CYBERTECH - Cybertech Sys.

📊 NSE: CYBERTECH 🏢 Computers - Software - Medium / Small 📅 Last Updated: 12/13/2025 21:17

💰 Financial Performance

Revenue Growth by Segment

The Technology segment is the primary driver, contributing 73% of revenue (INR 42.92 Cr). State/Local Government contributes 9% (INR 5.29 Cr), Utilities 7% (INR 4.12 Cr), and Others 11% (INR 6.47 Cr). Operating revenue grew 1.4% YoY to INR 58.79 Cr in Q2FY26.

Geographic Revenue Split

The US market accounts for 99% of revenue (INR 58.20 Cr), while India accounts for 1% (INR 0.59 Cr).

Profitability Margins

Net Profit Margin for Q2FY26 was 13.0% (INR 8.66 Cr). For FY25, the Net Profit Margin improved to 13.64% from 7.91% in FY24, driven by operational efficiencies.

EBITDA Margin

EBITDA margin was 18.8% (INR 12.57 Cr) in Q2FY26, down from 21.6% in Q2FY25, representing a YoY contraction of 280 bps due to higher outsourced project costs.

Capital Expenditure

Not explicitly disclosed as a planned figure; however, the company maintains healthy cash reserves of INR 47.16 Cr as of H1FY26 to support growth initiatives.

Credit Rating & Borrowing

Finance costs were INR 0.23 Cr in Q2FY26, up 57.9% YoY from INR 0.14 Cr, primarily reflecting lease liabilities and minor borrowing costs.

⚙️ Operational Drivers

Raw Materials

Human capital is the primary 'raw material,' with Employee Benefits representing 49.3% of revenue (INR 32.93 Cr). Outsourced project costs represent 21.9% of revenue (INR 14.59 Cr).

Import Sources

Talent is primarily sourced from India and the USA to serve the North American market.

Key Suppliers

Not applicable for IT services; however, the company procures hardware and software packages for service delivery costing INR 14.59 Cr in Q2FY26.

Capacity Expansion

Current capacity includes 539 employees managing 134 active projects. Expansion is focused on cloud-native and AI-driven GIS platforms.

Raw Material Costs

Employee costs grew 5.8% YoY to INR 32.93 Cr. Wage inflation is cited as a direct challenge to the bottom line, requiring continuous cost-saving initiatives.

Manufacturing Efficiency

Project efficiency is measured by managing 134 projects with a headcount of 539, averaging approximately 4 employees per project.

Logistics & Distribution

Not applicable.

📈 Strategic Growth

Expected Growth Rate

5.20%

Growth Strategy

Focusing on high-growth markets like North America, investing in AI-driven GIS platforms, and expanding the cloud client portfolio which currently stands at 76 active clients.

Products & Services

Spatial Analytics Platform, Enterprise Cloud Transformations, and AI-driven GIS platforms.

Brand Portfolio

CyberTech, Spatialitics.

New Products/Services

AI-driven GIS platforms and advanced data privacy solutions are expected to drive future revenue.

Market Expansion

Continued focus on the North America business as a core pillar for sustainable long-term growth.

Market Share & Ranking

Not disclosed.

Strategic Alliances

Strategic focus on cloud-native partnerships to deliver enterprise agility and resilience.

🌍 External Factors

Industry Trends

Global shift towards cloud-native and AI-driven GIS platforms. The industry is evolving towards technology risk management and data privacy as essential services.

Competitive Landscape

Intensifying global competition from established and emerging players investing aggressively in AI-driven GIS.

Competitive Moat

Durable advantages include a 30-year track record, CMMI Level 3 certification, and a niche focus on Spatial Analytics which creates high switching costs for government and utility clients.