Creative Newtech FY26 PAT Rises 34% to Rs 34.35 Cr
Creative Newtech reported a 34.36% YoY increase in standalone net profit to Rs 34.35 crore for FY26, with consolidated revenue growing 50.85% to Rs 2,717.51 crore. The Board recommended a final dividend of Re 0.50 per share and appointed Mr. Ajit Thakur as CFO. The company aims for 25-30% annual revenue growth and plans to separate its brand and market entry businesses in the long term.
*this image is generated using AI for illustrative purposes only.
Creative Newtech Limited announced its audited standalone and consolidated financial results for the quarter and year ended March 31, 2026. On a standalone basis, the company reported a net profit of Rs 34.35 crore for FY26, a year-on-year increase of 34.36% from Rs 25.56 crore in the previous year. For the fourth quarter, standalone net profit surged by 91.64% to Rs 12.40 crore from Rs 6.47 crore in the corresponding period of the previous year. The Board also recommended a final dividend of Re 0.50 (5%) per equity share of face value of Rs 10 each for FY26, subject to shareholder approval.
Standalone Financial Performance
Standalone total income for Q4 FY26 stood at Rs 718.36 crore, reflecting robust growth of 100.98% YoY from Rs 357.43 crore. EBITDA for the quarter grew by 102.53% YoY to Rs 23.85 crore, while EBITDA margin was 3.32%. For the full year FY26, standalone total income reached Rs 2,568.90 crore, a 54.24% increase from Rs 1,665.54 crore in FY25. Annual EBITDA increased by 50.02% to Rs 67.67 crore. Basic and diluted earnings per share (EPS) for FY26 stood at Rs 22.87, compared to Rs 17.82 in FY25.
| Metric (Standalone) | Q4 FY26 | Q4 FY25 | YoY Growth |
|---|---|---|---|
| Total Income (Rs Cr) | 718.36 | 357.43 | 100.98% |
| EBITDA (Rs Cr) | 23.85 | 11.78 | 102.53% |
| PAT (Rs Cr) | 12.40 | 6.47 | 91.64% |
| Basic EPS (Rs) | 8.26 | 4.51 | — |
| Metric (Standalone) | FY26 | FY25 | YoY Growth |
|---|---|---|---|
| Total Income (Rs Cr) | 2,568.90 | 1,665.54 | 54.24% |
| EBITDA (Rs Cr) | 67.67 | 45.11 | 50.02% |
| PAT (Rs Cr) | 34.35 | 25.56 | 34.36% |
| Basic EPS (Rs) | 22.87 | 17.82 | — |
Consolidated Financial Performance
On a consolidated basis, Creative Newtech reported revenue from operations of Rs 2,699.77 crore for FY26, compared to Rs 1,774.48 crore in FY25. Consolidated total income for FY26 stood at Rs 2,717.51 crore versus Rs 1,801.47 crore in the previous year. Consolidated profit before tax for FY26 was Rs 81.76 crore, up from Rs 61.55 crore in FY25. The consolidated profit for the year was Rs 70.29 crore, reflecting a year-on-year growth of 32.35%. Consolidated basic and diluted EPS for FY26 stood at Rs 41.04, compared to Rs 32.18 in FY25.
| Metric (Consolidated) | Q4 FY26 | Q4 FY25 | FY26 | FY25 |
|---|---|---|---|---|
| Revenue from Operations (Rs Cr) | 740.01 | 402.99 | 2,699.77 | 1,774.48 |
| Total Income (Rs Cr) | 740.44 | 408.72 | 2,717.51 | 1,801.47 |
| Profit Before Tax (Rs Cr) | 21.72 | 15.83 | 81.76 | 61.55 |
| Profit for the Year (Rs Cr) | 17.79 | 13.73 | 70.29 | 53.11 |
| Basic EPS (Rs) | 10.74 | 8.40 | 41.04 | 32.18 |
Segment-wise Performance
The standalone segment reporting highlights strong growth across both business verticals. The Market Entry Specialist segment remained the dominant revenue driver, contributing Rs 2,318.92 crore in FY26 versus Rs 1,503.80 crore in FY25. The Brand Business segment contributed Rs 232.24 crore in FY26, up from Rs 134.75 crore in FY25. On a consolidated basis, the Brand Business segment revenue grew to Rs 380.86 crore in FY26 from Rs 270.68 crore in FY25, while the Market Entry Specialist segment contributed Rs 2,318.92 crore.
| Segment (Standalone) | FY26 Revenue (Rs Cr) | FY25 Revenue (Rs Cr) |
|---|---|---|
| Brand Business | 232.24 | 134.75 |
| Market Entry Specialist | 2,318.92 | 1,503.80 |
| Total Revenue from Operations | 2,551.16 | 1,638.55 |
Strategic Developments & Outlook
The Board appointed Mr. Ajit Thakur as Chief Financial Officer and Key Managerial Personnel with effect from May 14, 2026. Management stated that the company aims to grow revenue by at least 25-30% annually and profit by 30% in absolute terms for the next 5-6 years. The company plans to separate its brand business and market entry business in the long term, potentially initiating a demerger once the brand business reaches a scale of INR1,000 crores.
Creative Newtech strengthened its cybersecurity portfolio by entering into a distribution agreement with Kaspersky and signed a Pan-India distribution agreement with PDRL for drone technologies. The company received two major government orders, including one for Body-Worn Camera solutions and another for Disaster Management & Emergency Response Kits. Additionally, Honeywell supplied air purifiers to the Singapore Ministry of Education, and the company launched business operations in the Philippines. Management noted that while the Middle East conflict has impacted logistics costs, the company remains focused on expanding its presence in Southeast Asia and the US.
Historical Stock Returns for Creative Newtech
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.50% | +9.60% | +9.26% | -6.70% | +0.36% | +636.87% |
How will the launch of Creative Newtech's own 'Vertual' brand impact its margin profile, and can it realistically achieve the targeted 50/50 brand-to-market-entry revenue split by 2030 given the brand business currently represents only 14.1% of revenue?
With trade receivables nearly doubling to INR565 crores and extending into newer segments like AI, surveillance, and data centers, what credit risk exposure does Creative Newtech face if collections in these nascent business lines are delayed?
If the Middle East conflict persists and reduces regional brand business volumes by ~50%, how significantly could this derail the company's 25-30% annual revenue growth target and what alternative markets could offset the impact?
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