KODYTECH - Kody Technolab

📊 NSE: KODYTECH 🏢 Computers - Software - Medium / Small 📅 Last Updated: 12/14/2025 8:58

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single primary segment: IT, Robots & IT enabled services. Consolidated revenue from operations for H1 FY26 was INR 3,167.82 Lakhs, representing a 20.79% decrease compared to INR 3,999.23 Lakhs in H1 FY25. This decline is primarily due to a reduction in domestic unit billings during the half-year period.

Geographic Revenue Split

For H1 FY26, 100% of the revenue (INR 3,167.82 Lakhs) was derived from the Domestic Unit. The SEZ Units reported zero revenue for the period, although they hold assets worth INR 603.71 Lakhs, indicating a transition or setup phase for international export operations.

Profitability Margins

Consolidated Profit Before Tax (PBT) margin stood at 24.78% for H1 FY26 (INR 785.03 Lakhs) compared to 25.84% in H1 FY25. Net Profit attributable to the parent was INR 800.74 Lakhs. Margins are being pressured by a share of loss from the Falcon Tech Robotics JV amounting to INR 111.58 Lakhs.

EBITDA Margin

The estimated EBITDA margin for H1 FY26 was approximately 29.94% (calculated as PBT of INR 785.03 Lakhs + Finance Costs of INR 39.16 Lakhs + Depreciation of INR 124.23 Lakhs over Revenue). This reflects healthy core operational profitability despite the YoY revenue contraction.

Capital Expenditure

The company invested INR 605.37 Lakhs in the purchase of property, plant, and equipment during H1 FY26. Additionally, the company has planned a significant investment of INR 40.00 Cr in World EMS Private Limited to enhance manufacturing capabilities.

Credit Rating & Borrowing

Not disclosed in available documents. However, finance costs for H1 FY26 were INR 39.16 Lakhs on short-term borrowings of INR 342.02 Lakhs and negligible long-term debt, suggesting low reliance on external interest-bearing debt.

⚙️ Operational Drivers

Raw Materials

Specific raw materials are not listed, but 'Purchase of Stock in Trade' (robotic components and IT hardware) accounted for INR 729.93 Lakhs, representing 23.04% of total revenue.

Import Sources

Not specifically disclosed, though the company's joint venture in the UAE (Falcon Tech Robotics LLC) suggests a supply chain link to the Middle East for international deployments.

Capacity Expansion

The company is expanding its capital base, increasing authorized share capital to INR 16.00 Cr. It is also utilizing preferential issue funds (INR 31.93 Cr raised) to meet a working capital requirement of INR 33.50 Cr and a planned INR 40.00 Cr investment in World EMS Private Limited.

Raw Material Costs

Purchase of stock in trade decreased by 53.28% YoY to INR 729.93 Lakhs in H1 FY26 from INR 1,562.45 Lakhs in H1 FY25, aligning with the lower revenue and a shift in inventory levels (INR 444.80 Lakhs change in WIP/Finished goods).

📈 Strategic Growth

Growth Strategy

Growth is targeted through international expansion, specifically in the UAE via the Falcon Tech Robotics LLC joint venture. The company recently signed an agreement with Hypermedia FZ-LLC to deploy AI-driven 'Odigo' robots for Digital Out-of-Home (DOOH) advertising. This strategy leverages high-impact experiential marketing to scale robotic platforms across the Middle East.

Products & Services

Odigo robots (AI-driven service robots), autonomous navigation software, intelligent systems design, and IT enabled services.

Brand Portfolio

Odigo (Robotic platform), Kody Technolab.

New Products/Services

Deployment of Odigo robots in the UAE retail and media sector is expected to be a major new revenue contributor through the Falcon Tech Robotics JV.

Market Expansion

Targeting the Middle East (UAE) and Asia for large-scale robotic platform deployments. The SEZ unit assets of INR 6.03 Cr indicate a focus on establishing an export-oriented hub.

Strategic Alliances

Joint Venture: Falcon Tech Robotics LLC (with Platinum Group for Businessmen Services LLC). Partnership: Hypermedia FZ-LLC (subsidiary of W Group) for UAE robot deployment.

🌍 External Factors

Industry Trends

The industry is shifting toward AI-driven automation and 'Experiential Marketing' using robotics. Kody is positioning itself as a creator of advanced robotic solutions to capture this trend in the DOOH (Digital Out-of-Home) space.

Competitive Landscape

Competes with global robotics firms and AI automation providers. The partnership with regional players like Platinum Group provides a localized competitive advantage in the Middle East.

Competitive Moat

The company's moat is built on proprietary autonomous navigation technology and a centralized control dashboard. This creates switching costs for clients like Hypermedia who integrate these robots into their advertising networks.

Macro Economic Sensitivity

High sensitivity to IT spending and advertising budgets in the UAE and India, as robotic deployments are often part of discretionary capital expenditure for clients.

Consumer Behavior

Increasing demand for interactive and AI-driven brand engagements in retail and public spaces is driving the adoption of service robots like Odigo.

Geopolitical Risks

Trade relations between India and the UAE are critical given the company's primary growth strategy is centered on the Falcon Tech Robotics JV in Dubai.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to IT and electronics manufacturing standards in India and safety/robotics regulations in the UAE for public space deployments.

Taxation Policy Impact

Current Tax expense for H1 FY26 was INR 223.83 Lakhs, reflecting an effective tax rate of approximately 28.5% on PBT.

Legal Contingencies

No specific pending court cases or values were disclosed in the limited review reports.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the recoverability of Trade Receivables, which surged 78.48% from INR 3,478.39 Lakhs in March 2025 to INR 6,208.21 Lakhs in September 2025, leading to a negative operating cash flow of INR 10.89 Cr.