Seshaasai Q1FY27: Growth returns, margins normalize, IoT scales faster

Revenue from operations was 376.47 crore, EBITDA was 94.41 crore (25.1% margin), and PAT attributable to equity shareholders was 60.34 crore.

Payment Solutions revenue was 158.2 crore, Communication and Fulfilment Solutions was 148.8 crore, and IoT Solutions was 67.4 crore, with IoT showing the strongest year-on-year growth.

Management cited higher raw material prices, currency depreciation, and elevated logistics costs linked to the West Asia conflict as key drivers of gross margin moderation.

Management reiterated a medium-term revenue growth target of 8% to 12% year on year and expects H2 FY27 to be stronger than H1 due to seasonality and segment momentum.

Management said the Bengaluru facility is under construction and is expected to be operational by the end of calendar year 2026, subject to regulatory approvals; it is intended to expand metal card capacity.

Top 10 customers contributed about 56% of revenue, top 5 contributed 42.1%, and the largest customer contributed 14.6%. About 95.7% of revenue came from existing customers.

Cumulative utilization was 429.92 crore out of 600 crore, with 170.08 crore unutilized; the company reported cash and cash equivalents of about 369 crore including unutilized IPO funds.