Strong profit surge masks margin pressure; H2 recovery hinges on seasonal mix shift

Delivered ₹376.5 Cr, +21.1% YoY confirmed; strong but QoQ -6.9% seasonal.

Gross margin fell 280 bps YoY (44.5% → 41.7%) despite mix shift. EBITDA margin up 135 bps on cost control.

EBITDA margin 25.1%, up 135 bps; PAT margin 16%, up 418 bps. But gross margin compressed severely due to input costs.

Q1 IoT +145% YoY but vs weak Q1 prior. FY27 guidance 45% (prior >47%); slight guidance cut acknowledged.

Guidance cut to ₹140-160 Cr/year; Bengaluru facility still under construction with revenue contribution timing pushed to FY28.

Prior 160-200 Cr → now 140-160 Cr/year. Scaled-back expansion vs IPO prospectus signal.

Prior >47% → now 45% CAGR. Q1 145% reflects weak Q1 prior comparison; full-year normalization.

No specific EBITDA/PAT targets for FY27; only drivers offered (operating leverage, product mix) vs outcomes.

Q1 +5% YoY; guidance 10-12% CAGR. Segment maturity and UPI competition noted.

FY27 +8% to +12% revenue growth; margin drivers (operating leverage, product mix, seasonal H2) but no specific numbers due to macro uncertainty.

Working with third-largest telecom operator for 4-5 months; catering to 20-25% of their pre/post-paid SIM requirement.

H2 historically better than H1 from product mix and operating leverage. 40-45% of Q1 impact from currency, rest from war-related costs. No pass-through commitment.

Overall 65-70% avg, 85-90% peak. Bengaluru metal-card facility underway; CapEx ₹140-160 Cr/year. Facility expected operational before end of calendar year.

H2 will be better than H1; product mix improves. No specific number; assume no dramatic change if macro stable.

Steady pipeline basis guidance; business back-to-back on customer demand. Visibility given is basis for guidance; will share updates quarterly.

Q1 outcome of inputs, operational leverage, product mix. Margin improvement expected as quarters progress; no dramatic change if macro stable.

UPI impact already played out past few years. Cards differentiated via benefits, schemes, premium offerings. Credit cards retain value. Debit cards complement UPI. UPI saturation reached. Potential MDR on UPI could neutralize difference.

IoT 45% FY27 (was 45% prior year), expect 35-40% FY27-28. Communication flat. Payment solutions 10-12% CAGR. Overall 12% internal CAGR target.

Close to around 40% capacity utilization.

Customers churned were doing nominal business, gone fully digital. No re-tendering; no meaningful business lost.

No slowdown. Q1-Q2 prior year weak; growth on plan. Expecting IoT to contribute 15-18% of revenue by year-end; doubling from last year.

Definitely in FY28. [When asked to quantify:] Too early; hoping for some contribution in FY27, but certainly FY28 onwards.

Chip prices flattish in dollar terms. Marginal improvement offset by dollar impact. Strategy to hold higher inventory for better pricing. Lead times up; watching for price revisions.

Based on steady order pipeline; back-to-back business model; Q1 achieved 21.1% YoY so full-year guidance conservative vs actual.

Management cited macro uncertainty (geopolitical, forex) as reason. Offering drivers (operating leverage, product mix) vs outcomes.

Down from prior 160-200 Cr guidance. Focused on Bengaluru (metal cards), Nagpur capacity; Bengaluru operational by year-end.

COMC 58.34% vs 54.23% FY26 avg (411 bps higher). Management attributes 40-45% to currency depreciation, rest to war-related supply disruption. H1 cyclically weak but recovery unguaranteed.

QoQ revenue decline -6.9% (₹377 Cr vs ~₹403 Cr Q4); PAT down -26.3% QoQ. Seasonal explanation reasonable but H2 recovery not guaranteed if macro deteriorates.

Top 10 customers = 56% of revenue. Single largest customer unnamed. Loss of major account or tender could significantly impact revenue and margins.

Payment solutions segment only +5% YoY growth despite being 42% of revenue. UPI adoption and potential MDR application threaten card issuance demand; card transaction volume likely declining.

SIM card business only at 40% capacity utilization; revenue contribution nascent. eSIM platform positioned for future enterprise IoT but unproven commercial traction.