Ladies and gentlemen, good day, and welcome to the Ceinsys Tech Limited Q1 FY26 earnings conference call hosted by Arihant Capital Markets Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this call is being recorded. With this, I now hand the conference over to Ms. Jyoti Singh for opening comments. Thank you, and over to you, ma'am.
Thank you so much. Hello and good morning to everyone on behalf of Arihant Capital Markets Limited, and thank you all for joining into this Q1 FY2026 earnings conference call of Ceinsys Tech Limited. To build from the management, we have Mr. Prashant Kamat. He's our Vice Chairman and Chief Executive Officer. Mr. Srinivas Keshi, he's your designated Non-Executive and Non-Independent Director. Mr. Kaushik Khona, he's the Managing Director – Operations. Dr. Animesh Srivastava , he's the Managing Director. Without any further delay, I will hand over the call to Mr. Kaushik Khona, Managing Director – Operations. Over to you, ma'am.
Thank you, and good morning, everyone. It's a pleasure to welcome you to this earnings conference call for the first quarter of the financial year 2026. Let me, at the outset, thank our host for today's conference call, Arihant Capital Markets Limited and Ms. Jyoti Singh in particular. In the interest of some of the people who may be new to the company, let me first start by giving you a brief overview of the company, and then follow up with the performance highlights for the quarter under review. Ceinsys Tech has been recently rebranded to CS Tech AI, while the corporate name remains as Ceinsys Tech Limited. We are a leading technology solutions provider in the IT-enabled sector. We are acclaimed for our expertise in geospatial engineering services, as well as other engineering services and technology solutions.
We offer a broad range of geospatial engineering services, including data creation, data analytics, decision support systems, enterprise web solutions, and the like. In the year 2022, the company strategically expanded into the mobility sector by acquiring Enegro Technologies, a specialized engineering service provider with a strong international presence. This acquisition allowed the company to enhance its capabilities into manufacturing technology and mobility engineering solutions, covering the entire product development process and initial automation for diverse sectors, such as the two and three wheelers, passenger cars, commercial vehicles, and off-highway equipment. In the year 2024, we acquired a geospatial business of VPS in the U.S., which was majorly operating in the telecom domain.
Since then, we are identifying some more targets for inorganic growth to expand our horizons into the domains where the company is already operating, that is geospatial engineering services and technology solutions, for which the company has already mobilized almost $38 million. We serve prestigious global clientele that includes large corporates, OEMs, many companies, and government bodies, highlighting its robust reputation and growth in the geospatial and manufacturing sector. With operations in India, the U.S., the U.K., and Germany, the company combines local expertise with a broad international reach. Additionally, the company is venturing into software development, product development, and emerging technologies through a new vertical focus on artificial intelligence and machine learning and embedded electronics. This vertical emphasizes the development of AI and ML.
Now being recorded.
This vertical emphasizes the development of AI and ML enabled applications and solutions to enhance our delivery for the existing domains at the outset, reflecting the company's commitment to innovation and maintaining a competitive edge in a dynamic technological landscape. Now, let me come to the highlights of the financial and operational performance for the first quarter ended 30th June 2025. For the quarter under review, our operational revenues grew by 112% year on year, INR 2.157 crore. EBITDA grew by 130% year on year, INR 2.30 crore. EBITDA margins were at 19.35%, which were also higher by around 140 basis points as compared to the corresponding quarter last year. The net profit was reported as INR 32 crore, which represents a growth of 166% year on year, and the PAT margins stood at 20.18%.
The growth in both revenue and EBITDA margins was driven by successful execution of projects, which contributed to stronger margins. Additionally, our ongoing initiatives to improve operational efficiency have enabled us to manage higher volumes more effectively, further boosting our operational performance. The results reflect the amalgamation of 100% subsidiary Enegro Technologies Pvt Ltd., effective 1st April 2024, as approved by the Honorable NCLT, while the debt-shaped company was previously consolidated, and this helped the merger record streamline the reporting. The company reported strong growth in its geospatial engineering services and technology solutions business, driven by a focus on water, IoT, and enterprise solutions. As of quarter end, it holds an operational cash surplus of INR 137 crore. As of June 2025, the total order book stands at INR 1,290 crore.
A key highlight of quarter one is the company's highest ever quarterly performance, marked by a record revenue and EBITDA. Execution of technology solutions projects saw a 2.7 fold increase in quarter one of this year, rising from INR 31 crore in quarter one of FY25 to INR 84 crore in this quarter, underscoring robust demand and improved delivery security. The contribution of technology solutions to turnover rose from 51% in Q4 to 55%.
Since we're so fast, can you repeat that?
Since 54% in Q1 of this year, highlighting the company's strategic emphasis on high-value legacy release services. An investment of INR 7 crore this quarter has been towards business development for U.S. market expansion, which is also expensed out through the profit and loss account in the quarter one of 2025-2026. The employee cost as a percentage of revenue declined to 23% in this quarter from 35% in the corresponding quarter of last year, highlighting improved operational efficiency. We added major contracts secured during this quarter, which include an MMRDA contract worth INR 115 crore for the selection of system integrators to monitor its infrastructure projects. We also added project management consultancy projects for around INR 11.5 crore, and an auto test software development contract of INR 5.5 crore from MMRDA. These contracts reflect the breadth of our capabilities and continued success in securing significant projects across various domains.
We have focused on driving growth and continue to deliver our commitments. We remain optimistic about the future and look forward to sharing more updates as we progress. With this, now I open the floor for question and answer session. Thank you.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question comes from the line of Garvit Goel from Enrich Analytics Advisory LLC . Please go ahead.
Hi, I'm audible?
Yes.
Yes, sir. One concern in Congress for your investigation this quarter. My first question is, in the previous call, we did speak about some big orders, one more than INR 250 million, to be receiving one month or so. Until then, we did not receive this much order that we mentioned in the earlier call. While we speak about quarterly pipeline of INR 300 to 400 million, there's 70% to 80% success rate. I want to understand from you what is stopping us to get these orders. I agree that we can't do it on a quarter basis, but now it's almost two quarters there. We did not get some major orders that we are guided for. I just want to understand what is the actual picture on ground level. That's my question.
This is Prashant. Let me try to address this in typical context and add some more clarity. The major orders we were anticipating were from Jal Jeevan Mission, which is a government team. You know government decided to take a stock of the situation and they wanted to do the audit of the entire program of Jal Jeevan Mission. That's where they put everything on hold. Some of the results are also affected because of that. I guess that the audit is coming towards the five-year, almost finishing, and that pipeline should open now. The guidance got delayed. It didn't vanish. That's the broader picture.
I think you want to add something more?
No, that's correct. I think that's fair. I mean, the guidance given was valid and it continues to remain valid. I think that's what Prashant is saying. Next question, please.
Can we expect the orders in Q2?
Yeah, we do expect the order given the timeline will depend on how fast government moves in terms of the revenues that we lost on the Jal Jeevan Mission. As soon as that happens, we are already in, I would say, in terms of qualification and the billing probability, we're still looking at 80%, which we had told you on that. Unless government hears that for us for moving forward, it will be very influential on our side to put a definitive reason.
Got it. Secondly, on the revenue project, while we were looking to execute 150 PRs worth of contracts this quarter, it seems like it has not materialized. What is the current update on that? How much did we execute in Q1, and by when do we see the completion of this project?
This project started already in execution. The number is nowhere close to INR 150 crore. Again, it's not because of us. We are fully ready to clank into the door, but because the government wanted to clean up, to optimize some of their supplier of the stuff, the project took off slowly. After, I think we did close to about INR 30, 35 crore of order execution. There is a large part of the targeted order we get executed in the coming months. What we anticipated on rearranging, we were able to do it from other projects. Our results still remain good.
Got it. Lastly, on the inorganic opportunities part, last quarter, we mentioned about two opportunities. They are due to be completed by the month of May or June. What is the update on that? Anything material happen on that, right?
Both entities are moving pretty well. You would probably appreciate the real behind it. The timeline typically doesn't stay as optimistic as we would like it. Therefore, it will go back and forth. Both are positive, both are moving in a good direction, and both are at the stage of due diligence.
Understood. How is this quarter going on, sir? Can we expect two months of growth, like last year guided for? Will you be growing two months of growth?
As we have always said, no forward-looking statement. We can tell you that we don't see any momentum reduction. We would continue to maintain our momentum.
Okay. Thank you, sir, and all the organized participants. Thank you.
Thank you.
Thank you. The next question comes from the line of Shubhankar Gupta from Equity Capital. Please go ahead.
Hi, sir. First of all, am I audible?
Yes, you are.
Yes, sir. First of all, congratulations on the reasonable numbers. Really good results. There are two questions for my list. First question is on the segmented revenue split. Our category question is, first, electric, green, water, auto, using Enegro Technologies. What is the segmented revenue split for this quarter and for last financial year? That's one question. Second question is, split between orders from domestic, international, and then within domestic, government versus private split.
I think the segmented split is already published, where the geospatial engineering services have contributed to almost INR 72 crore. The technology solutions have contributed to almost INR 84 crore. When we talk about the split between government and the private organization, the domestic is more or less, I would say, 85% of the domestic turnover is from government. 15% remains from the private corporates. On the export and, sorry, the international revenue and the domestic revenue, this quarter, we had an international revenue of around INR 7.5 crore out of the total turnover of INR 156 crore.
Okay, sir. Got it.
Secondly, on the second question is fair, but her question was more cleaner.
The line for the participants has been dropped. The next question comes from the line of Raj Sarath from Envestnet. Please go ahead.
Hello? Am I audible? Yes, you are.
Yes, you are audible.
Yeah. Sir, a simple confirmation for the shallow set of numbers. There's just one specific reason that if I see the revenue increase in geospatial and then services, it has increased, but the margins have decreased. What could be the reason, sir?
Prashant, could I take it? Yeah, yeah, please. As I think you must be aware, last time also we had explained that our focus will be to enhance our margins. Geospatial and engineering services continue to provide the margins as we have been doing in the past. However, our focus of additional higher margins business is on the technology solutions. If you see the overall numbers, the geospatial has been in this quarter at around 15-16%, while the margins for the technology solutions have been in the range of around 30%. That's where we would like to build up more deliveries in the future.
The split between geospatial and technology solutions is by, I would say, default in the sense of being we execute the project. The project has elements of geospatial and engineering services, and they have also elements of technology solutions. The numbers will vary based on the execution of each project, and therefore, segment revenue is guided by that.
Okay, we are mainly focusing on the technology solutions, not on geospatial margins.
We are focusing on both, but obviously, the greater focus remains on development of technology solutions. That can also be seen from the fact that quarter one of last year, our turnover on the technology solutions was INR 31 crore, and this quarter is INR 84 crore. It's more than double.
Okay, sir. The second quarter is on the order book only, sir. We have executed INR 156 crore orders in this quarter. The order booking is now slowing down. We are mentioning that the revenue region is also on hold from the government. There could be a slowdown on that side also. How could these affect order booking going forward? Without a decreased order, you can't see companies going to deliver more growth.
Prashant, should I take?
Yeah.
Yeah, yeah. Let me just take it. Our quarterly revenue is INR 157 crore. Annualized revenue plus growth on quarter-on-quarter basis, you can stick up a number somewhere about, I don't care what that number exactly would look like, somewhere between INR 610 crore and. If you really look at that number and plot our order book, we are already sitting on two years of order book as of now, end of this quarter. Counter for growth, you can say 18 months. We are almost 100% certain that within these 18 months, we will have an order book much larger than what we are having today. What I said was there was a temporary issue because of this heavy hand putting everything under order. It's coming to an end. We would see order taking off from there. We don't see any heavy hands in that.
That's the issue that we are confronting.
Okay, sir. Also, Mr. Sarath, if I can add, in the beginning of the quarter, our order book was INR 1,197 crore. As we speak, it is INR 1,209 crore. There is no reduction of the order book. You are right that order book growth has been a little slow. While one of the contributors, Prashant Sir, has already mentioned, we also kind of bid for other projects other than Jal Jeevan Mission also, which are awaiting the final kind of approval. We will probably see that happening within this quarter, with quarter two, quarter three. It's not something that order book is not happening. It's only a time gap by which the new orders are awaited.
Thank you very much. If you can allow me to skip a single question more.
Yeah, please go ahead.
Yeah, I don't think the conference will have executed it yet. You have a chance. Go ahead.
Okay. Sir, how is our strategy against Enegro Technologies and how do you prepare that? How does it contribute to our consolidated market going forward?
Flexibility is already launched with the current. You won't be able to see it that way, but there is another way if you really look at the numbers. In terms of international revenue, which is probably coming from this flexibility, has grown almost like 20% quarter on quarter.
Okay.
It's doing good. I think that is.
Okay. On the margins, the margins are fine, if I may say, INR 153 crore in the range.
It's also doing good.
Okay. Thank you. Thank you very much. I wish you all the best for the coming quarters. Thank you, sir.
Thank you.
Thank you. The next question comes from the line of Lloyd from Nivesha. Please go ahead.
Yes, sir. Thank you so much for the opportunity. I would like to understand the role Project SAR is playing in this financial year. What kind of initiatives or verticals are currently involved? Is it directly engaging in any part of the acquisition process or leading any new strategic focus, maybe across acquisition?
Is the CEO designated for Ceinsys Tech Limited as a whole? He is taking over from me on the 4th of January, 2026. Until then, yes, he is playing an active role in all day-to-day operations, as well as strategic initiatives of the company. If your question is, is he involved on a day-to-day decision-making review operations? Answer is yes. Is he involved in M&A and is he actively participating? Answer is yes. Because some of these activities are being driven by Suresh personally.
Okay. Thank you. Sir, what portion of this quarter's revenue is unbilled, either in % or actual term?
Sorry, what did you ask?
Yes, sir. What portion of this quarter's revenue is unbilled?
Unbilled?
Yes.
Sorry, not today. Okay, this quarter's unbilled percentage will be in the range of around 50%.
Okay. Okay. Also, could you update on the cash flow situation as well? Will it materialize as projects are in Q1, or have there been any delays on the head of cash flow?
I think if I can take the question, we have already explained that there is a cash flow surplus of INR 127 crore. Secondly, as we already mentioned, there is an unbilled revenue. Obviously, it will be billed once the milestone to bill is available, and therefore, that also will materialize. A cash flow situation does not seem to be any issue over here. On the overall perspective, the next surplus is what we already mentioned. Even though we have the government contract, I think the realization of the revenues are as per the plan.
Okay. Sure. You have not explained that. Could you provide any qualitative remarks on what are the plans for the international expansion, and how do you intend to execute them? Just some brief qualitative remarks will be helpful.
As you know, international ICA does not shrink at all, or starting to not shrink at all. We continue to increase international revenue as a percentage of total revenue. One of the reasons why K. P. Suresh is coming in is that his primary mandate is to achieve that objective. That will be through both inorganic as well as organic revenue.
Okay. Sir, any remarks on the latest progress in the revaluing project?
As I said, the execution has started, not at the pace we would have allowed or that targeted. That's primarily because of the delays from government to set their house in order, not from our end. It looks like everything is being set correctly. We should continue to see higher and higher revenues every quarter during the current year.
Okay, thank you so much, sir. All the best.
Thank you.
Thank you. The next question comes from the line of Akshay from AK Investments. Please go ahead.
Hello, sir. Thank you so much for the opportunity and congratulations for the good setup number. My first question is, currently, we have an order book of INR 1,200 crore. I think you have previously mentioned that the execution timeline for the same is around 18 months. About the new order flow, in FY 2026, remaining FY 2026, how much can we expect the new order flow in all of our categories?
Yes, if you please. Based on the opportunities which we have identified and we are based, and based on the opportunity which we expect to happen, based on the programs which we are following in quarter two, quarter three, and quarter four, we expect that at least we should be able to grab a fresh order book. This is again subject to the external factors, but our target is to at least get around INR 800 to 900 crore additional order book during this financial year.
Okay, sir. My second question was on our cash flow conversion. Our cash from OpEx in the last year was very minuscule at INR 6 crore. How much cash flow from EBITDA can we convert this financial year in FY2026?
I can talk about quarter one. Our EBITDA is all converted into cash flow. If you look at the net EBITDA, which is around INR 30 crore, our cash flow accretion has been in the range of around INR 27 crore. Whatever is earned as an EBITDA is forming part of the additional accretion to the cash flow. We will be able to comment upon the next quarter as we go through.
Okay, sir. Okay. Very much. All the best for the future. Thank you.
Thank you.
Thank you. The next question comes from the line of Vikrant from B.V. Welling . Please go ahead.
Hi. Congratulations on the great set of numbers, management. In the first question, we creatively have an opportunity of getting $12 million in.
Sorry, Prashant, may I request you to use a handset?
Sure.
Your audio is a little low.
You're going to get great sound?
Yes, sir. Now it's better.
One thing is clear that there is clear opportunity with Delhi Investment and other government projects, but it also seems to be a risk for us, a government being the risk. The timeliness of these orders' execution from their end is our risk. How do we plan to diversify this risk going ahead?
Prashant, if I may, on the execution part?
Yeah, please, please.
On the government, first of all, we don't see that government as a risk. That's one thing because we have been in the business where we have been serving government and executing orders of government since the last more than 17, 18 years in the geospatial era itself. We have never seen any bad debts or any kind of risk in that financial base. The question is, there would be some delays based on the government's process, which is also factored into why we bid for a contract or why we execute. Whatever kind of known or estimated risk which could have, have already been built in while we project for that. As regards diversifying or I would say nativity, we have always been focusing on those government orders where we know that there is a funding plan already approved.
We don't go for those government orders where there is no visible funding. Therefore, we are sure about getting the funds released. It could be a matter of delay of 30, 40, 50 days as compared to what you would have projected, but it is still part of our process. Another way to mitigate is, obviously, to try to reduce the percentage of the government business in the total without reducing the actual numbers in the perspective. That has been planned as a strategy by way of inorganic growth and focusing on international revenue, which I think Prashant has already mentioned in this as well as the previous calls. Yes, firstly, thank you so much for the clarity there. By risk, I don't mean the failure of payment. By risk, I mean a delay of execution timeline, as stipulated by the government. That is not in our hands for sure.
That's uncontrollable for us. Do you think going ahead, is there some sort of a revenue mix that we are targeting that you can give us some sort of directional guidance towards? Not specific numbers, but even ballpark would help. Let's say 18 to 24 months from now. What we have said, if we've built the timeline of 18 to 24 months, we have given you a little longer timeline. What we have said was our current mix is like 70/30 in favor of government in Europe. We would like to be somewhere in 60/40, 70/40 in favor of international business in the region. That's the target on which we are working right now. Is there any internal timeline that we were working with this, or is it much more open-ended right now? No, we have said we will target to approve this within three years.
Right now, that's what we are working towards. That is the moment of the issue. That's good to hear, sir. My last question is, directionally, we are looking at the orders that we have built up. You alluded that even as we look at our order book, it's strong. Accounting for growth, also we have next 18 months of orders figured out. That's not a problem. As soon as the international business starts coming in our favor, we will have a larger order book.
Where is it that we are seeing a growth accelerator for us? What is that one thing or those couple of business factors that we are looking in, geography-related or client-related, that we are accelerating on right now? What are the key areas where we are trying to get these orders from?
If you can give us some sort of, geography is U.S., I think it is technology literacy. Once we have these orders, we will explain to you a little bit more. Right now, you got an absolutely correct, definitive answer. Is it in the geospatial range that we are looking in U.S., or are we looking at our subsidiary business through U.S.? As of now, both, but largely in geospatial. Okay. Can you guide us when can we get more clarity on this? Next quarter, maybe? Maybe the total of quarter. In this financial year? Yeah, 100% in this financial year.
Got it. Congratulations again for great numbers. Wish you all the best for the team. Thank you.
Thank you. Thank you. The next question comes from the line of Devashish Nigam from Avendus India. Devashish, the best, please go ahead. Hello, sir. As there is no response from the participants, we'll proceed with the next participant. The next question comes from the line of Kaushal Sharma from Equinox Capital Ventures Pvt. Ltd. Please go ahead.
Hi, sir. Do you have a question on our order book?
Yes, sir.
Yes, sir, your order book.
Yeah. So very congratulations for raising our margin in the business. My question is, on your margin side, I see the total margin, EBITDA margin is falling at 9%. And projected another operation cost increased for. What is the key reason of cost? On this margin, we should save in the future. What is the key?
Yeah. I think your observation is right that margins are improving. I will answer your last question first. It seems that the margin sustainability will be there because, as we already explained at the beginning of the meeting, our focus will remain on bringing up more of technology solutions where we see higher margins. That's point number one. The employee cost has reduced not because employee cost per se has reduced. It is basically the efficiency has been improved.
Because we are executing more projects with the kind of set of technology infrastructure and the technical know-how we have of the people. I think as we grow, the percentage of the employee cost to the total obviously will go down. As regards to other operational costs, they are specific to the respective contracts. There will be certain contracts where we have the outsourcing costs, where we have contractual costs, and therefore, their numbers will be a little higher. There will be certain contracts where we only have to provide technology solutions, where we depend more on our technology or our solutions, which we build in-house, where the other costs would be lower. It will be difficult to say what percentage of other costs will continue. It will obviously depend on the nature of projects which we execute.
Thank you, sir. Thank you.
Thank you. The next question comes from the line of Lloyd from Avendus Dubai. Please go ahead.
That is for the next set of numbers, sir. My question is on the organizational structure and the integration. We have been taking a team of people, okay? My question is that how, you know, now the structure, for example, Mr. Suresh, what would be his role? Then we have, you know, again, Rashid Mehta, Ravi, and Ishtar. Okay, what are their roles? Are they in big roles or are they helping us in business development? How is it integrated? What I mean, how is it integrated? Can you give an example?
We have a geospatial. We have a tech business. We have government, non-government. We have India operations, and we have operations outside of India. How do you put that energy into operations? If you can give an example, it's technically a project done with Grayson's firm.
Sorry, I didn't understand the second name you said. I understood. What was the second name you said?
Rashid Mehta.
This is already correct. Rashid Mehta has already resigned last quarter. Okay, okay, okay. I think the entire synergy of the business. Let me try to address you. Let me try to address you something, okay? Rashid Mehta resigned is a secondary thing. Basically, if you look at Ceinsys Tech right now, and I will give you some numbers. Within two years, within three years, I think three years, our revenue is almost quadrupled. Our profits are almost quadrupled. We are in a very different age today than what we were just a couple of years back. What we are trying to do here is trying to manage this growth, and therefore, we also need a strong management team.
We raised money, and our intent was very clearly defined, I think, during the beginning of last year that we want to grow our international presence. That can happen along with organic growth. Of course, we also need to look at inorganic growth. When we hired Rashid, the intent was that she would help us in growing the international acquisition and get further to that. Unfortunately, that didn't work out. She decided to take it out. The reason we have hired Suresh is, as I said, from January 1, 2026, which is like five months away from today, Suresh is going to take over as the CEO of the company.
The reason we need this international management bandwidth is, otherwise, if we grow at the pace at which we are growing into the acquisition and we do not have the correct management bandwidth, we will face issues in our medium term, which we are trying to confront before we buy out.
Thank you for such a transparent answer. I really appreciate it. My second question, sir, is in terms of the debtors and creditors, number of days, and when this has been answered in the past, you know, to concom back. It's a tough decision between the receivable and the payable. While I understand the payable also has a milestone, and we have a back-to-back arrangement until we get payment, we won't pay the creditors. The difference is huge, sir.
I don't understand how can we have creditors who are not paid for more than two years in terms of a number of days. I think you already answered that. You can give the flavor of it and the details of it, but I think the question you asked, you already answered that. If I have a back-to-back arrangement and there are some projects which don't put on hold and there is obviously a party from which we got the work done, we will not depend. We don't have that obligation. I have more flavor to it.
Yeah, I understand that. My question is that, you know, in terms of debtor days, you know, say as of March, it is 221 days, whereas the payable is 766 days. I think it's too large a difference.
Okay. If I can analyze based on March number, because June balance sheet also I have, I didn't publish as required because it's not required. Even on March numbers, the debtors which we had was in our absolute terms was around INR 120 crore. If you talk about the March numbers, then it was around INR 420 crore. The debtors were not that much. Debtors were less than 120 days. That's point number one. Creditors, you are looking at the creditors based on the cost of purchase or cost of material or cost of other operating costs. I would rather look at overall costs because there are certain costs which are also part of the back-to-back arrangements. In my creditors, total liability, current liability was INR 158 crore. Offset, the creditors' first pay was hardly INR 75 crore.
Now on a INR 75 crore on a total operating cost of INR 275 crore would be what? Around 140, 150 days. I think they are in sync with what the arrangements have been made with the creditors. There is no overview creditor aspect because they are all aligned after the contract. I think the numbers perhaps or the calculations we need to revisit, they are not as significant as you see. Do we have a negative test for some culture? No. No. I think in the first earlier question, we already answered that when we talk about this quarter, I mean, this quarter the net EBITDA is around INR 31 crore and INR 30 odd crore. The cash conversion out of that has already happened at around INR 27 crore.
The balance, which is unbilled revenue, which I already mentioned that we raised around INR 75 crore, is expected to happen during this quarter two, quarter three. There is no negative cash as such.
Okay. Understood. Thank you, sir. Congratulations once again and all the best for the future. Thank you.
Thank you. The next question comes from the line of Darshil Zaveri from Crown Capital. Please go ahead.
Hello. Good afternoon, sir. Thank you so much for taking my question. Firstly, congratulations on a great set of results. Hopefully, I'm audible.
Yes, you are.
Hi, sir. Sir, I just wanted to ask, like you said, around INR 800 to 900 crore orders we are targeting this year. What is the estimate of Jal Jeevan Mission from that, sir?
Out of, again, INR 800, 900, we are expecting to close, while our pipeline will be higher than that because there is a timeline for any pipeline to materialize. We are not expecting any pipeline to materialize during this financial year. Out of INR 800 to 900 crore, a chunk even would be in the range of around INR 400 crore as of now.
Okay. The only reason I was asking is that because if it's on a pause right now for some time, your order inflow, even the tendering process to start and everything would take some time, right? Would it be fair to assume that even if it starts like after Q2, then it would take around five, six months more to materialize? It would not have a, it would be very back-ended. How would the timeline work, sir, if you could, if a new order had to come?
Yeah. Sorry. Even at the INR 800-900 crore level, there are certain opportunities which are already being tendered or already in pipeline. The pause which happened in the last quarter, which is from April to June, is expected to be resolved. It's not something that I'm counting as new opportunities because new opportunities anyway take around six to seven months, which we don't normally count as a part of our fructifying opportunities. These opportunities have already started, for which either we have bid or we have started working on those opportunities. We expect those to fructify within this financial year.
Okay. That helps a lot, sir. I just wanted to know, current quarter, our tax was very minimal. Is there any reason for that? Overall, for the full year, what kind of taxes can we assume, sir?
Tax, it's basically only because there is a net of tax credit of around INR 8 crore, which was an excess provision of last year, which is reversed. If you look at current tax, we are at the same 22%, and that 22% tax rate applies to us across all the quarters. There is a credit of around INR 7.6 crore, which has gone down to effective tax rate going down.
Okay. Okay. Overall, our tax rate is around 22%.
That's incorrect.
Yeah. Fair enough, sir. I just wanted to know, like we've had, you know, amazing margins this quarter. As we scale up our revenue, will we get a higher operating leverage or the margins like Q1 performance we should, you know, assume as a new base? How do we see that, sir?
I think this has also been addressed as we grow, and we are trying to catch up the higher value chain. Therefore, we are trying to address the technology solutions platform more than what we were earlier doing. Effectively, we expect the margins to sustain or maybe grow a bit. Even if we are growing at a higher pace, as we already mentioned, that we grew by more than 100% as compared to the previous year's same quarter, the margins have actually increased. That is because of the order mix or the kind of the way we have executed higher technology platform solutions.
Okay. Fair enough. Sir, just one last question from my end. I think we had around, we've done some expenses of business development in the U.S. It's a two-part. How has that been going? Does the Trump tariffs, you know, make people a bit hesitant in ordering? How does that flow, sir?
Okay. Trump tariffs is basically a political decision. We need to see what happens. In terms of investment in the U.S., as I mentioned, from last quarter to this quarter, our revenue has grown by 20%. We have seen that real start to coming in.
Okay. Fair enough. That's it from my side. Thank you so much, sir. All the best.
Thank you. Thank you.
Thank you. The next follow-up question comes from the line of Shubhankar Gupta from Equity Capital. Please go ahead.
Hi, sir. I have two questions. I was saying on the segmented breakup of the current INR 1,200 crores order book, there's a small few between geospatial and technology there. The second question is on the other income base. I see a massive increment in the other income base, roughly a 200% increase from, I think, around INR 15 million to INR 27 million. What exactly is driving that INR 10 crores breakup of that as well?
Sure. If I can just take, you first asked about the breakup of the order book?
Current order book.
Yes, sir. Current order book. Out of INR 1,209 crore, approximately INR 765 crore is on geospatial, and approximately INR 445 crore is in technology solutions. The second question you asked about the other income, which I think on the overall perspective, it is insignificant, but it comprises of the interest income on the surplus deposits which we have. If you look at interest deposits which we have, and if you look at the overall other income, it also is contributed by the share of profit from the GV which we have, which is the Eddy Gram, where we hold 70% of the stake, which also has contributed to almost INR 2.59 crore.
Effectively, when we look at other income, the INR 7 crore is mainly made up of these two elements: INR 4.6 crore for interest income and INR 2.6 crore for share of profit, which is in a normal parlance, I would treat it as operating income. In the investor presentation, we don't show it as operating income because they have gone to surplus on strategic investment.
Got it. Got it. That's clear. Okay, just a follow-up from the INR 1,200 crore order book. We are, our strategic focus is to transition more on the technology solutions bit because that is higher margin, right? Barring the current order book, our focus will be more on the technology solutions bit because of the margin split. After what split are we focusing? Who is this current order booking to complete it? I think you mentioned it, but can you already look after it?
No, we didn't mention the breakup into geospatial and the technology solution. Every order, I mean, typically, most of the large orders would have an element of geospatial and would have an element of technology solution. It will be difficult to right now identify how much portion of that will be fragmented in these two. What we are strategically aiming at is to have such order books where the portion of technology solutions is higher, where it is a combined solution, and a target on replicating the solutions which we already done on the technology solutions part. I wouldn't be able to give you the breakup of what would be between the geospatial and technology for the new order book.
Got it. Got it. Thanks a lot.
Thank you.
Thank you. The next question comes from the line of Nitish Saha from SAS Investments. Please go ahead.
Hi. Good afternoon. Congratulations on the continued good performance. My question is around the sustenance shift more towards technology solutions business units. Just wanted to understand in terms of A, operating, and B, geographies. Is it safe to say that the focus is more on technology solutions, more on the North American market? Some color around your strategy and how you're thinking about the company evolution over the next two years would be helpful.
This is Prashant. I just want to fasten a little bit on this topic. Because margins are good in operating technology solutions, that's our focus. That's it. Correct? Confusing. We are not leaving geospatial engineering or geospatial skills. What we are actually trying to do is pick up the projects where even though it is in the geospatial area, we will be using new technologies, like artificial intelligence, like IoT, like controls, all of that stuff. For that, whichever of the projects will give us a correct margin profile of the projects we are going after. Geographically, this is applicable for the U.S. This is applicable for Europe. This is also applicable for India. If your conclusion is we are going only after technology, no, that's not the correct picture of our business.
What we are trying to do is apply these new technologies in the geospatial area and try to improve the margins. That's what the correct picture will be.
Understood, Prashant. Thank you. That's helpful. My question is more around sort of the incremental focus going forward because at some point, the order book and sort of the government spending on these projects might tap out, and as we increase in size, we would be looking for new geographies and for new offerings, as you alluded to earlier. On the inorganic side, in this case, could you just let us know what you're looking at? Any sort of acquisition assets? What are the into, are you looking to acquire geospatial across geographies, or are you sort of open to any other verticals, the four intersections you mentioned in the deck?
As of now, we have the couple of the acquisitions which we are porting. Both of them come from geospatial. Both of them also come from the technologies. Newer technologies which don't exist in CS Tech today. Vertical will be geospatial. Technology will be new. That's what we are looking. Geography, both the acquisitions serve U.S. as well as Europe.
Okay, thank you so much. All the best.
Thank you. The next question comes from the line of Harsh Mulchandani from Toro Wealth Managers LLP. Please go ahead.
Thank you for the opportunity. Congrats on the set of numbers. We just mentioned that we have an INR 800 to 900 crore bid pipeline. I just wanted to understand how much of it is towards the Jal Jeevan Mission and how much of it is towards other projects, and if we put discount lever on the kind of projects that we are bidding.
I already clarified that INR 800, 900 crore which we are expecting to close this financial year includes around INR 400 crore which is Jal Jeevan Mission opportunities.
Okay. The rest is?
The rest is on the technology platform, where it includes some of the replication of the technology which we already implemented in some of the projects. We are also working on 3D BIM and AEC opportunities for geospatial, where we added some more technology enablers in this in the last two quarters.
Okay. For simpler understanding, the tech platform you mentioned could get classified under the tech revenue for the business, the higher margin business?
Yes, that's correct.
Okay. Got it. Thank you so much.
Thank you. Thank you.
Thank you. The next question comes from the line of Vikrant from B.V. Welling . Please go ahead.
Hi. Sir, when you talk about our technology solutions, as you mentioned that there are a couple of AI products and platform services that we are looking at now, could you just paint us a word picture as to what kind of benefits it is giving to our client and how are we positioned in a unique manner that is giving us that competitive strength?
In terms of client, it is always faster because it's cheaper. Are we doing that? With what we are doing, our AI engine running, we are addressing both of these aspects faster and better. It is more accurate, and it's much faster. What was your second question?
Can you just paint like a word picture as in what is the exact product that we are offering with the PD for us? What kind of services are we giving them?
Okay, it's a little bit more technical, so bear with me for a couple of minutes.
Sure.
Typically, when we are doing the work, after the scanning, either by LiDAR or by the aerial or whatever source, we come in and we capture the data. In terms of processing, it's needed for experience and a lot of people to clean up that data, pre-process, then identify specific objects, and then give the maps or give the objects on the assets to map. What we have developed is the artificial intelligence layer to do all these manual interventions and give the results faster and more accurate, as well as the quality of the end results. We have been able to convince multiple customers, not just in India, but outside India, that the developed products from our side give results much better than what is available commercially with them. The data which they throw over the wall to get protection from low-cost contracts is also considered.
That's the reason we are able to see more traction in that area.
The training and segmentation of data is run by a technology solutions. What kind of, sort of target audience are we looking at in the U.S.? Is it private players? Is it government?
It's not government in the U.S. It's the private players, and all the utility segments is what we are targeting. Same like energy, as well as telecom, as well as roads.
That means that if the infra spend in the U.S. starts going up in the private space, that would be a direct sort of opportunity for us. That's energy space, or is that water space, something like that? Is that the right approach, sir?
Yes, yes, yes.
The transmission lines that the U.S. is now also looking into and expanding their power and energy requirements, that's a clear opportunity for us in the geospatial and technology services.
Absolutely, yes.
Got it, sir. You should do the best. Thank you.
Thank you. The next question comes from the line of Arup De, an individual investor. Please go ahead.
Hello.
Hello, sir.
Hello.
Yes, sir. You're audible. Please go ahead.
Could you provide any guidance on revenue and cash margin for FY2026? No. We will never give forward-looking statements.
Okay. What is the size of your Q1 order book?
As of now, it is INR 709 crore after the first quarter.
No, no, no. Closing, closing. You asked me L1, not the close.
L1.
In the sense?
It's what we have bid, and we are at L1 stage. You know, you don't use that information.
Yeah, we will not be able to provide, sir.
It's different.
Right, right.
Can you provide that pipeline order book?
Perfectly.
We have already bid for some opportunities. We identified certain opportunities which we see that we'll be able to bid in this quarter or next two quarters. We are also expecting, based on our experience, that during this financial year, we should be able to get a fresh order book of around INR 800 to 900 crore. Pipeline will obviously be higher than that.
Okay. Okay. Thank you.
Thank you. The next question comes from the line of Diversha, an individual investor. Please go ahead.
Yeah, am I audible?
Yes, you are.
Yes, sir.
Yeah, yeah. Many congratulations for a good set of numbers. We are saying that now we are delivering these results consistently. I just wanted to know about the Chennai Development Center which was recently opened, and I found it on LinkedIn. Is it completely utilized for our delivery, or are we just in a mode of telling of that particular center?
That is a thought question. Are we planning to open any other development center in the future in any of the territory cities? On Chennai Development Center, it is fully operational and occupied. It is a customer requirement. It has been a lot of customers, and they requested us to be here to increase the engagement as well as to increase the business. That is why we opened the Chennai. We were already working in their center prior to opening this on our own. That's the story on Chennai.
Do we open any additional 10% tier two, tier three? The answer is always yes. It will be subject to the opportunity, either in terms of customer or in terms of resources availability.
Okay. Yeah. Thank you.
Thank you. Ladies and gentlemen, we'll take this as the last question for today. I would now like to hand the conference over to Mr. Srinivas Keshi, for closing comments.
First of all, thank you everyone for being on the call and for the host as well. It's my pleasure to be on the call. I know a lot of questions were asked about my role. I'm pretty sure Prashant answered your questions on that. Just a couple of points I would like to mention in closing. As we have seen, just to mention the obvious, I would like to reiterate the fact that we have more than outperformed the industry and the market. I think you must have seen some of the numbers, and I'm sure all of you look at the market really closely. We're very glad to have delivered the technical in this quarter. Also, another important point from the numbers standpoint is that typically, if you look at the last few years, our Q1 had come behind the Q4.
This time, we have clearly gotten a change as Q1 has beaten the Q4 numbers. This is a clear indication our strategy is working and a stronger outlook for the future. Just from a professional technology background, like you said, I just wanted to add a couple of key points here. I think many of you are interested in related technology. In terms of how we are trying to leverage technology to grow, it's really building in enablers from a technology standpoint to go after the same markets that we are seeing here. We build a significant capability in the market that you see. These technology teams, leveraging the best-in-class and latest cutting-edge technology like AI.
which can quite be ahead of the competition in terms of speed, in terms of quality, as well as the alternative solutions to run the various markets today, which we believe will give us a very strong solution in the coming quarters. Thank you all once again.
Thank you very much. On behalf of Arihant Capital Markets Limited, that concludes this conference. Thank you all for joining us, and you may now disconnect your line.