CYBERTECH - Cybertech Sys.
📢 Recent Corporate Announcements
Cybertech Systems and Software Limited has submitted its Regulation 32 statement for the quarter ended December 31, 2025, confirming no deviation in the use of funds raised via preferential issue. The company raised ₹40.28 crore in December 2023 for expansion, acquisitions, and general corporate purposes. As of the current reporting period, the entire amount remains unutilized and is temporarily parked in bank fixed deposits. This is a routine compliance filing indicating that the capital remains available for future growth initiatives.
- Total funds raised through preferential issue of equity shares: ₹40,27,72,500
- Funds were originally received on December 04, 2023
- Zero deviation or variation reported in the objects of the issue for the quarter ended Dec 31, 2025
- Entire unutilized amount of ₹40.28 crore is currently parked in Fixed Deposits with banks
- Intended use includes business expansion, investment in subsidiaries, and potential acquisitions
Cybertech Systems and Software reported a weak performance for the quarter ended December 31, 2025, with consolidated net profit falling 27.7% YoY to ₹6.53 crore. Consolidated revenue remained largely flat at ₹57.84 crore compared to ₹58.57 crore in the same period last year. The decline in profitability was primarily driven by rising employee benefit expenses, which increased to ₹34.44 crore from ₹31.67 crore YoY. Additionally, the board approved a performance-linked incentive of USD 100,000 per annum for Executive Director Mr. Ramasubramanian for a three-year term starting April 2026.
- Consolidated Net Profit declined to ₹653.35 lakhs from ₹903.53 lakhs in Q3 FY25.
- Revenue from operations was nearly stagnant at ₹5,783.95 lakhs versus ₹5,857.23 lakhs YoY.
- Employee benefit expenses rose by 8.7% YoY to ₹3,443.99 lakhs.
- Basic EPS for the quarter dropped to ₹2.10 from ₹2.90 in the previous year's corresponding quarter.
- Board approved a $100,000 annual performance incentive for Executive Director Mr. Ramasubramanian.
Cybertech Systems and Software Limited has filed its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. The filing confirms that all securities received for dematerialization during the quarter ended December 31, 2025, were processed according to regulatory standards. The Registrar and Transfer Agent, MUFG Intime India Private Limited, verified that certificates were cancelled and depository names updated in the register of members. This routine filing ensures the company remains in good standing with market regulators regarding shareholding records.
- Compliance certificate for the quarter ended December 31, 2025, submitted to SEBI.
- RTA MUFG Intime India Private Limited confirmed processing of dematerialization requests.
- Security certificates were mutilated and cancelled after verification within prescribed timelines.
- Dematerialized shares are confirmed to be listed on the BSE and NSE.
Cybertech Systems and Software Limited has notified the exchanges that its trading window will be closed for designated persons starting January 01, 2026. This closure is a standard regulatory requirement ahead of the announcement of the un-audited financial results for the quarter and nine months ending December 31, 2025. The window will remain closed until 48 hours after the results are declared. The specific date for the board meeting to approve these results will be communicated in due course.
- Trading window for designated persons and relatives closes effective January 01, 2026.
- Closure pertains to the review of un-audited financial results for the period ending December 31, 2025.
- The window will reopen 48 hours after the financial results are officially submitted to the stock exchanges.
- The board meeting date for result approval is currently pending and will be announced later.
Financial Performance
Revenue Growth by Segment
The Technology segment is the primary driver, contributing 73% of revenue (INR 42.92 Cr). State/Local Government contributes 9% (INR 5.29 Cr), Utilities 7% (INR 4.12 Cr), and Others 11% (INR 6.47 Cr). Operating revenue grew 1.4% YoY to INR 58.79 Cr in Q2FY26.
Geographic Revenue Split
The US market accounts for 99% of revenue (INR 58.20 Cr), while India accounts for 1% (INR 0.59 Cr).
Profitability Margins
Net Profit Margin for Q2FY26 was 13.0% (INR 8.66 Cr). For FY25, the Net Profit Margin improved to 13.64% from 7.91% in FY24, driven by operational efficiencies.
EBITDA Margin
EBITDA margin was 18.8% (INR 12.57 Cr) in Q2FY26, down from 21.6% in Q2FY25, representing a YoY contraction of 280 bps due to higher outsourced project costs.
Capital Expenditure
Not explicitly disclosed as a planned figure; however, the company maintains healthy cash reserves of INR 47.16 Cr as of H1FY26 to support growth initiatives.
Credit Rating & Borrowing
Finance costs were INR 0.23 Cr in Q2FY26, up 57.9% YoY from INR 0.14 Cr, primarily reflecting lease liabilities and minor borrowing costs.
Operational Drivers
Raw Materials
Human capital is the primary 'raw material,' with Employee Benefits representing 49.3% of revenue (INR 32.93 Cr). Outsourced project costs represent 21.9% of revenue (INR 14.59 Cr).
Import Sources
Talent is primarily sourced from India and the USA to serve the North American market.
Key Suppliers
Not applicable for IT services; however, the company procures hardware and software packages for service delivery costing INR 14.59 Cr in Q2FY26.
Capacity Expansion
Current capacity includes 539 employees managing 134 active projects. Expansion is focused on cloud-native and AI-driven GIS platforms.
Raw Material Costs
Employee costs grew 5.8% YoY to INR 32.93 Cr. Wage inflation is cited as a direct challenge to the bottom line, requiring continuous cost-saving initiatives.
Manufacturing Efficiency
Project efficiency is measured by managing 134 projects with a headcount of 539, averaging approximately 4 employees per project.
Strategic Growth
Expected Growth Rate
5.20%
Growth Strategy
Focusing on high-growth markets like North America, investing in AI-driven GIS platforms, and expanding the cloud client portfolio which currently stands at 76 active clients.
Products & Services
Spatial Analytics Platform, Enterprise Cloud Transformations, and AI-driven GIS platforms.
Brand Portfolio
CyberTech, Spatialitics.
New Products/Services
AI-driven GIS platforms and advanced data privacy solutions are expected to drive future revenue.
Market Expansion
Continued focus on the North America business as a core pillar for sustainable long-term growth.
Strategic Alliances
Strategic focus on cloud-native partnerships to deliver enterprise agility and resilience.
External Factors
Industry Trends
Global shift towards cloud-native and AI-driven GIS platforms. The industry is evolving towards technology risk management and data privacy as essential services.
Competitive Landscape
Intensifying global competition from established and emerging players investing aggressively in AI-driven GIS.
Competitive Moat
Durable advantages include a 30-year track record, CMMI Level 3 certification, and a niche focus on Spatial Analytics which creates high switching costs for government and utility clients.
Macro Economic Sensitivity
Highly sensitive to US economic developments, particularly in the IT services market, and improvements in global IT spending.
Consumer Behavior
Clients are prioritizing cost reduction through cloud-based solutions that deliver greater efficiency and resilience.
Geopolitical Risks
Geopolitical volatility and trade tensions between India and the USA could impact the 99% US revenue base.
Regulatory & Governance
Industry Regulations
Compliance with data privacy laws and technology risk management standards in both India and the USA.
Taxation Policy Impact
The effective tax rate is approximately 24%, based on a PBT of INR 11.40 Cr and PAT of INR 8.66 Cr in Q2FY26.
Risk Analysis
Key Uncertainties
Wage inflation and talent retention are the primary risks, having increased employee costs by 5.8% YoY.
Geographic Concentration Risk
Extremely high geographic concentration with 99% of revenue derived from the USA.
Third Party Dependencies
High dependency on the top 3 clients who contribute 72% of total revenue.
Technology Obsolescence Risk
Risk of falling behind in AI-driven GIS; mitigated by continuous investment in advanced security and compliance systems.
Credit & Counterparty Risk
Healthy receivables quality implied by a strong balance sheet and cash reserves of INR 47.16 Cr.