Esconet Technologies reported consolidated total income of ₹357.84 Cr for the financial year ended March 31, 2026, an increase of 53.4% year-on-year. Standalone total income crossed the ₹300 Cr mark, reaching ₹300.72 Cr. The company posted a consolidated profit after tax (PAT) of ₹6.16 Cr, with the second half (H2) showing a strong recovery as PAT rose 262% over the first half (H1). The management attributed the full-year profit decline primarily to H1 performance, noting that H2 PAT fell only 9% year-on-year, indicating a healthier exit run-rate.

Financial Performance and Operational Highlights

The company’s consolidated EBITDA stood at ₹12.25 Cr, with H2 EBITDA increasing 183% over H1. The board approved the audited results on May 28, 2026. Management explained that gross margins contracted from approximately 15.2% to 13.2% due to component-cost inflation, which absorbed about ₹7 Cr of gross profit. Additionally, a one-time working-capital loan of ₹11.87 Cr was taken to cover a delayed enterprise receivable, fully repaid in April 2026, incurring a non-recurring finance cost.

Strategic Developments and Subsidiary Performance

Esconet’s group structure includes subsidiaries ZeaCloud (100% owned), Fluidech (70% owned), and Esconet Singapore (100% owned). ZeaCloud, a sovereign cloud platform, is targeting MeitY empanelment to unlock government data hosting, which management believes will set up a 2 to 3 year hyper-growth runway. Fluidech, an NCIIPC-accredited cybersecurity consulting firm, reported a planned loss of approximately ₹0.67 Cr in FY26 as an investment year, with a turnaround targeted for FY27. Esconet Singapore generated profits in its first year, serving as a profitable beachhead for international expansion.

Balance Sheet and Future Outlook

The company strengthened its balance sheet by repaying the short-term working-capital loan in April 2026. Trade receivables improved significantly, reducing by ₹8.5 Cr from ₹52.55 Cr. Capital deployment into delivery capability increased property, plant, and equipment from ₹4.75 Cr to ₹9.89 Cr. Looking ahead to FY2026-27, Esconet announced it will report quarterly financial results, exceeding SME half-yearly obligations. The company outlined priorities including margin discipline at the core integration business, turning Fluidech profitable, and securing MeitY empanelment for ZeaCloud.

Esconet Technologies Limited announced its audited standalone and consolidated financial results for the financial year ended March 31, 2026, reporting a 53.41% surge in consolidated revenue to ₹35,784.11 Lakhs. Despite the robust top-line growth, Profit After Tax (PAT) declined by 23.04% to ₹615.50 Lakhs, primarily due to unprecedented cost pressures in the global technology hardware supply chain and increased strategic investments. The company delivered a strong operational recovery in the second half of the year, with consolidated PAT rising 261.87% sequentially to ₹482.24 Lakhs in H2 FY 2025-26 from ₹133.00 Lakhs in H1.

The Board of Directors, in its meeting held on May 28, 2026, approved the audited financial results. The Board also approved the appointment of M/s Karan Kasana & Associates, Chartered Accountants, as the Internal Auditor for FY 2026-27. Additionally, the Board sanctioned a revision in the schedule for utilisation of proceeds raised through Preferential Allotment of Equity Shares and Convertible Warrants, consequent to the forfeiture of certain warrants that lapsed on April 25, 2026. The revised allocation reduces the total net proceeds to ₹2,716.53 Lakhs from ₹3,269.22 Lakhs.

Consolidated Financial Performance

Esconet's consolidated business demonstrated significant scale expansion during FY 2025-26, with revenue from operations growing 53.89% year-on-year to ₹35,440.40 Lakhs. The second half of the financial year witnessed a strong acceleration in business momentum, with total revenue increasing 44.59% over the first half.

Profit Before Tax (PBT) for the year stood at ₹861.80 Lakhs compared to ₹1,062.14 Lakhs in the prior year. The company noted that while annual profitability margins were impacted by elevated input costs and expansion initiatives, H2 PBT rose sharply by 311.63% over H1, reflecting better operating leverage and normalization in certain supply chain segments.

Standalone Results and Strategic Investments

On a standalone basis, Esconet crossed the ₹300 Crore total income mark for the first time, recording total revenue of ₹30,072.25 Lakhs, a 31.90% increase from the previous year. Standalone PAT for the year was ₹646.83 Lakhs, a decrease of 6.12% from ₹688.98 Lakhs in FY 2024-25. Similar to the consolidated performance, the standalone business witnessed a substantial improvement in H2, with PAT increasing 235.50% sequentially.

The company continued to make strategic long-term investments in operational capabilities, workforce expansion, and delivery infrastructure. Subsidiaries including Esconet Singapore Pte. Ltd., Fluidech IT Services Private Limited, and ZeaCloud Services Private Limited contributed to business diversification. Fluidech obtained NPCI empanelment to enhance its cybersecurity credentials, while ZeaCloud faced margin pressures due to rising global hardware prices but maintained healthy operational growth.