAD and GIS software development and engineering design standards.

Credit & Counterparty Risk

Significant credit risk identified with a 166-day receivable cycle in FY24; 35% of total debtors are tied to a single counterparty with weak financial flexibility.