Marushika Technology FY26: Growth Driven by Execution, Service Mix, and a Government-Heavy Order Pipeline

Marushika Technology Limited closed FY26 with a sharp improvement in scale and profitability, supported by higher project execution and a bigger share of services within its delivery model. For the year ended March 31, 2026, the company reported revenue from operations of ₹11,642.8 lakhs, up 36.6% from ₹8,524.9 lakhs in FY25. EBITDA rose to ₹1,593.6 lakhs, up 48.0% year on year, and PAT increased 42.5% to ₹895.1 lakhs.

The second half of the year was materially stronger than the first. H2 FY26 revenue rose to ₹6,778.8 lakhs compared with ₹4,863.9 lakhs in H1, a 39.4% half-on-half increase. The profitability shift was even more pronounced. H2 EBITDA was ₹1,024.0 lakhs versus ₹569.6 lakhs in H1, and PAT increased to ₹583.9 lakhs from ₹311.2 lakhs in the first half. EBITDA margin improved to 15.1% in H2 from 11.7% in H1.

Management attributed part of this improvement to a stronger service component. In the earnings call, the CFO stated that service revenue increased from ₹1,744 lakhs in FY25 to ₹4,961 lakhs in FY26, largely linked to execution, installation, configuration, and technical support for supplied items.

FY26 performance: steady expansion with better margins

Despite being positioned across three business verticals, Marushika’s FY26 revenue profile remained concentrated in its core IT and telecom solutions business. The investor presentation disclosed that IT and telecom solutions contributed 99.27% of revenue in FY26, while smart solutions were 0.63% and defence auto-tech was 0.11%.

The company also remained heavily dependent on government customers. FY26 revenue was split 93.46% from government entities and 6.54% from non-government entities, a shift from FY25 when non-government accounted for 21.10%.

These mixes matter because they shape working capital, margin stability, and the nature of business development. Government and PSU work can provide large, repeatable project opportunities, but it also brings tender intensity, milestone-based billing, and payment-cycle variability.

What supported execution in H2: Delhi Metro and order additions

A key operational anchor highlighted in the investor deck was the ongoing Delhi Metro Phase IV communication systems project. The company disclosed a contract value of ₹31.19 crore with execution status at around 58% completion, covering IP-PBX and communication infrastructure.

Marushika also disclosed an order win from Trisatya Equipments India Private Limited worth ₹354.64 lakhs for refurbishment of ZIL lorries, with execution timeline stated as completion by March 2027. While the defence auto-tech vertical is still small in reported revenue mix, this order demonstrates that the company is attempting to expand its delivery scope beyond its dominant IT and telecom integration base.

On the earnings call, management gave an update on near-term commercial visibility. The CFO stated that the company had already built ₹14 crores of turnover in April and May and was standing on an order book of more than ₹35 crores at that time.

Strategy narrative: services, AI surveillance, and digital learning

Management’s commentary repeatedly returned to improving the business mix through higher value services and recurring-style revenue components such as managed services. The managing director described a focus on scaling data center solutions, cybersecurity, cloud infrastructure services, and managed service revenues.

The company also highlighted a strategic partnership with Graymatics India Private Limited, appointing Marushika as a non-exclusive distributor and reseller. The stated intent is to expand into AI-based video analytics and smart surveillance, with management indicating an expectation that AI-related opportunities could contribute 5–10% of business in coming time. The relationship was described as new, with opportunities still being evaluated.

A second strategic narrative focused on a SaaS-based Learning Management System (LMS) portfolio. The investor presentation described LMS offerings targeted at healthcare and medical education, government and public sector, banking and financial services, and higher education, and presented a total market opportunity of ₹9,257 crore across these areas. While this provides context on market size, the documents did not disclose current LMS revenues or contracted wins, and management described the product as very new.

Management also discussed expanding data center capabilities beyond physical infrastructure. The whole-time director explained that alongside the physical data center business, which includes HVAC and environmental controls, the company has begun adding an electronics and application component, covering servers, storage, and switches. Management stated an expectation of 15–20% additional growth from the electronics segment being added to the data center portfolio, in the context of FY27 growth.

Balance sheet signals: inventory and working-capital profile

FY26 total assets stood at ₹8,707.3 lakhs. A notable element was the size of inventories, reported at ₹5,798.3 lakhs, and trade payables of ₹2,556.0 lakhs. Current liabilities were ₹3,717.2 lakhs, while current assets were ₹7,561.0 lakhs.

Borrowings showed a change in mix. Current borrowings declined to ₹437.3 lakhs in FY26 from ₹1,882.2 lakhs in FY25, while non-current borrowings were broadly stable at ₹251.0 lakhs.

The documents did not provide cash flow statements, so it is not possible to validate operating cash conversion or the specific working-capital cycle. However, the balance sheet composition indicates that inventory management and receivable discipline remain important in assessing execution quality, especially given the government-heavy revenue mix.

Takeaways from management commentary

During Q and A, management described government business as being sourced via multiple routes, including direct tenders, GEM portal bidding, participation through system integrators for larger composite tenders, and private tenders where the company is empaneled with PSUs.

Management also gave a useful range on profitability by deal type. The managing director stated that margins are good when it is a complete system integration project, with EBITDA margins in the 15–18% range and sometimes up to 20%. She also stated that when the company is not working directly with PSU or system integrators, margins can come down to 6–8%.

Overall, the FY26 narrative is consistent with a company scaling through government-led infrastructure work, supported by increasing service components. The next phase depends on whether new themes like AI surveillance partnerships, data center electronics, and LMS SaaS can move from positioning statements into visible revenue contribution. For now, the numbers show clear momentum, but also highlight concentration in both customer type and business vertical.