FROG - Frog Cellsat

📊 NSE: FROG 🏢 Telecommunications - Equipment 📅 Last Updated: 12/13/2025 22:10

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment: Mobile coverage solutions. Revenue for FY25 reached INR 219.39 Cr, representing a 39% YoY growth from INR 157.73 Cr in FY24. However, H1 FY26 revenue saw a significant decline of 31.1% YoY to INR 54.93 Cr compared to INR 79.76 Cr in H1 FY25.

Geographic Revenue Split

Revenue is primarily generated from India, with operations in Delhi, Gurgaon, Mumbai, and Assam. International presence includes the UK through subsidiary GORF UK Limited, which reported a turnover of £3,495 (approx. INR 0.038 Cr) for FY25, contributing less than 1% to total revenue.

Profitability Margins

FY25 PAT margin was 10.7%, improving by 90 bps from 9.8% in FY24. H1 FY26 performance deteriorated sharply, reporting a PAT loss of INR 1.02 Cr compared to a profit of INR 5.31 Cr in H1 FY25, primarily due to lower revenue and high fixed costs.

EBITDA Margin

EBITDA margin for FY25 was 16.1%, up 314 bps from 12.9% in FY24. Adjusted EBITDA (excluding ESPS costs) was 17.2%. In H1 FY26, EBITDA margin collapsed to 1.0% (INR 0.55 Cr) from 8.1% (INR 6.45 Cr) in H1 FY25 due to a 91.5% drop in EBITDA value.

Capital Expenditure

Property, Plant & Equipment stood at INR 79.9 Cr as of March 31, 2025. The company capitalized R&D expenditure of INR 1.36 Cr during H1 FY26 to support product development in the OneDAS and repeater lines.

Credit Rating & Borrowing

The company holds a 'CRISIL SME 1*' rating, the highest creditworthiness for SMEs. Short-term borrowings increased significantly by 330% to INR 20.2 Cr in March 2025 from INR 4.69 Cr in March 2024 to fund working capital and inventory.

⚙️ Operational Drivers

Raw Materials

Electronic components and telecom hardware modules (specific names like semiconductors or copper not detailed) constitute the bulk of the cost of goods sold, with total expenses excluding D&A and finance costs reaching INR 184.12 Cr in FY25 (84% of revenue).

Import Sources

Not explicitly disclosed, though the company notes exposure to international competition and global economic growth, implying global sourcing for high-tech telecom components.

Capacity Expansion

Current capacity is not specified in units; however, the company is transitioning to a 'multi-industry technology solutions' provider under the name Frog Innovations Limited to expand its addressable market beyond traditional telecom.

Raw Material Costs

Raw material and operational expenses represented 84% of revenue in FY25. Management is focusing on inventory control and reducing obsolescence provisions to manage costs amid longer procurement lead times for repeaters.

Manufacturing Efficiency

The company focuses on maintaining equipment at rated capacity and has appointed Rajan Gupta & Co. LLP as internal auditors to ensure operational transparency and cost reduction.

📈 Strategic Growth

Expected Growth Rate

31%

Growth Strategy

The company aims to reach INR 500 Cr revenue by FY28 (Vision FY28) through strategic realignment into multi-industry tech solutions, leveraging the PLI scheme (INR 5.09 Cr incentive approved), and expanding the 'OneDAS' indoor coverage product line.

Products & Services

Digital Repeaters, Active DAS (OneDAS), and related accessories for mobile coverage solutions.

Brand Portfolio

Frog Innovations (formerly Frog Cellsat), OneDAS.

New Products/Services

Expansion of OneDAS (Indoor Coverage Solutions) is expected to be a major growth driver, though specific revenue contribution % for the new version is not disclosed.

Market Expansion

Targeting multi-industry technology solutions and expanding indoor mobile coverage market share.

Market Share & Ranking

Leading organization in mobile coverage solutions; specific % market share not disclosed.

Strategic Alliances

Strategic partnerships with industry leaders are mentioned as a core pillar for the FY28 vision, though specific partner names are not listed.

🌍 External Factors

Industry Trends

The industry is shifting toward 5G and high-density indoor coverage. Frog is positioning itself with Active DAS (OneDAS) to capture the growing demand for indoor mobile connectivity, which is currently a high-growth sub-sector.

Competitive Landscape

Faces intense competition from both domestic manufacturers and international telecom equipment giants.

Competitive Moat

Moat is built on being a PLI scheme beneficiary (telecom products) and having a high credit rating (CRISIL SME 1*), which provides a cost-of-capital advantage. However, rapid technological shifts in telecom pose a threat to moat durability.

Macro Economic Sensitivity

Sensitive to economic growth in India and abroad, as telecom infrastructure spending is tied to GDP growth and government fiscal policies.

Consumer Behavior

Increasing demand for seamless indoor mobile data is driving the shift from outdoor repeaters to indoor DAS solutions.

Geopolitical Risks

International operations and domestic government policies regarding telecom regulations are cited as key uncertainties.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the PLI Scheme for Telecom and Networking Products and SEBI Listing Obligations. Changes in telecom spectrum policies or hardware standards directly impact product demand.

Environmental Compliance

CSR policy focuses on environmental sustainability, health, and education; specific ESG costs not disclosed.

Taxation Policy Impact

Effective tax rate for FY25 was approximately 28.3% (INR 9.29 Cr tax on INR 32.84 Cr PBT).

Legal Contingencies

The company reported no investor complaints for the period ended September 30, 2025. No specific high-value court cases or labor disputes were mentioned in the provided reports.

⚠️ Risk Analysis

Key Uncertainties

Fluctuations in earnings (as seen in H1 FY26's 91% EBITDA drop), ability to manage rapid growth, and time/cost overruns on contracts.

Geographic Concentration Risk

High concentration in India; international revenue (UK) is currently negligible at <1%.

Third Party Dependencies

Dependency on telecom operators' CAPEX cycles and government PLI disbursements.

Technology Obsolescence Risk

High risk; rapid advancements in 5G and 6G could render existing digital repeaters obsolete, requiring continuous R&D capitalization (INR 1.36 Cr in H1 FY26).