eMudhra Limited Cuts FY27 Outlook After TLS Incident

eMudhra Limited reported Q2 FY27 total income of ₹209 crore, up 19.6% year-on-year, but reduced its FY27 outlook to about ₹800 crore of revenue and about ₹125 crore of profit after tax following an October TLS certificate security incident. The event occurred after the September quarter and has led the company to exit public TLS sales.

What did eMudhra Limited report for Q2 FY27?

eMudhra Limited reported total income of ₹209 crore for the quarter ended September 30, 2026, compared with ₹174.9 crore in the corresponding quarter a year earlier. The 19.6% year-on-year increase was accompanied by EBITDA of ₹51.3 crore and profit after tax of ₹33.4 crore.

EBITDA rose 21.6% year-on-year and the EBITDA margin was 24.5%. Profit after tax increased 26.3% year-on-year, with a net profit margin of 16%. Gross profit stood at ₹116.7 crore, representing a gross margin of 55.8%.

The company also reported revenue from operations of about ₹207 crore, up 19.7% year-on-year. Trust Services and Enterprise Solutions together generated external sales of ₹207 crore, compared with ₹172.9 crore in Q2 FY26. The reported income growth was supported significantly by the IdenTrust acquisition.

Management described Q2 and the first half as a period of strong core-business growth, led by enterprise solutions. However, it also noted that Trust Services faced temporary volume pressure from global transitions in security tokens.

Why did eMudhra reduce its FY27 guidance?

eMudhra reduced its FY27 guidance because of a certificate security incident in its TLS business that occurred in October, after the close of Q2. Management said the company would exit public TLS sales following the incident, affecting the outlook for the rest of the year.

The revised FY27 guidance is approximately ₹800 crore of revenue and approximately ₹125 crore of profit after tax. This update came alongside the quarterly results and reflects the expected effect of the TLS issue rather than any change in the reported Q2 figures.

On the earnings call, management said the impact of the incident was expected to fade within two quarters. It also said that its India revenue was not likely to be affected. These are management comments and not a revised quarterly result.

The TLS incident is particularly relevant because public TLS certificates are used to secure online communications and website connections. A security issue in this area can affect certificate volumes, customer confidence and the operating approach of a certificate authority.

What were eMudhra's key Q2 FY27 financial metrics?

eMudhra delivered year-on-year growth across total income, gross profit, EBITDA and profit after tax in Q2 FY27, although its full-year guidance was subsequently lowered because of the October TLS event.

The profit figures show that net profit growth exceeded total-income growth during the quarter. EBITDA growth also slightly exceeded the growth in total income, while the reported EBITDA margin remained at 24.5%.

For comparison, eMudhra had reported total income of ₹174.95 crore, EBITDA of ₹43.33 crore and profit after tax of ₹26.44 crore in Q2 FY26. Its EBITDA margin in that earlier quarter was 24.8%, while the net profit margin was 15.1%.

How do the TLS issue and token transition affect operations?

eMudhra said the TLS issue will affect its public TLS business, while global security-token transitions have already created temporary volume declines in core Trust Services. These factors explain why the company paired strong quarterly results with a lower full-year outlook.

The company has indicated that it will exit public TLS sales. The operational effect is therefore concentrated in that product area, based on management's remarks. eMudhra separately said it did not expect India revenue to be affected by the TLS incident.

The company operates across Trust Services and Enterprise Solutions, with business in India and overseas markets. Management said its overall business was roughly ₹800 crore, of which India business was about ₹275 crore. This provides context for its comment that domestic revenue exposure is expected to remain intact.

The IdenTrust acquisition was a key contributor to the reported income expansion. At the same time, the token transition headwind indicates that reported growth includes both acquisition-related contribution and changing volumes in legacy trust-service activity.

What does the update mean for investors and the digital trust industry?

eMudhra's update shows that Q2 profitability remained resilient, but the FY27 outlook now depends on managing the TLS-related disruption and the transition in Trust Services. Investors have a clear set of reported quarterly metrics, alongside management's lower full-year revenue and profit targets.

For the company, the key financial contrast is between ₹209 crore of Q2 total income and the revised annual guidance of about ₹800 crore of revenue. The reported Q2 margin profile, including a 24.5% EBITDA margin and 16% net profit margin, establishes the operating position before the expected full-year incident impact.

For customers and industry participants, the company has stated that it is leaving public TLS sales. The broader digital trust market is also adapting to changes in security-token requirements, which eMudhra identified as a short-term factor behind lower core Trust Services volumes.

The Q2 results and guidance update underline the distinction between period performance and post-quarter events. The September-quarter financial results showed growth, while the October incident required a reassessment of the company's FY27 revenue and profit expectations.

Conclusion

eMudhra entered the second half of FY27 after reporting ₹209 crore of Q2 total income, ₹51.3 crore of EBITDA and ₹33.4 crore of profit after tax. However, the October TLS certificate security incident has altered the full-year financial outlook, with guidance set at about ₹800 crore of revenue and about ₹125 crore of profit after tax.

The next disclosures to watch are updates on the exit from public TLS sales, the expected duration of the incident's impact and the progress of Trust Services volumes during the global security-token transition. Management has indicated that the incident effect should fade within two quarters, while maintaining that India revenue is not expected to be affected.