eMudhra's Q2 FY26: Navigating Growth and Strategic Expansion in Digital Trust

eMudhra Limited, a prominent player in the digital trust and cybersecurity space, reported a robust performance for the second quarter and first half of fiscal year 2026. The company's Executive Chairman, Mr. Venkatraman Srinivasan, highlighted strong client traction and disciplined execution across diverse markets as key drivers. For Q2 FY26, eMudhra recorded a total income of INR 174.95 crore, marking a significant 22.6% year-on-year growth. The EBITDA stood at INR 43.33 crore, translating to a healthy margin of 24.8%, while the net profit reached INR 26.44 crore with a net margin of 15.1%. This performance underscores eMudhra's sustained momentum in strengthening its global positioning.

The quarter saw broad-based contributions from key geographies including the U.S., Middle East, India, and Asia-Pacific. Notably, the European region also began to contribute meaningfully following the acquisition of Cryptas International GMBH. While integration efforts for Cryptas are underway, the company anticipates it will turn profitable within the next two quarters. From a product perspective, emSigner continues to be a platform of choice for enterprises automating complex multiparty signing workflows, particularly within regulated sectors like banking and financial services. The SecurePass and CERTInext platforms also gained adoption for unified management of user and device identities, facilitating seamless access control frameworks.

Financial Highlights at a Glance

Strategic Acquisitions and Product Evolution

eMudhra further strengthened its cybersecurity portfolio with the acquisition of AI Cyber Forge Inc., a U.S.-based company specializing in key and secrets management solutions. This strategic addition is expected to complement and enhance eMudhra's broader cybersecurity offerings. The company's R&D efforts remain sharply focused on converged identity, data privacy, and generative AI, aiming to build future-ready solutions that address evolving customer and regulatory needs. This includes ongoing development in areas like a data privacy stack, emSigner enhancements for BFSI verticalization and voice authentication, and CERTInext for remote signing, with most new developments expected to launch by March-April FY26.

In terms of product mix, cybersecurity solutions accounted for 62% of eMudhra's solution revenue, while paperless solutions contributed 38%. The company's revenue mix by segment for H1 FY26 showed Solutions contributing INR 250.7 crore and Trust services contributing INR 69.5 crore. Geographically, International markets accounted for 64% of revenue, with India contributing 36% in Q2 FY26. The establishment of data centers in New Jersey and Salt Lake City, along with the creation of a 100% subsidiary, CERTInext Inc., with local leadership, is a significant step towards expanding the U.S. product business and overcoming previous bottlenecks related to certificate issuance.

Addressing Challenges and Future Outlook

While eMudhra demonstrated strong overall growth, the US service business experienced some stagnation, attributed to H1 visa policy changes and the increasing impact of AI on workforce requirements. Management acknowledged this and emphasized diversification into product business and other geographies as a mitigation strategy. The Cryptas acquisition, though strategic, incurred a PAT loss of INR 1.56 crore in Q2 FY26, with profitability expected in the next two quarters as integration progresses. Despite these challenges, the company's lead pipeline for product business has grown by 20-30%, indicating robust future prospects.

Management reiterated its guidance for FY26, expecting total income to reach INR 700 crore and PAT margins to be around 15.5-16%, even while absorbing the Cryptas top line. The company is confident in maintaining a healthy cash level of INR 12.5-14 crore by FY26 end, with no plans for further acquisitions in the next six months. eMudhra's continuous investment in technology, strategic acquisitions, and focus on global expansion position it well for sustainable long-term growth in the dynamic digital trust and cybersecurity landscape.