White Force FY26: Revenue grows, margins reset as the company spends on AI and scale

Happy Square Outsourcing Services Limited, operating under its flagship brand White Force, closed FY26 with higher revenue but a more cautious margin outlook. The company reported revenue of 109.17 crore in FY26 versus 97.41 crore in FY25. Total income stood at 109.88 crore. EBITDA was 7.86 crore, and profit after tax was 5.98 crore.

Management used the FY26 concall to explain why profitability did not expand in line with revenue. They attributed margin pressure to one-time costs related to the IPO and to heavier spending on technology and AI tools. While the near-term tone on margins was conservative, management also positioned these investments as a base for faster growth and higher efficiency in the coming periods.

A staffing and HR outsourcing platform with a tech layer

White Force describes itself as an integrated HR outsourcing and staffing solutions provider. Its services span temporary staffing, permanent recruitment, payroll processing, compliance management, and recruitment process outsourcing. The company also highlighted its digital job platform and database presence, stating that its ecosystem connects employers with candidates across levels.

A key part of the narrative is in-house technology. The presentation highlights White Force Plus, an AI-powered applicant tracking system, and a payroll HRMS portal for payroll automation, attendance, and employee self-service. In the concall, management went further by describing Veera AI, a chatbot on the company website aimed at improving candidate engagement and screening.

The pitch is clear. If AI can compress sourcing and screening time, the business can scale with lower incremental headcount and faster execution. Management offered a concrete example, saying AI can identify a short list from a larger pool within minutes and do early screening on parameters such as relocation, notice period, and compensation expectations.

FY26 financial performance: steady topline, flat PAT

Revenue rose in FY26, but PAT remained largely flat. The company’s profit before tax was 6.15 crore in FY26 versus 7.98 crore in FY25, while PAT was 5.98 crore versus 5.94 crore.

The company also shared H2 performance. For H2 FY26, total income was 66.51 crore and PAT was 4.21 crore. In the concall, management described H2 as a strong period with year-on-year growth.

Below is a summary of key reported numbers from the investor presentation.

Management commentary linked the FY26 margin profile to spending on the IPO process and technology. When asked about sustainable profitability, management guided to an EBITDA margin of about 7 percent plus, and suggested margins could move higher once AI adoption increases.

Mix shift: private remains larger, government pipeline stays important

The company disclosed revenue contribution between government and private customers.

In FY26, government revenue contribution was 37.63 percent and private was 62.37 percent. In value terms, this translates to 41.08 crore from government and 68.09 crore from private.

Industry-wise, the presentation shows PSUs still contribute the largest share but reduced in FY26. Logistics and Technology and IT stayed broadly stable, while the “Others” category expanded.

On the concall, management also discussed a strategic target to move toward a 50-50 mix between government and large corporates. They said they are focusing on PSU and government opportunities given an active tender environment.

Working capital and balance sheet signals

The FY26 balance sheet shows a larger scale but also highlights working capital intensity. Trade receivables increased to 42.48 crore in FY26 from 22.86 crore in FY25. Cash and bank balances were 1.40 crore.

On the positive side, the company reported a higher net worth of 42.09 crore in FY26 versus 12.48 crore in FY25. Borrowings reduced, with current borrowings at 5.46 crore versus 11.48 crore in FY25.

This mix suggests a stronger equity base and lower leverage, but also higher cash tied up with customers. For a staffing business where payroll payouts are time-bound, receivable management can meaningfully influence cash flow outcomes.

Concall takeaways: guidance, AI spend, and near-term pipeline

The concall included explicit forward statements. Management guided for about 80 percent topline growth in FY27. They also discussed a near-term pipeline with a potential single government work order of 21 crore expected within about 15 days, and another pipeline of about 15 crore that could materialize around July.

On technology, management said the company has already launched parts of its AI stack and plans further investment. They stated the planned AI investment is about 2.0 to 2.5 crore, with cloud and deployment costs dependent on usage and how much data is processed.

Management also tied margin expectations to the adoption curve. They said current expenses reflect investment in technology and that margins could improve once the AI rollout is completed and used more deeply across processes.

What investors should track from here

White Force’s FY26 narrative is a mix of steady growth and a reset in margin expectations while the company invests in automation and expansion. The company is also leaning into government tenders and pipeline visibility, which can drive short-term revenue acceleration if order wins convert smoothly.

From the disclosures available, three data points stand out for monitoring over the next few quarters.

First is execution against the stated pipeline and the broader tender win momentum mentioned for H2 FY26. Second is whether the AI initiatives translate into measurable cost reduction and faster scaling, consistent with management’s margin improvement commentary. Third is working capital discipline, especially trade receivables, which increased materially in FY26.

Overall, FY26 looks like a year where revenue growth continued and the company laid out a technology-first positioning. The next phase will be judged less by vision statements and more by whether growth guidance, tender conversion, and margin recovery show up consistently in reported numbers.