CE Info Systems Ltd Q3 FY2026 Concall Summary & Transcript Notes

Source transcript PDF: https://www.stockscans.in/document/4lkmvk9spyhbj8p4za8i3ftd.pdf

# 1. Financial Performance

## A. Key Figures
   *   **A&M Revenue Growth:** **~15%** YoY (Q3 FY26) · **~18%** Auto Production Growth YoY (Q3)
   *   **One-off Revenue:** **₹26 Cr** in Q3 FY25 · **₹0 Cr** in Q4 FY25

## B. Revenue Growth
   *   **Below-Industry Growth:** A&M revenue growth slightly trailed auto production growth, though underlying performance shows **organic growth** after adjusting for prior-year one-off.
   *   **Investor Sentiment:** Q3 FY26 perceived as weak by investors, but structural trends remain intact.

## C. EBITDA Margins
   *   **Margin Outlook:** Management confident in achieving **EBITDA margins of 35% or higher** in current quarter, supported by operating leverage in IoT and Maps segments.
   *   **Profitability Drivers:** Expansion in both IoT and Maps teams is **profitability-additive**, indicating scalable business models.

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# 2. Order Book & Bookings

## A. Key Figures
   *   **Open Order Book:** **₹1,770 Cr** (as of Dec 31) from ₹1,500 Cr (YoY increase) · **₹600 Cr** new orders booked
   *   **Annual Order Inflow (Projected):** **₹800 Cr** (up from ₹600 Cr), exceeding prior range of ₹500–600 Cr

## B. Open Order Value
   *   **Growth Trajectory:** Order book on track to reach **₹2,000 Cr** by FY '28, supported by strong client confidence and execution credibility.
   *   **Revenue Visibility:** Survey of India project to generate **₹7–8 Cr** in next fiscal, with IOCL deal adding **₹20 Cr**, underscoring near-term revenue conversion.
   *   **Strategic Mix:** Order book composition reflects strategic positioning—**60–70% Map-led** integrated solutions, **20% IoT**, and **10% AI tools** for security agencies.

## C. New Order Inflows
   *   **Accelerating Momentum:** Q4 saw new wins with continued inflows into January–February, indicating **upward revision in annual booking outlook** to ₹800 Cr.
   *   **Execution Confidence:** Management highlights **organic-inorganic synergy** and dedicated business leadership driving sustained order capture across sectors.

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# 3. Segment & Revenue Mix

## A. Key Figures
   *   **IoT Revenue Mix:** **25%** last year · **35%** in first 9M of current period
   *   **Government Revenue:** **~20%** of total revenue FY26 (~18–19% FY25)
   *   **C&E Revenue Split:** **50-50** government vs corporates

## B. IoT Contribution
   *   **Accelerating Growth Vector:** IoT now represents a major, independent growth engine with strong momentum, following full organizational stabilization and leadership transition.
   *   **Strategic Dual Role:** Positioned both as a **primary customer acquisition tool** and an **upsell lever** to deepen engagement across automotive, corporate, and government segments.
   *   **Diversification Benefit:** Business resilience enhanced by treating IoT, maps, automotive, and government as distinct verticals, allowing mix shifts to support overall revenue stability.
   *   **Large TAM-Driven Expansion:** Pursued aggressively across all segments due to its **substantial total addressable market**, with no preset revenue cap to allow unconstrained scaling.

## C. Government vs Private
   *   **Stable Government Exposure:** Government segment has stabilized at **slightly above 20%** of total revenue, with consistent year-on-year expansion from prior levels.
   *   **Central Funding Dominance:** **~90% of government projects** are backed by central schemes, mitigating payment risk despite disbursement through state or local bodies.
   *   **Disciplined Contract Selection:** Growth in government sector is intentionally constrained to ensure **only high-suitability, payment-assured projects** are pursued.

## D. Maps & Enterprise
   *   **Enterprise Map Expansion:** TLT Maps and solutions are gaining traction beyond automotive, with growing adoption in **corporate and government** end-markets.

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# 4. Product & Technology

## A. Key Figures
   * Mappls App Downloads: 45 million downloads
   *   **Mappls Platform MAU:** **10 Cr** monthly active users

## B. AI Integration
   *   **Strategic AI Focus:** AI is central to the company’s long-term growth, with deep integration across products and data creation processes, predating current industry trends.
   *   **AI as Core Infrastructure:** The company operates an AI-enabled, integrated content and services platform, underpinned by sustained investment and innovation in AI.

## C. Map-led Offerings
   *   **Diversified Growth Vectors:** Map-led and IoT-led offerings enable multiple revenue streams, supporting resilience and expansion into enterprise and high-growth tech segments.
   *   **Monetization Pathway:** Mappls shows strong traction with **5 Cr downloads** and **10 Cr MAU**, with monetization leveraged through APIs, SDKs, and integration into IoT and enterprise solutions.
   *   **Next-Gen Mapping Roadmap:** Development of Advanced Maps (ADAS, SD PLUS, HD Maps) signals strategic alignment with future mobility and long-term platform growth.

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# 5. Strategic Projects & GTM

## A. Strategic Project Wins
   *   **"Owned in India" Momentum:** Indigenization of the Survey of India Integrated Geoportal secured as a key win, enabling **strong multiplicative growth** potential despite near-term execution delays.

## B. Go-to-Market Expansion
   *   **Multi-Pronged IoT Growth:** IoT traction expanding beyond G2P subsidiary, with MapmyIndia and Mappls DT intensifying go-to-market efforts, signaling broader organizational alignment.
   *   **Diversified GTM Strategy:** Product-led approach driving customer base diversification across maps, IoT, and GIS platforms, enhancing business resilience.
   *   **OEM & Sector Upside:** Strategic partnerships with **Hyundai and Kia** leveraged via Hyundai Autoever, while superior map quality attracts additional OEMs; **add-on opportunities** identified in oil & gas, particularly with IOCL.

## C. International JVs
   *   **Indonesia JV in Build Phase:** PT Terra Link Technologies (TLT) actively developing market presence through public updates and local partnerships, with monetization expected in later stages.
   *   **Global Ambition Beyond Indonesia:** MapmyIndia pursuing independent international opportunities while supporting TLT’s multi-region expansion via data licensing and local collaborations.
   *   **Long-Term International Play:** Indonesia JV viewed as a potential **"another India-like opportunity"**, requiring patience during current build-out phase.

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# 6. Execution & Delivery Risks

## A. Key Figures
   *   **C&E Business Decline:** **60% to 70%** government-related delays · remainder from corporate segment  
   *   **Billing Delay Impact:** **30%** of private clients · **70%** of government clients affected  
   *   **Revenue Recognition Shift:** Delays concentrated in **Q3**, with recovery expected in **Q4FY26 and Q1 next fiscal**

## B. Government Delays
   *   **Major Revenue Deferral Driver:** Government-related delays dominate C&E weakness, driven by postponed fiscal grants and state election disruptions.  
   *   **Execution Confidence Intact:** Management maintains full confidence in delivery capability, with **100% of deferred revenues** expected to be recognized in upcoming quarters.  
   *   **State-Level Funding Risks:** Concerns raised over central projects stalled by state financial constraints, prompting selective client engagement.

## C. Billing Deferrals
   *   **Client-Requested Delays:** Q3 muted performance stemmed from delivery timing aligned with customer preferences, not supply-side issues.  
   *   **AI Assurance Achieved:** Initial hesitation from private clients on AI components resolved; **all clients now fully aligned** with company’s AI roadmap.

## D. AI Feature Delays
   *   **Product Timing Impact:** Minor delivery slippage due to integration of new AI features, with no broader operational disruption.  
   *   **Strong Customer Readiness:** Deferrals unrelated to adoption concerns—demand remains intact post-AI validation.

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# 7. Guidance & Outlook

## A. Key Figures
   *   **FY28 Revenue Target:** **₹1,000 Cr** (implying >35–36% CAGR)
   *   **FY26 EBITDA Margin Guidance:** **35%** (unchanged)

## B. Strategic Planning & Execution
   *   **Long-Term Roadmap Intact:** Three-year strategic planning anchors FY28 target, with quarterly tracking on **customer funnel conversion, delivery capacity-linked revenue, and collections efficiency**.
   *   **Leadership Confidence:** Management reaffirmed trajectory toward FY28 goals, acknowledging near-term volatility but emphasizing structural progress and stakeholder alignment.

## C. Near-Term Growth Dynamics
   *   **Q4 Strength Expected:** Revenue growth in Q4FY26 to outpace prior quarters, with YoY improvement versus last year’s base, though not fully offsetting Q3’s decline.
   *   **Resilience to AI Disruption:** Sustained AI investments position the company for **minimal impact from broader sector headwinds**, including recent model launches.