PELATRO - Pelatro

📊 NSE: PELATRO 🏢 Computers - Software - Medium / Small 📅 Last Updated: 12/14/2025 10:57

💰 Financial Performance

Revenue Growth by Segment

Total revenue grew by 58% YoY in H1 FY26. The business model is heavily driven by repeat revenue, which accounts for 79% of the total (comprising 57% recurring and 22% reoccurring revenue), while one-time licensed contracts contribute the remaining 21%.

Geographic Revenue Split

While a full regional percentage split is not provided, the Singapore-based subsidiary, Pelatro Pte. Ltd., reported a turnover of USD 4,697,351 for the period ending December 2024, indicating significant international contribution.

Profitability Margins

The company targets an annual EBITDA margin of approximately 24% and a PAT margin of 14%. H1 FY26 saw margins impacted by the Estel acquisition, but management expects these to improve as the acquired business scales to CVM division levels.

EBITDA Margin

EBITDA margin is projected at 24% for the full year (including other income), driven by increasing non-linearity in the business model where revenue growth outpaces cost additions.

Capital Expenditure

Not disclosed in absolute INR Cr; however, the company is investing in product development with planned launches of new versions for all acquired products by March 2026.

⚙️ Operational Drivers

Raw Materials

As a software company, primary inputs are human capital (technical staff) and software infrastructure rather than physical raw materials.

Import Sources

Not applicable for software-based operations.

Key Suppliers

Not disclosed.

Capacity Expansion

The company does not use physical units like MT; instead, it measures capacity by delivery teams. Management stated they have adequate delivery capacity to execute the 100% contracted revenue for FY26 without immediate large-scale hiring.

Raw Material Costs

Not applicable; however, employee and implementation costs are the primary drivers, with implementation cycles lasting 5 to 8 months.

Manufacturing Efficiency

Not applicable; efficiency is measured by the 79% repeat revenue rate, indicating high customer retention and lower cost of sales for existing accounts.

Logistics & Distribution

Not applicable.

📈 Strategic Growth

Expected Growth Rate

25-30%

Growth Strategy

Growth will be achieved primarily through customer base expansion and the integration of the Estel acquisition. The company plans to launch brand-new versions of all acquired products by March 2026 to enable cross-selling and up-selling of ETopUp and loyalty management tools to existing telecom clients.

Products & Services

Contextual Customer Engagement Hub, Campaign Management, Loyalty Management, and ETopUp solutions for telecom operators.

Brand Portfolio

Pelatro, Estel.

New Products/Services

New versions of acquired Estel products (ETopUp, etc.) are scheduled for launch by March 2026 to drive higher average revenue per customer.

Market Expansion

Focusing on increasing the number of telecom customers globally, which is identified as the 'bigger factor' for 25-30% growth compared to revenue per customer increases.

Market Share & Ranking

Not disclosed.

Strategic Alliances

Acquired Estel in July 2025 to expand the product portfolio into ETopUp and other telecom sectors.

🌍 External Factors

Industry Trends

The industry is shifting toward contextual engagement and loyalty management; Pelatro is positioning itself to capture this by evolving its product suite to meet the 25-30% growth in demand for customized telecom software.

Competitive Landscape

Operates in the specialized Telecom CVM (Customer Value Management) space, competing on product capability and implementation expertise.

Competitive Moat

The company possesses a strong moat through high switching costs, evidenced by a 79% repeat revenue rate and long-term contracts that provide 100% revenue visibility for the current fiscal year.

Macro Economic Sensitivity

High sensitivity to telecom industry CAPEX and OPEX cycles, as the sales cycle exceeds 10 months.

Consumer Behavior

Telecom operators are increasingly demanding integrated hubs for campaign and loyalty management to reduce churn.

Geopolitical Risks

Not disclosed.

⚖️ Regulatory & Governance

Industry Regulations

Compliant with the Companies Act 2013, FEMA (Foreign Exchange Management Act) for its overseas investments, and SEBI Listing Obligations.

Environmental Compliance

Not applicable for software operations.

Taxation Policy Impact

The company operates across jurisdictions including India and Singapore (Pelatro Pte. Ltd.); the projected PAT margin of 14% against a 24% EBITDA margin suggests a significant tax and depreciation bridge.

Legal Contingencies

The Secretarial Audit for FY 2024-25 reported compliance with statutory provisions with no major pending litigation or penalties disclosed.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the speed of margin recovery for the Estel division, which currently drags down consolidated margins until new product versions are launched.