Creative Newtech Limited reported a 69.63% year-on-year increase in standalone profit after tax (PAT) to ₹9.01 crore for the first quarter ended June 30, 2026 (Q1FY27), driven by a robust 96.33% surge in EBITDA to ₹20.00 crore. The company filed these unaudited financial results with the National Stock Exchange of India Limited and BSE Limited on August 5, 2026, following approval by the Board of Directors at a meeting held on August 4, 2026. This strong operational performance, supported by total income rising 25.59% to ₹448.29 crore, signals a strategic shift towards higher-margin activities and sustainable profitability.

Financial Performance

The consolidated results reflect similar growth trajectories. Consolidated total income climbed to ₹476.84 crore in Q1FY27, up from ₹397.19 crore in the corresponding quarter of the previous year. Consolidated EBITDA expanded to ₹24.96 crore from ₹15.11 crore in Q1FY26, pushing the EBITDA margin to 5.24% from 3.81%, an improvement of 143 basis points. Consolidated PAT reached ₹13.54 crore, compared to ₹10.18 crore in Q1FY26, with PAT margin improving to 2.84% from 2.56%.

On a standalone basis, revenue from operations stood at ₹447.51 crore, a 26.87% increase from ₹352.72 crore in Q1FY26. Standalone EBITDA more than doubled to ₹20.00 crore from ₹10.19 crore, lifting the EBITDA margin to 4.46% from 2.85%, an improvement of 161 basis points. Standalone PAT rose to ₹9.01 crore from ₹5.31 crore, with PAT margin expanding to 2.01% from 1.49%.

Strategic Developments

The quarter was marked by significant contract wins reinforcing the company’s presence in technology-led government infrastructure. Creative Newtech received a ₹35.89 crore order from the Food Corporation of India (FCI) for the Smart Warehousing Project across 150 depots. Additionally, the company secured an Advance Work Order (AWO) from BSNL for the BharatNet Middle Mile Network Project in the Odisha Telecom Circle, with a total project value of approximately ₹3,194.83 crore.

In the consumer technology segment, the company launched WOZOYO, a global brand under its wholly owned subsidiary Secured Connection Limited (Hong Kong), marking its entry into smart lifestyle products. Approximately ₹8 crore was incurred towards the launch and development of the WOZOYO brand. It also partnered with Ravel Electronics to expand its fire and life safety technology portfolio and acquired Infinova India to enhance capabilities in video surveillance and security solutions.

Management Commentary

Ketan Patel, Chairman & Managing Director, attributed the performance to disciplined execution and operational efficiency. He noted that despite higher finance costs, the company achieved stronger operating leverage. Patel highlighted that the rapid adoption of AI and digital infrastructure investments continue to create opportunities across enterprise networking and cybersecurity segments. He emphasized the company's focus on scaling WOZOYO and integrating recent acquisitions to drive sustainable long-term growth.

What the Numbers Show

The divergence between revenue growth and EBITDA growth indicates a substantial improvement in operating leverage. The expansion of EBITDA margin by 143 basis points on a consolidated basis and 161 basis points on a standalone basis suggests that the company is successfully shifting towards higher-margin activities or achieving better cost control, rather than relying solely on volume growth. This margin expansion is a key positive signal for future profitability sustainability.

Creative Newtech Limited has approved the acquisition of 100% of the equity share capital of Infinova (India) Private Limited for up to USD 4.00 Million. The Board of Directors approved the budget for this strategic acquisition on July 13, 2026. This move aims to transition the company from a distribution-led model to a technology-led surveillance business platform, strengthening its manufacturing capabilities under the Make in India initiative.

The proposed acquisition encompasses Infinova's business operations in India, exclusive brand rights, technical assistance, and its existing team. It also includes the transfer of a product assembly and manufacturing facility located in Pune. The approved budget of USD 4.00 Million covers the consideration payable to the Infinova Group at closing, transaction costs, and professional fees.

Infinova (India) Private Limited, incorporated in 2010, is part of the Infinova Global Group. It specializes in electronic security and video-surveillance products, including smart IP cameras and intelligent video-management software. The entity serves critical infrastructure sectors such as airports, metro projects, and smart cities.

The transaction is not a related-party transaction, and the promoters of Creative Newtech have no interest in the target entity other than the proposed deal. The consideration will be paid in cash, with the final cost subject to valuation reports and closing adjustments.

Key Acquisition Details

The completion of the acquisition is contingent upon satisfactory due diligence, necessary corporate and regulatory approvals, and the execution of definitive agreements. The company will disclose the final transaction numbers and closing details upon completion.

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