CE Info Systems Ltd Q4 FY2026 Concall Summary

Key Takeaways

• Q4 missed, but orders are pushouts, not losses: Revenue of ~INR145 crores fell INR45-50 crores short of expectations, driven by a delayed INR20 crore IoT order and government deferrals; all are now expected in Q1/Q2 FY27.
• Government business is the swing factor: The open order book in government is significantly past INR200 crores, and a strong Q4 recovery followed earlier deferrals, setting up significant FY27 growth.
• IoT margins hit 33%, with more room to run: Operating leverage, better mix and ongoing cost efficiency drove the spike; management sees a steady-state margin clearly above the current 16% corporate level.
• The INR1,000 crore FY28 target is intact, but timing is open: Management reiterated the ambition but declined to commit to a specific year, saying they will "watch year by year."
• What to watch next quarter: Whether the INR20 crore delayed IoT order and the government energy response system order actually convert in Q1/Q2, and whether the new segment reporting (Auto & Retail, Corporate, Government) reveals a clearer growth picture.

The Q4 Revenue Miss: What Happened

• The gap was INR45-50 crores across 5-6 accounts: Management had guided for Q4 growth similar to or better than the prior year, but actual revenue landed at ~INR145 crores vs an expected ~INR190 crores. The orders exist; they did not convert in time.
• One specific INR20 crore IoT order in automotive was delayed by regulatory requirements: The order was expected to convert in Q4 but got pushed out; it has since been fulfilled and will reflect in Q1 and Q2 of FY27. Management stressed this was a customer-side delay, not an execution failure.
• A large government energy response system order was also pushed out: The state government itself was delaying the system, pushing execution into FY27. Separately, a very large government IoT tender went for re-tender, further delaying the start of execution.
• Management declined to bridge the full gap: When asked to quantify the remaining INR25-30 crores of the miss, management said it would require naming specific accounts and did not provide the detail.

Rohan Verma: "We also really wish that these had gotten executed in Q4. But these are just pushouts."

Government Business: The Growth Engine, With Working Capital Strings

• Government business saw a sharp Q4 recovery after earlier deferrals: Contracts that were delayed through the year began converting, and the open order book now stands significantly past INR200 crores. Management expects significant growth in FY27.
• The newly operationalized subsidiary Mappls DT is now the dedicated vehicle: Orders from MapmyIndia are subcontracted down to this wholly owned subsidiary, which became fully operational during the year.
• Working capital is the trade-off: Trade receivables rose from INR133 crores to INR176 crores, driven by the nature of government business. Management is calibrated and careful, taking on only business where they believe they can collect. Almost all prior-year receivables have been collected, and there has been zero bad debt historically.
• Future investment needs are uncertain: While specific government orders may require less incremental investment going forward, management could not say whether expanding into new areas will demand further capital.

Rakesh Verma: "One of the reasons we are actually moving on two fronts in the government. The collection period might be higher. But that's again a nature of that beast."

IoT: The Margin Story Is Just Beginning

• Q4 IoT margin jumped to 33%, driven by operating leverage and mix, not inventory gains: Revenue was up, the SaaS component improved, and a year-long cost optimization exercise is still ongoing. Management explicitly denied any inventory-related boost.
• Inventory did build, but for demand, not margin: Inventory levels increased to stock up and support rising demand across the three IoT businesses. Management tries to minimize overage and underage through supply chain optimization.
• Steady-state IoT margins are clearly above the 16% corporate average: Management pointed directionally to higher margins and said there is still headroom for expansion. The cost efficiency exercise continues, with more opportunities identified.
• The IoT business model is opex-based for customers: Hardware and software are bundled into a monthly subscription; hardware is capitalized as a fixed asset and depreciated over three years.

Rohan Verma: "Directionally, we have pointed out that in the steady state, this can be a higher-margin business than 16% clearly. And we are on that trajectory, which is good. I mean, there's still headroom for margin expansion."

The Core C&E Business: Stuck in Gestation

• The core C&E business (APIs/SDKs for corporates) has been flat at INR80-85 crores for 3-4 years: Management attributes the stagnation to long gestation periods; as large apps integrate and usage ramps, revenues follow.
• Amazon Now is the proof point: The quick-commerce player has self-integrated MapmyIndia's APIs and SDKs, launched in Bangalore, and is now rolling out in Bombay. Management expects this pattern to repeat as more large apps go live.
• Auto business appeared soft in Q4 but contracts are in place: Attach rates grew year-over-year, and volume growth aligned with the industry, except for a variation at Hyundai.

The INR1,000 Crore Target: Still There, Still Distant

• The FY28 INR1,000 crore revenue target set in 2023 remains unchanged, but timing is the only question: Management has been consistent for a year that the number has not changed, only the timeline. They will "watch year by year."
• Per an analyst's math, 25% growth in FY27 is plausible: If 20% of the INR1,700+ crore open order book converts, that is ~INR350 crores; combined with in-year order conversion, the arithmetic supports the growth rate. Management did not endorse or reject this math.
• Management declined to answer whether the INR1,000 crore top-line guidance still stands: The question was cut off by the moderator before a response could be given.

Rakesh Verma: "We have been talking about it a lot with you people... that back in '23, we set a road map of INR1,000 crores target for ourselves. And the road map showed that in FY28, we will try to achieve it, okay? But for the last 1 year, we have been saying that while INR1,000 crores number has not changed, the question is only could be of timing."

Guidance & Commitments

Key Metrics