Meta Infotech targets higher margins with service shift

2 min read     Updated on 19 Jun 2026, 06:48 PM
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Reviewed by
Riya DScanX News Team
AI Summary

Meta Infotech Limited reported FY26 revenue of ₹270 crore, a 23% YoY increase, with an EBITDA of ₹18 crore and PAT of ₹11 crore. The company holds an order book of ₹506 crore and plans to shift its business mix towards higher-margin services to boost profitability. Strategic investments in leadership, OEM partnerships, and geographic expansion are expected to drive sustainable growth.

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Meta Infotech has reported a 23% year-on-year increase in revenue to ₹270 crore for FY26, marking the start of its strategic 'Meta 2.0' phase focused on leadership strengthening and geographical expansion. The cybersecurity solutions provider posted an EBITDA of ₹18 crore and a Profit After Tax (PAT) of ₹11 crore for the fiscal year. Management stated that margins were impacted by these strategic investments rather than operational weaknesses, positioning the company for sustainable long-term growth.

The company’s financial highlights show a Return on Equity (ROE) of 15% and a Return on Capital Employed (ROCE) of 22%. Meta Infotech’s order book stands at ₹506 crore as of May 27, 2026, which is approximately 1.9 times its FY26 revenue. This substantial order book provides healthy visibility for upcoming execution and revenue realization in the coming periods.

Financial Highlights for FY26

Particulars FY26
Revenue ₹270 Crores
(YoY Growth) 23%
EBITDA ₹18 Crores
PAT ₹11 Crores
ROE 15%
ROCE 22%

Strategic Initiatives and Business Mix

Management outlined several strategic initiatives undertaken during FY26, including strengthening the leadership team with experienced professionals and increasing the employee base from 265 to over 309. The company added six new cybersecurity Original Equipment Manufacturer (OEM) partners and expanded its offerings in AI Security, SASE, Patch Management, and OT Security. A continued focus on building recurring managed security services remains a priority.

The current business mix is heavily skewed towards products, which account for approximately 87% of revenue, while services constitute around 13%. Management aims to increase the contribution of the services business to 20–25% to enhance recurring revenue and overall profitability. The product gross margin is reported at 8–8.5%, whereas the services margin is 50%+, with managed security services offering significantly higher profitability.

Growth Strategy and Outlook

Key focus areas for growth include Managed Security Services, AI & Cloud Security, Identity & Access Management, and Operational Technology (OT) Security. Alongside its existing offices in Mumbai and Hyderabad, the company is expanding its geographic footprint with recent entries into Chennai, Delhi, and Bengaluru. Deepening its domestic presence with an upcoming office in Pune, the firm is also targeting selected international markets including the Middle East, Australia, and the USA.

Management reiterated that FY26 was an investment year, while FY27 will be a foundation year. The next three years will focus on execution and scaling. The company continues to target strong earnings growth through higher-margin services, geographical expansion, and deeper customer engagement. Meta Infotech operates an in-house cybersecurity training ecosystem to ensure a continuous supply of skilled professionals, which it believes provides a significant competitive advantage in a talent-constrained industry.

Historical Stock Returns for Meta Infotech

1 Day5 Days1 Month6 Months1 Year5 Years
+4.99%+17.22%+11.94%-30.99%-65.71%-65.71%

What specific milestones will define the transition from FY27 as a 'foundation year' to the subsequent three-year scaling phase?

How will the shift towards a 20–25% services mix impact the company's working capital requirements given the higher margins but potentially different cash conversion cycles?

Which international market among the Middle East, Australia, or the USA is expected to contribute most significantly to revenue in the next fiscal year?

Meta Infotech Secures ₹2.40 Crore Software Subscription Order From Leading Indian Stock Exchange

1 min read     Updated on 17 Jun 2026, 05:35 PM
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Reviewed by
Anirudha BScanX News Team
AI Summary

Meta Infotech Ltd has won a ₹2.40 crore (excluding GST) software subscription contract from a leading Indian stock exchange and its subsidiary, covering 15 months from July 1, 2026 to September 30, 2027. The order, received in the ordinary course of business from a domestic entity, is to be executed within 15 days. The company confirmed no promoter or group company interest in the awarding entity, and the transaction is not a related party transaction.

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Meta Infotech Ltd has secured a fresh order worth ₹2.40 crore from one of India's leading stock exchanges and its subsidiary for software subscription services. The order, aggregating to ₹2,40,00,000 excluding GST, spans a period of 15 months from July 1, 2026 to September 30, 2027. This contract reinforces the company's engagement with key financial infrastructure providers for its software solutions.

Order Details

The order was received under the ordinary course of business and pertains to a domestic entity. The software subscription service is to be executed within 15 days of the order. The disclosure was made in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulations, 2015.

Contract Overview

The key parameters of the contract are outlined below:

Parameter: Details
Name of Client: India's Leading Stock Exchange & Subsidiary
Nature of Order: Software Subscription
Contract Period: July 1, 2026 to September 30, 2027
Order Value: ₹2.40 crores (excluding GST)
Execution Time: Within 15 days
Entity Type: Domestic

The company confirmed that neither the promoter group nor group companies hold any interest in the entity awarding the order. The transaction does not fall under related party transactions, ensuring full compliance with applicable regulatory norms.

Historical Stock Returns for Meta Infotech

1 Day5 Days1 Month6 Months1 Year5 Years
+4.99%+17.22%+11.94%-30.99%-65.71%-65.71%

How will this contract impact Meta Infotech's revenue visibility for the fiscal years 2026-27 and 2027-28?

Does this 15-month engagement signal a potential shift towards longer-term subscription models in the company's future contracts?

What are the chances of upselling additional software modules to this client during the contract period?

More News on Meta Infotech

1 Year Returns:-65.71%