eMudhra Limited has informed the Exchange about Transcript
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eMudhra B.V., a subsidiary of eMudhra Limited, is acquiring a 51% controlling stake in Cryptas International GmbH, Vienna, Austria, with an immediate cash consideration of EUR 5 million plus an earn-out based on a 10x EBITDA multiple for 2026. Cryptas owns PrimeSign (a Qualified Trust Service Provider under EU's eIDAS framework) and cybersecurity subsidiaries in Austria, Germany, and Sweden, giving eMudhra direct entry into the European Union market where it previously had no presence. Cryptas currently generates EUR 9.7-9.8 million in revenue (about EUR 1.8-1.9 million from trust services) and is EBITDA positive but with low margins because 55-60% of its cost base is European employee expenses. Management guided that Cryptas revenue can grow to EUR 15-16 million (conservative) or EUR 20 million (optimistic) over four years, with EBITDA margins improving to around 20% within two to three years through offshoring work to India, replacing third-party CA software with eMudhra's own solution, and cross-selling each other's products. About USD 1 million in combined cost savings and incremental revenue is expected within the first year of integration.
The acquisition fills a key geographic gap by giving eMudhra an EU-compliant eIDAS accreditation and a 50% share of the Austrian trust services market, which should support long-term growth. Short-term consolidated margins may remain soft for about two years until integration synergies materialize, but the longer-term path to 20% EBITDA margins and double-digit revenue growth is a positive signal for shareholders.