eMudhra (EMUDHRA) Q4 24/25 earnings summary

Executive summary

• Total income for FY25 increased 38.9% year-over-year to INR 5,278.4 million, with 62% of revenue from international markets and strong US expansion through acquisitions and organic growth.

• Adjusted EBITDA grew 15.7% to INR 1,413 million (margin 26.8%), and adjusted PAT rose 17.3% to INR 946 million (margin 17.9%), excluding one-off expenses.

• Q4 FY25 total income was INR 1,493 million, up 44.8% year-over-year, with adjusted EBITDA margin at 27.0%.

• Major customer wins included PKI rollouts in India, e-signature deployments in the Philippines and Middle East, and certificate management adoption by a US gaming company.

• Maintained a debt-free status, robust cash flows, and recommended a final dividend of Rs. 1.25 per share, subject to AGM approval.

Financial highlights

• Revenue from operations rose from INR 3,731 million in FY24 to INR 5,194 million in FY25, with international revenue growing 57.3% year-over-year.

• Gross margin for FY25 was 53.9%; adjusted EBIT margin at 22.3%.

• Basic EPS for FY25 was Rs. 10.41, up 6.9% year-over-year; dividend declared at Rs. 1.25 per share.

• Return on Equity at 12.4% and Return on Capital Employed at 18.2% for FY25, impacted by ESOP provisioning and one-time items.

• Trade receivables improved to 80 days, reflecting better collections.

Outlook and guidance

• FY26 revenue growth targeted at 25%-30%, with an enterprise solutions order book of INR 1,907 million.

• R&D spend projected at 7-9% of revenue; stock repurchase of Rs. 25-35 million per quarter expected to continue for 3-4 quarters.

• EBITDA and PAT margins expected to be maintained, even after recurring one-off expenses.

• Focus on European expansion, SMB reseller growth in India, and deepening AI and automation in product offerings.

• ESOP/RSU scheme to incentivize and retain talent, supporting future growth.