ROXHITECH - ROX Hi-Tech

📊 NSE: ROXHITECH 🏢 Trading 📅 Last Updated: 12/14/2025 12:28

💰 Financial Performance

Revenue Growth by Segment

H1 FY26 total income grew 31% YoY to INR 110.96 Cr. FY25 total income was INR 190.14 Cr, an 8% increase from INR 176.50 Cr in FY24. Growth is primarily driven by Digital Transformation, Network & Security, and SAP-driven enterprise solutions.

Geographic Revenue Split

Currently primarily India-based, but expanding into Singapore, Denmark, USA, and Mauritius. International subsidiaries are six months old with cash flows expected to commence in the next financial year.

Profitability Margins

H1 FY26 Net Profit Margin was 9.45%. FY25 Net Profit Margin was 10.48%, up 3% from 10.21% in FY24. EBITDA margin for H1 FY26 was 15.05%, while FY25 was 16.74%, a 2% improvement over FY24's 16.49%.

EBITDA Margin

15.05% in H1 FY26 and 16.74% in FY25. Core profitability improved 2% YoY in FY25 due to stable operating performance and strategic cost management.

Capital Expenditure

Strategic investments in subsidiaries were made during H2 FY25; specific INR Cr values for total CapEx were not disclosed in the provided documents.

⚙️ Operational Drivers

Raw Materials

Technical human capital (IT professionals) and software licenses (SAP, IBM, Cisco). Specific percentage of total cost for each was not disclosed, but employee benefit expenses were INR 3.12 Cr in H1 FY26.

Import Sources

USA (Google, IBM, Cisco) and Germany (SAP).

Key Suppliers

SAP, IBM, Cisco, Lenovo, and Google.

Capacity Expansion

Current pipeline of INR 150 Cr in market opportunities. Expansion includes 4 new international subsidiaries in Singapore, Denmark, USA, and Mauritius with cash flows expected in FY27.

Raw Material Costs

Employee benefit expenses (primary cost) were INR 3.12 Cr in H1 FY26, a 51% reduction on a pro-rata basis compared to the INR 12.85 Cr full-year expense in FY25. Procurement strategy involves transitioning from external consultants to an internal 'young team' using a reusable framework.

Manufacturing Efficiency

Not applicable; service efficiency is driven by the internal talent framework and the reuse of technical skill sets across multiple projects.

📈 Strategic Growth

Expected Growth Rate

31%

Growth Strategy

Growth will be achieved by executing the INR 150 Cr order pipeline and scaling operations in the 4 new international subsidiaries. The company is focusing on AI-driven automation and cloud solutions to capture high-value digital transformation demand.

Products & Services

Digital transformation services, network security, SAP enterprise solutions, AI, RPA, and cloud data center services.

Brand Portfolio

ROX Hi-Tech.

New Products/Services

AI-driven automation and cloud solutions; expected revenue contribution not specifically quantified but identified as key growth drivers.

Market Expansion

Targeting Singapore, Denmark, USA, and Mauritius with business licenses already obtained and cash flows expected next FY.

Strategic Alliances

SAP, IBM, Cisco, Lenovo, and Google.

🌍 External Factors

Industry Trends

The IT services industry is growing at 31% YoY (based on company performance), driven by a shift toward AI-driven automation and cloud-based digital transformation. ROX is positioning itself as an end-to-end partner for Fortune 1000 companies to capture this global demand.

Competitive Landscape

Competes in the digital transformation and enterprise IT services market against global system integrators.

Competitive Moat

Accredited partnerships with SAP, IBM, and Cisco create high switching costs for enterprise clients who rely on these platforms for core operations. A 20-year operational history provides a reputation-based moat that is sustainable because complex IT integrations require deep domain expertise.

Macro Economic Sensitivity

Sensitive to Indian economic trends and government IT spending, which could impact the execution of the INR 150 Cr pipeline.

Consumer Behavior

Increased enterprise demand for AI-integrated systems and cloud-based infrastructure is driving the 31% YoY growth in total income.

Geopolitical Risks

Trade barriers and regulatory changes in international markets like the USA and Denmark could impact the global expansion strategy.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with Companies Act 2013 and COSO internal control frameworks for financial reporting and operational integrity.

Environmental Compliance

CSR investment of INR 33,22,791 in FY25, fulfilling 100% of statutory requirements.

Legal Contingencies

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

⚠️ Risk Analysis

Key Uncertainties

Innovation risk (failure to develop proprietary solutions) and reliance on third-party technology partners could impact market differentiation and margins.