CE Info Systems Ltd Q1 FY2027 Concall Summary

Key Takeaways

• IoT-led quarter, map-led flat: Consolidated revenue grew on a sharp IoT hardware jump (INR23.4 cr to INR41 cr), while map-led revenue was nearly flat QoQ as Government, its weakest quarter, dragged.
• Automotive grew 29% YoY despite a time-shifted OEM contract: Growth would have been higher in H2 FY26 but for a large OEM deferring technology inclusion; management believes the OEM is now changing course.
• One-time government write-off distorted EBITDA margin: A INR4 cr gross write-off, net INR80 lakhs P&L hit, pulled reported EBITDA margin below 43%+; the underlying target of 35%+ for the full year stands.
• AI-native pivot is the stated strategy: Management is "leaning heavily into AI" across product development, offerings and organization, positioning for what it calls a "golden era."
• What to watch next quarter: Whether the time-shifted Automotive contract resumes or expands, the pace of IoT SaaS conversion from the current hardware surge, and any margin recovery toward the 35%+ full-year target.

Segment Performance & Restatement

• New segment framework: Reporting moved from A&M and C&E to three segments: Automotive, Enterprise, and Government, restated for the last five years.
• Automotive: Grew 29% YoY, with wins across a leading 2-wheeler OEM, an export maps program for an existing PV OEM, and deployments live for Tata Sierra EV and new 2-wheeler launches (Suzuki, Vespa, Ultraviolette, Ampere). A large OEM contract was time-shifted when the OEM decided not to include certain technology in vehicles; management believes the OEM is "in the process of changing" toward more vehicles with MapmyIndia technology.
• Map-led: Nearly flat QoQ (INR98.2 cr to INR98.7 cr) because Government is historically the weakest quarter in Q1 and a slow starter.
• IoT-led: Revenue jumped from INR23.4 cr to INR41 cr, driven by hardware (INR7 cr to INR23 cr), which is lower-margin and precedes future SaaS revenue; IoT services sequential comparisons are misleading because Q4 is historically a large quarter and billing cycles vary.
• Diversification as risk mitigator: Even one delayed contract did not adversely impact the company significantly because of diversification across Automotive, Enterprise, Government and sub-verticals.

Rakesh Kumar Verma: "What you have to really look at is, one -- or understand that, one, we are so well-diversified that our risk gets minimized. Imagine even one contract that got delayed or let's say the one Anmol was talking about, it didn't impact us adversely to that extent because we were still diversified within our overall business."

Government Write-Off & Receivables

• Write-off mechanics: A one-time write-off of ~INR4 crores in receivables was taken for a specific government customer when management became 100% sure the revenue would never be collected; a corresponding INR3.2 crores payable was also extinguished, resulting in a net P&L hit of INR80 lakhs.
• EBITDA margin distortion: The gross write-off hit other expenses (above EBITDA) while the INR3.2 crores liability reversal was booked as other income (below EBITDA), making the net impact INR80 lakhs but the EBITDA impact larger; without it, EBITDA margin would have been 43%+.
• Government receivables risk: Management is carefully tracking government receivables, noting the cycle is longer than Automotive and Enterprise; the write-off was part of ongoing course correction. The exact share of government receivables in total receivables as of Q1-end was not provided; management referenced the FY26-end balance sheet and said government was "a majority. But not like a large majority."

Rakesh Kumar Verma: "The reason we did the write-off was when we were 100% sure that it won't -- it will never be able to get that revenue, we decided that it's better to do the write-off then just keep it in our receivables."

IoT Dynamics & Margin Mix

• Hardware surge precedes SaaS: IoT hardware revenue grew sharply (INR7 cr to INR23 cr), which changes the revenue mix and is lower-margin; SaaS revenue from new hardware will kick in later, and when growth starts, margin will follow with a lag.
• Sequential IoT services pattern: IoT services revenue appears lower QoQ (Q4 to Q1) because billing cycles vary (monthly, quarterly, half-yearly, yearly, 2-yearly) and Q4 is historically a large quarter for IoT-led, making sequential comparisons misleading.
• Full-year margin target intact: Management has kept a target of 35%+ EBITDA margin for the full year, acknowledging quarter-by-quarter variation.

Order Book & Visibility

• INR1,750 crores open order book gives strong visibility into future growth; management is "confident about what we're going to do in the time to come."
• Order book split not disclosed by segment: Management declined to disclose the mix across Automotive, Enterprise and Government, citing competitive reasons; the split by fixed pricing vs volume-based is disclosed once a year.
• Automotive contract time-shift scenarios: Worst-case, the contract period might get extended, or the OEM might change approach with more vehicles coming with MapmyIndia technology; no specific timeline was given for resolution.

Rakesh Kumar Verma: "One is, the worst-case scenario could be that the contract period might get extended, or they might change, which we believe they are in the process of changing, where more vehicles will come with our technology."

AI Strategy & New Initiatives

• AI-native push: The company is "leaning heavily into AI, accelerating and increasing our push into AI native product development, AI native product offerings, and AI native as an organization," positioning for what management calls a "golden era."
• Digital twin opportunity: The company is "pretty well-positioned" with geospatial, IoT and process twin capabilities and is looking at the space "quite aggressively," but will be "calibrated" in approach due to receivables risk seen in peer companies.
• Quick commerce adoption: MapmyIndia is powering Amazon Now for quick commerce, cited as an example of technology adoption within industries.

Rohan Verma: "Now what we are doing from -- I mean from the recent times is leaning heavily into AI, accelerating and increasing our push into AI native product development, AI native product offerings, and AI native as an organization. And that will really drive us forward in a -- as Mr. Verma said, in a golden era manner."

International & Public Sector

• Southeast Asia JV: Share of loss has reduced; international revenue contribution is not material to the P&L currently. Management sees the market as "still developing" and "interesting, exciting from a medium-term point of view," requiring patience and continuous course corrections. Smaller investments are being made in other geographies like the Middle East.
• Public sector focus: Defence and oil & gas identified as areas with "lot of opportunities" and "green shoots"; Rohan Verma is personally focused on public sector and IoT-driven business.
• Competitive positioning: Management asserts there is "no other company like us when it comes to deep tech products, in India or even around the world."

Rohan Verma: "We have to be patient, especially in Southeast Asia. But it is interesting, exciting market from a medium-term point of view. And we are continuously doing some course correction or the other so that we ultimately kind of win the international business also in a good way."

Guidance & Commitments

Key Metrics