Seshaasai Technologies reported a 63.8% year-on-year surge in consolidated profit after tax (PAT) to ₹603.4 million for the first quarter of FY27, driven by a 21.1% increase in revenue from operations to ₹3,764.7 million. The Mumbai-based technology solutions provider delivered strong top-line growth despite headwinds from elevated input costs due to geopolitical tensions and inflation, maintaining an EBITDA margin of 25.1%, up 135 basis points year-on-year.

The Board of Directors approved the unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, at a meeting held on July 23, 2026. The disclosure was made pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Statutory Auditors Vatsaraj & Co. conducted a limited review of the financial results.

Financial Performance Highlights

Revenue from operations grew to ₹3,764.7 million in the quarter, compared to ₹3,108.73 million in the same period last year. EBITDA expanded by 28.0% to ₹944.1 million, reflecting disciplined execution and operating efficiencies. Profit before tax increased by 48.8%, aided by lower finance costs following debt reduction. Gross margin moderated to 41.7% in Q1FY27 from 44.5% in Q1FY26, impacted by higher raw material prices, currency depreciation, and elevated logistics costs arising from the West Asia conflict.

*Note: EBITDA for Q1FY26 derived from reported growth percentage.

Segment Contribution and Operational Insights

Payment Solutions remained the largest contributor, accounting for 42% of revenues, followed by Communication & Fulfilment Solutions at 40% and IoT Solutions at 18%. In Payment Solutions, top 10 customers contributed 73% of revenue in Q1FY27, down from 81.35% in Q1FY26, indicating some diversification. The company added three new accounts in payment cards across banks and FinTechs and commenced exports to Europe and Africa. Communication & Fulfilment Solutions saw top 10 customer contribution drop to 77.16% from 81.60%, with four new enterprise accounts added. IoT Solutions added 13 new accounts across industries, with volumes ramping up for a large Indian retailer.

Pragnyat Lalwani, Managing Director, attributed the performance to healthy demand across key verticals and deeper customer engagement. He highlighted that ongoing geopolitical tensions resulted in higher fuel prices and INR inflation, leading to elevated input costs. Despite these challenges, the focus on operational efficiency enabled the delivery of EBITDA growth. Employee costs increased by 17.1% YoY due to higher headcount and annual increments, while other expenses remained broadly stable at ₹519.8 million, reducing as a percentage of revenue to 13.8% from 16.7% in Q1FY26.

IPO Proceeds Utilization

The company provided an update on the utilization of its initial public offering proceeds. As of June 30, 2026, ₹4,299.20 million of the ₹6,000.00 million raised had been utilized. The remaining unutilized amount stood at ₹1,700.80 million. Key allocations included:

• Funding capital expenditure for expansion of existing manufacturing units: ₹1,360.92 million unutilized
• Repayment of outstanding borrowings: Fully utilized (₹3,000.00 million)
• Issue Expenses: ₹18.54 million unutilized
• General corporate purposes: ₹321.34 million unutilized

As of June 30, 2026, the company held cash and cash equivalents of approximately ₹3,690 million, including the unutilized IPO funds.

What the Numbers Show

The divergence between revenue growth (21.1%) and EBITDA growth (28.0%) underscores the effectiveness of Seshaasai's cost discipline strategies in mitigating inflationary pressures. The significant reduction in finance costs, dropping from ₹77.64 million in Q1FY26 to ₹18.44 million in Q1FY27, played a crucial role in amplifying net profit margins. This debt reduction strategy, facilitated by the full utilization of IPO proceeds for borrowing repayment, has materially improved the bottom line. However, the high concentration of revenue from the top 10 clients (56% overall) presents a dependency risk that investors should monitor alongside the company's efforts to scale its high-growth IoT and communication offerings.

Seshaasai Technologies Ltd disclosed that its promoters collectively hold 81.80% of the company's total equity shares as of March 31, 2026. The disclosure was submitted to the stock exchanges in compliance with Regulation 31(4) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

The filing, made by Gautam Sampatraj Jain on behalf of the promoter and promoter group, details the shareholding pattern for the financial year ending March 31, 2026. It confirms that the promoters, along with Persons Acting in Concert (PAC) or the promoter group, did not create any encumbrance on the shares held during the financial year, other than those previously disclosed.

Shareholding Details

The shareholding is concentrated among two primary promoters. The promoter group entities hold a nominal number of shares, while several listed entities hold zero shares.

The remaining entities listed in the promoter group, including Sunita Pravin Lalwani, Pranjal Banthia, and various private limited companies such as Creative Formulations (India) Private Limited and Dandelion Technologies Private Limited, reported zero shareholdings.