Meta Infotech: Navigating an Investment Year Towards Cybersecurity Leadership

Meta Infotech Limited, a prominent player in India's cybersecurity landscape, has reported its financial performance for the first half of fiscal year 2026 (H1 FY26). The period marks a significant milestone for the company, being its first earnings call since listing on the BSE-SME. While the company achieved its highest-ever half-yearly revenues, a dip in profitability reflects strategic investments and one-time challenges.

For H1 FY26, Meta Infotech recorded a revenue from operations of Rs 210.1 Crore, demonstrating a robust 14% year-on-year growth. However, the Profit After Tax (PAT) stood at Rs 10.4 Crore, a 7% decline compared to the previous year. This profitability dip was primarily influenced by a 36% year-on-year increase in employee expenses and a substantial 162% rise in other expenses. A key factor contributing to the higher 'other expenses' was a foreign currency loss of Rs 5.3 Crore, stemming from prolonged negotiations on a major customer deal and subsequent dollar fluctuations. Despite these headwinds, the management views FY26 as an 'investment year,' laying the groundwork for future growth and enhanced capabilities.

Financial Highlights: H1 FY26 Snapshot

(Note: All figures are converted from Rs Mn to Rs Crore for consistency. Percentages are rounded.)

Strategic Investments and Market Positioning

Meta Infotech's journey began in 1998, with a strategic pivot to cybersecurity in 2010. Today, it stands as a leading one-stop cybersecurity solutions provider in India, serving over 87 enterprise customers across 15+ industries, including BFSI, manufacturing, pharma, and real estate. The company's extensive portfolio includes Secure Access Service Edge (SASE), Database Security, Endpoint Detection & Response (EDR/XDR), Cloud Security, Identity Security, Application and API Security, Network and Perimeter Security, and Managed Security Services.

To solidify its market position and drive future growth, Meta Infotech has undertaken several key initiatives:

• Geographic Expansion: The company has opened new offices in Pune, Hyderabad, Bangalore, and Chennai, and expanded its Mumbai operations. A cybersecurity experience center is also planned for Andheri East, which will double as a training institute. This expansion aims to deepen its presence across India, though these new locations are currently in an investment phase and are expected to contribute significantly from the next financial year.
• Talent Development: Recognizing the severe talent crunch in cybersecurity (a 70% demand-supply gap), Meta Infotech established an in-house EC-Council accredited training center in 2019. This center provides a structured six-month program, ensuring a consistent pipeline of skilled professionals and a competitive advantage in talent acquisition.
• Capability Enhancement: The company has integrated new capabilities such as Micro-segmentation for enhanced network defense and Patch Management to ensure consistent protection against vulnerabilities.
• Focus on High-Margin Services: Meta Infotech is strategically shifting its focus towards margin-accretive solutions, particularly managed security services, professional services, and implementation. These recurring revenue streams are expected to improve overall profitability and foster long-term client relationships.

Order Book and Future Outlook

The company boasts a robust order book of Rs 514 Crore as of September 30, 2025, which is 2.35 times its FY25 revenue. This provides strong revenue visibility for the next two to three years. Management has guided for a 30% to 40% year-on-year revenue growth and aims to achieve a four to five times increase in its current numbers over the next three to five years. The H1:H2 revenue split, which was previously 80:20, is targeted to become 50:50 in the next one to two years.

While a single customer, ICICI Bank, currently contributes approximately 50% to the order book, management is actively working to diversify its client base, aiming to reduce this concentration to 30-40%. The company's EBITDA margins, currently in the 9-11% range, are expected to improve as the services portfolio grows.

Risk Mitigation and Management Perspective

Meta Infotech has demonstrated transparency in addressing the challenges faced in H1 FY26. Following the foreign currency loss, a robust currency risk management policy, including proactive booking of foreign currency forward contracts, has been implemented to mitigate future exposures. The increase in short-term debt due to bill discounting, used to manage temporary payment delays from a key customer, is expected to normalize by March 2026, aligning with the company's vision of becoming debt-free.

Management's commentary reflects a balanced approach, acknowledging both achievements and areas for improvement. The company's leadership, strengthened by recent additions like Mr. Ambrish Deshpande as CRO/COO, is focused on building a strong foundation for sustained growth and long-term value creation in the rapidly expanding cybersecurity market.

Segmental Revenue Mix (H1 FY26)

Meta Infotech's H1 FY26 performance underscores its commitment to strategic growth and resilience. By investing in talent, expanding its geographic reach, and focusing on high-margin solutions, the company is positioning itself to capitalize on the burgeoning demand for cybersecurity services in India and beyond. The management's proactive measures in risk mitigation and transparent communication instill confidence in its future trajectory.