Creative Newtech Limited (CNL)
₹1,178.70 +2.07% last close, 16 Oct
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Creative Newtech's revenue was ₹476 Cr (+21.1% year on year, -35.7% on the previous quarter), and net profit ₹13.5 Cr (+32.9% year on year); the operating margin was 5.1%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹476 | +21.1% | -35.7% |
| Operating profit | ₹24.2 | +122.1% | -16.4% |
| Net profit | ₹13.5 | +32.9% | -23.9% |
| EPS (₹) | 8.23 | +39.0% | -23.4% |
| Operating margin | 5.1% | — | — |
CNL delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 56.69% of the CNL shares traded on NSE were taken to delivery, against the stock's own 20-session average of 55.33%. That is close to its usual level.
Delivery in the last 5 sessions: 57.9% · 49.7% · 28.7% · 67.4% · 56.7%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Creative Newtech Limited has submitted its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended September 30, 2026. The certificate issued by Registrar and Share Transfer Agent Bigshare Services Private Limited confirms zero dematerialization or rematerialization requests received during the period. This is an administrative regulatory filing and carries no impact on operations or financials.
- Compliance certificate submitted for the quarter ended September 30, 2026
- RTA Bigshare Services confirmed 0 Demat or Remat requests received during the quarter
- Filing executed under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018 on October 13, 2026
Creative Newtech Limited (CNL) has issued a clarification regarding its earlier May 2026 announcement concerning the Rs 35.89 crore Smart Warehousing Project across 150 FCI depots. The company clarified that Food Corporation of India (FCI) is the project authority, but CNL's direct contracting counterparty is System Integrator partner NebulArc Technologies Private Limited. The order value of Rs 35.89 crore (approx. 1.4% of TTM revenue of Rs 2,521 crore), scope, and execution terms remain entirely unchanged. The project execution timeline is final commissioning within 180 days with subsequent AMC support for 3 years.
- Clarified contracting counterparty is NebulArc Technologies Private Limited, not FCI directly
- Contract value remains unchanged at Rs 35.89 crore
- Project scope covers 150 FCI depots rolled out across 2 phases of 75 sites each
- Execution requires final commissioning within 180 days, followed by 3 years of AMC support
Creative Newtech Limited has issued the notice for its 22nd Annual General Meeting scheduled for September 30, 2026. Key agenda items include the declaration of a final dividend of Re 0.50 per share (record date: September 23, 2026) and shareholder approval for related-party transactions up to Rs 750 Cr with subsidiary Secure Connection Limited (Hong Kong) for FY27. The company is also seeking approval to implement the Creative ESOP Scheme 2026 covering up to 2,00,000 options (~1.33% of paid-up capital).
- Final dividend of Re 0.50 per equity share (5% on face value of Rs 10) recommended with Record Date on September 23, 2026.
- Proposed approval for related-party trading of electronic goods with Hong Kong subsidiary up to Rs 750 Cr for FY27 (~29.7% of TTM revenue).
- Approval sought for Creative ESOP Scheme 2026 for up to 2,00,000 stock options (~1.33% of paid-up equity capital).
- AGM to be conducted via Video Conferencing on September 30, 2026, with remote e-voting active from September 27 to September 29, 2026.
Creative Newtech Limited has entered into a Pan-India distribution agreement with Drona Aviation Private Limited to distribute its educational drone kits and STEM learning solutions. The product portfolio includes Pluto 1.2 (with 16 hours of learning content and 25+ projects), Pluto X, and Guru nano-drones across retail, e-commerce, corporate, and government channels. While commercial contract values were not disclosed, this aligns with the company's stated strategy to diversify into higher-margin tech segments like drones and data centers.
- Pan-India distribution partnership signed with Drona Aviation Private Limited
- Portfolio includes Pluto 1.2 DIY kit featuring 16 hours of learning content and 25+ programming projects
- Covers additional educational drone products including Pluto X and Guru nano-drones
- Contract financial values and minimum purchase commitments were not disclosed
Creative Newtech Limited (CNL) has entered into a strategic distribution partnership with Drona Aviation Private Limited on 27th August 2026. Under the agreement, CNL secures pan-India distribution rights for Drona Aviation's STEM educational drone portfolio, including Pluto 1.2, Pluto X, and Guru nano-drones. The products will be distributed across channel partners, online platforms, large-format retail stores, corporates, and government clients. While financial terms were not disclosed, the deal aligns with CNL's stated strategy to diversify into higher-margin drone and tech ecosystems.
- Distributor agreement signed on 27th August 2026 appointing CNL as Pan-India distributor for Drona Aviation.
- Portfolio includes Pluto 1.2 DIY drone kit featuring 16 hours of learning content and 25+ programming projects.
- Coverage extends across multiple sales channels including retail, online, corporate, and government institutions.
- Commercial deal value and expected revenue contribution were not disclosed.
Creative Newtech Limited (CNL) has scheduled meetings with analysts and institutional investors for August 13, 2026, at the Equirus India Growth Summit in Mumbai. The engagement will include both group and one-on-one meetings between 09:00 AM and 12:00 PM. The company, which reported a TTM revenue of ₹2,704 Cr and a TTM PAT of ₹68 Cr, stated that no unpublished price sensitive information (UPSI) will be shared during these sessions. This is a standard procedural disclosure under SEBI (LODR) Regulations.
- Meeting scheduled for August 13, 2026, at Sofitel BKC, Mumbai
- Participation in the Equirus India Growth Summit involving group and 1:1 sessions
- Company operates with a TTM revenue of ₹2,704 Cr and TTM PAT of ₹68 Cr
- Promoter holding stands at 56.62% as of June 2026
Creative Newtech Limited (CNL) reported a strong Q1 FY27 with standalone PAT rising 69.63% YoY to ₹9.01 Cr and consolidated PAT reaching ₹13.54 Cr. The company announced a transformative ₹3,194.83 Cr Advance Work Order from BSNL for the BharatNet project, which represents approximately 118% of its TTM revenue. Consolidated EBITDA margins improved significantly to 5.22% from 3.80% YoY, reflecting a shift toward higher-margin segments. Strategic moves include the acquisition of Infinova India and the launch of the global consumer brand WOZOYO.
- Consolidated Total Income grew 20.06% YoY to ₹476.84 Cr in Q1 FY27
- Standalone EBITDA increased 96.33% YoY to ₹20.00 Cr with margins expanding 161 bps to 4.46%
- Secured a ₹3,194.83 Cr Advance Work Order from BSNL for the BharatNet Middle Mile Network Project
- Received a ₹35.89 Cr order from the Food Corporation of India (FCI) for Smart Warehousing
- Acquired Infinova India to enhance capabilities in video surveillance and intelligent infrastructure
Creative Newtech Limited (CNL) reported a strong Q1 FY27 with consolidated revenue growing 20.06% YoY to ₹476.84 Cr and PAT increasing 32.89% to ₹13.54 Cr. The standout development is a massive ₹3,194.83 Cr Advance Work Order from BSNL for the BharatNet project, which exceeds the company's total TTM revenue of ₹2,704 Cr. Standalone EBITDA margins improved significantly by 161 bps to 4.46%, driven by a shift toward high-margin 'Market Entry' and 'Brand' businesses. The company also announced the acquisition of Infinova India and the launch of its global consumer tech brand, WOZOYO.
- Consolidated PAT grew 32.89% YoY to ₹13.54 Cr in Q1 FY27 despite higher finance costs.
- Secured a transformative ₹3,194.83 Cr Advance Work Order from BSNL for the BharatNet Middle Mile Network.
- Standalone EBITDA increased 96.33% YoY to ₹20.00 Cr with margins expanding to 4.46%.
- Standalone PAT surged 69.63% YoY to ₹9.01 Cr for the quarter ended June 30, 2026.
- Won a ₹35.89 Cr order from the Food Corporation of India (FCI) for smart warehousing across 150 depots.
Creative Newtech Limited (CNL) reported a strong Q1 FY27 with standalone PAT rising 69.6% YoY to ₹9.01 Cr. Revenue grew 25.6% YoY to ₹448.29 Cr, while EBITDA margins expanded significantly by 161 bps to 4.46%. The company announced a massive Advance Work Order from BSNL worth ₹3,194.83 Cr for the BharatNet project, which is approximately 1.18x its TTM revenue of ₹2,704 Cr. Strategic moves include the acquisition of Infinova India and the launch of the global consumer brand WOZOYO.
- Standalone PAT increased 69.63% YoY to ₹9.01 Cr in Q1 FY27
- Secured a ₹3,194.83 Cr Advance Work Order from BSNL for BharatNet Middle Mile Network
- EBITDA margins improved by 161 bps to 4.46% from 2.85% in the previous year
- Consolidated total income grew 20.06% YoY to ₹476.84 Cr
- Received a ₹35.89 Cr order from Food Corporation of India for Smart Warehousing
Creative Newtech Limited (CNL) has fixed September 23, 2026, as the record date for a final dividend of ₹0.50 per share (5% of face value) for FY26. This follows a year where the company reported a PAT of ₹51.35 Cr, up from ₹39.38 Cr in FY25. The dividend is subject to shareholder approval at the 22nd Annual General Meeting scheduled for September 30, 2026. Given the current stock price of ₹1005.9, the dividend yield is marginal at approximately 0.05%.
- Final dividend of ₹0.50 per share announced for the financial year ended March 31, 2026.
- Record date for dividend entitlement and e-voting eligibility fixed for September 23, 2026.
- 22nd Annual General Meeting (AGM) to be held via video conferencing on September 30, 2026.
- Remote e-voting period scheduled from September 27, 2026 (09:00 AM) to September 29, 2026 (05:00 PM).
- FY26 annual revenue stood at ₹2044.76 Cr with a net profit of ₹51.35 Cr.
Creative Newtech Limited (CNL) has approved the 'CREATIVE Employee Stock Option Scheme – 2026', proposing to grant up to 2,00,000 options to eligible employees. This pool represents approximately 1.5% of the company's paid-up capital as of June 30, 2026. The scheme will be implemented through a direct route involving the fresh allotment of equity shares, which will lead to marginal equity dilution. The exercise price will be determined by the Nomination and Remuneration Committee, linked to the market price, and is subject to shareholder approval at the upcoming AGM.
- Grant of up to 2,00,000 Employee Stock Options (ESOPs) to be converted into equal number of equity shares.
- ESOP pool size capped at 1.5% of the paid-up capital as of June 30, 2026.
- Minimum vesting period set at 1 year with a maximum exercise period of up to 5 years.
- Implementation via direct route involving fresh issuance of shares rather than secondary market acquisition.
Creative Newtech Limited (CNL) reported a strong performance for Q1 FY27 (ended June 30, 2026), with standalone revenue growing 26.9% YoY to ₹447.51 Cr. Net profit saw a significant jump of 69.7% YoY, reaching ₹9.01 Cr compared to ₹5.31 Cr in the same quarter last year. The board also approved a new ESOP Scheme 2026 for 2,00,000 shares (approx. 1.5% of capital) and fixed September 23, 2026, as the record date for the final dividend.
- Standalone Revenue from operations increased 26.9% YoY to ₹447.51 Cr from ₹352.72 Cr.
- Net Profit for the quarter rose 69.7% YoY to ₹9.01 Cr from ₹5.31 Cr.
- Finance costs escalated significantly by 152.8% YoY to ₹7.48 Cr from ₹2.96 Cr.
- Approved ESOP Scheme 2026 covering 2,00,000 equity shares, representing 1.5% of paid-up capital.
- Record date for the final FY26 dividend is fixed for September 23, 2026.
Creative Newtech Limited (CNL) has submitted its compliance certificate for the Structured Digital Database (SDD) for the quarter ended June 30, 2026. The company confirmed that 02 specific events involving Unpublished Price Sensitive Information (UPSI) were captured in the database during the period. The filing confirms that the database is maintained internally, is non-tamperable, and includes an audit trail capable of maintaining records for 8 years. No instances of non-compliance were reported for the quarter.
- 02 specific events involving UPSI were captured in the database during the quarter ended June 30, 2026
- The database is maintained internally and is non-tamperable with an 8-year record retention capability
- NIL non-compliance was observed or reported for the previous quarter
- Compliance is maintained pursuant to Regulation 3(5) and 3(6) of SEBI (Prohibition of Insider Trading) Regulations, 2015
Creative Newtech Limited (CNL) has approved a budget of up to USD 4.00 million (approx. ₹33.4 cr) to acquire 100% of Infinova (India) Private Limited. The acquisition includes a manufacturing facility in Pune, exclusive brand rights, and technical expertise in high-end surveillance and AI analytics. This move is a strategic pivot from CNL's current low-margin distribution model (2.8% OPM) toward an integrated 'Make in India' technology platform. While the acquisition cost is small at ~2.3% of CNL's market cap, it is central to their goal of reaching 4.5-5% PAT margins within three years.
- Budget of up to USD 4.00 million approved for 100% equity acquisition of Infinova India
- Acquisition includes a local assembly and manufacturing facility in Pune to support 'Make in India'
- Infinova Global Group historically achieved peak annual revenues exceeding USD 450 million
- Strategic shift from a distribution-led model to a technology-led surveillance business platform
- Includes exclusive brand rights, technical assistance, and an existing experienced team
Creative Newtech (CNL) has approved a budget of up to USD 4.00 Million (approx. ₹33.5 Cr) to acquire 100% of Infinova (India) Private Limited. This strategic move includes acquiring a Pune-based manufacturing facility, exclusive brand rights, and an established team to pivot from a distribution-led model to an integrated surveillance technology platform. The acquisition cost represents roughly 2.3% of CNL's market capitalization. This aligns with management's goal to improve thin operating margins (currently 2.8%) by focusing on 'Make in India' and high-margin specialized tech segments.
- Budget of up to USD 4.00 Million approved for 100% equity acquisition of Infinova India.
- Acquisition includes a Pune-based assembly and manufacturing facility and exclusive brand rights.
- Target entity Infinova India has been operational since its incorporation in 2010.
- Strategic shift aims to support a target PAT margin of 4.5-5% within three years, up from current levels.
- Acquisition value represents approximately 2.3% of CNL's current market capitalization of ₹1423 Cr.
Financial Performance
Revenue Growth by Segment
Consolidated revenue grew 58.30% YoY to INR 659.59 Cr in Q2 FY26. The Market Entry Specialist segment grew 55.8% from INR 366.46 Cr (Q2 FY25) to INR 570.97 Cr (Q2 FY26). The Brand Business segment grew 86.9% from INR 44.95 Cr (Q2 FY25) to INR 84.03 Cr (Q2 FY26).
Geographic Revenue Split
CNL operates in 13 countries across Asia Pacific, Dubai, and the Middle East. While specific percentage splits per region are not disclosed, the company is aggressively expanding manpower in these international hubs to drive future growth.
Profitability Margins
Blended gross margins for H1 FY26 were 3.88%. PAT margins have shown a downward trend from 1.87% in FY24 to 1.55% in FY25, and further to 1.28% in H1 FY26. Q2 FY26 PAT margin was 2.87% compared to 3.17% in Q2 FY25, impacted by higher material and logistics costs.
EBITDA Margin
EBITDA margin for Q2 FY26 was 4.05%, a decrease of 16 bps from 4.21% in Q2 FY25. EBITDA increased 52.28% YoY to INR 26.72 Cr. The standalone distribution business EBITDA margin is significantly lower at approximately 0.2% to 2.58% depending on the product mix.
Capital Expenditure
Not explicitly disclosed in INR Cr; however, the company is making strategic investments in technology, local manufacturing, and partnerships to support 'Make in India' initiatives.
Credit Rating & Borrowing
CRISIL Ratings maintains a 'Stable' outlook. Interest coverage ratio was 2.83 times in H1 FY26, down from 4.47 times in FY25. Bank limit utilization was 67% for the 12 months ended October 2025.
Operational Drivers
Raw Materials
Consumer electronic components and finished goods (IT hardware, imaging, lifestyle, and security products) represent the primary cost, with total raw material expenditure reaching INR 927.84 Cr in H1 FY26.
Import Sources
Sourced globally from principal brands; specific countries include those in the Asia Pacific region and the Middle East where the company has established distribution hubs.
Key Suppliers
Key principal suppliers include Honeywell, Cooler Master, Olympus, Samsung, Lexar, Fujifilm, Viewsonic, GoPro, Philips, and Transcend.
Capacity Expansion
Not a traditional manufacturer; however, CNL is expanding its 'Market Entry Specialist' portfolio into surveillance, drones, and data center solutions to diversify from low-margin IT distribution.
Raw Material Costs
Raw material costs accounted for approximately 95.6% of total income in H1 FY26 (INR 927.84 Cr out of INR 970 Cr revenue). Costs are managed through high-volume procurement and established relationships with 25+ principals.
Manufacturing Efficiency
Focusing on local manufacturing partnerships to capitalize on 'Make in India' demand, aiming to improve supply chain agility and reduce logistics lead times.
Logistics & Distribution
Logistics costs are a key headwind, contributing to the 16 bps compression in EBITDA margins in Q2 FY26.
Strategic Growth
Expected Growth Rate
100%
Growth Strategy
CNL aims to achieve a PAT of INR 60 Cr for FY26 (up from INR 25.56 Cr in FY25) by expanding into high-margin segments like drones and data centers, increasing the Brand Business EBITDA from 15% to 21%, and leveraging 'Make in India' sourcing.
Products & Services
IT peripherals, imaging products, lifestyle gadgets, security surveillance systems, drones, and data center solutions.
Brand Portfolio
Honeywell, Samsung, Lexar, Fujifilm, Viewsonic, GoPro, Philips, Transcend, and Cooler Master.
New Products/Services
Expansion into drone components and data center solutions; management expects these to contribute to a target PAT margin of 4.5-5% within three years.
Market Expansion
Expanding presence in 13 countries, specifically targeting Asia Pacific and Middle East markets with dedicated country heads.
Market Share & Ranking
Not disclosed; however, the company is a listed player on the NSE with a 30-year track record in the IT distribution space.
Strategic Alliances
Maintains relationships with 25+ global brands (principals) and is building a technical team to partner with smaller brands in the component space.
External Factors
Industry Trends
The industry is shifting toward 'Make in India' and high-tech segments like drones and data centers. CNL is positioning itself as a 'Market Entry Specialist' to move beyond simple distribution into value-added supply chain roles.
Competitive Landscape
Faces intense competition from both domestic and multinational distributors in the consumer electronics space, leading to thin operating margins of 2.5-4.0%.
Competitive Moat
Moat is based on 30 years of promoter experience and established relationships with 25+ global principals. This is sustainable but faces pressure from low-barrier competitors in the distribution space.
Macro Economic Sensitivity
Highly sensitive to consumer electronics demand cycles and global supply chain stability. Demand recovery in Q2 FY26 supported a 58.3% revenue jump.
Consumer Behavior
Strong demand recovery in consumer electronics and a shift toward surveillance and lifestyle tech are driving volume growth.
Geopolitical Risks
Trade barriers or changes in import duties on electronics could impact the 'Market Entry Specialist' business margins and sourcing costs.
Regulatory & Governance
Industry Regulations
Subject to government regulations on electronics imports, tax laws, and 'Make in India' manufacturing standards. Compliance is managed by a dedicated Chief Compliance Officer.
Taxation Policy Impact
Effective tax rate was approximately 26.5% in H1 FY26 (INR 4.47 Cr tax on INR 16.86 Cr PBT).
Legal Contingencies
Secretarial audit noted minor delays in filing transcript of earnings calls (3 days) and Monitoring Agency Reports (45 minutes). No major pending litigation values disclosed.
Risk Analysis
Key Uncertainties
Operating margins are highly vulnerable to changes in operating costs; a decline in margins leading to cash accruals below INR 15 Cr is a key downward rating factor.
Geographic Concentration Risk
While expanding internationally, the company remains reliant on its Indian distribution network and a few key overseas hubs.
Third Party Dependencies
High dependency on 25+ principal brands; any change in strategy by a principal customer can adversely impact the credit profile.
Technology Obsolescence Risk
High risk in consumer electronics; mitigated by a quick cash conversion cycle (63 days) and limited inventory risk through strong vendor relationships.
Credit & Counterparty Risk
Mitigated by a diversified clientele and an aggressive receivables management system, with receivables at 26 days.
