ORCHASP - Orchasp Ltd

📊 NSE: ORCHASP 🏢 Computers - Software - Medium / Small 📅 Last Updated: 12/14/2025 10:43

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue from operations for H1 FY26 reached INR 1,528.99 Lakhs, representing a significant growth of 89.6% compared to INR 806.36 Lakhs in H1 FY25. Segment-specific growth percentages are not disclosed as the company reports as a single unit.

Geographic Revenue Split

Not disclosed in available documents, though the company is expanding into the USA with the incorporation of Orchasp Inc in December 2025 to market its healthcare platform.

Profitability Margins

Net profit margin for H1 FY26 stood at 4.9% (INR 74.99 Lakhs profit on INR 1,528.99 Lakhs revenue), a massive recovery from a net loss margin of -174.2% in H1 FY25 (INR 1,404.74 Lakhs loss). This turnaround is primarily due to a 96.2% reduction in 'Other Expenses' from INR 1,547.47 Lakhs to INR 58.66 Lakhs.

EBITDA Margin

Operating profit before working capital changes was INR 99.62 Lakhs (6.5% margin) in H1 FY26, compared to an operating loss of INR 1,393.20 Lakhs in H1 FY25. This indicates a return to core operational viability.

Capital Expenditure

Additions to tangible/intangible assets were minimal at INR 0.12 Lakhs in H1 FY26, down 97.2% from INR 4.32 Lakhs in H1 FY25. The company is focusing on reviving its digital assets rather than heavy physical infrastructure.

Credit Rating & Borrowing

Finance costs were zero in H1 FY26 compared to INR 14.80 Lakhs in H1 FY25, suggesting a reduction in interest-bearing debt. Short-term borrowings increased by INR 20.39 Lakhs during the period.

⚙️ Operational Drivers

Raw Materials

As an IT services firm, the primary 'raw material' is human capital. Employee benefit expenses represent 89.5% of total revenue (INR 1,369.23 Lakhs).

Import Sources

Not applicable for IT services; however, the company is sourcing market access from the USA through its new subsidiary.

Key Suppliers

Not disclosed; the company relies on technology professionals rather than material suppliers.

Capacity Expansion

Current capacity is based on its technology workforce. Planned expansion includes the incorporation of Orchasp Inc (USA) with a share capital of USD 10,000 (INR ~8.3 Lakhs) to scale the 'indusayush' platform globally.

Raw Material Costs

Cost of services/sub-contract costs were INR 1.48 Lakhs in H1 FY26, representing only 0.1% of revenue, down 21.7% from INR 1.89 Lakhs YoY.

Manufacturing Efficiency

Not applicable. Efficiency is measured by the ability to complete fixed-price and fixed-time contracts without cost overruns.

Logistics & Distribution

Distribution is digital via Android and iOS playstores for the 'indusayush' mobile app.

📈 Strategic Growth

Expected Growth Rate

Not disclosed%

Growth Strategy

Growth will be driven by the international launch of the 'indusayush' healthcare platform (www.indusayush.in). The strategy involves incorporating a new US subsidiary, Orchasp Inc, to host mobile apps on global stores and market the platform to a wider audience, bypassing the higher costs of reviving the dormant 'Cybermate Infotek Limited Inc'.

Products & Services

Application development, maintenance, business process outsourcing (BPO) segments, and the 'indusayush' healthcare platform/mobile application.

Brand Portfolio

ORCHASP, indusayush.

New Products/Services

Revival and global marketing of the 'indusayush' healthcare platform via the new US subsidiary.

Market Expansion

Expansion into the USA market through the incorporation of Orchasp Inc in December 2025.

Market Share & Ranking

Not disclosed; identified as a player in the 'mid-segment' technology space.

🌍 External Factors

Industry Trends

The industry is shifting toward performance-linked talent packages and mobile-first healthcare platforms. Orchasp is positioning itself by developing the 'indusayush' app and implementing E-SOPs to stay competitive.

Competitive Landscape

Competes with small and mid-sized companies for Government contracts and large corporations for BPO and application development.

Competitive Moat

The company's moat is built around its proprietary 'indusayush' platform. Sustainability depends on successful global adoption and the ability to maintain a skilled workforce to support the platform.

Macro Economic Sensitivity

Highly sensitive to the general economic environment, which dictates the Risk Management Framework and the availability of long-term IT contracts.

Consumer Behavior

Shift toward mobile-based healthcare services is the primary driver for the 'indusayush' platform development.

Geopolitical Risks

The decision to incorporate in the USA suggests a strategic move to mitigate regional concentration and tap into global tech spending.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to SEBI (Listing Obligations and Disclosure Requirements) Regulations. The company recently faced a disallowance by the BSE regarding the allotment of equity shares pertaining to interest accrued on FCCBs.

Taxation Policy Impact

Current tax for H1 FY26 was INR 26.83 Lakhs. The company monitors tax holidays and subsidies as part of its policy risk management.

Legal Contingencies

The company is dealing with the 'disallowance of allotment of equity shares by the BSE' related to interest on Foreign Currency Convertible Bonds (FCCBs), which resulted in a decrease in share capital compared to the previous year.

⚠️ Risk Analysis

Key Uncertainties

Revenue and expenses are described as 'difficult to predict' and can vary significantly. There is a risk of being unable to recoup investments made in software products like 'indusayush'.

Geographic Concentration Risk

Currently concentrated in India (Hyderabad/Secunderabad), but actively diversifying to the USA.

Third Party Dependencies

High dependency on the BSE for regulatory approvals regarding share capital and on global app stores (Android/iOS) for product distribution.

Technology Obsolescence Risk

High risk; success depends on staying current with technology trends to retain skilled professionals and provide competitive BPO/development services.