💰 Financial Performance

Revenue Growth by Segment

The company operates in a single reportable segment (BPO and Management Services), which generated revenue of INR 24.34 Cr in H1 FY26, representing a 54.8% growth compared to INR 15.72 Cr in H1 FY25.

Profitability Margins

Net profit margins declined from 9.9% in H1 FY25 to 5.4% in H1 FY26. This compression was driven by total expenses rising 63.4% YoY (INR 22.39 Cr vs INR 13.70 Cr), which significantly outpaced revenue growth.

EBITDA Margin

EBITDA margin for H1 FY26 stood at approximately 9.1% (INR 2.21 Cr), reflecting core profitability that is under pressure from a 63.4% surge in operational expenditures.

Capital Expenditure

The company is undertaking a significant capital raise of INR 33.86 Cr through the issuance of 32.40 Lakh fully convertible warrants at INR 104.50 each. As of November 2025, INR 8.46 Cr (25%) has been received upfront to fund expansion.

Credit Rating & Borrowing

Total borrowings as of September 30, 2025, stood at INR 3.11 Cr, comprising INR 0.41 Cr in long-term debt and INR 2.70 Cr in short-term borrowings. Specific credit ratings and interest rates were not disclosed.

⚙️ Operational Drivers

Raw Materials

As a service-based BPO, the primary cost drivers are human capital (employee benefits) and IT infrastructure, which together contributed to a total expenditure of INR 22.39 Cr in H1 FY26.

Import Sources

Not applicable for BPO services; operations are centered in Noida, Uttar Pradesh, and New Delhi.

Key Suppliers

Not disclosed in available documents; primary vendors would include IT infrastructure and utility providers.

Capacity Expansion

The company is scaling its 'Digi Smart' BPO operations, supported by a pending capital infusion of INR 33.86 Cr from the warrant issue to 19 investors.

Raw Material Costs

Operational expenses grew 63.4% YoY to INR 22.39 Cr in H1 FY26, representing 91.8% of total revenue, up from 86.8% in the previous year.

Manufacturing Efficiency

Not applicable for service industry; however, the net profit per share (EPS) declined from 1.74 to 1.47 YoY, indicating reduced earnings efficiency.

Logistics & Distribution

Not applicable for BPO services.

📈 Strategic Growth

Expected Growth Rate

54.60%

Growth Strategy

The company is executing a massive capital infusion strategy, raising INR 33.86 Cr via 32.40 Lakh warrants to 19 investors, including promoters like Reliable Data Services Ltd. This capital is earmarked for scaling the 'Digi Smart' BPO service offerings and expanding the client base to leverage the 54.6% revenue growth momentum.

Products & Services

BPO services, back-office processing, management services, and tech-enabled outsourcing solutions.

Brand Portfolio

Kandarp Digi Smart BPO.

New Products/Services

Expansion of 'Digi Smart' tech-enabled BPO services, intended to contribute to higher-margin revenue streams following the capital infusion.

Market Expansion

Targeting growth in the digital outsourcing market, supported by the transition from a general management service provider to a specialized Digi Smart BPO.

Market Share & Ranking

Listed on NSE Emerge (SME platform); specific industry ranking not disclosed.

Strategic Alliances

Reliable Data Services Limited serves as a key promoter and strategic partner, holding a 51.74% stake pre-issue.

🌍 External Factors

Industry Trends

The BPO industry is rapidly shifting toward 'Digi Smart' or tech-enabled services. Kandarp is positioning itself to capture this growth, though it currently faces high operational costs associated with scaling.

Competitive Landscape

Competes with other domestic SME BPOs and larger ITES firms; market dynamics are currently characterized by high volume growth but intense margin pressure.

Competitive Moat

The company's moat is its SME listing on NSE Emerge, which provides access to public capital while offering regulatory exemptions from several SEBI LODR corporate governance reports, reducing compliance overhead.

Macro Economic Sensitivity

Highly sensitive to corporate outsourcing budgets and domestic economic activity in India.

Consumer Behavior

Corporate clients are increasingly demanding digital-first outsourcing, driving the company's shift toward 'Digi Smart' branding.

Geopolitical Risks

Low, given the primary focus on domestic BPO and management services in Noida and Delhi.

⚖️ Regulatory & Governance

Industry Regulations

Subject to SEBI (LODR) Regulations 2015 and Companies Act 2013; currently enjoys exemptions from certain corporate governance reporting (Regulation 27(2)) due to SME status.

Environmental Compliance

Not applicable for BPO services; ESG compliance costs not disclosed.

Taxation Policy Impact

Effective tax rate for H1 FY26 was approximately 34%, with INR 68.00 Lakhs in tax expenses on a PBT of INR 199.91 Lakhs.

Legal Contingencies

No pending court cases or legal disputes with specific INR values were disclosed in the provided documents.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the management of operational expenses, which grew 63.4% YoY, and the successful collection of INR 17.79 Cr in trade receivables.

Geographic Concentration Risk

Operations are concentrated in the Noida and New Delhi regions.

Third Party Dependencies

High dependency on Skyline Financial Services Private Limited for RTA services and Reliable Data Services Limited for promoter support.

Technology Obsolescence Risk

Risk of falling behind in the 'Digi Smart' transition if the INR 33.86 Cr capital is not deployed effectively into modern IT infrastructure.

Credit & Counterparty Risk

High credit exposure with trade receivables representing 73% of half-year revenue, indicating significant counterparty risk.