eMudhra Limited — Investor Meet, 04-02-2025: Analysts/Institutional Investor Meet/Con. Call Updates

**Financial Performance:** eMudhra reported a total income of INR 140.89 crore, marking a year-over-year growth of 41.6%. The EBITDA stood at INR 31.94 crore, with a margin of 22.7%, while the profit after tax (PAT) reached INR 22.4 crore, resulting in a net margin of 15.9%. High demand in international markets, particularly in the Americas, and significant deal closures drove this growth. The company also maintained a gross profit margin of 50.7% on a gross profit of INR 71.4 crore.

**Future Outlook and Growth Drivers:** Management expressed optimism about continued global market opportunities, driven by the rising demand for identity and access management solutions. Ongoing investments in R&D, particularly in Post Quantum Cryptography and Mobile PKI, are set to drive innovation. Management anticipates achieving INR 510-520 crore in revenue for FY26, reflecting a growth target of 25-30%.

**Order Book and Operational Updates:** Key project wins in Q3 included PKI management for an intergovernmental organization in the EU, consulting for a large ERP platform in North America, and paperless transformation initiatives for firms in the Middle East and India.

**Analyst Q&A Insights:** Analysts probed revenue streams and margin dynamics. Management attributed lower gross margins to recent changes in pricing guidelines and an increase in competition. The overall sentiment remains positive, with analysts noting potential growth but closely monitoring competitive pressures.

**Market or Regulatory Updates:** eMudhra highlighted the potential of regulatory changes mandating Mobile PKI in the EU and the need for companies to adapt to emerging technologies, including generative AI, angling to enhance its offerings.

**Strategic Focus Areas:** The leadership is prioritizing R&D and strategic expansion within the cybersecurity segment, where competition is less pronounced, and aiming to integrate AI technologies into existing services to improve operational efficiency.

**Investor Insight:** Given the strong financial health, promising growth strategies, and management's confidence in navigating competitive challenges, the signals point toward a favorable investment outlook with a potential inclination toward a ‘buy’ position. The focus on innovation and market expansion aligns well with anticipated growth trends despite existing competition challenges.