Transcript for Audio Recording of Earnings Conference Call pertaining to H2 FY 2024 - 25
Price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
Olatech Solutions reported FY25 revenue of ₹21.04 crore, up 39% YoY from ₹15.15 crore. EBITDA grew to ₹5.58 crore and PAT rose 41% to ₹4.24 crore, while EBITDA margin dipped slightly to 27.95% from 28.88%. Hardware support drove most of the revenue (~₹15 cr), followed by software (~₹4.5 cr) and enterprise (~₹1.3 cr). Management guided FY26 revenue of ₹50-60 crore (~2.5x growth) backed by an order book of ₹35 crore, including a large ₹45 crore order with 10-year AMC and managed services. A new subsidiary, Olatech Digital Solutions Pvt Ltd (85% stake), will house the enterprise/digital business, including influencer marketing expected at ₹5-6 crore this year and ₹10 crore next year. Hardware distribution via Xfusion is set to start next quarter (~₹5 crore FY26 target) but will be a lower-margin business.
Strong top-line growth and a healthy order pipeline are positives for shareholders, but management has flagged that the new hardware distribution business will pull down overall PAT margins. The 20% PAT margin target is being maintained as a benchmark, implying margin pressure rather than expansion in the near term. Watch for execution on the ₹45 crore order and Xfusion distribution ramp-up.