GATECH - GACM Tech

📊 NSE: GATECH 🏢 Computers - Software - Medium / Small 📅 Last Updated: 12/13/2025 22:14

💰 Financial Performance

Revenue Growth by Segment

Total revenue for FY25 reached INR 13.00 Cr, representing a 79.6% increase from INR 7.24 Cr in FY24. The H1 FY26 period showed further acceleration with revenue of INR 10.91 Cr, a 130% increase over the H1 FY25 figure of INR 4.74 Cr, driven by core consultancy services.

Geographic Revenue Split

100% of revenue is generated from operations based in India, specifically from the company's headquarters in Hyderabad.

Profitability Margins

Net profit margin for FY25 was 28.65%, a significant improvement from 15.25% in FY24. Operating profit margin also rose from 33.85% to 47.08% due to increased turnover and optimized operating expenses.

EBITDA Margin

Operating profit ratio of 47.08% for FY25, reflecting strong core profitability and efficient service delivery.

Capital Expenditure

INR 1.47 Cr (146.91 Lakhs) in depreciation for FY25; specific planned capital expenditure for future periods is not disclosed.

Credit Rating & Borrowing

Not disclosed; however, the Debt-Equity ratio improved to 0.13 from 1.12 as principal was repaid, and the Interest Coverage Ratio reached 1951.54, indicating very low borrowing risk.

⚙️ Operational Drivers

Raw Materials

Not applicable (Service Industry); primary cost drivers are Human Capital/Employee Benefits (INR 3.56 Cr in FY25) and Operational Costs (INR 1.27 Cr in FY25).

Import Sources

Not applicable for consultancy services.

Key Suppliers

Not disclosed for service-based consultancy operations.

Capacity Expansion

Current workforce of 21 employees as of March 31, 2025; expansion is focused on scaling talent to support the 130% revenue growth observed in H1 FY26.

Raw Material Costs

Operational costs were INR 1.27 Cr in FY25 (9.8% of revenue); employee benefit expenses were INR 3.56 Cr (27.4% of revenue), reflecting the high-margin nature of the consultancy business.

Manufacturing Efficiency

Not applicable; however, the Operating Profit Ratio improved to 47.08% from 33.85% YoY, indicating high operational efficiency.

Logistics & Distribution

Not applicable.

📈 Strategic Growth

Expected Growth Rate

130%

Growth Strategy

Leveraging 'Digital India' initiatives and the increasing demand for FinTech and Insurtech solutions. The company is positioning itself as an expert in digital transformation to secure substantial contracts and new revenue streams.

Products & Services

Financial Consultancy, Management Consultancy, Software Development Services, and Business Ancillary Consultancy.

Brand Portfolio

GACM Technologies Limited.

New Products/Services

Focusing on AI-based technologies and Insurtech solutions; H1 FY26 revenue growth of 130% suggests strong market reception for these offerings.

Market Expansion

Targeting the dynamic insurtech sector and leveraging global and Indian economic trends for FY 2024-25.

Market Share & Ranking

Not disclosed.

🌍 External Factors

Industry Trends

The Indian consultancy industry is growing due to AI integration and increased finance penetration. The shift towards digitalization and Insurtech provides a bright future for software development services.

Competitive Landscape

Vast and diverse industry including private/public companies, banks, and NBFCs; GACM differentiates through specialized FinTech expertise.

Competitive Moat

Moat is built on intellectual capital and a specialized talent pool of 21 employees. Sustainable through regular skill training and a performance-based reward system that maintains a 47.08% operating margin.

Macro Economic Sensitivity

Sensitive to GDP growth and digitalization trends (e.g., Digital India), which act as catalysts for FinTech and software demand.

Consumer Behavior

Increasing financial literacy and reliance on technology in the financial sector are driving demand for digital transformation services.

Geopolitical Risks

Global economic trends impact the dynamic insurtech sector and international demand for software services.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with SEBI Listing Obligations and Disclosure Requirements (LODR) 2015, Indian Accounting Standards (Ind AS 34), and the Companies Act 2013.

Environmental Compliance

Not disclosed; service-based operations have minimal environmental impact.

Taxation Policy Impact

Current tax expenses and MAT written off (INR 81.64 Lakhs) are managed in accordance with Indian tax laws.

Legal Contingencies

No specific pending court case values disclosed; the company focuses on zero-tolerance fraud policies and regulatory compliance to avoid monetary and reputational damage.