💰 Financial Performance

Revenue Growth by Segment

IT Services revenue fell 66.4% YoY from INR 2.59 Cr in H1 FY25 to INR 0.87 Cr in H1 FY26. Segment reporting is not applicable as the company operates in only one segment.

Geographic Revenue Split

100% India-based operations, primarily managed from the registered office in New Delhi.

Profitability Margins

Net Margin declined significantly from -48.8% in H1 FY25 to -233% in H1 FY26 due to a sharp revenue drop while fixed costs remained high.

EBITDA Margin

EBITDA Margin for H1 FY26 was -228.8%, reflecting core operational losses of INR 1.99 Cr on a revenue base of INR 0.87 Cr.

Capital Expenditure

Historical Capex includes INR 0.016 Cr in H1 FY26 and INR 0.069 Cr in FY25 for property, plant, and equipment.

Credit Rating & Borrowing

Credit rating not disclosed. Long-term borrowings were minimal at INR 0.009 Cr as of March 31, 2025.

⚙️ Operational Drivers

Raw Materials

Inverter hardware components and renewable power design resources (specific % of total cost not disclosed).

Import Sources

International markets (implied by the company's strategy to replace imported hardware with domestic designs).

Key Suppliers

UC IT Managed Services Private Limited (Parent Company and major related party).

Capacity Expansion

Current installed capacity not disclosed for IT services; planned expansion into renewable power hardware design is currently in the project phase.

Raw Material Costs

Purchases of stock-in-trade and services fell 100% YoY to INR 0 in H1 FY26 from INR 0.96 Cr in H1 FY25, indicating a halt in procurement activity.

Manufacturing Efficiency

Not disclosed for IT services; pivot to hardware design is in early stages.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

Pivoting from legacy IT services to designing proprietary inverter hardware and renewable power products to replace imports; utilizing IPO proceeds (INR 4.39 Cr) for working capital (INR 2.67 Cr fully utilized).

Products & Services

IT Services, Cloud Collaboration Solutions, and originally designed Inverter Hardware.

Brand Portfolio

VIVO, VIVO Collaboration.

New Products/Services

Renewable power products and inverter hardware; expected revenue contribution % not yet realized.

Market Expansion

Targeting the Indian renewable energy sector with a focus on import substitution.

🌍 External Factors

Industry Trends

IT services industry is facing stagnation (17.9% decline in FY25); future direction is shifting toward sustainable energy and integrated collaboration hardware.

Competitive Landscape

Competes with domestic IT service providers and international hardware importers.

Competitive Moat

Limited moat in legacy IT services; company is attempting to build a moat through proprietary inverter designs and import substitution.

Macro Economic Sensitivity

Highly sensitive to domestic IT spending and government policies regarding renewable energy and import duties.

Consumer Behavior

Increasing consumer and corporate demand for sustainable and locally manufactured power solutions.

Geopolitical Risks

Import substitution trends in India provide a favorable environment for the company's shift to domestic hardware design.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with SEBI (LODR) Regulations, 2015 and the Companies Act, 2013.

Taxation Policy Impact

Standard corporate tax rates apply; deferred tax assets of INR 0.0025 Cr recognized in H1 FY26.

Legal Contingencies

NSE penalty of INR 0.0000236 Cr (INR 2,360) paid on November 18, 2025, for non-compliance with SEBI Regulation 34.

⚠️ Risk Analysis

Key Uncertainties

Sustainability of operations given a 66.4% revenue decline and a net loss (INR 2.03 Cr) that is 2.3x the total revenue in H1 FY26.

Geographic Concentration Risk

100% revenue concentration in the Indian market.

Third Party Dependencies

73.40% promoter holding by UC IT Managed Services Private Limited indicates high dependency on parent company support.

Technology Obsolescence Risk

High risk of obsolescence in legacy cloud telephony; company is mitigating this by diversifying into renewable energy hardware.

Credit & Counterparty Risk

Trade receivables dropped 99% to INR 0.0013 Cr in Sept 2025 from INR 0.168 Cr in March 2025, indicating low credit exposure but also minimal sales activity.