This article first appeared on GuruFocus .
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Revenue:INR139.7 crores, up 14.9% year-on-year.
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EBITDA:INR56.1 crore with an EBITDA margin of 40.2%.
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PAT (Profit After Tax):INR49.7 crore, up 8.6% with a PAT margin of 31.2%.
Release Date: August 04, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Revenue grew 14.9% year-on-year to INR139.7 crore, with EBITDA margin at 40.2% and PAT margin at 31.2%.
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Strong open order book of INR1,750 crore provides good revenue visibility for future growth.
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Automotive segment revenue grew 29% year-on-year to INR58.8 crore, driven by new wins and product expansions.
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IoT-led business saw significant growth, with revenue jumping from INR23.4 crore to INR41 crore, driven by hardware sales that will lead to future SaaS revenue.
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Company is well-diversified across automotive, enterprise, and government segments, reducing concentration risk.
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AI is not new to the company; it has been used for years to enhance maps and products, with a renewed focus on AI-native development.
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Leadership strengthened with Rohan Verma's appointment as Joint Managing Director, expected to drive future growth.
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Government and public sector business shows green shoots, with opportunities in defense and oil & gas.
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International business, particularly in Southeast Asia, is progressing with reduced losses in the JV.
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Company has a strong moat with a multi-product, multi-industry portfolio, enabling wallet share expansion and cross-selling.
Negative Points
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Map-led business growth was flat, with revenue only slightly increasing from INR98.2 crore to INR98.7 crore year-on-year.
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One-time write-off of INR4 crore from a government client impacted EBITDA margin by 4%, though net P&L impact was only INR80 lakhs.
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Government receivables are a concern, with longer collection cycles and a majority of total receivables tied to government contracts.
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IoT hardware sales, which are lower margin, are growing faster than services, temporarily pressuring overall profitability.
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International business is still developing and not yet contributing materially to revenue, requiring patience.
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Automotive segment growth was impacted by a time shift in a large OEM contract, which may continue to affect near-term performance.
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Government business is a slow starter in Q1, with seasonality affecting quarterly revenue patterns.
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The company does not provide detailed order book split by segment, limiting visibility for investors.
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IoT services revenue showed a declining trend from Q2 FY2026 to Q1 FY2027, indicating potential billing cycle variability.
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The company remains cautious on government contracts due to receivables risk, which may limit aggressive growth in that segment.
Q & A Highlights
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Q: What is the impact of the one-time write-off of INR4 crore from a government client, and how does it affect the company's EBITDA margin? A: Rakesh Verma (Executive Chairman and MD) clarified that the INR4 crore write-off was a one-time event related to a government client. However, the net impact on the P&L is only INR80 lakhs because the company also avoided a back-to-back payment of INR3.2 crore. Without this write-off, the EBITDA margin would have been 43% plus, instead of the reported 40.2%. The company maintains its full-year EBITDA margin target of 35% plus.
Q: Can you provide an update on the automotive segment, particularly regarding the previously mentioned contract changes with a large auto OEM? A: Rakesh Verma explained that it was not a reduction in the contract but a time shift, where the OEM decided not to include certain technology in vehicles last year. Rohan Verma (Joint MD) added that automotive revenue still grew from INR26 crores in Q1 FY2025 to INR46 crores in Q1 FY2026 and INR59 crores in Q1 FY2027. The time shift started in the second half of last year, which means the second half of FY2027 could benefit from a weaker base.
Q: What is the current status of the order book, and can you provide a split by market segment? A: Rohan Verma stated that the open order book stood at INR1,750 crores at the end of FY2026, up from INR1,500 crores the previous year. While the company does not disclose the order book split by segment (automotive, enterprise, government) for competitive reasons, it does disclose the split between fixed pricing and volume-based orders annually. The order book provides strong visibility into future growth.
Q: Why is the standalone MapLed business showing only 6% growth, and what is driving the overall growth? A: Rohan Verma advised against analyzing standalone numbers, as government and IoT business is booked in MapMyIndia and then subcontracted to subsidiaries. At the consolidated level, MapLed revenue grew slightly from INR98.2 crore to INR98.7 crore, while IoT-led revenue jumped from INR23.4 crore to INR41 crore. He noted that government is a slow starter in Q1, and the automotive segment grew 29% year-on-year.
Q: What is the company's strategy for the government business, and are there any further risks of write-offs or collection delays? A: Rohan Verma acknowledged that government receivables have a longer cycle than automotive and enterprise. The company is carefully tracking these receivables and making course corrections as needed. The recent write-off was taken only when the company was 100% sure the revenue would not be recovered. Rakesh Verma added that the company is being calibrated in its approach to government contracts, especially in areas like digital twin cities, to avoid bad receivables.
Q: Can you explain the seasonality in the IoT services revenue, which has declined sequentially from INR37 crore in Q2 FY2026 to INR18 crore in Q1 FY2027? A: Rohan Verma clarified that the decline is not due to seasonality but rather the billing cycles for services, which can be yearly, two-yearly, monthly, quarterly, or six-monthly. He explained that hardware revenue grows first (lower margin), followed by SaaS revenue, which kicks in later. The recent growth in IoT hardware (from INR7 crore to INR23 crore) will lead to increased SaaS revenue in the future.
Q: What is the status of the international business, particularly the JV in Southeast Asia? A: Rohan Verma stated that the international business is progressing, with the share of loss from the JV reducing. The company is focusing on selling its full stack of solutions (MapLed and IoT-led) in Southeast Asia and the Middle East. While the international business is still developing and requires patience, it presents an exciting medium-term opportunity.
Q: How does the company approach wallet share expansion with existing customers? A: Rohan Verma explained that the company offers multiple products, platforms, APIs, and solutions to each customer, creating opportunities for wallet expansion. The strategy involves replicating successful implementations for one customer to other players in the same industry. This approach, combined with the company's deep tech capabilities, drives growth across its product and industry matrix.
Q: What is the company's position in the digital twin cities opportunity, and will it participate in the Maharashtra government's Naksha scheme? A: Rohan Verma stated that the company is well-positioned in digital twin capabilities, offering not just geospatial but also IoT and process twin solutions. While the company is aggressively looking at this space, it will be calibrated in its approach to avoid the receivables issues seen in peer companies. The company will carefully select opportunities that ensure good receivables.
Q: What is the reason for the lower gross margins this quarter? A: Rohan Verma confirmed that the lower margins are due to a different product mix, specifically the higher growth of IoT hardware sales, which have lower margins compared to services. The hardware revenue grew from INR7 crore to INR23 crore, reflecting this mix shift. As the SaaS revenue from these hardware deployments kicks in over time, margins are expected to improve.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
