Esconet Technologies Limited (ESCONET)
Q2 FY27 results
📅 Next results: 23 Oct 2026 (board meeting)Esconet Technologies Limited's board meets on 23 Oct 2026 to consider its Q2 FY27 results (July-September 2026).
In its latest reported quarter, Q1 FY27, Esconet Technologies' revenue was ₹116 Cr, and net profit ₹6.5 Cr; the operating margin was 7.0%.
| Q1 FY27 (₹ Cr) | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹116 | — | -44.3% |
| Operating profit | ₹8.2 | — | +17.0% |
| Net profit | ₹6.5 | — | +30.0% |
| EPS (₹) | 4.99 | — | +36.7% |
| Operating margin | 7.0% | — | — |
ESCONET delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 92.53% of the ESCONET shares traded on NSE were taken to delivery, against the stock's own 20-session average of 94.33%. That is close to its usual level. It traded 2.2 times its average daily volume. It closed at its upper price band (circuit) on 16 Oct, one of 13 band closes in about the last 20 sessions.
Delivery in the last 5 sessions: 98.3% · 98.4% · 98.2% · 92.4% · 92.5%
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
Esconet Technologies held its 14th Annual General Meeting on September 25, 2026, where shareholders approved all 6 resolutions unanimously with 100% assent (80,71,196 votes). Approved items include the adoption of FY26 standalone and consolidated financial statements, re-appointment of retiring director Mr. Vineet Agrawal, and revisions in managerial remuneration for three executive directors: MD Santosh Kumar Agrawal, WTD Sunil Kumar Agrawal, and WTD Vineet Agrawal. A total of 17 shareholders attended via video conference out of 2,766 total members as of the September 19, 2026 record date.
- All 6 resolutions passed unanimously with 100% of cast votes (80,71,196 votes in assent, 0 dissent)
- Approved increase in managerial remuneration for MD Santosh Kumar Agrawal and Whole-time Directors Sunil Kumar Agrawal and Vineet Agrawal
- Adoption of FY26 audited standalone and consolidated financial statements
- 17 shareholders attended via VC out of 2,766 total shareholders on the September 19, 2026 record date
Esconet Technologies has submitted the voting results and Scrutinizer's Report for its 14th Annual General Meeting held on September 25, 2026. All 6 resolutions, including 3 ordinary resolutions and 3 special resolutions, were approved unanimously with 100% assent (80,71,196 votes). Key approvals included the adoption of FY26 financial statements and increases in managerial remuneration for the Managing Director and two Whole-Time Directors. A total of 17 shareholders attended the meeting via video conferencing out of 2,766 shareholders on the record date.
- All 6 resolutions passed with 100% shareholder assent totaling 80,71,196 votes
- Special resolutions approved increasing managerial remuneration for Managing Director and two Whole-Time Directors
- Total shareholder base stood at 2,766 as of the record date of September 19, 2026
- 17 shareholders were present during the AGM conducted via Video Conference
Esconet Technologies Limited has issued the notice for its 14th Annual General Meeting (AGM) scheduled for September 25, 2026, via Video Conferencing. Key special business items include the revision and hike in managerial remuneration for promoter-directors Mr. Santosh Kumar Agrawal (MD) and Mr. Sunil Kumar Agrawal (WTD) to a base salary of ₹60 lakh p.a. plus 5% PBT incentive each. Additionally, Mr. Vineet Agrawal's base remuneration is proposed to increase to ₹12 lakh p.a. alongside his re-appointment by rotation. Remote e-voting runs from September 21 to September 24, 2026, with a cut-off date of September 19, 2026.
- 14th AGM scheduled for Friday, September 25, 2026, at 03:00 P.M. via VC/OAVM
- Cut-off date for e-voting entitlement is Saturday, September 19, 2026
- Remote e-voting window open from September 21, 2026 (9:00 am) to September 24, 2026 (5:00 pm)
- Proposed hike in Managing Director Santosh Kumar Agrawal's base salary to ₹60,00,000 p.a. plus 5% of PBT incentive
- Proposed hike in Whole-Time Director Sunil Kumar Agrawal's base salary to ₹60,00,000 p.a. plus 5% of PBT incentive
Esconet Technologies has submitted the transcript and web link of its Q1 FY26-27 investor conference call held on August 13, 2026. Management indicated that CRM pipelines suggest Q2 FY27 top-line performance could be slightly better than Q1 FY27 (which recorded revenue of Rs 61.08 Cr). The company highlighted that its HexaData brand is scaling and serving as a key margin expansion driver without requiring dedicated SMT line capex. Additionally, ZeaCloud operates on an annuity-based multi-year recurring revenue model.
- Published transcript of the investor conference call held on August 13, 2026 at 04:00 PM IST.
- Management guided that Q2 FY27 top line is expected to be slightly better than Q1 FY27 based on CRM order pipeline.
- HexaData server business identified as a primary bottom-line and margin driver using outsourced SMT job work.
- ZeaCloud contracts structured as multi-year annuity models (e.g., Rs 5 Cr contract recognized at Rs 1 Cr/year).
Esconet Technologies reported a consolidated revenue of ₹116.33 crore for Q1 FY2026-27, representing approximately 20% of its TTM revenue. The company voluntarily disclosed quarterly results for the first time, showing a standalone PAT of ₹6.83 crore and a robust standalone EBITDA margin of 15.39%. However, consolidated PAT was lower at ₹6.50 crore, indicating that subsidiaries incurred a net loss of approximately ₹0.33 crore during the quarter. The standalone EPS of ₹5.18 for the quarter is significant compared to the TTM EPS of ₹10.89.
- Consolidated Revenue from Operations reached ₹116.33 crore for the quarter ended June 30, 2026.
- Standalone EBITDA margin stood at 15.39%, a sharp improvement over the historical TTM OPM of 3.4%.
- Consolidated Profit After Tax (PAT) was ₹6.50 crore, resulting in a PAT margin of 5.49%.
- Standalone EPS for the single quarter reached ₹5.18, nearly half of the full-year TTM EPS of ₹10.89.
- Subsidiaries appear to be a drag on profitability, with consolidated PAT (₹6.50 Cr) trailing standalone PAT (₹6.83 Cr).
Esconet Technologies reported a standalone PAT of Rs 6.84 Cr for Q1 FY27 on revenue of Rs 61.08 Cr. This voluntary disclosure highlights significant bottom-line strength, with Q1 PAT already achieving 48.8% of the total TTM PAT (Rs 14 Cr). While Q1 revenue is only 10.5% of TTM revenue, the Profit Before Tax (PBT) of Rs 9.36 Cr for the quarter has already surpassed the full-year FY26 PBT of Rs 8.84 Cr. The board also recommended revising the remuneration for three key directors, including the Managing Director, subject to shareholder approval.
- Standalone Revenue for Q1 FY27 stood at Rs 61.08 Cr, representing approximately 10.5% of TTM revenue.
- Standalone Profit After Tax (PAT) reached Rs 6.84 Cr, nearly half of the TTM PAT of Rs 14 Cr.
- Profit Before Tax (PBT) for the quarter was Rs 9.36 Cr, exceeding the audited FY26 PBT of Rs 8.84 Cr.
- Earnings Per Share (EPS) for the quarter was reported at Rs 5.18, compared to TTM EPS of Rs 10.89.
- Board recommended revision in remuneration for Managing Director Santosh Kumar Agrawal and two other directors.
Esconet Technologies has scheduled an investor and analyst conference call on August 13, 2026, at 4:00 PM IST to discuss its Q1 FY2026-27 financial results. The management team, including the Managing Director and CFO, will provide updates on business operations and strategic initiatives. This follows a fiscal year where the company achieved TTM revenue of ₹584 Cr but maintained thin operating margins of 3.4%. Investors will be looking for updates on the company's AI-native product expansion and its 15-20% growth guidance.
- Conference call scheduled for August 13, 2026, at 4:00 PM IST to discuss Q1 FY2026-27 results.
- Management participants include MD Santosh Kumar Agrawal and CFO Keshav Pareek.
- Company reported a TTM revenue of ₹584 Cr and TTM PAT of ₹14 Cr as per latest available context.
- Operating margins remain a key focus area after dropping to 3.4% TTM despite revenue growth.
- Call will cover strategic initiatives including AI-native and cloud-native product focus.
Esconet Technologies has scheduled a board meeting on August 12, 2026, to approve its unaudited financial results for the quarter ended June 30, 2026. This marks a significant shift as the company is voluntarily adopting quarterly financial reporting starting FY2026-27, despite it not being mandatory under SEBI LODR regulations for its category. This move aims to enhance transparency for shareholders of the ₹168 Cr market cap company. Investors will get their first look at quarterly performance following a period where TTM revenue reached ₹584 Cr with a thin operating margin of 3.4%.
- Board meeting scheduled for August 12, 2026, to approve Q1 FY27 results.
- Voluntary adoption of quarterly reporting starting from the June 30, 2026, period.
- Trading window has been closed since July 01, 2026, for insiders.
- Company currently operates with a TTM revenue of ₹584 Cr and a P/E of 12.0.
- Results will include both Standalone and Consolidated unaudited figures.
Esconet Technologies has appointed Mr. Amit Gupta as Chief Revenue Officer (CRO) effective July 29, 2026. Mr. Gupta brings over 20 years of experience from global technology leaders including Lenovo, HP, and Juniper Networks. This strategic hire is aimed at accelerating the company's expansion into AI-native and cloud-native products, which are expected to drive recurring revenue in H2 FY26. Given Esconet's small market cap of ₹162 Cr relative to its ₹584 Cr TTM revenue, high-caliber leadership is critical for scaling operations and improving its 3.4% operating margins.
- Appointment of Mr. Amit Gupta as CRO and Senior Management Personnel effective July 29, 2026
- Appointee brings over 20 years of experience in IT Infrastructure, Cloud Computing, and AI
- Previous leadership roles held at Tier-1 MNCs including Lenovo, Juniper Networks, EMC, and Hewlett Packard India
- Company targets 15-20% growth through international expansion and AI-native product portfolios
- TTM revenue stands at ₹584 Cr with a current P/E of 11.5
Esconet Technologies has re-submitted its standalone and consolidated financial results in XBRL format for the year ended March 31, 2026. This action follows a query from the National Stock Exchange (NSE) regarding discrepancies between the PDF results and the digital XBRL filings. The company clarified that the errors were related to Earnings Per Share (EPS) figures and were inadvertent. The revised filings were submitted on July 23, 2026, to ensure alignment with the previously reported PDF figures.
- NSE issued a clarification request on June 25, 2026, regarding the FY26 results submitted on May 28, 2026
- Discrepancies were identified in the Earnings Per Share (EPS) figures for the period ended March 31, 2026
- The company re-submitted revised XBRL files on July 23, 2026, following a follow-up direction from NSE on July 21, 2026
- The correction applies to both Standalone and Consolidated financial results
Financial Performance
Revenue Growth by Segment
Consolidated revenue grew 63.85% YoY, reaching INR 230.30 Cr in FY25 compared to INR 140.55 Cr in FY24. The growth is driven by increased scale in IT infrastructure and cloud services. Segment-specific percentage splits are not explicitly detailed, but the company serves a mix of public (45-55%) and private sectors.
Geographic Revenue Split
The company is expanding from its North India base to South India (Chennai, Hyderabad) and international markets via Esconet Singapore Pte. Ltd. Specific regional percentage splits are not disclosed, but the strategy aims for a 50-50 balance between public and private sector clients over the medium term.
Profitability Margins
Net Profit Margin for FY25 stood at 3.47% (INR 8.00 Cr PAT on INR 230.30 Cr revenue). Profitability has seen a decline in percentage terms despite absolute growth; PAT grew 47.3% YoY from INR 5.43 Cr in FY24 to INR 8.00 Cr in FY25.
EBITDA Margin
EBITDA margin for FY25 was 5.67% (INR 13.05 Cr), a decrease from 7.27% in FY24 (INR 10.22 Cr). The compression is attributed to intense pricing competition and costs associated with scaling operations.
Capital Expenditure
The company utilized INR 32.69 Cr raised through an investor round/IPO in FY25 primarily for working capital to support its growing order book. Specific fixed asset capex for FY26 is not quantified but focuses on enhancing operational capacity for AI and cloud-native products.
Credit Rating & Borrowing
CRISIL reaffirmed a 'BBB-/Stable' rating in July 2025. Interest coverage ratio significantly improved to 16.01 times in FY25 from 5.75 times in FY24, indicating a robust ability to service debt despite modest margins.
Operational Drivers
Raw Materials
IT Hardware components including high-performance CPUs, storage drives (SSD/HDD), RAM modules, motherboards, and networking chipsets. These represent the bulk of the cost of goods sold, though specific percentage breakdowns per component are not disclosed.
Import Sources
Sourced globally through strategic technology tie-ups with marquee international technology partners to ensure access to latest-generation hardware.
Key Suppliers
Marquee technology partners (e.g., Intel, NVIDIA, Dell, HPE, etc., implied by product categories like supercomputing and servers), though specific vendor names for raw material procurement are not listed in the provided snippets.
Capacity Expansion
The company is expanding its workforce and operational capacity to handle a growing pipeline of AI and cloud-native products. It recently moved its subsidiary ZeaCloud's office to Delhi to centralize operations.
Raw Material Costs
Raw material costs are a major component of the operating expenses. The operating margin fluctuated between 3.3% and 7.2% over the last four fiscals, currently at 4.38% in FY25, reflecting high sensitivity to component pricing and competitive bidding.
Manufacturing Efficiency
Efficiency is measured by the ability to deploy large-scale IT infrastructure. The company highlights its 'large-scale deployment proficiency' as a key differentiator.
Logistics & Distribution
Distribution costs are integrated into project execution costs. The company is expanding its physical presence to South India to optimize regional logistics.
Strategic Growth
Expected Growth Rate
15-20%
Growth Strategy
Growth will be achieved through a three-pronged strategy: 1) International expansion via the Singapore subsidiary to capture global customers; 2) Domestic regional diversification into South India; 3) Product portfolio expansion into AI-ready servers and cloud-native services through ZeaCloud.
Products & Services
High-performance supercomputing systems, data center storage servers, network security solutions, virtualization software, and managed cloud services (ZeaCloud).
Brand Portfolio
Esconet, ZeaCloud (Cloud Services).
New Products/Services
AI-native and cloud-native products are the primary new focus, expected to contribute to higher recurring revenue streams in the second half of FY26.
Market Expansion
Targeting South India and Singapore markets in FY26 to reduce geographic concentration in North India.
Market Share & Ranking
Not disclosed in absolute percentage, but identified as a leading system integrator in the SME and public sector segments in India.
Strategic Alliances
Maintains strategic technology tie-ups with global IT leaders to serve as a 'trusted advisor' and system integrator.
External Factors
Industry Trends
The industry is shifting toward AI-driven infrastructure and hybrid cloud models. Esconet is positioning itself as a 'refinery' for data, moving from hardware vending to managed services to capture higher-margin recurring revenue.
Competitive Landscape
ETL competes with both large international IT hardware OEMs and domestic system integrators. Pricing pressure is the primary competitive dynamic.
Competitive Moat
Moat is built on 'large-scale deployment proficiency' and deep-rooted relationships with government and enterprise clients. However, this moat is under constant threat from technological obsolescence and low-cost international competitors.
Macro Economic Sensitivity
Highly sensitive to digital transformation trends in India. GDP growth and government IT spending (Digital India) directly correlate with the 45-55% revenue share from the public sector.
Consumer Behavior
Enterprises are shifting from pure CAPEX (buying hardware) to OPEX (cloud and managed services), prompting Esconet's push into ZeaCloud services.
Geopolitical Risks
Trade barriers or semiconductor export restrictions from major tech-producing nations could impact the procurement of high-end server components.
Regulatory & Governance
Industry Regulations
Subject to SEBI (LODR) regulations and MeitY guidelines for IT hardware and data security. Compliance with Structured Digital Database (SDD) for insider trading is confirmed.
Environmental Compliance
CSR requirements were not applicable for the specific reporting period mentioned in the MDA, but the company maintains data privacy and security standards.
Taxation Policy Impact
Effective tax rate for the half-year ended Sept 2025 was approximately 32.8% (INR 55.25 Cr current tax on INR 168.43 Cr PBT).
Legal Contingencies
No major pending court cases or litigation values were disclosed in the provided financial summaries or auditor reports.
Risk Analysis
Key Uncertainties
The primary uncertainty is the sustainability of operating margins; a drop below 4% is cited by CRISIL as a downward rating sensitivity factor. This could impact cash accruals by over 15-20%.
Geographic Concentration Risk
Historically concentrated in North India (New Delhi/Noida), now actively diversifying to South India and Singapore to mitigate regional economic risks.
Third Party Dependencies
High dependency on marquee technology partners for the core hardware used in their integrated solutions.
Technology Obsolescence Risk
High risk; the IT-enabled services sector evolves rapidly. Failure to adopt AI-native hardware could render current inventory and expertise obsolete within 18-24 months.
Credit & Counterparty Risk
Receivables quality is generally healthy, supported by a mix of government contracts and marquee private clients like Info Edge.
