CSML FY26 revenue concentrated in FECs and four key states

Complete Sports and Management India Limited (CSML) derived Rs 99.3293 crore, or 87.47%, of FY26 revenue from family entertainment centres (FECs), while Maharashtra, Karnataka, Telangana and Delhi supplied Rs 97.6313 crore, or 85.98%, of revenue. Both sector and geographic dependence increased from FY25 despite total operating revenue rising only 2.91%.

How concentrated was CSML's FY26 revenue in family entertainment centres?

CSML's FY26 revenue was concentrated in FECs, which contributed Rs 99.3293 crore of the Rs 113.5602 crore revenue from operations reported for the year ended March 31, 2026. FECs are customer venues for amusement and leisure activities that buy CSML's equipment and related installation, commissioning, maintenance and advisory services. The 87.47% FEC share exceeded the combined contribution of all other disclosed customer sectors.

Club houses contributed Rs 4.7468 crore, or 4.18%, in FY26, followed by corporate customers at Rs 3.9230 crore, or 3.45%, hotels at Rs 2.6168 crore, or 2.30%, and direct business-to-consumer (B2C) sales recorded as others at Rs 2.6439 crore, or 2.33%. Resorts and residential customers together contributed Rs 30.03 lakh, comprising Rs 23.38 lakh from resorts and Rs 6.65 lakh from residential customers.

CSML's sector exposure arises because its revenue depends on customers' growth, capital expenditure and business requirements. The company recognises revenue from goods when significant risks and rewards of ownership transfer, generally on delivery, and service revenue when services are rendered under customer agreements. The FY26 FEC weighting would persist if FEC operators continue to fund new sites, expansions, refurbishments and equipment purchases, and CSML continues to secure and execute those projects.

How concentrated was CSML's FY26 revenue in four key states?

CSML's FY26 revenue was concentrated in four states, led by Karnataka at Rs 49.9280 crore, or 43.97% of revenue from operations. Maharashtra contributed Rs 30.2774 crore, Telangana contributed Rs 9.0151 crore and Delhi contributed Rs 8.4108 crore. Together, the four states generated Rs 97.6313 crore, equal to 85.98% of FY26 operating revenue.

CSML states that demand and project execution in Maharashtra, Karnataka, Telangana and Delhi affect its business and financial condition. The prospectus identifies regional economic conditions, changes in the business environment, political and administrative developments, project delays and competitive intensity as risks in these markets. The reported 85.98% share would remain at that level only if these four markets continue to account for substantially more demand than other locations.

How did CSML's FEC and four-state concentration change from FY25?

CSML's FEC share increased by 13.70 percentage points to 87.47% in FY26 from 73.77% in FY25. FEC revenue rose to Rs 99.3293 crore from Rs 81.3983 crore, while total revenue from operations increased 2.91% to Rs 113.5602 crore from Rs 110.3457 crore. The faster growth of FEC revenue than total revenue produced the higher sector concentration.

The sector mix also changed in other categories between FY25 and FY26. Resort revenue fell to Rs 23.38 lakh, or 0.21%, from Rs 10.1545 crore, or 9.20%, while club-house revenue declined to Rs 4.7468 crore from Rs 8.2282 crore. FECs had represented 78.70% of FY24 revenue from operations of Rs 81.5042 crore, making the FY26 share 8.77 percentage points higher than two years earlier.

Four-state concentration increased by 21.14 percentage points from 64.84% in FY25 to 85.98% in FY26. Revenue from Maharashtra, Karnataka, Telangana and Delhi grew 36.45% to Rs 97.6313 crore from Rs 71.5502 crore, compared with total revenue growth of 2.91%. On a derived basis, revenue outside those four states fell to Rs 15.9289 crore in FY26 from Rs 38.7955 crore in FY25.

What business conditions could affect CSML's concentrated revenue base?

CSML states that changes in demand, capital expenditure and business conditions among FEC customers could affect its results because the sector supplied 87.47% of FY26 revenue. Customer spending can also be influenced by marketing, communication and outreach budgets that may be discretionary. A slowdown, disruption or adverse development in industries served by CSML could therefore reduce demand for its products and services.

Technology developments and changing client preferences are also relevant to CSML's FY26 revenue base because the company must identify and respond to them to maintain the relevance of its offerings. CSML served approximately 90 customers in FY26, compared with approximately 95 in FY25 and 72 in FY24. Its top 10 customers had relationships averaging approximately five to seven years, but the company states that it cannot assure investors that these relationships or repeat-business levels will continue.

What disclosed actions could broaden CSML's revenue base?

CSML intends to expand into additional sectors and geographies, although it has not disclosed a revenue target or timetable for those efforts. The prospectus says that establishing and scaling operations in new markets involves increased competition, operational and execution challenges, and regulatory considerations. The stated expansion plan is therefore a potential response to concentration rather than evidence of completed diversification.

CSML reported repeat-transaction revenue of Rs 5.4578 crore in FY26, compared with Rs 1.9217 crore in FY24, representing the stated compound annual growth rate of 68.53%. It also launched the All Sett Go sports resto-bar at Infiniti Mall, Andheri, Mumbai in April 2026, and commenced Duckpin – The Bowling Bistro at Infiniti Mall, Malad, Mumbai on July 25, 2026. CSML describes the two company-operated venues as forward-integration initiatives beyond equipment sourcing, distribution, installation, commissioning and related services.

Conclusion

CSML's FY26 revenue concentration operated across both customer sector and geography: FECs supplied 87.47% of operating revenue, while four states supplied 85.98%. Compared with FY25, both ratios rose because FEC and four-state revenue increased faster than total operating revenue, while contributions from several other sectors and locations declined.

The next developments to watch are CSML's disclosed plans to enter more sectors and geographies and the operating progress of its two Mumbai venues launched in April and July 2026. Whether those actions reduce concentration remains unresolved because CSML has not disclosed projected revenue contributions and has identified competition, execution and regulatory considerations in new markets.