# 1. Financial Performance ## A. Key Figures * **Q3 FY26 Revenue:** **₹374 Cr** (+6.1% QoQ, +10.1% YoY) · **9M Revenue:** **₹1,037 Cr** (-5.3% YoY) * **Q3 EBITDA:** **₹100.7 Cr** (26.95% margin, +316 bps YoY) · **9M EBITDA:** **₹269.6 Cr** (26% margin, +140 bps YoY) * **Q3 PAT:** **₹64.08 Cr** (17.15% margin, +133 bps YoY) · **9M PAT:** **₹158.57 Cr** (15.3% margin, +70 bps YoY) * **Cash Balance:** **₹387 Cr** (as of Dec 31, 2025) · **Unutilized IPO Proceeds:** **₹254 Cr** ## B. Revenue Growth * **Resilient Top-Line Performance:** Revenue held steady in Q3 with **1% YoY growth** amid macro uncertainty, driven by disciplined execution and traction in payment solutions. * **Volume-Driven 9M Decline:** Full-year revenue dip attributed primarily to **lower volumes**, though outcomes remain contract-specific and diversified exposure provided stability. ## C. Profit Margins * **Strong Margin Expansion:** EBITDA and PAT margins rose significantly YoY, with EBITDA growth outpacing revenue due to **gross margin leverage** from favorable product mix and scale. * **Efficiency Gains Offset FX Headwinds:** Margin improvement sustained despite rupee depreciation, underpinned by **operational efficiencies** and cost discipline. * **No Segment Margin Disclosure:** Company does not currently break out segment-level margins due to shared infrastructure; evaluation for future reporting underway. ## D. Cash Balance * **Prudent Capital Allocation:** Deployed **₹346 Cr** of IPO proceeds, including **₹230 Cr** for debt repayment in Q3, bringing total repayments to **₹300 Cr**, reinforcing balance sheet strength. * **Healthy Liquidity Position:** Maintains robust cash balance with **₹254 Cr** of IPO funds still available for future deployment per stated objectives. --- # 2. Segment & Revenue Mix ## A. Key Figures * **Payment Solutions Revenue Mix:** **53%** of total (Q3 FY'26) (+52 pp QoQ) * **IoT Solutions Revenue:** **₹38 Cr** (Q3 FY'26) · **100% YoY growth** (from ₹9 Cr) * **Communication & Fulfilment Revenue Mix:** **36.4%** of total (Q3 FY'26) ## B. Payment Solutions * **Dominant Revenue Contributor:** Payment solutions surged to become the largest segment, reflecting strong client offtake and expanded service adoption across PSU banks. * **Structural Volume Pressure:** Despite overall company growth, the segment faced YoY revenue decline due to **lower volumes** and **marginal price corrections**, though long-term contracts now lock in stable pricing. * **Core Banking Franchise Intact:** Serves **10 out of 12 PSU banks** with a bundled offering including cards, cheque books, kitting, and logistics, reinforcing entrenched relationships and scope for cross-selling. ## C. IoT Solutions * **High-Growth Niche:** IoT revenue tripled sequentially and grew **100% YoY**, now representing a material and highly scalable growth vector despite current concentration in RFID tags. * **Diversifying Use Cases:** Expanding beyond transit into retail, logistics, renewables, and theme parks via closed-loop cards and enterprise-integrated platforms, unlocking **significant untapped potential**. ## D. Communication & Fulfilment * **Stable Regulatory-Driven Demand:** Segment holds steady with resilient demand from BFSI, government, and enterprises for compliance communications, identity programs, and integrated logistics. * **Platform-Led Expansion:** Growth fueled by data-driven communications and a scalable logistics platform serving **35,000 bank branches** across **4,000 SKUs**, supported by regulatory tailwinds like GST and cybersecurity norms. --- # 3. Order Book & Customer Wins ## A. Key Figures * **Business Potential:** **INR 489 Cr** from PSU bank contracts · **INR 210 Cr** from multi-year customer tenders ## B. PSU Bank Contracts * **Strategic Wins:** Secured multi-year contracts with four PSU banks for payment cards, including a major debit card procurement from one of India’s largest public sector banks. * **Next-Gen Expansion:** One large PSU bank expanded scope to include **metal, biometric, and dynamic CVV cards**, signaling shift toward advanced card technologies. * **Metal Card Momentum:** Strong order book with half a dozen metal card projects in pipeline; three government banks in active discussions for large-scale deployments. * **Urban Transit Leadership:** Key service provider for automated fare collection systems in major metro cities including Mumbai and Chennai, led by institutions like SBI. ## C. New Customer Onboarding * **Diversified Growth:** Onboarded eight new customers across banking and fintech, with strong traction in premium and metal card segments. * **Global Reach:** Shortlisted by a major European fintech for global supply of metal and PVC cards, unlocking international expansion potential. * **Client Concentration & Retention:** Top 10 customers represent only **5% of revenue**, while **45% of revenue** comes from existing clients, underscoring broad base and high retention. * **ILMS & IoT Traction:** Secured four major ILMS wins in nine months and six new IoT solution deals; a new retail IoT client has potential to become the **largest account** post-volume confirmation. ## D. Large Retail RFID Deal * **Flagship Retail Win:** Secured supply contract with India’s largest retail chain (19,000+ stores) for RFID tags across two fashion brands, with potential for pan-India rollout. * **Public Sector Mobility:** Active in government-backed transit programs, including Delhi Metro and DBT-linked free transport initiatives, partnering with system integrators in key states. --- # 4. Capacity & Production ## A. Key Figures * **Operational Space:** **>200,000 sq. ft** under management ## B. Metal Card Expansion * **Capacity Buildout Initiated:** Expansion efforts underway to scale metal card production capacity in response to anticipated demand. ## C. IoT Manufacturing Sites * **Strategic Investment in High-Growth Segments:** Growth investments focused on IoT, automation, and metal cards to capture future demand. * **Vertically Integrated IoT Production:** Full in-house capability from chip bonding to custom tag design across Chennai, Bangalore, and Delhi enables differentiated, tailored solutions. ## D. Operational Space * **Scaled Operational Footprint:** Q3 prioritized business scaling with capacity expansion, technology advancement, and long-term contracting, supported by disciplined capital deployment. * **End-to-End Workflow Integration:** Proprietary rule engine and dynamic workflows enable flexible backend integration, supporting product lifecycle management and automated tag dispatch. --- # 5. Supply Chain & Input Costs ## A. Key Figures * **Dollar-Denominated Costs:** **37% to 38%** of total costs ## B. Dollar-Denominated Costs * **Material Cost Exposure:** Significant portion of input costs linked to USD, primarily due to imported raw materials across business verticals. ## C. Semiconductor Sourcing * **Technology Differentiation:** Six new patents filed in 9 months and strategic tech partnerships to strengthen product authentication and anti-counterfeiting features. * **Pricing Leverage:** IoT tag costs optimized through high-volume purchasing power, with pricing influenced by form factor and semiconductor/inlay costs. ## D. Volume Pricing Advantage * **Competitive Pricing Edge:** Volume-driven cost advantages enable aggressive customer pricing, establishing a structural barrier against smaller, lower-volume competitors. --- # 6. Demand & Market Trends ## A. RFID Adoption in Retail * **Inflection in Retail RFID:** Adoption has shifted from pilot phase to broad execution, with Tier-1 retailers validating benefits in accuracy and omnichannel, while Tier-2 players now scaling to reduce losses and enable store-led fulfilment. * **Accelerated Market Expansion:** Declining costs and faster ROI are establishing RFID as a foundational retail capability, driving cross-segment penetration. * **India Sourcing Tailwind:** Shifting global garment production to India, supported by FTA agreements, creates a strategic opportunity for **Seshaasai’s diversified RFID portfolio** in source tagging and domestic implementation. * **Near-Term Volume Upside:** Increased order inflows expected in the next two months, including confirmed demand from **Middle East customers** for India-manufactured garment tags. ## B. Transit & Payment Cards * **Premiumization in Banking:** Metal credit and debit cards are gaining traction among Indian banks as tools for customer differentiation and loyalty in the aspirational, high-LTV segment. * **Transit Payment Growth:** Rising demand from metro and bus systems for **interoperable, open-loop payment cards**, with company focus on system integrators and metro operators. * **Regulatory Clarity:** Closed-loop instruments (e.g., theme parks) fall outside global card network regulation (Visa/Mastercard/RuPay) and are not considered formal payment cards. ## C. Seasonality Impact * **Demand Visibility Evolution:** Industries increasingly require condition-aware supply chains, moving beyond track-and-trace to real-time monitoring via **smart sensors, data loggers, and Bluetooth devices**. * **Critical Monitoring Needs:** Real-time tracking of **temperature, shock, humidity, and dwell time** is vital for compliance and brand integrity in cold chain pharma and high-value logistics. --- # 7. Risks & External Factors ## A. Project Rollout Delays * **Pricing Power Shift:** Customers now prioritize service quality, compliance, cybersecurity, and product breadth over price, reinforcing **price inelasticity** in client relationships. * **Near-Term Volume Impact:** Sequentially flat performance attributed to delays in large customer project rollouts, with execution expected to resume imminently. * **Digital Rationalization:** Insurance services streamlined through digitization, adopting **email, WhatsApp, and SMS** as primary communication channels to enhance efficiency. ## B. Semiconductor Supply Tightness * **Proactive Supply Management:** Company to engage customers early to mitigate risks from semiconductor shortages and broader supply chain or pricing pressures. ## C. Currency Volatility * **Pricing Negotiation Risk:** Annual RFP contracts face potential realization pressure from **dollar positioning** and semiconductor supply constraints, influencing future pricing dynamics. --- # 8. Guidance & Outlook ## A. Q4 IoT Recovery * **Pricing Stability Maintained:** No major price rationalization in recent quarters, though modest downward pricing pressure expected over time due to volume-driven growth. * **Strong Recovery Expected:** Q4 IoT revenues anticipated to rebound significantly, with focus on closing FY on a high note to recapture lost opportunities. ## B. Metal Card Ramp-Up * **New Growth Catalyst:** Metal cards set to become a key contributor to revenue and profitability from Q4 onward, despite delayed ramp-up versus initial timeline. ## C. Global Expansion Pipeline * **Strategic Opportunities Advancing:** Company shortlisted for domestic RFP and in active discussions with global and domestic fintechs on major metal card programs. * **IoT Client Visibility Pending:** Further details on potential client size and volume allocation expected within the next **two to three years**.