Transcript of the Earnings Call of H2 and FY 2025-26
Price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Workmates Core2Cloud Solution Ltd, a BSE SME-listed cloud services company (scrip: 544610), reported FY26 revenue of INR 143 crore, up 34% YoY, with PAT of INR 15.92 crore at 11.1% margin. The company operates as an AWS premier-tier partner in cloud, cybersecurity, and AI services, with 82.5% recurring revenue and 95% client retention. Management guided FY27 revenue target of INR 210 crore (45% growth) with INR 190 crore already visible in contracted base and pipeline, leaving INR 20 crore gap to close over 10 months. PAT guidance for FY27 is INR 24-25 crore, implying margin improvement. Monthly Recurring Revenue stepped up 35% to INR 13.5 crore before winning any new deals. Management outlined a margin recovery plan using three levers: higher-margin AI and security services mix, billable utilization improvement from 84% to 88%, and operational leverage as new hires reach productivity.
Strong revenue growth visibility for FY27 with management guiding PAT margin improvement, supported by high recurring revenue base and AI practice expansion. The margin recovery roadmap and enterprise client expansion strategy suggest improving profitability trajectory, though margins remain modest in the competitive IT services space.