Esconet Technologies Limited — Investor Meet, 20-06-2025: Analysts/Institutional Investor Meet/Con. Call Updates

Esconet Technologies reported FY25 consolidated revenue growth of 65% YoY to Rs. 233 Cr, with PBT up 42% and PAT increasing 47%. Hexadata contributes ~35% of revenue, while system integration forms the rest; Zeacloud’s revenue grew 68%, with PBT jumping ~8x, and is expected to deliver 20-25% operating margins. Fluidech (cybersecurity), acquired with 70% stake, is projected to scale from Rs. 2.5 Cr turnover last year to Rs. 15-20 Cr this year, targeting 25-30% margins. Management sees margin improvement in FY26 (better than FY25 but below FY24’s 20% gross margin), driven by strategic client wins despite some low-margin large deals. Investments include new product launches (immutable backup storage with Scality, cloud-native security with Cato Networks), capacity expansion for Hexadata manufacturing, and a proprietary cloud platform geared toward data sovereignty. Fluidech’s unique accreditation opens significant government contracts with recurring managed security services expected. Headcount rose 21% in FY25, with 30-40% increase in employee costs planned for FY26 due to hiring in cloud and cybersecurity. Cloud business is expected to outgrow base business over next few years, though margin pressures could arise as scale increases and pricing is competitive. Management remains focused on margin expansion and cross-selling across segments, while no new acquisitions are planned currently.