CE Info Systems Ltd Q2 FY2026 Concall Summary

Key Takeaways

• A "different" quarter, but the FY28 target stands: Revenue grew 14.7% YoY in H1, but Q2 EBITDA margin fell sharply from 36.1% to 24.7% on a one-off expense and continued investment. Management reaffirmed the INR1,000 crores FY28 revenue goal and expects a "huge bump" in Q4 to keep the year on track.
• Two landmark government platform wins landed: The Survey of India contract to build the national geospatial platform, described as a DPI equivalent of UPI, and a INR110 crores IOCL fleet-tracking deal both closed in or just after the quarter, validating the product-led government strategy.
• Investment spending is peaking, with margin recovery promised: The EBITDA drop was driven by a INR10-15 crores one-off technical outsourcing expense for a road safety project and the drag from the international JV. Management stated this was "probably the peak of investment" and that margins will improve as these costs roll off.
• IoT-led business is scaling fast and shifting mix: IoT revenue jumped nearly 50% YoY to INR74.5 crores, and the business model is tilting toward higher-margin SaaS, which will increasingly shape segment profitability.
• What to watch next quarter: Whether the "huge bump" in Q4 materializes as promised, the pace of margin recovery as the one-off technical expense rolls off, and any disclosed value for the Survey of India platform build-out.

The Quarter's Financial Shape

• Top-line growth held, but the base effect is real: H1 revenue grew 14.7% over FY25 H1, and management urged investors not to view quarterly performance in isolation because a large Q4 is expected to deliver the full-year target.
• EBITDA margin compressed sharply: Margin fell from 36.1% to 24.7% YoY for Q2, and from 39% to 35% for H1. The two drivers were a one-off technical services outsourcing expense of INR10-15 crores tied to a large government road safety project, and ongoing investment in the international JV with Hyundai Autoever in Jakarta.
• Map-led business margins held steady at 47.3% EBITDA, nearly identical to the year-back period, though management cautioned against reading quarter-on-quarter swings and pointed investors to year-to-date figures.
• Working capital stretched on government ramp-up: Trade receivables and payables both increased because government business accelerates in Q2, with payments collectible in due course and some payables deliberately tied to receivables for management.
• The investment peak is supposedly behind us: Management stated investment amounts will keep coming down and that this quarter was "probably the peak," with the technical outsourcing expense also set to decline relatively from Q3 onwards.

Rakesh Verma: "This Q2, in particular, is a different type of quarter."

Government Platform Strategy: The DPI Bet

• Survey of India is the anchor win: The government is working with MapmyIndia to build out a national geospatial platform, explicitly framed as a DPI equivalent of UPI or Aadhaar. The contract was achieved in Q2, but the value remains undisclosed because Survey of India has not made it public.
• IOCL adds a second, quantified pillar: A INR110 crores contract over 5 years to deploy a centralized vehicle tracking and management system across roughly 23,000 LPG trucks and 150 supply locations, using MapmyIndia's IoT stack. The solution is described as easily replicable across large public and private fleets.
• The pipeline logic is platform replication: Management sees the Survey of India platform as a template that can be sold at different scales to other government organizations, state governments, municipal corporations, PSUs, defense, and railways. An MoU with railways is expected soon, though no opportunity size is specified.
• Government contracts carry renewal stickiness: Past contracts like GSTN and CBDT were extended upon expiry, and the strategy is to enter via a product or platform approach that creates sustained relationships rather than one-off project work.
• Road safety is the long-duration wildcard: A large project for MoRTH and MOHFW on golden hour management is underway, combining domain expertise with MapmyIndia's technology. Management sees a potential few hundred crores opportunity over the next 3, 5, or 7 years, replicable at center, state, and city levels.

Rakesh Verma: "It is similar to how Aadhaar and UPI were built."

IoT-Led Business: Growth, Mix Shift, and Investment Drag

• IoT revenue surged nearly 50% YoY to INR74.5 crores from INR54 crores, reflecting the investment strategy management had previously signaled. The IOCL contract will be classified mostly into IoT-led business going forward.
• The revenue mix is tilting toward SaaS: IoT-led business can be delivered on an opex basis or as a pure SaaS solution without hardware sale, and the mix is shifting toward more SaaS, which will produce a larger proportion of SaaS revenue in the segment over time.
• Investment costs are booked here, masking true profitability: Overall company EBITDA and IoT-led segment EBITDA would have been higher if not for the investment being made, with those costs booked predominantly in the IoT-led segment.
• The international JV is in revenue phase but still a drag: The Jakarta-based JV with Hyundai Autoever has entered the revenue phase but will take a couple more years to reach its first breakeven.

Map-Led Business: Lumpiness and OEM Cycles

• Map-led EBITDA margin held at 47.3%, nearly identical to the year-back period, though management warned against reading quarter-on-quarter swings after last quarter's unusually high margin in the 50s or 60 range.
• Automotive deliveries slipped into Q3: Some deliveries in the A&M segment were shifted because of the GST rate cut announced on August 15. Automotive sales slowed immediately after the PM's announcement and picked up only in the last week of September, which was insufficient to recover the quarter.
• New OEM wins and go-lives continued: A leading EV OEM was won for a new vehicle program in Southeast Asian neighboring countries, while Maruti Victoris and TVS Ntorq ISO went live in India.
• New product innovations are in the pipeline: Management is working on more intuitive navigation for mass-market two-wheelers and high-definition maps readiness to support L2++ vehicles in the future.
• Q3 automotive outlook is a hope, not a forecast: Management is hoping that automotive OEMs perform better in Q3, which would then reflect on MapmyIndia's numbers.

Mappls App, Developer Ecosystem, and Monetization

• Mappls app crossed 4 crore total users, and rider platforms have started using the Mappls app for both riders and users. One of the largest quick-delivery companies also began using MapmyIndia's APIs across internal and external use cases on a multiyear contract.
• The app is explicitly not a monetization vehicle today: Management stated that converting Mappls into a business is "not in today's agenda" and that the app serves as a technology showcase with direct or indirect impact on the entire business.
• Developer API positioning is enterprise-first, not self-serve: MapmyIndia is positioned toward large enterprises in India with an ability to pay rather than toward startups or individual developers. Management acknowledged the platform is not currently geared for self-serve but may evolve to cater to that segment.
• DMRC MoU adds a data-sharing dimension: An MoU with Delhi Metro Rail Corporation was signed for data sharing and commercial expansion, though no financial details were provided.

Rakesh Verma: "See there are different aspects of looking at it. I just had mentioned that we are looking at Mappls app as a technology showcase. Converting into a business or anything like that is not in today's agenda."

Guidance & Commitments

Key Metrics