Creative Newtech H1 EBITDA rises 55.78% as capital eases

Creative Newtech Limited reported H1 FY27 EBITDA of Rs 65.01 crore, up 55.78% year on year, while net working-capital days fell to 45 from 75 in FY26 and operating cash flow reached Rs 351.24 crore. The result paired 16.55% total-income growth with an expansion in the EBITDA margin to 5.28% from 3.95%.

How fast did Creative Newtech's H1 earnings grow?

Creative Newtech's H1 FY27 EBITDA grew 55.78% year on year to Rs 65.01 crore, substantially faster than the 16.55% increase in total income to Rs 1,231.65 crore. Management presented this difference on its October 29, 2026 earnings call as evidence that scale and profitability moved forward together during the six months ended September 30, 2026.

Revenue from operations for H1 FY27 was Rs 1,228.21 crore, compared with total income of Rs 1,231.65 crore. Profit before tax was Rs 46.82 crore and profit after tax, or PAT, was Rs 39.47 crore, up 35.49% year on year. Thus, both EBITDA and PAT increased more quickly than the reported total-income growth rate in the half year.

Management said the consolidated accounts were prepared under Indian Accounting Standards, or Ind AS. The transcript does not provide prior-year rupee amounts for each H1 line item, so the reported percentage changes, rather than reconstructed comparatives, show the year-on-year movement.

What changed in Creative Newtech's H1 margins?

Creative Newtech's H1 FY27 EBITDA margin rose 1.33 percentage points to 5.28% from 3.95% in H1 FY26. The expansion coincided with EBITDA growth of 55.78%, compared with 16.55% growth in total income, explaining the reported gap between earnings and top-line growth rates.

The PAT margin also increased, reaching 3.20% in H1 FY27 from 2.76% in H1 FY26, a gain of 0.44 percentage points. PAT of Rs 39.47 crore grew 35.49% year on year, below the EBITDA growth rate of 55.78% but above the 16.55% increase in total income.

Creative Newtech did not provide a segment-level breakdown of revenue, EBITDA or margins in the supplied call transcript. Management instead attributed the H1 result broadly to improved operating margins, operating efficiency and financial discipline while it expands participation in technology infrastructure, enterprise solutions, emerging technology and consumer markets.

How did Creative Newtech perform in Q2 FY27?

Creative Newtech reported Q2 FY27 total income of Rs 754.8 crore, up 14.43% year on year, and EBITDA of Rs 40.11 crore, up 50.70%. The quarterly EBITDA margin rose to 5.31% from 4.04% in the corresponding quarter, broadly matching the H1 margin improvement.

Quarterly revenue from operations was Rs 752.14 crore, while profit before tax was Rs 30.12 crore and PAT was Rs 25.94 crore. Q2 PAT grew 36.88% year on year, and its margin increased to 3.44% from 2.87%. The Q2 EBITDA margin of 5.31% was slightly above the 5.28% H1 FY27 margin.

Q2 contributed Rs 40.11 crore of the Rs 65.01 crore H1 EBITDA reported by Creative Newtech. The remaining Rs 24.90 crore is the difference between the reported H1 and Q2 figures, rather than a separately disclosed first-quarter result, because the call did not state a standalone Q1 EBITDA figure.

What does Creative Newtech's operating cash flow show?

Creative Newtech reported cash flow from operating activities of Rs 351.24 crore in H1 FY27 and net working-capital days of 45, down from 75 in FY26. The 30-day reduction is the clearest reported change in the company’s working-capital position during the period.

Management said the operating cash flow reflected cash generation and linked the decline in working-capital days to its focus on financial efficiency. The supplied transcript does not give H1 FY26 operating cash flow, a cash-flow bridge, receivable days, inventory days or payable days. It therefore does not identify which specific balance-sheet movements produced the Rs 351.24 crore operating cash flow.

The cash-flow result should also be read alongside Rs 1,231.65 crore of H1 total income and Rs 39.47 crore of H1 PAT, which are different accounting measures. Management said that, as Creative Newtech pursues larger projects, it intends to maintain cash generation, efficient working-capital management and disciplined capital allocation.

Which expansion opportunities could affect Creative Newtech next?

Creative Newtech identified the BharatNet advance work order, the proposed Infinova India Private Limited acquisition, the WOZOYO brand and technology partnerships as opportunities for expansion beyond its existing business. The BharatNet Middle Mile Network Project work order in the Odisha Telecom Circle has an approximate total value of Rs 3,194.83 crore.

The proposed Infinova India acquisition supports management’s plan to build a Make in India surveillance and technology platform. The company also cited its Ravel Electronics partnership in fire and life-safety technology, Drona Aviation partnership in drone-based science, technology, engineering and mathematics education, and association with Jupiter Electric Mobility for its drone technology portfolio.

Creative Newtech launched WOZOYO, a global consumer technology brand under wholly owned Hong Kong subsidiary Secure Connection Limited. These initiatives do not have separately disclosed H1 revenue or profit contributions in the transcript. Management’s stated financial priority is to support expansion through efficient operations and prudent capital management, rather than provide a numerical earnings forecast.

Conclusion

Creative Newtech's H1 FY27 outcome combined 16.55% total-income growth with a 55.78% increase in EBITDA, lifting the EBITDA margin to 5.28% from 3.95%. The company also reported Rs 351.24 crore in operating cash flow and a reduction in net working-capital days to 45 from 75, while PAT increased 35.49% to Rs 39.47 crore.

The next point to watch is whether Creative Newtech can maintain its 45 working-capital days while executing larger opportunities, including the approximate Rs 3,194.83 crore BharatNet advance work order. Management said its plan is to turn current opportunities into sustainable growth through execution, disciplined capital allocation and continued working-capital management.