Nanta Tech H2 FY26: Margin-led growth as Robotics and AI gains share

Nanta Tech Limited closed H2 FY26 with a sharper earnings profile and a clearer strategic tilt toward Robotics and AI. Revenue from operations rose to INR 7,010.4 lakh for FY26, up 36.8 percent year on year, while EBITDA increased to INR 1,149.1 lakh, up 78.8 percent. Profit after tax climbed to INR 817.0 lakh, up 74.5 percent. Management linked the performance to stronger execution, an improving mix, and a higher contribution from the higher-margin Robotics and AI business.

The second half shows the acceleration more clearly. H2 FY26 revenue was INR 4,857.7 lakh, up 52.2 percent versus H2 FY25. EBITDA in H2 FY26 was INR 841.0 lakh, up 128.3 percent. PAT in H2 FY26 was INR 597.8 lakh, up 124.3 percent. Margins expanded alongside this growth, with H2 EBITDA margin improving to 17.3 percent from 11.5 percent and H2 PAT margin rising to 12.3 percent from 8.4 percent. The year was also the company’s first full-year arc after its BSE SME listing in December 2025, which matters when reading return ratios and the expanded balance sheet.

Two-engine model, with mix shifting toward higher-margin work

Nanta operates across two core verticals: Robotics and AI Solutions, and Audio-Visual solutions. The AV side is positioned as an end-to-end integration business covering design, supply, installation, integration, and AMC services. It also sells products such as interactive displays, active LED, microphones, and AI based PTZ cameras. The Robotics and AI side includes a service robotics portfolio and software development and AI solutions that connect hardware deployment with in-house integration.

The investor presentation does not disclose segment revenue, but the narrative points to a portfolio rebalance toward Robotics and AI. That shift shows up in the company’s profitability bridge. For FY26, gross profit margin improved to 48.6 percent from 21.6 percent in FY25, while EBITDA margin increased to 16.4 percent from 12.5 percent. Management attributed the improvement to the rising contribution of Robotics and AI, which it described as structurally superior margin compared to the traditional AV integration business.

Operationally, the robotics platform is positioned as a full-stack offer: source and customize robots, test and brand under the ALLBOTIX umbrella, deploy autonomous capabilities, and integrate human interaction via touchscreens, voice recognition, and facial recognition. Use-cases include cleaning robots, dining and delivery robots, greeting robots, warehousing and logistics robots, and marketing robots. On the software side, Nanta highlights ROS and ROS2 development, simulation using tools like Gazebo and RViz, SLAM and motion planning, and hardware integration. It also positions AI work in NLP, computer vision, predictive analytics, and generative AI tools.

The AV business remains a meaningful execution engine, built on B2B project delivery, consulting and design, and system integration and commissioning. The company also emphasizes a repeat-business model and long-term client relationships, supported by ongoing service and AMC.

Financial summary

Note: FY24 figures are consolidated with MNT Technologies.

H2 FY26 performance: growth, margin expansion, and a working capital bill

The H2 FY26 income statement captures the operating leverage that comes with higher gross profit and better cost absorption. Revenue from operations grew 52.2 percent year on year in H2, but gross profit grew much faster, up 194.1 percent to INR 2,098.6 lakh. EBITDA in H2 rose to INR 841.0 lakh, and EBIT was INR 811.4 lakh, up 126.1 percent.

A key point for investors is that the margin expansion is not only an accounting artifact of scale. The presentation explicitly calls out business mix as a driver, with Robotics and AI gaining share. That is consistent with the step-change in FY26 gross margin to 48.6 percent. In H2 FY26, gross margin was 43.2 percent, while H1 FY26 gross margin was 60.7 percent. The half-to-half variation suggests mix and project timing can influence reported margins. But the full-year trend remains strong.

Cash flow, however, signals the cost of fast growth. In FY26, net cash from operating activities was negative at INR 1,001.1 lakh, largely due to a working capital outflow of INR 1,958.2 lakh. The balance sheet shows trade receivables rising to INR 3,998.7 lakh at March 2026 from INR 2,078.7 lakh at September 2025, and working capital days increasing to 161 in FY26 from 89 in FY25. This is not unusual for project-led businesses scaling quickly, but it raises an execution question: how quickly the company can normalize receivables as it grows in new geographies and ramps new lines like robotics.

The same period also shows elevated investing cash outflows of INR 2,030.0 lakh. Non-current assets expanded sharply, with tangible assets at INR 1,354.2 lakh and intangible assets at INR 838.3 lakh as of March 2026. Financing cash inflows were INR 3,139.1 lakh, and cash and cash equivalents ended at INR 112.9 lakh.

Strategy and execution: scaling the platform, not just projects

Nanta’s storyline is about moving up the value chain. The company started as MNT Technologies in 2018 in AV integration, expanded to AV product distribution and service robotics, incorporated Nanta Tech Limited in June 2023, and acquired the MNT Technologies business in February 2024 on a going-concern basis. It then listed on the BSE SME platform in 2025 and in 2026 completed a strategic expansion through RSVP Infotech acquisition, alongside the launch of AI platforms NTalk and NTra.

The strategic roadmap in the presentation is explicit on where the company wants to go. It aims to expand across GCC markets including UAE, Saudi Arabia, Qatar, and Kuwait. It also aims to invest in automation and AI technology integration and gradually transition toward higher-value, technology-enabled solutions. Partnerships are a key lever, intended to extend capability without significant capex. There is also a vertical integration plan that includes smart buildings, industrial automation, logistics solutions, and setting up an in-house assembly unit for robotics and automation products.

The RSVP Infotech acquisition is positioned as a capability accelerant. The presentation notes the addition of 14 AI engineers strengthening AI capabilities, enhanced Allbotix AI robotics and automation platform, and an expanded enterprise reach. Management commentary frames it as an upgrade in technology architecture and engagement ability for larger and more sophisticated automation deployments.

The company is also investing in go-to-market and customer experience. It plans to set up a flagship AV and Robotics Experience Centre in Ahmedabad, with INR 4.05 crore earmarked from IPO proceeds. The center is described as a live demonstration environment for delivery, cleaning, greeting, and AI-enabled robots, plus an interactive showcase of AV products like LED displays and conferencing systems. Strategically, it is framed as a sales enablement tool, dealer training hub, and a testbed for custom software, automation, and AI integration.

Geographically, Gujarat remains the core, contributing 79.5 percent of revenue, while Maharashtra at 6.6 percent, Delhi at 5.7 percent, Karnataka at 3.2 percent, and Tamil Nadu at 2.4 percent form the next tier. UAE contributes 1.1 percent, indicating an early international footprint. The concentration in Gujarat is both a strength and a risk. It reflects a strong local position and execution base, but it also makes the expansion agenda important for diversification.

Market context: a growth theme with execution risk

Nanta’s chosen end-markets carry visible tailwinds. The presentation cites India’s accelerating service robotics market, driven by policy initiatives, labor shortages, falling component costs, and the growth of e-commerce and logistics. It also highlights the global Robot-as-a-Service market trajectory and India’s position in global robot installations.

On the AV side, the presentation points to sustained growth in AV hardware, digital signage, and video conferencing, supported by smart cities, digital transformation, enterprise collaboration, and entertainment and events. For Nanta, this matters because AV can remain a steady demand base, while Robotics and AI can lift margins and differentiate the offering.

The financial results suggest the early phase of that thesis is working. FY26 gross profit increased to INR 3,404.5 lakh from INR 1,105.2 lakh, while EBITDA margin expanded and PAT margin improved to 11.7 percent. But the rising working capital days underline that scaling is not just about winning orders. It is also about collecting cash, managing project cycles, and maintaining discipline as the company enters new regions and expands its dealer and distributor network.

Management’s commentary signals confidence going into FY27, citing the strongest order pipeline in the company’s history and multiple large Robotics and AI opportunities under active engagement across industry verticals. The next test is converting that pipeline into profitable growth without letting receivables and project risk compound.

Takeaways for investors

FY26 and especially H2 FY26 show a company in transition, from an AV-led integrator to a broader platform that ties robotics, AI software, and smart infrastructure execution together. The headline numbers are strong: FY26 revenue up 36.8 percent, EBITDA up 78.8 percent, and PAT up 74.5 percent. Margin expansion is the center of the story, with FY26 gross margin at 48.6 percent and EBITDA margin at 16.4 percent, which management ties to a higher Robotics and AI mix.

The balance sheet shows an organization building capacity, with a sharp rise in non-current assets and a much larger equity base after listing. Cash flow shows the operational trade-off, as working capital outflows pushed operating cash flow negative and working capital days rose to 161.

The theme for the next phase is disciplined scaling. If Nanta can diversify beyond Gujarat, expand its dealer footprint, convert the Experience Centre investment into stronger conversions, and manage receivables while scaling robotics deployments, it can sustain the margin-led growth profile shown in FY26. The strategic intent is clear, and the FY26 numbers indicate early execution. The real proof will come in FY27 as the pipeline translates into cash-backed earnings.