Magellanic Cloud Limited Expands with Strategic Acquisition of Finoux Solutions

Magellanic Cloud Limited (MCL) has made a significant move in its growth strategy by approving the allotment of 46.72 lakh equity shares to acquire Finoux Solutions Private Limited (FSPL). This strategic decision, aimed at strengthening MCL's market position, was executed through a share swap arrangement.

Key Details of the Allotment

The Board of Directors of Magellanic Cloud Limited approved the following:

Allotment: 46,72,000 fully paid-up equity shares
Face Value: Rs. 2.00 per share
Issue Price: Rs. 75.00 per share (including a premium of Rs. 73.00)
Total Raised: Rs. 35.04 crores

Acquisition Structure

The allotment was made to four promoters of Finoux Solutions Private Limited in exchange for acquiring a 100% stake in FSPL. This equity swap transaction received in-principle approval from both the BSE and NSE.

Allotment Breakdown

Allottee	Number of Shares	Post-Allotment Shareholding
Sanjay Sarkar	15,88,480	15,89,065 (0.27%)
Runa Shah	10,74,560	10,74,560 (0.18%)
Praveen Nair	10,74,560	10,75,570 (0.18%)
Pankaj Maste	9,34,400	9,39,400 (0.16%)

Impact on MCL's Capital Structure

Following this allotment, Magellanic Cloud Limited's capital structure has been adjusted:

Previous Paid-up Equity Capital: Rs. 116.88 crores (58,43,95,120 equity shares)
New Paid-up Equity Capital: Rs. 117.81 crores (58,90,67,120 equity shares)

This strategic move by Magellanic Cloud Limited represents a significant step in its expansion plans. The acquisition of Finoux Solutions Private Limited through this share swap mechanism allows MCL to integrate FSPL's operations without immediate cash outflow, potentially enhancing its market presence and operational capabilities.

Investors and market watchers will be keen to observe how this acquisition impacts Magellanic Cloud Limited's future performance and market position. As always, stakeholders are advised to keep an eye on further announcements and financial reports from the company to fully understand the long-term implications of this strategic move.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.33%	+9.56%	+7.45%	-17.03%	-15.63%	-15.63%

Magellanic Cloud Limited, a global leader in digital transformation, AI, and advanced surveillance solutions, has announced its financial results for the second quarter of FY26, showcasing robust growth and strategic expansion across its technology verticals.

Financial Highlights

The company reported impressive financial performance for Q2 FY26:

Metric	Q2 FY26 (₹ crore)	YoY Growth
Revenue from Operations	164.44	4.54%
Total Income	165.83	5.42%
Profit After Tax (PAT)	27.62	13.10%

The results demonstrate Magellanic Cloud's ability to maintain strong revenues and profitability amid dynamic market conditions, signaling strategic stabilization in its business performance.

Key Business Developments

E-Surveillance Vertical

Magellanic Cloud's subsidiary, Provigil Surveillance Limited, secured significant projects in the e-surveillance sector:

A ₹85.00 crore railway surveillance project for 484 stations, implementing AI-driven, cyber-secure solutions.
A ₹32.00 crore order from Indian Highways Management Company Limited (IHMCL) for AI-powered audit camera systems across toll plazas in eight states.
A ₹0.45 crore order from Andhra Pradesh Social Welfare Residential Educational Institution Society (APSWREIS) for security enhancement in educational institutions.

The e-surveillance vertical recorded new orders worth ₹118+ crore during Q2.

IT & ITES Segment

Motivity Labs, a subsidiary of Magellanic Cloud, entered a strategic technology partnership with BrowserStack, a global leader in cloud-based web and mobile testing platforms. This collaboration aims to accelerate release cycles and enhance product reliability through real-device automation.

Corporate Updates

Both Magellanic Cloud Limited and Provigil Surveillance Limited achieved CMMI Maturity Level 3 appraisal, reinforcing their capability to deliver high-quality outcomes through globally aligned processes.
The company successfully conducted its Annual General Meeting (AGM) 2025, highlighting achievements in global expansion, acquisitions, and innovation.

Management Commentary

Joseph Sudheer Reddy, Global CEO, Chairman & MD of Magellanic Cloud, commented on the results: "Q2 FY26 was a quarter of stability, consolidation, and continued execution strength. Despite a dynamic market landscape, we maintained consistent revenues and profitability, demonstrating the resilience of our diversified business model."

He added, "As we move into the second half of the fiscal year, we are entering a phase of measured expansion. Our focus remains on scaling innovation in AI, cloud, and analytics through our Telangana innovation hub, while exploring selective inorganic acquisitions that complement our product portfolio and deepen our domain presence."

Future Outlook

Magellanic Cloud expects Q3 and Q4 to reflect a stronger growth trajectory, supported by execution of its existing order book and new opportunities in defense, fintech, and smart infrastructure. The company's direction is clear: build for scale, lead with innovation, and sustain value creation.

With its strong financial performance and strategic initiatives, Magellanic Cloud Limited is well-positioned to capitalize on the growing demand for digital transformation and advanced surveillance solutions in the coming quarters.