Transcript of Earnings Conference Call for Unaudited Financial Results for the half year ended September 30, 2025.
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Capital Numbers reported H1 FY26 revenue of INR 59.12 crores (up 14.5% YoY), EBITDA of INR 20.45 crores (up 8.3% YoY), and profit after tax of INR 14.80 crores (up 8.1% YoY), with management reaffirming full-year FY26 revenue growth guidance of at least 15%. EBITDA margins have dipped to around 26% from 30%+ earlier, attributed to deliberate investments in sales capacity, senior leadership (AI Center of Excellence head, demand generation head), and Gurgaon Development Center expansion to 80+ seats at 90% occupancy. Management disclosed a revenue pipeline of roughly INR 55 crores for H2, secured a USD 400,000 US product engineering contract, and onboarded two marquee clients (an FTSE-listed real estate firm and an NYSE-listed medical technology company) in paid pilot phases. The board approved a 10% interim dividend, the CEO personally purchased 72,000 shares, and an INR 40 crore M&A budget has been earmarked with three shortlisted targets currently in discussions.
Margin compression is framed as a temporary investment phase that should expand as new high-margin enterprise practices scale, but investors should watch for actual margin recovery. The reaffirmed 15% growth guidance, dividend announcement, promoter share purchase, and progress on enterprise client wins are positive signals for shareholders, though the M&A deal timeline has slipped beyond the originally promised calendar-year closure.