Magellanic Cloud Limited (MCL) has announced that its wholly-owned subsidiary, Provigil Surveillance Limited, has secured multiple railway surveillance contracts totaling approximately Rs 119.25 crores. This development marks a significant milestone for the company in the field of AI-powered surveillance solutions.

Major Contract with Rail Vikas Nigam Limited

Provigil Surveillance Limited has received a Letter of Acceptance from Rail Vikas Nigam Limited (RVNL) for a contract valued at Rs 85.00 crores. The project involves:

• Providing Video Surveillance Systems (VSS) across 441 D & E category railway stations
• Augmentation of surveillance systems at 43 major stations (Categories A1, A, and B) of Southern Railway

The scope of this project includes:

• Supply, installation, testing, and commissioning of high-definition IP CCTV cameras at stations and RPF/GRP posts
• Implementation of robust networking equipment for seamless connectivity and real-time monitoring
• Deployment of Video Management Servers, AI-based Video Analytics, and Face Recognition Software (FRS) with scalable storage

Additional Contracts

In addition to the RVNL contract, Provigil Surveillance Limited has secured:

1. A contract worth Rs 2.27 crores from South Central Railway for replacing video surveillance systems at Secunderabad Railway stations
2. An earlier Letter of Acceptance from NHAI valued at Rs 32.00 crores for the deployment of AI-based Video Surveillance Systems on national highways

Technological Advancements

The projects involve cutting-edge AI-enabled surveillance infrastructure, including:

• IP-based CCTV deployment
• Advanced networking infrastructure
• AI integration with face recognition software
• Video analytics featuring vehicle counting and classification

Strategic Importance

Joseph Sudheer Reddy Thumma, Global CEO & MD of Magellanic Cloud Limited, emphasized the strategic importance of these contracts, stating, "These back-to-back project wins of about 119.25 crores underscore our strong capabilities in delivering large-scale, AI-powered surveillance solutions that meet the highest standards of safety and cybersecurity."

Future Prospects

The successful acquisition of these contracts positions Magellanic Cloud for potential expansion into other sectors. Thumma expressed confidence in the company's ability to expand its footprint into airports, metros, and smart city projects, positioning Magellanic Cloud as a trusted partner in building smarter and safer infrastructure for India and beyond.

Compliance and Disclosure

Magellanic Cloud Limited has confirmed that none of the promoter/promoter group/group companies have any interest in the entities that awarded the contracts. Additionally, the company stated that these contracts do not fall within the purview of related party transactions.

These developments represent a significant step forward for Magellanic Cloud Limited and its subsidiary in the realm of AI-driven surveillance and security solutions, potentially opening doors to larger projects in the future.

Magellanic Cloud Limited (NSE: MCLOUD, BSE: 538891) has announced its unaudited consolidated financial results for the first quarter ended June 30, 2025, showcasing robust growth across key financial metrics.

Revenue Surge

The IT services company reported a significant increase in its consolidated revenue from operations, which rose to ₹1,639.56 crore in Q1 FY26, marking a 24% year-over-year growth from ₹1,321.68 crore in the same quarter last year. This substantial revenue growth demonstrates the company's strong market position and successful expansion strategies.

Profit Enhancement

Magellanic Cloud's consolidated net profit for Q1 FY26 stood at ₹277.70 crore, up from ₹265.07 crore in Q1 FY25, representing a 4.8% increase. This growth in profitability, albeit at a lower rate than revenue growth, indicates the company's ability to maintain its bottom line while scaling operations.

Segment Performance

The company's financial results reveal strong performances across its three main business segments:

1. IT/ITES Services: This segment remained the primary revenue driver, contributing ₹1,318.50 crore to the total revenue.
2. IT-Surveillance: The second-largest segment generated revenue of ₹308.00 crore.
3. Drone: Although the smallest segment, it showed promise with revenue of ₹13.06 crore.

Operational Highlights

• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased to ₹568.00 crore from ₹529.00 crore year-over-year.
• However, the EBITDA margin declined to 34.65% from 40.05% in the previous year, suggesting increased operational costs or competitive pressures.
• The company's employee benefit expenses rose to ₹652.11 crore, reflecting potential expansion in workforce or increased compensation.

Financial Position

As of June 30, 2025, Magellanic Cloud reported:

• Total assets of ₹9,937.10 crore
• Total liabilities of ₹4,483.96 crore
• A strong capital employed position of ₹5,453.13 crore

Management Commentary

Joseph Sudheer Reddy Thumma, Managing Director of Magellanic Cloud Limited, stated, "We are pleased with our performance in the first quarter of FY26. Our robust revenue growth across all segments demonstrates the strength of our diverse portfolio and our ability to meet evolving market demands. While we've seen some pressure on margins, we remain focused on operational efficiency and delivering value to our stakeholders."

Future Outlook

With the recent acquisition of Finoux Solutions Private Limited and strong Q1 results, Magellanic Cloud appears well-positioned for continued growth. The company's focus on IT/ITES services, surveillance solutions, and emerging technologies like drones indicates a forward-looking strategy aligned with market trends.

Investors and stakeholders will be watching closely to see if Magellanic Cloud can maintain this growth trajectory while improving profitability in the coming quarters.

Note: All figures are in Indian Rupees (₹) and 1 crore = 10 million.

Financial Summary Table