Frog Innovations restores H1 FY27 profit as EBITDA margin reaches 6.9%

Frog Innovations Limited returned to profit in H1 FY27, reporting profit after tax of Rs 87 lakh against a Rs 1.02 crore loss in H1 FY26, while earnings before interest, tax, depreciation and amortisation (EBITDA) margin rose 589 basis points to 6.9%. Revenue from operations increased 17.4% to Rs 64.5 crore.

How did Frog Innovations return to profit in H1 FY27?

Frog Innovations returned to profit as EBITDA increased to Rs 4.44 crore in H1 FY27 from Rs 55 lakh in H1 FY26, while revenue from operations rose by Rs 9.57 crore. Profit after tax (PAT) was Rs 87 lakh, compared with a Rs 1.02 crore loss a year earlier, and PAT margin changed to 1.3% from negative 1.9%.

Total expenses increased 10.4% to Rs 60.06 crore in H1 FY27, slower than total income growth of 13.5% to Rs 65.53 crore. The presentation defines EBITDA as excluding other income, which was Rs 1.03 crore in H1 FY27, and reports EBITDA of Rs 4.44 crore on revenue from operations of Rs 64.5 crore.

The result also moved profit before tax to Rs 2.37 crore in H1 FY27 from Rs 42 lakh in H1 FY26. Tax was Rs 1.5 crore, up 4.2% from Rs 1.44 crore, while depreciation and amortisation increased 15.9% to Rs 2.79 crore.

What changed in Frog Innovations' EBITDA margin?

Frog Innovations' EBITDA margin increased to 6.9% in H1 FY27 from 1.0% in H1 FY26, an expansion of 589 basis points, or bps. EBITDA rose 8.1 times year on year to Rs 4.44 crore from Rs 55 lakh, compared with 17.4% growth in revenue from operations.

Other income declined 63.3% to Rs 1.03 crore in H1 FY27 from Rs 2.81 crore in H1 FY26. This comparison is material because the company's stated EBITDA measure excludes other income, making revenue from operations of Rs 64.5 crore the basis for the reported 6.9% margin.

Below EBITDA, finance cost declined 40.7% to Rs 32 lakh from Rs 54 lakh. Alongside depreciation and amortisation of Rs 2.79 crore, these items were reported before Frog Innovations recorded profit before tax of Rs 2.37 crore and PAT of Rs 87 lakh.

Was revenue growth enough to explain the H1 FY27 improvement?

Frog Innovations' 17.4% revenue growth was substantially lower than its 706.6% EBITDA increase, showing that the reported improvement included a larger change in operating margin than in sales. Revenue from operations rose to Rs 64.5 crore from Rs 54.93 crore, while EBITDA increased by Rs 3.89 crore from Rs 55 lakh.

The presentation does not provide a segment-wise H1 FY27 revenue or profitability split, so it does not quantify contributions from telecom, electronics manufacturing services (EMS) or surveillance to the Rs 9.57 crore revenue increase. Management said telecom had regained momentum and EMS had started securing orders, but it did not disclose segment financial figures.

Management linked the operating result to its diversification strategy, which includes 27 FROG EYES camera models in Standardisation Testing and Quality Certification (STQC) testing. The presentation also identifies six to seven EMS job-work customers and a five-year LigoWave manufacturing and distribution agreement signed on 8 October 2026.

What orders and capacity plans does Frog Innovations have?

Frog Innovations has received a letter of intent (LOI) from Indus Towers Limited worth Rs 91.97 crore, excluding goods and services tax, for cellular distributed antenna system (DAS) deployment across Delhi Metro stations and connecting tunnels. The LOI covers supply, installation and maintenance, with supply and installation scheduled for completion by March 2027.

The Delhi Metro LOI remains subject to its stipulated terms, and a definitive purchase order or contract is awaited. Management described it as a domestic order with no promoter interest and no related-party status, and said it sees similar DAS opportunities in metros, airports and other high-density environments.

Frog Innovations' Noida facility covers 1.6 lakh square feet and has space for four surface-mount technology (SMT) lines. One line is running on a single shift, leaving room for three more lines, while management says two-shift working could double output for FROG EYES cameras, EMS products and LigoWave radios.

Which milestones could shape Frog Innovations' next phase?

Frog Innovations' surveillance rollout depends on STQC approval for 27 camera models spanning 2, 5 and 8 megapixels. The presentation says samples returned to the laboratory after first-round fixes, with certification, first contracts and North India distributors identified as the next steps.

On 5 October 2026, Frog Innovations approved the Rs 3.6 crore acquisition of 100% of VLS Developers Pvt. Ltd. VLS Developers owns land and a building first announced on 11 June 2026; the deal is to be funded through internal accruals and a term loan, with completion expected within two months.

Under the LigoWave alliance, Frog Innovations will manufacture and distribute point-to-point and point-to-multipoint radios under the FROG brand in India and supply finished products to LigoWave for its own brand. Production at Noida is planned from 2026, including Wi-Fi 6 and Wi-Fi 7 products, with minimum purchases of USD 0.5 million in the first year stated in the presentation.

Conclusion

Frog Innovations combined 17.4% growth in H1 FY27 revenue from operations with a rise in EBITDA margin from 1.0% to 6.9%, converting a Rs 1.02 crore H1 FY26 loss into Rs 87 lakh of PAT. The decline in other income to Rs 1.03 crore alongside EBITDA growth to Rs 4.44 crore supports the presentation's focus on operating performance before other income.

The next disclosed measures are management's FY27 objective of approximately Rs 200 crore in revenue and approximately Rs 20 crore in PAT, followed by its Vision FY28 target of revenue exceeding Rs 500 crore. Delivery of the Rs 91.97 crore Delhi Metro DAS LOI, the awaited definitive contract, STQC approvals and planned capacity additions are the stated milestones to watch next.