💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 5% YoY to INR 390 million in H1 FY26 from INR 373 million. Growth was driven by expansion in EMEA post-Blueberry acquisition and new strategic consulting in Hyderabad.

Geographic Revenue Split

The company serves global clients across the US, UK, Europe, MENA, and India. Specific regional percentages are not disclosed, but EMEA expansion is highlighted as a key growth driver.

Profitability Margins

EBITDA margin expanded by 172 basis points to 23.5% in H1 FY26 from 21.8%. PAT margin improved by 132 basis points to 18.4% from 17.1% YoY.

EBITDA Margin

EBITDA margin stood at 23.5% in H1 FY26, up from 21.8% in H1 FY25, reflecting a 13% YoY growth in absolute EBITDA to INR 92 million.

Capital Expenditure

Historical CapEx for FY25 included investments in technology infrastructure; planned CapEx focuses on scaling Edge Micro Data Centers and AI-enabled platforms. Specific INR Cr values for future CapEx are not disclosed.

Credit Rating & Borrowing

Consolidated finance costs were INR 3.64 Lakhs for FY25, indicating minimal debt and low borrowing costs. Standalone finance costs were INR 2.45 Lakhs.

⚙️ Operational Drivers

Raw Materials

As a technology services firm, the primary 'raw material' is human capital, specifically skilled software engineers. 82% of associates have 5+ years of experience.

Import Sources

Talent is primarily sourced from India, with development centers in Bangalore, Pune, Hyderabad, and Nagpur.

Key Suppliers

Key technology partners and infrastructure providers include BSNL (Edge Computing), Blue Yonder, Microsoft, AWS, and Verint.

Capacity Expansion

Current capacity includes 4 development centers in India and offices in Atlanta (US) and London (UK). Expansion is focused on scaling the Edge Micro Data Centre platform with BSNL.

Raw Material Costs

Employee benefit expenses are the primary cost driver. Specific percentage of revenue for H1 FY26 is not disclosed, but margin expansion indicates efficient cost management.

Manufacturing Efficiency

Efficiency is measured by high customer satisfaction (95-98%) and a high retention rate (>90%), with over 85% of clients staying for 4+ years.

Logistics & Distribution

Not applicable; services are delivered digitally through a multi-shore delivery model.

📈 Strategic Growth

Expected Growth Rate

20%

Growth Strategy

Growth will be achieved by scaling the Edge Micro Data Centre platform with BSNL, commercializing AI-enabled platforms and low-code accelerators, and driving synergies from the Blueberry Systems and Celestia Crew acquisitions.

Products & Services

Software development, supply chain consulting, Edge Micro Data Centers, AI-driven digital transformation solutions, and business consultancy.

Brand Portfolio

Delaplex, DelaOne (System Integrator), Blueberry Systems, Celestia Crew Consultancy.

New Products/Services

Edge Micro Data Centers (DelaOne) and AI-enabled platforms for retail, logistics, and workforce management are expected to drive H2 FY26 growth.

Market Expansion

Deepening presence in the UK, Europe, MENA, and the US, with a focus on converting paid POCs with PSUs and large enterprises into full-scale projects.

Market Share & Ranking

Not disclosed in available documents; company positions itself at the intersection of IT Services, Edge Computing, and AI Consulting.

Strategic Alliances

Strategic partnerships with BSNL, Blue Yonder, Microsoft, AWS, and Verint to provide tailored industry solutions.

🌍 External Factors

Industry Trends

The India IT services market is expanding; trends include a shift toward AI-driven transformation, Edge Computing, and subscription-based software offerings.

Competitive Landscape

Operates in a highly competitive sector against global IT firms; differentiates through specialized supply chain expertise and Edge Computing alliances.

Competitive Moat

Moat consists of 17+ years of expertise, high customer retention (>90%), and a highly experienced workforce (82% with 5+ years exp). These are sustainable through deep domain knowledge in supply chain.

Macro Economic Sensitivity

Highly sensitive to global IT spending and client budget cycles, particularly in the US and Europe.

Consumer Behavior

Rising demand for user-centric applications and intuitive UX/UI design is driving the company to strengthen its digital experience expertise.

Geopolitical Risks

Trade barriers and regulatory changes in EMEA and the US could impact the delivery of cross-border IT services.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with global data protection standards including GDPR and CCPA is a key differentiator for their development services.

Environmental Compliance

Exploring opportunities for green software solutions and reducing environmental footprint; specific ESG costs not disclosed.

Taxation Policy Impact

Not disclosed in available documents; company follows standard Indian and international tax regulations for its various entities.

Legal Contingencies

No material weaknesses in internal controls or significant pending court cases were identified in the available financial year reviews.

⚠️ Risk Analysis

Key Uncertainties

Cybersecurity threats, data breaches, and the challenge of balancing continuous innovation with operational stability.

Geographic Concentration Risk

Significant revenue is derived from the US and UK markets, making the company vulnerable to regional economic downturns.

Third Party Dependencies

Strategic dependency on BSNL for the Edge Micro Data Centre initiative and Blue Yonder for supply chain consulting.

Technology Obsolescence Risk

High risk in the fast-evolving AI and cloud space; requires constant R&D to maintain a competitive edge.

Credit & Counterparty Risk

Receivables quality is managed through a comprehensive system of internal controls; no material design weaknesses identified.