Pelatro Limited has released the transcript of its earnings call for the quarter and year ended March 31, 2026. The conference call, originally held on May 11, 2026, discussed the financial results for Q4 and FY26. The company reported strong performance across key financial metrics, driven by organic growth in its continuing business and the contribution from the recently acquired Estel Technologies division.

Financial Performance Highlights

For the financial year ended March 31, 2026, Pelatro reported a revenue of INR 138.23 crores, representing a year-on-year growth of 61.2%. The EBITDA stood at INR 31.5 crores, growing by 76% from INR 18 crores in the previous year. Consequently, the EBITDA margins expanded to 22.8% from 20.9% in FY25. The Profit After Tax (PAT) increased by 52% to INR 18.1 crores, compared to INR 11.9 crores in the prior year.

*Note: FY25 revenue figure derived from provided growth percentage.

Segmental Performance

The revenue growth was fueled by both the continuing CVM division and the newly acquired Estel division. The CVM division contributed INR 116.5 crores in revenue, achieving a healthy organic growth of approximately 36% from the previous year. The Estel division, which commenced operations in July 2025, contributed INR 21.7 crores over a nine-month period, meeting the company's expectations. In terms of profitability, the CVM division recorded an EBITDA of INR 28 crores with a margin of 24.1%, while the Estel division achieved an EBITDA of INR 3.4 crores with a margin of 15.6%.

Business Outlook and Strategy

Management highlighted that the company has a high visibility of revenue, with 82% of the expected revenue for FY26-27 already contracted. Pelatro serves 46 telcos across 35 countries and sees a significant market opportunity estimated at INR 12,000 crores. The company is committed to at least 15% annual organic revenue growth over the next five years and expects EBITDA margins to reach 30% within the next two to three years. Key growth drivers include increasing market penetration, deepening product usage within existing telcos, and leveraging AI capabilities to enhance product features and reduce development costs.

Conference Call Details

The earnings call was hosted through ORIM Connect and featured participation from senior management, including Mr. Subash Menon, Chairman and Managing Director, and Mr. Sharat Hegde, Chief Financial Officer. The full transcript is available on the company's website.

Pelatro Limited's Board of Directors, at its meeting held on May 05, 2026, approved the audited standalone and consolidated financial results for the year ended March 31, 2026, pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Board also recommended a final dividend of Re.1 per equity share of face value Rs. 10 each, subject to shareholder approval at the ensuing Annual General Meeting. The final dividend will be paid within 30 days from the date of its declaration at the AGM, with the record date to be intimated separately. On May 06, 2026, the company also released its investor presentation and press release on Q4 FY26 results, made available on its website at www.pelatro.com .

Consolidated Financial Performance

On a consolidated basis, Pelatro delivered a robust performance for FY26, driven by significant revenue growth and improved profitability. The following table summarises the key consolidated financial results:

Consolidated EBITDA (excluding exceptional items) for FY26 stood at Rs. 3,147.55 lakhs. An exceptional item of Rs. 167.78 lakhs was recognised in Q3 FY26, representing an additional gratuity provision arising from the New Labour Codes notified by the Government of India on November 21, 2025, which consolidated twenty-nine existing labour laws. Excluding this exceptional item, consolidated profit after tax for FY26 would have been Rs. 1,936.04 lakhs.

Segment-Wise Performance

Following the acquisition of the software business undertaking of Estel Technologies Private Limited, Pelatro now operates through two reportable segments — the CVM Division and the Estel Division — with effect from July 1, 2025. The segment-wise financial highlights for FY26 are as follows:

The Estel Division's profitability is expected to increase to the level of the CVM Division in 12 to 18 months.

Standalone Financial Performance

On a standalone basis, Pelatro's revenue from operations for FY26 was Rs. 9,555.83 lakhs, compared to Rs. 6,149.79 lakhs in FY25. Standalone net profit after tax was Rs. 330.12 lakhs for FY26 against Rs. 510.22 lakhs in the prior year. The standalone finance cost for FY26 was Rs. 408.81 lakhs, which includes interest cost on office lease of Rs. 285.96 lakhs in accordance with Ind-AS 116. Excluding the exceptional item of Rs. 167.78 lakhs, standalone profit after tax for FY26 would have been Rs. 455.67 lakhs.

Key Financial Ratios and Multi-Year Trends

Pelatro's key financial ratios on a consolidated basis reflect a consistent improvement trajectory across fiscal years, as detailed below:

The revenue bifurcation for FY25-26 shows 60% recurring revenue, 22% re-occurring revenue, and 18% one-time revenue, compared to 67%, 20%, and 13% respectively in FY24-25.

Management Perspective

Commenting on the Q4 and FY26 performance, Mr. Subash Menon, Managing Director & Chairman, said: "We have delivered a strong performance in both Q4 and FY26, with strong revenue growth and margin expansion. In Q4, EBITDA margin improved to 23.26%, reflecting operating leverage in the business. Q4 capped the year on a high note, supported by continued demand for our AI-driven customer engagement and monetization platforms. Our performance is supported by a scalable platform-led model, growing recurring revenues, and an expanded product portfolio through the Estel division, enabling end-to-end telecom solutions and stronger long-term customer relationships. The Board has recommended a final dividend of Re. 1 per equity share for FY26, reflecting our continued focus on delivering value to shareholders."

The company also noted that 82% of FY27 revenue has already been contracted, providing strong visibility and predictability. Pelatro's mViva platform processes data for nearly 1.5 billion subscribers across 35 countries, serving 46 telecom networks globally as of December 31, 2025, with 490+ employees and 20,000+ campaigns executed across all customers.

Acquisitions and Strategic Developments

During FY26, Pelatro completed two significant acquisitions that materially expanded its operational footprint. The details are as follows:

The foreign subsidiaries included in the consolidated results — Pelatro Pte. Ltd. and Estel Technologies International FZE, UAE — reported total assets of Rs. 5,654 lakhs as at March 31, 2026, total revenue of Rs. 6,517 lakhs, and net profit after tax of Rs. 1,627 lakhs. In March 2026, Pelatro also launched the mViva Revenue Acceleration Platform™ with Agentic AI, incorporating AI Agents, Co-Pilot, and Zero Touch Campaigning™ — a fully automated, LLM-based end-to-end campaign orchestration capability.

Balance Sheet and Cash Flow Highlights

The consolidated balance sheet as at March 31, 2026 reflects total assets of Rs. 18,422.60 lakhs, up from Rs. 13,706.48 lakhs as at March 31, 2025. Total equity stood at Rs. 10,399.31 lakhs compared to Rs. 7,944.78 lakhs in the prior year. Cash and cash equivalents on a consolidated basis closed at Rs. 1,519.16 lakhs, against an opening balance of Rs. 3,602.67 lakhs, with net cash used in investing activities of Rs. 3,824.61 lakhs reflecting the acquisition-related outflows. On a standalone basis, total assets were Rs. 16,642.85 lakhs as at March 31, 2026, with cash and cash equivalents at Rs. 954.44 lakhs.

IPO Fund Utilisation

During FY26, the company obtained shareholder approval to alter the objects of the issue in order to better utilise the balance of unutilised funds raised during the initial public offer. All funds were utilised in full during the quarter ended December 31, 2025. The revised utilisation status is as follows:

Shareholding Pattern

As of March 31, 2026, the shareholding pattern of Pelatro is as follows:

The audited financial results have been prepared in accordance with Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the Companies Act, 2013. The statutory auditors, P Chandrasekar LLP, Chartered Accountants, have expressed an unqualified opinion on both the standalone and consolidated financial results. There were no investor complaints pending as at March 31, 2026.