What Happened

Sattrix Information Security has received a confirmed work order valued at Rs 18.16746036 crore. The contract scope includes the supply of advanced cybersecurity products, software licensing, implementation services, annual maintenance and support services, and other allied cybersecurity solutions. The filing was disclosed to the exchange on September 1, 2026.

Order In Financial Context

The Rs 18.16746036 crore order is equivalent to approximately 225% of the company's average quarterly revenue of Rs 8.05 crore over the last two quarters. The total disclosed order book now stands at Rs 59.73 crore (sum of the 6 orders disclosed across the last 3 fiscal quarters shown in the table below). This backlog represents an order book coverage of 7.42 quarters of average quarterly revenue, providing substantial visibility for near-term earnings. The book-to-bill dynamic indicates that recent order inflows are outpacing current revenue run-rates, positioning the company for potential acceleration in top-line growth as these contracts execute.

Company Order Track Record

Order inflow velocity has accelerated significantly in the most recent quarter. Q2FY27 saw total inflows of Rs 46.73 crore, more than triple the Rs 13.00 crore recorded in Q1FY27. The current order value of Rs 18.16746036 crore is consistent with the larger end of the company's typical per-order size, which ranges from Rs 13.0 lakh to Rs 18.16746036 crore based on recent history. The company has received orders from multiple entity types, including multinational cybersecurity firms, IT hardware companies, and domestic banking institutions.

Execution And Revenue Quality

Revenue execution has shown volatility in recent quarters, with Q4FY24 reporting a net loss due to negative operating profit. However, the preceding quarter, Q3FY24, demonstrated strong margin quality with an operating profit margin of 36.40%. The ability to convert the growing order book into consistent positive operating cashflows will be critical given the recent margin fluctuations.

Revenue Growth - Order Wins Translating To Revenue

As Sattrix has sustained order wins, with inflows accelerating from Rs 13.00 crore in Q1FY27 to Rs 46.73 crore in Q2FY27, its annual revenue has grown from Rs 45.10 crore in FY25 to Rs 60.83 crore in FY26, representing a YoY growth of +34.9% based on the latest annual data. This historical trend confirms that past order accumulation has successfully translated into tangible top-line expansion.

Working Capital And Execution Capacity

The company maintains a robust liquidity position with a current ratio of 2.40x, indicating sufficient short-term assets to cover liabilities. The total liabilities-to-equity ratio is low at 0.14x, suggesting minimal financial leverage and ample capacity to fund working capital requirements for the existing backlog. However, operating cashflow was negative at Rs 7.50 crore in FY25, implying that while profitability is improving, cash conversion from operations remains a key area to monitor as the company scales its service delivery.

What To Watch

• Execution rate: Monitor quarterly revenue run-rate against the Rs 59.73 crore backlog to assess if inflows are translating into booked revenue without delays.
• OPM trajectory: Watch for stabilization of operating profit margins following the volatility seen between Q3FY24 and Q4FY24.
• Client concentration: Evaluate if the reliance on multinational, large IT hardware, and banking clients creates any single-client dependency risks as the order book grows.
• Cash conversion: Track improvement in operating cashflow to ensure that growing revenues are backed by actual cash inflows rather than accruals.

Key Observations

• Backlog signal: Book-to-bill of 7.42x. At this level, execution capacity becomes the binding constraint.
• Cash conversion: Operating cashflow of -Rs 7.50 crore in FY25; backlog is not converting to cash efficiently, and receivables or working capital cycle may be stretched.
• Margin stress: Net loss of Rs 0.70 crore in Q4FY24; execution stress visible in quarterly data.

Sattrix Information Security has made its FY26 Annual Report and notice for the 13th Annual General Meeting available to shareholders. The company issued the intimation to the BSE SME Division on August 29, 2026, providing web links and QR codes for access.

The documents are accessible via the company’s website, the BSE Limited portal, and the Registrar and Transfer Agent, Bigshare Services Private Limited. This disclosure complies with Regulation 36(1)(b) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, specifically for members whose email addresses are not registered with the company or depositories.

AGM schedule and e-voting timeline

The 13th AGM is scheduled for Tuesday, September 22, 2026, at 3:00 pm IST via Video Conferencing or Other Audio-Visual Means. This confirmation follows a Board of Directors meeting held on August 26, 2026, in Ahmedabad.

The following key dates govern shareholder participation and remote e-voting:

E-voting is facilitated through Central Depository Services (India) Limited (CDSL). CS Govil Rathi, Proprietor of M/s. Govil Rathi & Associates, has been appointed as scrutinizer for the AGM.

Key resolutions on the agenda

The AGM agenda covers both ordinary and special business. The following resolutions have been placed before shareholders:

Managing director remuneration

The Nomination and Remuneration Committee recommended the re-appointment of Sachhin Gajjaer as Managing Director. The proposed remuneration package includes:

• Salary: ₹7,00,000 per month with effect from April 1, 2026
• Performance incentive: 3% of net profit as determined by the Board for the financial year, calculated under Section 198 of the Companies Act, 2013
• Perquisites: Medical reimbursement up to one month's salary per year; leave travel concession; club fees for up to two clubs; personal accident insurance with annual premium not exceeding ₹25,000; gratuity, superannuation fund, and provident fund contributions as per company rules; provision of car with chauffeur, laptop, mobile phone, and telephone at residence

Whole-time director re-appointment

Mrs. Ronak Sachin Gajjar, whose current tenure expires on September 22, 2026, has been proposed for re-appointment for a further period of three years from September 23, 2026 to September 22, 2029. The Board approved this re-appointment on August 26, 2026 on the recommendation of the NRC. Her proposed terms include no salary to be withdrawn, perquisites including house rent allowance, medical reimbursement, leave travel concession, personal accident insurance, and car with driver for official purposes, along with a performance linked incentive as determined by the Board or NRC. She drew remuneration of ₹42.36 lakh in FY26 and holds 6297852 equity shares representing 55.50% of the company.

ESOP Scheme 2026 and IPO proceeds redeployment

The Sattrix ESOP Scheme 2026 provides for an ESOP pool with a maximum aggregate value of equity shares of ₹47,34,86,253.90. Options are proposed to vest over four years in four equal tranches of 25% each at the end of years one, two, three, and four. Vested options may be exercised within four years from the relevant vesting date. The scheme is to be administered by the NRC, which may delegate functions to a trust, registrar, or other person as permitted under applicable laws.

Separately, the board has proposed to redeploy unutilised IPO proceeds of approximately ₹3,32,08,000, originally earmarked under business expansion cost towards development of new products and technology, towards acquisition of fixed assets including new office premises. This variation in IPO proceeds utilisation requires approval by special resolution at the AGM.