WEWIN - We Win Ltd

📊 NSE: WEWIN 🏢 Computers - Software - Medium / Small 📅 Last Updated: 12/14/2025 15:14

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue from operations for H1 FY26 reached INR 4,110.01 lakhs, representing a growth of 4.76% YoY compared to INR 3,923.28 lakhs in H1 FY25. Segment-specific growth is not disclosed.

Profitability Margins

Net profit margin for H1 FY26 improved significantly to 5.58% (INR 229.57 lakhs) from 2.18% (INR 85.57 lakhs) in H1 FY25. This improvement was largely driven by a reversal of prior period tax provisions and Section 80JJAA deductions.

EBITDA Margin

EBITDA margin for H1 FY26 was approximately 6.59% (INR 270.82 lakhs), a decrease from 7.95% (INR 311.82 lakhs) in H1 FY25, primarily due to an 7.8% increase in employee benefit expenses.

Capital Expenditure

Capital expenditure on fixed assets, including advances, was INR 129.82 lakhs for H1 FY26, compared to a significant investment of INR 1,013.87 lakhs in the full year FY25.

Credit Rating & Borrowing

Borrowing costs significantly decreased as finance costs dropped from INR 61.19 lakhs in H1 FY25 to a net credit of INR 1.23 lakhs in H1 FY26, following a 45.8% reduction in long-term borrowings.

⚙️ Operational Drivers

Raw Materials

Human Capital/Labor (83.19% of total revenue), IT Infrastructure, and Telecommunication services.

Raw Material Costs

Employee benefit expenses, the primary operational cost, rose to INR 3,419.29 lakhs in H1 FY26, up 7.8% YoY from INR 3,171.80 lakhs, representing 83.19% of total revenue.

📈 Strategic Growth

Expected Growth Rate

4.76%

Growth Strategy

Growth is targeted through operational scaling in the BPO/ITeS sector, leveraging tax efficiencies under Section 80JJAA, and reducing debt to improve net profitability. The company has reduced long-term borrowings by INR 127.31 lakhs (45.8%) in six months to strengthen the balance sheet.

Products & Services

Business Process Outsourcing (BPO) services, customer support, and IT-enabled services.

Brand Portfolio

We Win Limited.

🌍 External Factors

Industry Trends

The BPO and ITeS industry is evolving towards higher automation, though We Win remains heavily labor-dependent with employee costs growing faster than revenue (7.8% vs 4.76%).

Competitive Landscape

Operates in a highly fragmented and competitive BPO/ITeS market in India.

Competitive Moat

The company's moat is based on cost leadership through tax incentives (Section 80JJAA) and a reduced debt profile, though sustainability is challenged by rising labor costs.

Macro Economic Sensitivity

Highly sensitive to labor market conditions and employment-related tax legislation in India.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with labor laws and IT-enabled service regulations is critical for maintaining operational licenses and tax benefits.

Taxation Policy Impact

The company benefits from Section 80JJAA of the Income Tax Act, which resulted in a reversal of prior period tax provisions of INR 84.95 lakhs in H1 FY26.

Legal Contingencies

The company has no pending litigations having a material impact on its financial position as of March 31, 2025.

⚠️ Risk Analysis

Key Uncertainties

Sustainability of tax benefits and the ability to pass on rising labor costs (83.19% of revenue) to clients.

Geographic Concentration Risk

Operations are primarily based in Bhopal, Madhya Pradesh.

Technology Obsolescence Risk

The company uses accounting software with audit trail features to mitigate digital fraud risks, but broader service automation risks are not detailed.