WORKMATES H1 revenue rises 27% as PAT increases 32% year on year

WORKMATES reported consolidated H1 FY27 revenue of Rs 95.21 crore, 27% above H1 FY26, while profit after tax rose 32% to Rs 12.03 crore; recurring revenue climbed 43% to Rs 82.97 crore and represented 87% of sales, compared with 77% a year earlier.

What drove WORKMATES revenue growth in H1 FY27?

WORKMATES generated Rs 95.21 crore of revenue from operations in H1 FY27, compared with Rs 74.69 crore in H1 FY26 and Rs 69.13 crore in H2 FY26. This represented 27% year-on-year growth and 38% half-on-half growth. The company’s H1 FY27 figure was also 66% of its FY26 revenue from operations of Rs 143.82 crore.

Recurring, or annuity, revenue was the principal contributor to the increase. It rose to Rs 82.97 crore in H1 FY27 from Rs 57.87 crore a year earlier, a 43% increase, and from Rs 61.00 crore in H2 FY26, a 36% increase. Project implementation revenue was Rs 12.24 crore, down 27% from Rs 16.82 crore in H1 FY26, although it increased 51% from Rs 8.13 crore in H2 FY26.

The revenue composition changed towards recurring services. Recurring revenue represented 87% of H1 FY27 revenue, versus 77% in H1 FY26 and 88% in H2 FY26. Average monthly recurring revenue, or MRR, increased to Rs 13.8 crore per month from Rs 9.67 crore in H1 FY26 and Rs 10.00 crore in H2 FY26. This rise occurred even as project implementation revenue remained below its prior-year level.

How did WORKMATES build recurring revenue in H1 FY27?

WORKMATES ended September 2026 with MRR of Rs 15.9 crore per month, up from entry MRR of Rs 13.5 crore in April 2026, according to its MRR bridge. New logos added Rs 41 lakh of monthly recurring revenue, while expansion through upsell, cross-sell and usage added Rs 2.34 crore. Customer exits reduced MRR by Rs 35 lakh.

The company reported 34 recurring-revenue logos and 20 project-revenue logos within its H1 FY27 new-logo additions. It recorded 19 customer exits in the same MRR bridge. Gross revenue churn was annualised at 2.6%, compared with 2.4% for FY26, while net revenue retention was 97.4%, compared with 97.6% in H1 FY26.

New bookings, measured as total contract value, or TCV, were Rs 30 crore in H1 FY27 across recurring and project work. WORKMATES also reported Rs 9.5 crore of annualised revenue carried into H2 under contract for the next 12 months. These disclosed measures distinguish signed business and contracted carry-forward revenue from the Rs 82.97 crore of recurring revenue recognised during H1.

How did WORKMATES profitability and cost ratios change in H1 FY27?

WORKMATES reported gross profit of Rs 31.92 crore in H1 FY27, up 25% from Rs 25.58 crore in H1 FY26 and 48% from Rs 21.57 crore in H2 FY26. Gross margin was 33.53%, compared with 34.25% a year earlier and 31.21% in the preceding half. Thus, gross profit grew year on year while gross margin was 0.72 percentage points below the prior-year half.

Earnings before interest, tax, depreciation and amortisation, or EBITDA, increased 24% to Rs 16.44 crore from Rs 13.26 crore in H1 FY26. The EBITDA margin was 17.27%, versus 17.75% in H1 FY26, but above 14.54% in H2 FY26. Profit after tax, or PAT, rose faster than EBITDA, increasing 32% to Rs 12.03 crore from Rs 9.08 crore; PAT margin was 12.64%, compared with 12.17% a year earlier and 9.88% in H2 FY26.

Cloud consumption and third-party costs rose to 66.47% of revenue from 65.75%, an increase of 72 basis points, where one basis point equals one-hundredth of a percentage point. Employee benefit expense fell to 10.78% from 11.19%, while other operating expenses were unchanged at 7.05%. Management said headcount was broadly stable at 169 versus 168, but cost per resource had risen and investments had been made in research and development for artificial intelligence, or AI, accelerators.

What is WORKMATES saying about its FY27 revenue outlook?

WORKMATES said its Rs 15.9 crore September 2026 exit MRR put FY27 on track for Rs 188 crore to Rs 210 crore of revenue. The performance-highlights page also states that H1 FY27 delivered Rs 94.75 crore, 3.5% ahead of outlook, while the revenue tables report Rs 95.21 crore of revenue from operations. The presentation does not explain the Rs 46 lakh difference between those two H1 figures.

Management’s stated basis for the FY27 range is the MRR level rather than a separately disclosed full-year earnings forecast. The performance highlights list April 2026 entry MRR as Rs 13.25 crore, while the MRR bridge lists Rs 13.5 crore. The company also said monetisation of its AI assets would increase overall revenue and the services mix.

The disclosed H1 mix provides context for that plan. IT and IT-enabled services accounted for 34.57% of H1 FY27 revenue, down from 36.9% in FY26, while financial services, insurance and banking accounted for 40.56%, up from 34.2%. The presentation identified strategic wins in retail broking and financial services, payment technology and financial software, and agri-commodities technology and business services, without assigning revenue values to those wins.

Conclusion

WORKMATES combined 27% revenue growth with a 32% increase in PAT in H1 FY27, led by Rs 82.97 crore of recurring revenue and an 87% recurring-sales mix. Gross margin of 33.53% was below the 34.25% recorded a year earlier, but EBITDA and PAT margins were both above H2 FY26 levels as revenue and gross profit increased.

The next disclosed measure to watch is whether September 2026 exit MRR of Rs 15.9 crore supports management’s stated FY27 revenue range of Rs 188 crore to Rs 210 crore. Investors can also track management’s planned monetisation of AI accelerators, churn at 2.6% annualised, and any clarification of the Rs 94.75 crore H1 delivery figure versus Rs 95.21 crore revenue from operations.