Robokidz service revenue nearly quadrupled in FY26 and changed mix

Robokidz service revenue nearly quadrupled to Rs 21.21 crore in FY26 from Rs 5.51 crore in FY25, changing the company’s revenue mix while profit attributable to equity shareholders doubled to Rs 10.06 crore. The increase reflected implementation, installation, training, annual maintenance contract (AMC) and educational-support activity, alongside a shift towards in-house assembly.

How did Robokidz’s service revenue change the FY26 revenue mix?

Robokidz’s service revenue became a materially larger part of operating revenue in FY26. Sale of services reached Rs 21.21 crore, or 22.75% of FY26 operating revenue of Rs 93.22 crore, compared with Rs 5.51 crore, or 9.37% of Rs 58.75 crore, in FY25. This was about 3.85 times the FY25 amount, although FY26 is reported on a consolidated basis and the earlier years are standalone.

Educational lab setups remained Robokidz’s larger revenue category, but their relative share declined as services expanded. Lab-setup revenue increased 35.3% to Rs 72.02 crore in FY26 from Rs 53.25 crore in FY25, while service revenue increased by Rs 15.70 crore. Educational lab setups therefore represented 77.25% of FY26 operating revenue, down from 90.63% in FY25; the mix shift came from faster service growth rather than lower project revenue.

Robokidz attributed the service increase to higher implementation, installation, training, AMC and other value-added educational-support services. The company also cited YEG subscription revenue, retention of existing customers and new-customer acquisition. Under its accounting policy, subscription charges are recognised over the subscription period, franchise fees when contractual services and obligations are substantially performed, and other service income when the underlying services are rendered.

What changed in Robokidz’s procurement and assembly model?

Robokidz shifted part of its operating model from purchasing finished goods for trading to buying raw materials for in-house manufacturing and assembly of educational laboratory setups. Purchases of stock-in-trade, or finished goods bought for resale, fell 13.4% to Rs 45.97 crore in FY26 from Rs 53.06 crore in FY25, despite a 58.7% increase in operating revenue. Robokidz said the reduction reflected higher procurement of raw materials for its own manufacturing and assembly activity.

The corresponding material-cost movement was substantial. Cost of materials consumed increased 358.7% to Rs 16.30 crore in FY26 from Rs 3.55 crore in FY25, raising its share of total income to 17.39% from 6.01%. Purchases of stock-in-trade still accounted for 49.06% of FY26 total income, but that was below the 89.68% reported in FY25, showing the change in cost composition.

The shift did not remove project-delivery costs. Direct expenses rose to Rs 9.81 crore in FY26 from Rs 68.74 lakh in FY25, including Rs 4.21 crore of learning management system (LMS) subscription charges, Rs 3.11 crore of installation and setup charges, and Rs 1.39 crore of education-support-services expenses. Freight and transport costs were Rs 24.52 lakh and lab-reimbursement expenses were Rs 26.51 lakh, indicating the execution costs associated with the expanded service activity.

How did the mix and assembly change affect Robokidz’s profit?

Robokidz’s profit increased faster than revenue in FY26, which the company attributed to a higher service contribution, an improved revenue mix and operating leverage, meaning that revenue growth exceeded growth in some operating costs. Profit before tax rose 103.0% to Rs 13.64 crore from Rs 6.72 crore, while profit attributable to equity shareholders rose 102.0% to Rs 10.06 crore from Rs 4.98 crore. The restated profit-and-loss statement shows profit before tax at 14.55% of total income in FY26, compared with 11.35% in FY25.

Robokidz stated that service income generally carries higher margins than product-trading sales and that in-house assembly contributed to gross margin rising to 22.04% in FY26 from 19.46% in FY25. The reported outcome depended on execution of new projects, the service contribution and management of the higher material, installation and support costs that accompanied the operating-model change.

Several expenses also rose as the business scaled. Employee-benefit expense increased 65.7% to Rs 1.84 crore, which Robokidz attributed to workforce expansion, salary revisions and recruitment of technical, project-execution and administrative personnel. Finance costs increased 19.7% to Rs 2.95 crore as working-capital borrowings, credit facilities, inventory requirements and project execution expanded, although the increase was slower than operating-revenue growth.

What must continue for Robokidz’s FY26 revenue mix to persist?

Robokidz’s FY26 mix depends on continued demand for lab-setup projects and linked services. The company said revenue increases are broadly linked to business volume and also depend on prices realised for products and services. Its revenue-recognition policy requires educational-lab revenue to be recognised when ownership risks and rewards transfer and related installation and training obligations are completed, or when a customer accepts delivery under the contract.

Customer concentration remains relevant to sustaining the revenue base. Robokidz disclosed that its top 10 customers contributed 77.99% of revenue from operations in FY26, compared with 92.95% in FY25 and 96.60% in FY24. The percentage was lower than in the two preceding years, but the top 10 customers still accounted for more than three-fourths of FY26 operating revenue.

Working-capital movements are also material alongside reported profit. Robokidz reported net cash used in operating activities of Rs 5.10 crore in FY26, after trade receivables increased by Rs 36.83 crore and trade payables increased by Rs 18.47 crore. Financing cash flow was positive at Rs 5.23 crore, comprising Rs 17.18 crore of borrowing proceeds, Rs 10.02 crore of repayments and Rs 1.94 crore of interest paid.

Conclusion

Robokidz’s FY26 result reflects two linked changes: service revenue rose to nearly one-quarter of operating revenue, while the company replaced part of its finished-goods procurement with raw-material purchasing and in-house assembly. The combination coincided with 58.7% operating-revenue growth, a stated gross-margin increase to 22.04%, and 102.0% growth in profit attributable to equity shareholders.

Later reporting will show whether the FY26 mix is sustained through subscriptions, AMC, installation, training and educational-support work while project volumes continue. The company has disclosed that future costs and revenue will be determined by demand and supply, government policies and other economic factors; receivables, working-capital borrowing and the contribution from the top 10 customers remain disclosed matters to track.