• Revenue growth drivers: Enterprise solutions grew 55% year-on-year and total revenue rose over 31%, with 50% to 52% of growth driven by the Cryptas acquisition in Europe and the balance by organic growth. Deal sizes typically range from 5 to 10 crore rupees for cybersecurity products and 2 to 3 crore rupees for paperless transformation products.
• EBITDA margin compression: EBITDA margins contracted by 276 basis points year-on-year primarily because the lower-margin Cryptas acquisition is still undergoing integration and cross-selling synergies. Overall gross and EBITDA margins are expected to improve once reciprocal product distribution is fully implemented.
• Demand and sustainability: Growth momentum is expected to remain sustainable for at least the next two to three years, driven by AI tailwinds, escalating cybersecurity threats, and low existing penetration across global banking and government clients.
• Geographic revenue mix: International markets generate 64% of total revenue, comprising North America at roughly 34%, India at 32%, and Europe at 12%, with top 10 customers accounting for 20% or less of overall revenue.
• Regulatory compliance measures: Data localization regulations across the US, Europe, and Dubai have increased capital expenditure over the past one to two years, prompting the company to deploy regional data centers and establish a US subsidiary named CertiNext.