eMudhra (EMUDHRA) Q1 24/25 earnings summary

Executive summary

• Revenue from operations reached INR 950.2 million in Q1 FY25, up 70.7% year-on-year, led by enterprise solutions and international expansion into markets such as the US, Europe, Africa, Asia Pacific, Philippines, and Malaysia.

• EBITDA grew 19% year-on-year to INR 294.5 million, with a margin of 31%, and PAT increased 11.1% to INR 182 million, maintaining strong profitability despite higher sales and marketing expenditure.

• Major project wins and deal momentum in BFSI, education, gaming, hospitality, and government sectors across multiple geographies.

• Acquisition of Two95 International to enhance services, expand customer base, and strengthen email security capabilities.

• Continued global and domestic momentum in cybersecurity, digital transformation, and trust services.

Financial highlights

• Q1 FY25 revenue from operations: INR 950.2 million, up 70.7% year-on-year; total income reached INR 950.2 million, up 17.7% year-on-year.

• EBITDA: INR 294.5 million, up 19% year-on-year, with a margin of 31%.

• Net profit: INR 182 million, up 11.1% year-on-year, margin at 19.2%.

• Basic EPS increased 6.3% year-on-year to INR 2.20; diluted EPS up 8.0% to INR 2.16.

• Gross margin for Q1 FY25 was 66.4%, compared to 73.7% in Q1 FY24.

Outlook and guidance

• Confident in achieving 25%-30% growth, supported by a healthy order book, continued deal wins, and expansion of enterprise solutions and professional services.

• Data centers in Bangalore, Chennai, and Amsterdam expected to support growth for at least five years.

• European trust service business to commence post-accreditation.

• Roadmap includes leveraging AI for identity vetting, document processing, and risk assessment.