20% growth masks 46% revenue collapse; data center upside unproven

Delivered INR893.3 Cr, YoY 20.1% — exact match

PAT INR65.8 Cr vs prior year, -0.5% YoY — technically correct but misleading tone

Cannot verify from delivered result; order flow INR1,688 Cr Q1 vs INR721 prior = 134% growth

QoQ decline 46.5% revenue, 53.6% PAT — substantial but not explained quantitatively on call

OPM 13.9% delivered; no breakdown by segment provided, ranges lack precision

New segment introduced in FY27 with INR300-500 Cr guidance (unquantified in prior Q4 FY26 call); 10 MW Noida facility, partnerships with Anant Raj/Adani. Material upside if execution succeeds.

Approval from RDSO still pending; long gestation 30-35 months expected. No timeline change but drawing/approvals underway. Earlier hint was 'imminent' in Feb 2026 call; now 'could happen any time, maybe this month' suggests still pending.

Revenue down from INR151 Cr to INR144 Cr YoY despite new customers (Air Force, Starlink); renewal delays blamed. Management says 'no worry' but sequential decay flags execution risk.

Added ~50k subscribers Q1 but 6.23L base YoY is modest growth (~50k adds vs larger pool). ARPU under pressure; competition from FWA acknowledged as 'very heated'.

No change from prior guidance announced on call. Implies data center offset to telecom/NLD softness. Given -46.5% QoQ, H2 must reverse strongly.

Telecom (NLD+ISP) INR361 Cr, Project INR532 Cr, totaling INR893 Cr operating revenue.

Long gestation 30-35 months; RDSO approval underway, likely 'any time now, may be next month'. Outdoor work in progress in East Central Railway. Revenue expected to be booked FY27 onwards.

Renewals happening but services currently being discontinued by some customers per their request (e.g., individual institutes). No worry; new customers like Air Force, Starlink added.

Added ~50k subscribers (6.23L base). ARPU under pressure. Pivoting to ITPO focus and broadband segment. 'Very heated' competition acknowledged.

Private player fiber demand exists but not currently seeing many private player tenders in FY27. Exploring partnership models to share revenue without heavy capex.

Project margins 4%-5%; telecom margins hold at historical range. Net blended margin ~15% maintained. Kavach margins 'certainly better' than 4%-5%.

FY27: ~INR300 Cr (or maybe higher). FY28: INR500 Cr target. 10 MW Noida facility by May 2027. Partnerships with Anant Raj, Adani for passive infrastructure.

ECL (Expected Credit Loss) provision on aging debtors when payments delay. Non-cash; debtors not doubtful. ECL reversible once payments received.

Ethiopia: INR18 Cr (small). Sri Lanka: bid submitted, not won. Uzbekistan, Vietnam: tendering. Cautious entry; small amounts.

Providing managed services. Building own servers, leasing passive infrastructure from Anant Raj/Adani. Cloud services to follow (AI/GPU capacity planned).

Implies FY27 revenue ~INR3,530 Cr (vs ~INR2,820 Cr FY26 annualized). Assumes Q2-Q4 strong recovery from -46% Q1 QoQ collapse.

Project 4%-5% margins, telecom historical range. Blended ~13.9% Q1 suggests mix shift to lower-margin project revenue.

ARPU pressure acknowledged but management says 'no worry'. Renewals and competition (FWA) are headwinds.

No specific target. Management cites 'experience of previous OEMs' but execution unproven.

Leasing passive infra from Anant Raj, Adani. Noia 10 MW by May 2027. GPU/AI capacity planned 'in news soon'.

RDSO approval still pending despite 'imminent' language in Feb 2026 call. 30-35 month gestation. Outdoor work in progress but final testing/approvals uncertain. Management vague on revenue booking timeline.

Q1 revenue down 46.5% QoQ from Q4; PAT down 53.6%. Management cites Q1 renewals delays but offers no quantification. Implies significant tail-risk in H2 to meet 25% annual guidance.

NLD revenue declined 5% YoY (INR151→144 Cr) despite new customers (Air Force, Starlink). ISP ARPU under pressure; FWA competition 'very heated'. Management pivoting to ITPO focus but no revenue target.

Data center is nascent (INR300 Cr FY27 guidance, INR500 Cr FY28). 10 MW Noida facility commissioning 'likely May 2027' (not firm). Partnership model with Anant Raj/Adani adds execution dependency. No track record in managed services/cloud.

ECL (Expected Credit Loss) hit P&L for INR96 Cr this quarter as debtors aged; reversible but management admits payment delays from government. Working capital cycle extends as revenue grows.