Creative Newtech Q4 FY26: Scale Up, Margins Under Pressure, and a Bigger Bet on Surveillance

Consolidated total income was 740.44 crore, EBITDA was 29.39 crore and PAT was 17.79 crore. Q4 total income growth was 81.16% YoY, while EBITDA grew 52.15% YoY and PAT grew 29.57% YoY.

FY26 consolidated total income was 2,717.51 crore versus 1,801.47 crore in FY25. EBITDA was 104.00 crore versus 73.38 crore, and PAT was 70.29 crore versus 53.11 crore.

For FY26, the presentation shows Market Entry Specialist at 85.89% (2,318.92 crore) and Brand Business at 14.11% (380.86 crore) of consolidated segment revenue.

The presentation attributes margin pressure to elevated raw material costs and increased operating expenses, with EBITDA margin declining to 3.97% from 4.73% and gross margin to 9.41% from 11.54%.

Management stated an internal target to grow consolidated revenue by 25% to 30% annually and to grow profit in absolute terms by about 30% over the next 5 to 6 years. They also stated an aspiration for the brand business to grow 50% to 60% annually.

Management said the Middle East conflict has increased freight costs materially for China-to-Middle East shipments, which can impact product pricing, consumer sentiment and margins if sustained.

Management stated that the Honeywell licensing arrangement is up for renewal in March 2027 and expressed confidence in renewal, subject to clarity from Honeywell’s internal restructuring.