Ceinsys Tech Ai: Powering Growth with Intelligent Infrastructure Decisions in Q2 FY26

Ceinsys Tech Limited, now branded as CS Tech Ai, has delivered a robust performance in the second quarter and first half of the financial year 2026, showcasing consistent growth and strategic execution. The company, a leading technology solutions provider in geospatial engineering and IT-enabled services, reported its best Q2 performance to date, driven by a focused approach on high-value digital initiatives and strategic acquisitions.

For Q2 FY26, Ceinsys Tech Ai's operational revenue surged by an impressive 82% year-on-year to INR 163.5 crores. This strong top-line growth was complemented by a significant improvement in profitability, with EBITDA increasing by 112% year-on-year to INR 36 crores, pushing EBITDA margins to 21.77% – an improvement of 310 basis points. Net profit (PAT) also saw a substantial rise of 120% year-on-year, reaching INR 26 crores, with PAT margins at 15.72%. This consistent quarter-on-quarter improvement over the last six quarters underscores the company's operational excellence and strategic clarity.

Segmental Performance and Strategic Focus

The company's segmental performance highlights a strategic shift towards higher-margin technology solutions. In Q2 FY26, the Technology Solutions segment contributed INR 87.7 crores to the operational revenue, representing approximately 53.64% of the total. The Geospatial & Engineering Services segment contributed INR 75.4 crores, accounting for about 46.12%. This increased contribution from technology solutions is a key driver for the improved EBITDA margins, as these projects typically command higher profitability (27-32% for technology vs. 18-24% for geospatial).

For the first half of FY26, the company's operational revenue grew by 95% year-on-year to INR 320.1 crores, with EBITDA reaching INR 65.8 crores (119% YoY growth) and PAT at INR 57.4 crores (143% YoY growth). These half-yearly figures have already surpassed the company's consolidated performance for the entire FY24, demonstrating accelerated growth momentum.

Strategic Initiatives and Future Outlook

Ceinsys Tech Ai's growth strategy is multi-pronged, focusing on inorganic expansion, technology innovation, and market diversification. The company strategically entered the mobility sector in 2022 by acquiring AllyGrow Technologies and further strengthened its geospatial presence in the US by acquiring VTS's geospatial business in 2024. Management is actively pursuing additional acquisitions in geospatial, mobility, and technology domains, targeting companies with revenue potential of INR 50-200 crores, with announcements expected by Q3 or Q4 FY26.

Investments in technology innovation and business development, particularly for US market expansion, totaled INR 21 crores in H1 FY26. While this has led to some EBITDA losses in the US subsidiary, management views these as strategic investments expected to yield a larger project pipeline and improved revenue absorption from Q4 FY26 onwards. The company is also enhancing its in-house AI/ML solutions, having filed two patents and achieved over 95% accuracy in proof-of-concepts, which are currently improving internal project efficiencies and reducing costs.

The order book remains robust at INR 1,092 crores as of September 30, 2025, providing strong revenue visibility. Management anticipates closing major new orders worth INR 700-800 crores in Q3 and Q4 FY26, with a high win rate for niche technology projects. The company is also diversifying its project pipeline beyond the Jal Jeevan Mission, securing significant contracts in transportation (e.g., MMRDA project worth INR 115 crores), AEC, and energy utilities.

Operational Efficiency and Working Capital

Despite the strong growth, the company's working capital cycle stood at 160 days in Q2 FY26, primarily due to delayed recoveries from government projects. However, management is actively addressing this, with significant recoveries already made in October 2025. They anticipate the cycle to normalize to 120-130 days in the coming quarters, aligning with historical trends, as government disbursements typically accelerate in the latter half of the financial year.

Conclusion

Ceinsys Tech Ai's Q2 FY26 performance demonstrates a clear trajectory of growth and profitability, underpinned by strategic investments in technology and market expansion. The company's focus on high-margin digital solutions, coupled with a healthy order book and proactive management of operational challenges, positions it well for sustained growth. As it navigates the dynamic infrastructure and technology landscape, Ceinsys Tech Ai appears poised to continue its journey of enhancing possibilities and delivering value to its stakeholders.