eMudhra's Q3 FY26: Sustained Growth and Strategic Global Expansion

eMudhra Limited, a prominent player in the digital trust and cybersecurity space, has reported a robust performance for the third quarter and nine months ended December 31, 2025. The company's Q3 FY26 results highlight strong and diversified revenue growth, supported by a healthy deal pipeline across both domestic and international markets. This quarter's performance underscores eMudhra's consistent execution across product development and geographical expansion, with Europe emerging as a significant contributor to improved margin quality.

For Q3 FY26, eMudhra's total income reached INR 191.06 crore, marking an impressive 35.6% year-on-year growth. The gross profit for the quarter grew by 42.6% year-on-year to INR 101.9 crore, with a gross margin of 53.4%. EBITDA stood at INR 44.14 crore, registering a 38.2% YoY growth, with an EBITDA margin of 23.1%. Profit After Tax (PAT) for the quarter was INR 29.0 crore, reflecting a 29.5% YoY growth and a net margin of 15.2%. The company's management noted that product-led revenues across markets were a key driver, helping to offset some margin pressure from the US services business.

Strategic Initiatives and Market Traction

eMudhra's strategic focus on expanding its global footprint and enhancing its product portfolio is clearly yielding results. The company's US data centers are now live, enabling local TLS certificate issuance and lifecycle management for North American customers. This development is crucial for improving latency, ensuring regulatory alignment, and strengthening enterprise adoption in the region. Furthermore, the integration of the Cryptas product has significantly bolstered eMudhra's eIDAS-aligned trust portfolio, accelerating its entry into the European market, with cross-sell deals expected to materialize in the coming one to two quarters.

In a move to strengthen its core offerings, AI Cyber Forge's secrets engine has been technically integrated into eMudhra's platforms, providing a unified positioning for its Certificate Lifecycle Management (CLM) and Identity & Access Management (IAM) platforms. This entity has also been amalgamated with eMudhra Inc., its US subsidiary. The company is also proactively addressing regulatory changes, such as those in the UAE, by setting up a local data center to support in-country trust services, aiming to expand government and BFSI engagements.

Product Mix and Operational Performance

eMudhra's revenue mix demonstrates a diversified approach. For Q3 FY26, the revenue from operations was INR 188.0 crore. Within this, Cybersecurity contributed INR 45.81 crore (24.37%), Paperless solutions accounted for INR 106.89 crore (56.86%), and Trust Services generated INR 35.3 crore (18.78%). This product segmentation highlights the company's balanced portfolio catering to various digital trust needs.

Management acknowledged that while EBIDTA and PAT margins were impacted by certain non-repetitive expenses, such as a partner stock buyback (INR 3.36 crore), Cryptas acquisition legal expenses (INR 1 crore), and additional gratuity provisions due to labor law changes, the adjusted margins remained healthy. The adjusted EBITDA margin for Q3 FY26 stood at 25.8%, reflecting the company's ability to sustain profitability despite increased investments in overseas market growth.

Outlook and Strategic Focus

Looking ahead, eMudhra remains focused on its product development roadmap, which includes converged identity, advanced certificate lifecycle management, privacy-led data discovery, and post-quantum cryptography. Early deployments of post-quantum and privacy discovery capabilities are already underway with regulated enterprises, testing these solutions for compliance and risk management. The company is optimistic about product-led growth in FY27, particularly in the Middle East, Africa, Europe, and American markets, anticipating better margins.

For FY26, eMudhra reiterated its guidance of achieving INR 700 crore in total income. The company also outlined a CAPEX plan of approximately INR 75-80 crore for FY26, allocated towards PQC, data privacy, remote signing, and the UAE data center. With a high proportion of recurring revenue (65%) and consistent cash generation, eMudhra is well-positioned to support sustained R&D and global expansion, reinforcing its commitment to delivering innovative solutions for secure digital transformation.