Workmates lifts FY27 outlook to ₹202 crore on recurring base

Workmates Core2Cloud Solution Limited lifted its FY27 revenue outlook to ₹202 crore on November 4, 2026, from ₹190.56 crore, based on an H2 FY27 assumption of ₹107 crore that includes ₹95.4 crore of contracted recurring revenue. The updated forecast follows H1 revenue from operations of ₹95.21 crore, up 27.5% year on year.

Why did Workmates raise its FY27 revenue outlook?

Workmates raised the outlook because management expects contracted recurring revenue to provide ₹95.4 crore of the ₹107 crore planned for H2 FY27. The revised ₹202 crore forecast remains within the company’s stated full-year goal range of ₹190 crore to ₹210 crore, while standing ₹11.44 crore above its prior outlook of ₹190.56 crore.

The H2 FY27 assumption also includes ₹1.25 crore from new recurring business and ₹10.35 crore from projects. Management linked the contracted recurring component to monthly recurring revenue, or MRR, of ₹15.9 crore per month reported in September 2026, which was 20% higher than the ₹13.25 crore reported in April 2026.

Workmates reported ₹95.21 crore of revenue from operations in H1 FY27, meaning its outlook assumes a higher ₹107 crore contribution in H2 FY27. H1 FY27 revenue was 66% of Workmates’ FY26 revenue and was 37.7% above H2 FY26, according to the release.

What revenue performance supports Workmates’ FY27 forecast?

Workmates’ H1 FY27 revenue growth and larger recurring mix provide the reported basis for management’s forecast, although the H2 plan also includes expected new business and projects. Revenue from operations rose to ₹95.21 crore from ₹74.69 crore in H1 FY26, while total income increased 28.4% to ₹96.22 crore from ₹74.93 crore.

Recurring revenue rose 43.4% year on year to ₹82.97 crore, faster than the 27.5% increase in total revenue from operations. Its share of revenue increased to 87% in H1 FY27 from 77% in H1 FY26, while project revenue was ₹12.24 crore, down 27% year on year but 51% above H2 FY26.

Profit after tax, or PAT, increased to ₹12.03 crore from ₹9.09 crore, and PAT margin improved to 12.6% from 12.2%. Earnings before interest, tax, depreciation and amortisation, or EBITDA, reached ₹16.44 crore, while gross margin declined to 33.5% from 34.3% as cloud consumption and third-party costs rose to 66.5% of revenue.

How visible is Workmates’ H2 FY27 revenue base?

Workmates has identified ₹95.4 crore of contracted recurring revenue for H2 FY27, equal to 89.2% of the ₹107 crore revenue assumed in its outlook. This amount is separate from the ₹1.25 crore expected from new recurring business and ₹10.35 crore expected from project work, both of which depend on second-half execution.

Workmates also reported a weighted H2 FY27 pipeline of ₹110 crore. It includes a large cloud-migration opportunity with an existing non-banking financial company, or NBFC, customer, a cybersecurity opportunity with an existing large financial services and insurance customer, and a migration project for a mid-sized global IT services company.

New bookings signed in H1 FY27 had a total contract value of ₹30 crore, while the customer base rose to 337 in September 2026 from 316 in March 2026. Workmates added 54 new logos, comprising 34 recurring and 20 project customers, and enterprise customers increased to 44 from 38 during the same period.

Customer concentration declined modestly, with the top 20 clients contributing 71% of revenue in H1 FY27 versus 73% in FY26. Banking, financial services and insurance, or BFSI, accounted for 40.6% of revenue, up from 34.2% in FY26, while IT and IT-enabled services represented 34.6%; 28 clients generated more than ₹1 crore in annualised revenue.

What operational priorities could affect Workmates’ H2 FY27 delivery?

Workmates’ stated H2 FY27 priorities are converting the ₹110 crore weighted pipeline, monetising six AI accelerators in production, beginning US and Middle East operations, and improving collections. The six products include IntelliOps, CloudTrustMate and Enterprise AI Edge for IT operations, plus VoxoRA, VerID and VoyaGE for business functions.

Enterprise AI Edge provides clients secure access to the OpenAI stack through Amazon Bedrock under Workmates’ strategic partnership with OpenAI. Investment in these products continued in H1 FY27, with intangible assets under development increasing to ₹2.66 crore in September 2026 from ₹0.64 crore in March 2026.

International business contributed 3.7% of H1 FY27 revenue, and Workmates said its US and Middle East expansion, previously paused because of geopolitical considerations and tariff uncertainty, had been reactivated for FY27. A US subsidiary has been registered to streamline global customer billing, while the Singapore go-to-market strategy is being re-evaluated in line with market conditions.

Collections are a separate financial focus because trade receivables increased to ₹39.50 crore at September 30, 2026, from ₹28.99 crore at March 31, 2026. Debtor days rose to 64 from 62, and operating cash flow was negative ₹4.70 crore as working capital funded growth, despite PAT of ₹12.03 crore and cash and equivalents of ₹43.88 crore.

Conclusion

The revised outlook reflects a business in which recurring revenue represented 87% of H1 FY27 revenue and grew faster than total revenue, while profitability also increased. The H2 plan is largely underpinned by contracted recurring revenue, but it also requires delivery of new recurring sales and projects to reach the assumed ₹107 crore second-half revenue.

Management’s stated H2 FY27 plan makes pipeline conversion, monetisation of six live AI accelerators, and the start of US and Middle East operations key areas to watch. Collections are also a disclosed priority after receivables reached ₹39.50 crore, debtor days moved to 64 and operating cash flow was negative ₹4.70 crore in H1 FY27.