RKSWAMY - R K Swamy
Financial Performance
Revenue Growth by Segment
Consolidated Total Income grew 12.2% YoY in H1 FY2026 to INR 156.63 Cr. In FY2025, Revenue from Operations declined by 11.23% to INR 294.29 Cr due to the completion of non-recurring projects. The three main segments—Integrated Marketing Communications, Data Analytics/MarTech, and Custom Market Research—are all reported to be progressing with no client loss of consequence.
Geographic Revenue Split
The company operates as a leading integrated marketing group in India with seven wholly owned subsidiaries, including two overseas subsidiaries. Specific percentage splits by region are not disclosed in the available documents.
Profitability Margins
H1 FY2026 Profit After Tax (PAT) margin stood at 2.2% compared to 1.9% in H1 FY2025. For the full year FY2025, the Net Profit Margin was 6.10%, a significant decline from 11.84% in FY2024, primarily due to lower profits from non-recurring projects.
EBITDA Margin
EBITDA margin improved to 11.2% in H1 FY2026 from 9.4% in H1 FY2025. Absolute EBITDA for H1 FY2026 was INR 17.47 Cr, up 33.2% YoY. In Q2 FY2026, EBITDA margin reached 11.4% (INR 8.67 Cr), representing a 42.4% YoY increase.
Capital Expenditure
The company is investing in marketing infrastructure, specifically expanding the Customer Experience Center (CXC) and Computer Aided Telephone Interviews (CATI) capacity. While specific future INR Cr figures are not disclosed, these investments are aimed at increasing capacity utilization month-on-month.
Credit Rating & Borrowing
The company is debt-free as of FY2025. Consequently, the Interest Coverage Ratio significantly increased to 703.86 times in FY2025 from 16.66 times in FY2024.
Operational Drivers
Raw Materials
As a service-based marketing firm, the primary costs are Operating Expenses (manpower and media buying), which represent the bulk of the cost structure. Operating expenses were reduced by 18% in FY2025 due to cost initiatives and lower volumes.
Import Sources
Not applicable for a marketing services firm; services are primarily delivered through domestic infrastructure in India and overseas subsidiaries.
Key Suppliers
Not disclosed, as the company provides services rather than manufacturing goods.
Capacity Expansion
Current focus is on the expanded Customer Experience Centre (CXC) and Computer Aided Telephone Interview (CATI) facility. Capacity utilization is reported to be increasing month-on-month to drive operational leverage.
Raw Material Costs
Operating expenses (service delivery costs) decreased by 18% YoY in FY2025. Gross Margin for H1 FY2026 was INR 104.55 Cr, a 9.6% increase YoY, reflecting better cost management relative to revenue growth.
Manufacturing Efficiency
Efficiency is measured by capacity utilization of the CXC and CATI facilities, which the Group CFO noted is increasing steadily to improve margins.
Logistics & Distribution
Not applicable; services are delivered digitally or through consulting engagements.
Strategic Growth
Expected Growth Rate
12.20%
Growth Strategy
Growth is driven by scaling the 'Brand and Marketing Consulting Group' (launched May 2025) and the upcoming launch of a subscription service for Digital Video advertising impact measurement (Nov/Dec 2025). The company is also focusing on specialist areas like Pharma/Healthcare and Social Research while regaining large former clients.
Products & Services
Integrated Marketing Communications, Data Analytics, MarTech, Custom Market Research, Brand & Marketing Consulting, and Digital Video Impact Measurement subscriptions.
Brand Portfolio
R K SWAMY, Hansa Research, Hansa Customer Equity.
New Products/Services
A new subscription service for measuring the impact of Digital Video advertising is set for launch in Nov/Dec 2025. The Brand and Marketing Consulting Group launched in May 2025 is already gaining traction.
Market Expansion
The company is moving up the value chain by expanding into high-end consulting and specialized research (Pharma, Social Research). It maintains a presence through seven subsidiaries, including two overseas.
Market Share & Ranking
R K SWAMY is the only Integrated Marketing Services provider listed on the main board of BSE/NSE and is a leading group in the Indian market.
Strategic Alliances
The company operates through various subsidiaries like Hansa Customer Equity Private Limited to provide specialized MarTech and analytics services.
External Factors
Industry Trends
The industry is shifting toward data-driven marketing and MarTech. R K SWAMY is positioning itself to move from volume-based metrics (impressions) to value-based metrics (impact) through its new subscription services.
Competitive Landscape
The company competes with both traditional advertising agencies and specialized data analytics/market research firms, but its integrated model is a key differentiator.
Competitive Moat
The moat is built on a 'single-window solution' for Creative, Media, Data, and Research, which drives high client retention (near 100%). This integrated approach makes it difficult for niche competitors to displace them.
Macro Economic Sensitivity
The company's outlook is tied to the Indian economy, which is expected to grow by 6.2% in 2025 according to IMF forecasts.
Consumer Behavior
Increased spending by marketers on Digital Video platforms is a key trend the company is capitalizing on with its new impact measurement service.
Geopolitical Risks
Not specifically detailed, though the company operates in international markets through its overseas subsidiaries.
Regulatory & Governance
Industry Regulations
The company complies with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. It has a Risk Management Committee and Audit Committee to ensure regulatory adherence.
Environmental Compliance
Not applicable as a primary risk for a marketing services firm; however, the company maintains a CSR obligation of INR 0.47 Cr for FY2024-25.
Taxation Policy Impact
The company's PBT for H1 FY2026 was INR 6.73 Cr, with a PAT of INR 3.41 Cr, implying an effective tax rate of approximately 49% for the period, likely including deferred tax or adjustments.
Legal Contingencies
Secretarial audits for the company and its material subsidiary (Hansa Customer Equity) for the period ended March 31, 2025, reported compliance with the Companies Act and SEBI regulations with no major pending disputes mentioned.
Risk Analysis
Key Uncertainties
The primary uncertainty is the non-recurring nature of large projects, which caused an 8.72% drop in total income in FY2025. Future growth depends on the successful scaling of the new consulting and subscription services.
Geographic Concentration Risk
The majority of operations are concentrated in India, though the presence of two overseas subsidiaries provides some geographic diversification.
Third Party Dependencies
The company is dependent on digital video platforms (like YouTube/Meta) as the environment for its measurement services, though it acts as an independent auditor of impact.
Technology Obsolescence Risk
The company is mitigating technology risks by investing in MarTech and Data Analytics, moving away from traditional media models.
Credit & Counterparty Risk
The company maintains adequate internal financial controls to manage accounting records and financial disclosures, with no significant bad debt issues reported.