eMudhra (EMUDHRA) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 total income reached INR 1,749.5 million, up 22.6% year-over-year, with EBITDA at INR 433.3 million (24.8% margin) and net profit at INR 264.4 million (15.1% margin).

• Growth was broad-based across North America, Middle East, India, Asia-Pacific, and Europe, with European contribution rising post-CRYPTAS acquisition.

• Integration of CRYPTAS and AI CyberForge is underway, enhancing cybersecurity and identity management offerings, with CRYPTAS expected to turn profitable within two quarters.

• Key project wins included implementations in North America, Malaysia, UAE, India, and Qatar, spanning security, certificate management, and eSignature solutions.

• Unaudited standalone and consolidated financial statements for the quarter and half year ended September 30, 2025, were approved by the Board on November 4, 2025.

Financial highlights

• Q2 FY26 consolidated revenue was INR 1,749.5 million, up 22.6% year-over-year; net profit was INR 264.4 million (15.1% margin), up 18.6% year-over-year.

• Gross profit: INR 976.3 million (55.8% margin), up 35.9% year-over-year.

• EBITDA: INR 433.3 million (24.8% margin), up 28.1% year-over-year; adjusted EBITDA was INR 456 million (26.1% margin).

• H1 FY26 total income: INR 3,255.7 million, up 37% year-over-year; EBITDA: INR 813.2 million (25% margin), up 28.5%; PAT: INR 514.7 million (15.8% margin), up 27.1%.

• Basic EPS for Q2 FY26 was INR 3.09 (+14.4% YoY); diluted EPS was INR 3.05 (+15.3% YoY).

Outlook and guidance

• Revenue guidance for FY26 is INR 675-700 crore, with PAT margin expected at 15.5%-16%, including CRYPTAS top line but not expecting CRYPTAS to be profitable this year.

• Product business expected to drive growth, especially in the U.S., Middle East, and Africa, with a strong pipeline of large deals.

• Cryptas acquisition is expected to turn profitable within the next two quarters as integration progresses.

• Continued investments in overseas market growth while maintaining sustained margins.

• Fourth quarter typically stronger due to seasonality; full-year revenue target seen as achievable.