CTE - Cambridge Tech.

📊 NSE: CTE 🏢 Computers - Software - Medium / Small 📅 Last Updated: 12/13/2025 20:39

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew from INR 32 Cr in FY15 to INR 100 Cr in FY17, representing a total growth of 212.5%. In USD terms, revenue increased from USD 5 Mn to USD 15 Mn (200% growth) driven by four growth engines launched in 2015.

Geographic Revenue Split

The company maintains a strong focus on the U.S. market, specifically working with innovative U.S. startups, while also managing overall operations in the Asia Pacific region through 9 global offices.

Profitability Margins

Net Profit (PAT) margin improved significantly from 9.3% in FY15 (INR 3 Cr) to 17% in FY17 (INR 17 Cr). Gross profitability is driven by a shift from traditional back-end IT services to high-value front-end innovation.

EBITDA Margin

EBITDA margin stood at 22% in FY17 (INR 22 Cr), up from 18.75% in FY15 (INR 6 Cr). EBITDA grew 3x in USD terms from USD 1 Mn to USD 3.2 Mn between 2015 and 2017.

Capital Expenditure

The company has made 12 strategic investments since 2015 to fuel its growth engines. Specific INR values for physical CAPEX are not disclosed, but the company expanded from 5 to 9 offices during the 2015-2017 period.

Credit Rating & Borrowing

Total borrowings were reported at 6056.61 (units not specified, likely INR Lakhs) as of September 30, 2025. Specific credit ratings and interest rate percentages are not disclosed in the available documents.

⚙️ Operational Drivers

Raw Materials

Human Capital/Talent (350 employees) represents the primary 'raw material' for this IT services business, accounting for the bulk of operational costs.

Import Sources

Not applicable as a service-based IT company; however, the company sources 'innovation insights' and talent through its proximity to the U.S. startup ecosystem.

Key Suppliers

Not applicable for IT services; the company's primary inputs are technology platforms and human expertise rather than physical raw materials.

Capacity Expansion

Employee capacity increased 133% from 150 in 2015 to 350 in 2017. Office infrastructure expanded from 5 locations to 9 locations globally to support the 3x revenue growth.

Raw Material Costs

Employee-related costs are the primary driver; the company utilizes ESOP schemes (re-granting 3,00,000 shares at INR 40.50) as a strategy to manage talent costs and retention.

Manufacturing Efficiency

Not applicable; service efficiency is measured by the 5x growth in PAT (INR 3 Cr to INR 17 Cr) outstripping the 3x growth in revenue, indicating high operational leverage.

Logistics & Distribution

Not applicable; services are delivered digitally and through global office hubs in India (Hyderabad, Bengaluru, Mumbai) and international locations.

📈 Strategic Growth

Expected Growth Rate

50%

Growth Strategy

The company aims to reach USD 50 Mn revenue by 2020 (Vision 2020) through three streams: Organic growth in four service offerings (USD 10 Mn avg), Inorganic growth in Big Data and Data Science, and liquidity from 12 equity investments in the CI ecosystem expected within 3-5 years.

Products & Services

IT services including 'Build & Manage' technology for enterprises, Data Science insights for CxOs, Cloud services, and innovation consulting for U.S. startups.

Brand Portfolio

Cambridge Technology Enterprises (CTE), CT, and the 'CI' investment ecosystem.

New Products/Services

Expansion into Big Data and Data Science through inorganic acquisitions is expected to contribute significantly to the USD 50 Mn Vision 2020 target.

Market Expansion

Expansion of Asia Pacific operations and increasing the number of global offices from 5 to 9 to support international enterprise clients.

Market Share & Ranking

Not disclosed; the company positions itself as a niche 'front-end innovation' player compared to traditional 'back-end' Indian IT firms.

Strategic Alliances

Partnerships with 'Innovative U.S. Startups' to identify cutting-edge technologies and the CI investment ecosystem involving 12 portfolio companies.

🌍 External Factors

Industry Trends

The industry is shifting from traditional back-end cost-saving IT to front-end innovation-driven value. CTE is positioned to capture this by focusing on Data Science and Cloud rather than just maintenance.

Competitive Landscape

Competes with traditional Indian IT giants (focused on cost) and niche digital transformation consultancies (focused on innovation).

Competitive Moat

The moat is built on a unique ecosystem of 12 startup investments that provide early access to disruptive technologies, which is sustainable as long as the company maintains its 3-5 year liquidity cycle for reinvestment.

Macro Economic Sensitivity

Highly sensitive to U.S. and Indian economic performance; growth is tied to enterprise IT spending and startup funding environments.

Consumer Behavior

Enterprise CxOs are increasingly demanding data-driven decision-making tools, directly benefiting CTE's 'Insights from Data' service line.

Geopolitical Risks

Trade barriers or visa restriction changes between India and the U.S. could impact the delivery model for enterprise clients.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with SEBI Listing Obligations (LODR) 2015 and NSE/BSE circulars regarding director appointments and financial reporting.

Environmental Compliance

Not disclosed; as an IT company, ESG impact is typically focused on human capital and energy-efficient data centers.

Taxation Policy Impact

The company is subject to standard Indian corporate tax rates; current tax liabilities (net) were reported at 42.34 as of September 2025.

Legal Contingencies

The company has resolved to strike off its subsidiary, N2T1 AI Solutions Private Limited, which had nil turnover and net worth as of March 31, 2025.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the 3-5 year timeline required to generate liquidity from equity investments, which could impact cash flow if exits are delayed.