Pelatro (PELATRO) H2 2025 earnings summary

Executive summary

• Focused on telco customer engagement, leveraging AI, ML, and analytics to reduce churn and increase revenue for telecom clients across 34 countries and nearly 40 networks, processing data for 1.5 billion consumers.

• Achieved FY24-25 consolidated revenue of Rs. 85.77 crores, a 56% increase year-over-year, with EBITDA at Rs. 19.82 crores (23.1% margin) and PAT at Rs. 11.89 crores, reversing a prior loss.

• Offers a suite of patented products and managed services, with a three-pillar growth strategy: geographic expansion, deeper client penetration, and acquisitions.

• Recently announced the acquisition of Estel Technologies' business to expand product offerings, cross-sell opportunities, and geographic reach.

• Audited standalone and consolidated financial results for FY25 were approved with an unqualified opinion; a final dividend of Re.1 per share was recommended.

Financial highlights

• FY24-25 consolidated revenue reached Rs. 85.77 crores, up from Rs. 54.99 crores year-over-year.

• EBITDA margin improved to 23.1% from 6.3% year-over-year; PAT margin rose to 13.9% from a negative margin.

• EPS turned positive at Rs. 13.16, up from a loss of Rs. 5.15 per share.

• Cash and cash equivalents increased to Rs. 36.03 crores (consolidated) as of March 31, 2025.

• H2 revenue grew 23% sequentially over H1, with EBITDA and PAT up 28% and 36% respectively.

Outlook and guidance

• Management expects continued healthy growth, further improvement in non-linearity, and profitability outpacing revenue growth.

• Acquisition of Estel Technologies expected to add 22% to revenue and 19% to PAT in FY25-26 over FY24-25.

• No formal revenue or profit guidance provided, but optimal EBITDA margin targeted at 30–35% in the medium term.

• Organic growth to be funded by internal cash flows; fundraising only considered for inorganic expansion.

• Management is optimistic about the subsidiary's turnaround, citing new customers and a strong business plan.