Canarys Automations has received a significant work order from Calibo India Private Limited for providing AWS, GCP, and Azure Cloud services and support. The contract value is Rs 11.6352 crore with an execution period of 12 months.

Order Details

The newly disclosed order is classified as significant and was awarded by a domestic entity. It is not a related party transaction, and the promoter has no interest in this specific deal. The scope of work involves comprehensive cloud service provision across multiple platforms.

Financial Context

The new order value of Rs 11.6352 crore represents a substantial addition to the company's recent inflows. For context, Canarys reported consolidated revenue of Rs 199.70 crore for FY26, showing a year-on-year growth of +120.4%. Net profit for FY26 stood at Rs 14.80 crore, with an Operating Profit Margin (OPM) of 11.21%. The company's Return on Capital Employed (ROCE) for FY26 was 20%, while Return on Equity (ROE) was 14.11%.

Company Order Track Record

In the first quarter of fiscal year 2027 (April-June 2026), Canarys recorded four distinct order wins. The total order inflow for Q1FY27 was reported as Rs 250015.10 crore in the pre-computed data, though individual order values listed sum to approximately Rs 15.34 crore. The current order from Calibo India Private Limited falls within Q2FY27 (July-September 2026). The typical per-order size has varied significantly, ranging from Rs 2.5 lakh to nearly Rs 11.64 crore in recent disclosures.

Balance Sheet and Cash Flow

The company demonstrates strong liquidity with a Current Ratio of 2.87x as of FY26. Total Liabilities/Equity stands at 0.34x, indicating a conservative capital structure. Operating cash flow was positive at Rs 6.60 crore in FY26, marking a turnaround from negative flows in prior years. However, Free Cash Flow remained negative at Rs -22.50 crore due to significant capital expenditure of Rs 29.10 crore.

Valuation Snapshot

As of 29 Sep 2026, the company had a Market Cap of ₹164.78 Cr. The Stock P/E ratio stood at 11.3x, and the Price/Book ratio was 1.63x. Book Value per share was ₹17.62.

Canarys Automations reported a 122% surge in revenue from operations to ₹1981 million for FY26, compared to ₹891 million in FY25, driven by AI-driven productivity enabling scalable growth. Profit after tax (PAT) increased to ₹148 million from ₹83 million in the previous year, while EBITDA for the period stood at ₹245 million. The company’s financial performance reflects its strategic focus on leveraging artificial intelligence and machine learning to enhance operational efficiency across sectors such as BFSI, manufacturing, and education.

The total income for FY26 reached ₹1997 million, up from ₹906 million in FY25. Despite the significant revenue growth, the EBITDA margin contracted to 12.3% from 15.5% in the previous year. The PAT margin also declined to 7.4% compared to 9.2% in FY25. The company reported exceptional items amounting to ₹26 million during the year. Earnings per share (EPS) improved to ₹2.11 from ₹1.39 in the preceding fiscal year.

Financial Performance

The annual financials indicate a robust expansion in the company's scale of operations. Purchase and change in inventory costs rose significantly to ₹794 million from ₹263 million in FY25, aligning with the higher revenue volume. Employee benefits expenses also increased to ₹725 million from ₹369 million, reflecting the company's investment in human capital alongside its technological advancements.

Balance Sheet and Cash Flows

The company's balance sheet strengthened with shareholders' funds growing to ₹1,033.5 million in FY26 from ₹874.7 million in FY25. Total assets increased to ₹1,405.8 million, bolstered by goodwill on consolidation of ₹225.5 million and property, plant, and equipment & intangible assets of ₹122.9 million. Trade receivables rose to ₹802.6 million from ₹683.3 million, while cash and cash equivalents decreased to ₹79.5 million from ₹278.1 million.

Cash flow analysis revealed a net decrease in cash and cash equivalents of ₹193 million during the year. Net cash flow from operating activities was positive at ₹56 million, while investing activities resulted in an outflow of ₹290 million, primarily due to investments in growth initiatives. Financing activities provided a net inflow of ₹41 million.