💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations decreased by 32.34% YoY, falling from INR 2,501.00 Lakhs in FY24 to INR 1,690.85 Lakhs in FY25. While specific segment percentages are not disclosed, the company operates in Cyber Security Solutions, Hardware, Software, and Services, with Hardware being the largest industry segment and Services the fastest growing.

Geographic Revenue Split

The company focuses on India and other emerging economies. India accounted for 2.8% of the global cyber security market in 2024 and is projected to be the fastest-growing regional market in Asia Pacific through 2030.

Profitability Margins

The company shifted from a profit of INR 29.44 Lakhs in FY24 to a net loss before tax of INR 296.48 Lakhs in FY25. Operating profit before working capital changes was a negative INR 114.92 Lakhs, representing a -6.79% margin on total revenue of INR 1,692.12 Lakhs.

EBITDA Margin

EBITDA is negative for FY25, with an operating loss of INR 114.92 Lakhs compared to a positive operating profit in the prior year. This decline is driven by a 32.34% drop in revenue while fixed costs like employee benefits (INR 308.92 Lakhs) and finance costs (INR 94.70 Lakhs) remained substantial.

Capital Expenditure

The company recorded a purchase of fixed assets amounting to INR 14.82 Lakhs in FY25, compared to INR 3.10 Lakhs in the previous period. Total tangible assets stood at INR 367.38 Lakhs as of March 31, 2025.

Credit Rating & Borrowing

Total borrowings include long-term borrowings of INR 58.65 Lakhs and short-term borrowings of INR 639.63 Lakhs. Finance costs of INR 94.70 Lakhs on total debt of approximately INR 698.28 Lakhs suggest an effective borrowing cost of roughly 13.5%.

⚙️ Operational Drivers

Raw Materials

Cost of materials consumed represents the largest operational expense at INR 1,263.49 Lakhs, which is 74.7% of the total revenue of INR 1,690.85 Lakhs.

Import Sources

Not disclosed in available documents; however, the company operates in domestic and international markets for cyber security hardware and software.

Capacity Expansion

The company is focusing on increasing its network strength and launching new products to capture the 20% CAGR growth in the Indian cyber security market, which is projected to reach USD 20,482.6 million by 2030.

Raw Material Costs

Raw material costs (cost of materials consumed) were INR 1,263.49 Lakhs in FY25. The company faces fluctuations in operating costs and must manage inventory effectively to mitigate price volatility in hardware components.

Manufacturing Efficiency

As a service and solution provider, efficiency is measured by employee productivity; employee benefit expenses were INR 308.92 Lakhs (18.2% of revenue) during a period of declining sales, suggesting underutilization of personnel.

📈 Strategic Growth

Expected Growth Rate

20%

Growth Strategy

The company plans to achieve the 20% industry CAGR by focusing on emerging economies, increasing network strength, launching new products, and targeting higher profitability in mature markets. It has also utilized INR 2,154.42 Lakhs as advances for business purposes to secure future deliverables through March 2026.

Products & Services

Cyber Security Solutions, IT/ITES related support and services, including hardware, software, and professional services.

Brand Portfolio

Globesecure Technologies Limited (GSTL).

New Products/Services

The company is focusing on 'new launches' and 'increasing network strength' to capture market share in the growing Indian IT & BPM industry, though specific revenue contributions for new products are not quantified.

Market Expansion

Targeting growth in India (projected to lead Asia Pacific by 2030) and mature economies where market trends are changing favorably.

Market Share & Ranking

India accounted for 2.8% of the global cyber security market in 2024; the company's specific rank is not disclosed.

Strategic Alliances

The company entered into an MOU with Zeroth Ventures International Private Limited, though the board has deferred further review as of November 2025.

🌍 External Factors

Industry Trends

The Indian cyber security market is evolving from a USD 6,870.9 million market in 2024 to a projected USD 20,482.6 million by 2030, driven by hardware and services. GSTL is positioning itself as a well-established player in emerging economies to capture this 20% CAGR.

Competitive Landscape

The industry is characterized by 'increased competition' and 'rapid changes in technology,' requiring constant innovation to maintain market position.

Competitive Moat

The company's moat is based on being 'well-established' in emerging economies and its ability to attract and retain key professional talent. However, this is challenged by intense competition and rapid technological shifts.

Macro Economic Sensitivity

Highly sensitive to Indian GDP growth and government regulations. The IT & BPM sector has a considerable impact on India's GDP, and changes in tax laws or economic developments directly affect GSTL's operations.

Consumer Behavior

Increasing urbanization and disposable income in emerging economies are driving sustainable long-term demand for cyber security solutions.

Geopolitical Risks

The company faces risks from changes in political and social conditions in India and other countries it may enter, as well as changes in monetary and interest rate policies.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act 2013 and SEBI regulations. The company reported delays in filing Form C under SEBI (PIT) Regulations and disclosures under Regulation 29 of SEBI (SAST) Regulations.

Taxation Policy Impact

The company faces significant tax-related exposures, including an Income Tax demand of INR 1,139.39 Lakhs for various assessment years and a TDS liability of INR 49.23 Lakhs that was not deposited between April and September 2025.

Legal Contingencies

The company has a total GST exposure of INR 1,893.38 Lakhs as of March 31, 2025. This includes a specific demand of INR 979.91 Lakhs (excluding interest and penalty) for which the company is filing an appeal. There is also an Income Tax demand of INR 1,139.39 Lakhs for disallowances, penalties, and interest.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the realization of contingent liabilities totaling over INR 3,000 Lakhs (GST and Income Tax), which exceeds the company's current cash reserves of INR 31.57 Lakhs.

Geographic Concentration Risk

The company notes 'limited geographical reach' as a key risk factor, though specific regional revenue percentages are not provided.

Third Party Dependencies

Significant dependency on few customers and potential risks associated with the INR 2,154.42 Lakhs advance given for business purposes for which no deliverables have yet been received.

Technology Obsolescence Risk

High risk due to 'rapid changes in technology' in the cyber security sector; failure to innovate could lead to a loss of market share.

Credit & Counterparty Risk

The auditor highlighted the recoverability of long-term loans and advances amounting to INR 953.02 Lakhs as a Key Audit Matter. Additionally, there is an outstanding loan to directors of INR 307.16 Lakhs.