Seshaasai Technologies Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Seshaasai Technologies Ltd filed with BSE on 31 Jul 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Seshaasai Technologies reported Q1 FY27 revenue of Rs 377 crore, up 21.1% year-on-year, with EBITDA of Rs 94 crore at a 25.1% margin and PAT of Rs 60 crore, up 63.8% year-on-year. Management attributed gross margin pressure to rising material costs linked to geopolitical issues and currency impact, while IoT solutions grew 145% year-on-year and payment solutions grew 5%. The company said it won two multi-year PSU bank tenders worth approximately Rs 73 crore and reiterated a medium-term revenue growth target of 8% to 12%.
Numbers mentioned
Revenue: INR 377 crores (Q1 FY27)
p. 6
“In Q1 FY27, our revenue from operations stood at INR 377 crores, up 21.1% Y-o-Y and down 6.9% Q-o-Q.”
Pavan Kumar, page 6 of the filed PDF · View the filing
Gross profit: INR 157 crores (Q1 FY27)
p. 6
“Gross profit increased by 13.3% to INR 157 crores.”
Pavan Kumar, page 6 of the filed PDF · View the filing
Gross margin: 41.7% (Q1 FY27)
p. 6
“Gross margin moderated to 41.7% in Q1 FY27 from 44.5% in Q1 FY26 as cost of materials consumed increased faster than revenue.”
Pavan Kumar, page 6 of the filed PDF · View the filing
EBITDA: INR 94 crores (Q1 FY27)
p. 6
“EBITDA for the quarter came in at INR 94 crores with an EBITDA margin of 25.1%, an increase of 135 bps Y-o-Y.”
Pavan Kumar, page 6 of the filed PDF · View the filing
Profit before tax: INR 82 crores (Q1 FY27)
p. 6
“Profit before tax increased by 48.8% Y-o-Y to INR 82 crores, supported by operating growth and a substantial reduction in the finance cost.”
Pavan Kumar, page 6 of the filed PDF · View the filing
PAT: INR 60 crores (Q1 FY27)
p. 6
“Our PAT for the quarter stood at INR 60 crores, registering a growth of 63.8% Y-o-Y with margin at 16%, up 418 bps Y-o-Y.”
Pavan Kumar, page 6 of the filed PDF · View the filing
Payment solutions revenue share: 42% (Q1 FY27)
p. 4
“Our payment solutions contributed 42% to total revenue in Q1 FY27 and saw a nominal growth of 5% on Y-o-Y basis.”
Pragnyat Lalwani, page 4 of the filed PDF · View the filing
Communication and fulfillment revenue growth: 13% (Q1 FY27)
p. 4
“Communication and fulfillment solutions contributed 40% to total revenue in Q1 FY27 and witnessed a growth of 13% on Y-o-Y basis.”
Pragnyat Lalwani, page 4 of the filed PDF · View the filing
IoT solutions revenue growth: 145% (Q1 FY27)
p. 4
“IoT solutions contributed 18% to total revenue in Q1 FY27 and witnessed a growth of 145% on Y-o-Y basis.”
Pragnyat Lalwani, page 4 of the filed PDF · View the filing
Cash and cash equivalents: INR 369 crores (as of 30th June 2026)
p. 6
“As of 30th June 2026, we had cash and cash equivalents of INR 369 crores.”
Pavan Kumar, page 6 of the filed PDF · View the filing
Top 10 customer revenue contribution: 56% (Q1 FY27)
p. 6
“The top 10 customers contributed almost 56% of our revenues, and more than 95% of our revenues came from existing clients, showcasing the stickiness of client relationships and strong renewal and repeat business characteristics of our business model.”
Pavan Kumar, page 6 of the filed PDF · View the filing
Tender wins: INR 73 crores (tender period)
p. 4
“In this quarter, we won two multi-year tenders from leading PSU banks, which represent approximately INR 73 crores in revenue over the tender period.”
Pragnyat Lalwani, page 4 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Revenue growth — 8% to 12% · medium-term
stated as an aspiration by Pragnyat Lalwani
p. 5
“These strengths support our medium-term target of delivering revenue growth of 8% to 12%.”
Pragnyat Lalwani, page 5 of the filed PDF · View the filing
H2 FY27 performance — H2 FY27
stated conditionally by Pragnyat Lalwani
p. 5
“Looking ahead, given the nature of our business, we expect H2 FY27 to be stronger driven by seasonal pickup in BFSI demand, and steady momentum in the communication and fulfillment businesses, and continued growth in the IoT segment.”
Pragnyat Lalwani, page 5 of the filed PDF · View the filing
Bengaluru facility operational date — operational · end of calendar year
stated conditionally by Pragnyat Lalwani
p. 4
“We expect the Bengaluru facility to be operational by the end of the calendar year after the necessary regulatory approvals.”
Pragnyat Lalwani, page 4 of the filed PDF · View the filing
Capital expenditure — INR 140 crores to INR 160 crores per year · this financial year
stated firmly by Pragnyat Lalwani
p. 8
“we will probably maintain the range we have said earlier, about INR 140 crores to INR 160 crores per year of capital expenditure, even in this financial year.”
Pragnyat Lalwani, page 8 of the filed PDF · View the filing
IoT segment growth — similar to last year's growth · FY27
stated as an aspiration by Pragnyat Lalwani
p. 11
“So, as we said last year our IoT segment we've grown at around 45% year on year. So, this year also, we expect it to grow at a similar nature.”
Pragnyat Lalwani, page 11 of the filed PDF · View the filing
IoT segment growth — 35% to 40% · FY28
stated as an aspiration by Pragnyat Lalwani
p. 11
“So, I think that should be again in the range of 35% to 40% in the following year.”
Pragnyat Lalwani, page 11 of the filed PDF · View the filing
Communication and fulfilment growth — flattish · coming years
stated as an aspiration by Pragnyat Lalwani
p. 11
“See, the communication fulfilment business, we expect that to be remain in the flattish range for the coming years.”
Pragnyat Lalwani, page 11 of the filed PDF · View the filing
Payment solutions growth — 10% to 12% CAGR · coming years
stated as an aspiration by Pragnyat Lalwani
p. 11
“The payment solution business, the growth driver that we have factored in is about10% to 12% growth CAGR.”
Pragnyat Lalwani, page 11 of the filed PDF · View the filing
IoT revenue contribution — 15% to 18% of revenue · end of year
stated as an aspiration by Pragnyat Lalwani
p. 13
“we should be able to probably have IoT still contribute close to 15% to 18% of our revenue at the end of the year.”
Pragnyat Lalwani, page 13 of the filed PDF · View the filing
Bengaluru facility revenue contribution — FY28
stated conditionally by Pragnyat Lalwani
p. 13
“I think it's too early for us to do that, but all I can say is we're hoping it contributes something even in this year, but for certainly it will start contributing next year onwards.”
Pragnyat Lalwani, page 13 of the filed PDF · View the filing
Gross margin trajectory — H2 FY27
stated conditionally by Pragnyat Lalwani
p. 9
“we feel that the margin should definitely have a positive bias as we go on.”
Pragnyat Lalwani, page 9 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management reiterated the 8-12% revenue growth expectation but declined to give specific margin numbers, citing uncontrollable variables.
Answered by Pragnyat Lalwani
Asked by Deeya Jain: How should the full year look in terms of revenue and margins?
p. 7
“Any precise number we give you today, probably would be false precision.”
Pragnyat Lalwani, page 7 of the filed PDF · View the filing
Management said they are currently supplying around 20-25% of a major telecom operator's SIM requirement.
Answered by Pragnyat Lalwani
Asked by Deeya Jain: How many SIMs have been rolled out so far?
p. 7
“We are currently catering to 20% to 25% of their requirement of the SIMs.”
Pragnyat Lalwani, page 7 of the filed PDF · View the filing
Management attributed roughly 40-45% of the input cost impact to currency, with the remainder from war-related commodity and logistics costs, and expects H2 operating leverage to help.
Answered by Pragnyat Lalwani
Asked by Mohit Sukhani: How much of the gross margin decline is due to negative operating leverage versus pricing and rupee depreciation, and can costs be passed to customers?
p. 8
“So maybe 40% to 45% of impact is directly attributable to currency, and the remaining probably is due to the direct impact of the war on the input costs.”
Pragnyat Lalwani, page 8 of the filed PDF · View the filing
Management said capacity utilization is typically 65-70%, rising to 85-90% during peak periods, with capex maintained at Rs 140-160 crore per year.
Answered by Pragnyat Lalwani
Asked by Mohit Sukhani: What is the capacity utilization across segments and capex plans?
p. 8
“capacity utilization, typically for us, in our business currently is around 65% to 70%.”
Pragnyat Lalwani, page 8 of the filed PDF · View the filing
Management said margins should see a positive bias as operating leverage improves, and argued UPI does not directly reduce card issuances since customer plans already factor in UPI's impact.
Answered by Pragnyat Lalwani
Asked by Zaki Nasser: Will margins be maintained at Q1 levels for the rest of the year, and could UPI growth hurt the cards business?
p. 9
“we also feel strongly that UPI does not directly impact card issuances.”
Pragnyat Lalwani, page 9 of the filed PDF · View the filing
Management guided IoT growth of around 45% this year and 35-40% next year, flattish communication and fulfilment growth, and 10-12% CAGR for payment solutions, with blended EBITDA margin around 25%.
Answered by Pavan Kumar
Asked by Pritesh: What are the expected multi-year CAGRs for cards, eSIM and RFID businesses, and how do margins differ by segment?
p. 11
“Overall, internally, we have a plan of close to 12% CAGR, which is what we had indicated earlier in the year.”
Pavan Kumar, page 11 of the filed PDF · View the filing
Management said SIM card capacity utilization was around 40%, and that the insurance clients that churned had only nominal business and none went to re-tender.
Answered by Pragnyat Lalwani
Asked by Pratik Banthia: What was SIM card business capacity utilization, and why has the number of insurance clients declined?
p. 12
“For the SIM card business, Pratik, we were close to around 40% capacity utilization.”
Pragnyat Lalwani, page 12 of the filed PDF · View the filing
Management said there is no slowdown, attributing the high Q1 growth rate to a weak year-ago base, with underlying growth traction intact.
Answered by Pragnyat Lalwani
Asked by Siddharth Dagha: Does the guided 45% IoT growth rate signal a slowdown given Q1 growth was over 100%?
p. 12
“No, basically, if you see, last year our Q3 and Q4 in the IoT business was very strong. So, there's no slowdown, the growth remains intact.”
Pragnyat Lalwani, page 12 of the filed PDF · View the filing
Management said chip prices in dollar terms have been broadly flat with slight improvement offset by currency, and that they have increased inventory holding to lock in better pricing.
Answered by Pragnyat Lalwani
Asked by Pulkit Singhal: How much have chip prices risen year-on-year, and what is the current inventory pricing?
p. 13
“We've had some marginal improvement in the chip pricing, but it's got more than offset by the dollar impact.”
Pragnyat Lalwani, page 13 of the filed PDF · View the filing
Risks flagged
Geopolitical issues affecting material cost mix and gross margins
p. 3
“While the quarter witnessed some pressure on gross margins from the material cost mix due to rising geopolitical issues, however, disciplined execution and operating efficiencies enabled us to deliver growth in EBITDA and maintain healthy margins.”
Pragnyat Lalwani, page 3 of the filed PDF · View the filing
Geopolitical uncertainties, currency fluctuations, and cost pressures creating near-term headwinds
p. 5
“As of now, we operate in a challenging environment impacted by geopolitical uncertainties, currency fluctuations, and cost pressures.”
Pragnyat Lalwani, page 5 of the filed PDF · View the filing
War-related impact on currency and commodity, logistics and freight costs
p. 8
“Now, right now probably the input costs that have impacted our cost of goods sold here in the first quarter are predominantly the entire war-related impact.”
Pragnyat Lalwani, page 8 of the filed PDF · View the filing
Possible future chip price increases due to longer supplier lead times
p. 14
“We haven't yet seen the price impact playing out. We're watching the situation very closely and, as we get indications of any upward price revision, we'll have to take appropriate action in terms of managing our supply chain and also engaging with our customers appropriately.”
Pragnyat Lalwani, page 14 of the filed PDF · View the filing
Potential MDR charges on UPI that could affect competitive dynamics between UPI and cards
p. 10
“Now, right now, the users have been very used to absolute zero charge on UPI. As time goes by, MDR being charged on UPI could be another factor which would, in fact, completely obliterate the difference between a UPI and a card because MDR would believable on both.”
Pragnyat Lalwani, page 10 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.