CSM Technologies posts stellar performance as profit up 70%, margin expands

The GovTech company reported a 70.2 per cent rise in FY26 net profit as improved execution efficiency and operating leverage drove a sharp expansion in EBITDA margin

GovTech and digital transformation company CSM Technologies has reported a strong financial performance, with robust growth in profitability backed by improved operating efficiencies.

 

The Bhubaneswar-headquartered company, which on Tuesday announced its first full-year results as a listed company, reported a 14 per cent year-on-year (Y-o-Y) increase in total income to Rs 228.72 crore in FY26, while its operating performance improved sharply, with earnings before interest, taxes, depreciation and amortisation (EBITDA) rising 56.6 per cent to Rs 48 crore.

 

The EBITDA margin expanded by 571 basis points to 21 per cent, reflecting higher execution efficiency and operating leverage despite continued investments in technology and product development.

 

Net profit witnessed even stronger growth, with profit after tax (PAT) climbing 70.2 per cent to Rs 24.01 crore from Rs 14.10 crore in the previous year. The PAT margin improved to 10.5 per cent from 7 per cent, while earnings per share increased 64 per cent to Rs 6.1.

 

The company also recommended a final dividend of Rs 0.50 per equity share for FY26, subject to shareholders' approval at the ensuing annual general meeting (AGM). The dividend, if approved, will be paid on 516,03,472 equity shares for FY26 within 30 days of the AGM.

 

For the fourth quarter, CSM maintained its growth trajectory despite booking a one-time exceptional charge of Rs 2.73 crore arising from the statutory impact of the new labour codes. Quarterly revenue stood at Rs 61.67 crore, while EBITDA jumped 56.03 per cent Y-o-Y to Rs 16.41 crore, pushing the EBITDA margin to 26.6 per cent, an improvement of more than nine percentage points over the corresponding quarter last year.

 

Commenting on the performance, Priyadarshi Pany, managing director and chief executive officer (CEO), said FY26 had been a strong year for CSM Technologies, with total income growing 14 per cent while EBITDA and PAT increased by 56.6 per cent and 70.2 per cent, respectively.

 

"CSM continued to strengthen its capabilities across GovTech and enterprise digital transformation while investing in proprietary platforms, artificial intelligence and data-driven solutions. With a healthy order book of Rs 357.63 crore, a strengthened balance sheet and an expanding presence across India and international markets, we enter FY27 well positioned to pursue the opportunities ahead and drive sustainable, profitable growth," he said.

 

During the year, CSM invested Rs 10.25 crore in developing proprietary intangible technology assets. It also deployed Rs 3.17 crore towards property, plant and equipment and Rs 1.17 crore in capital work-in-progress to strengthen its infrastructure and support future growth.

 

CSM also expanded its presence across India and international markets, particularly Africa, while continuing to execute digital transformation projects across government and public services, mining, agriculture, industry and trade facilitation, education, healthcare and tourism.

 

The company said investments in artificial intelligence, machine learning, cloud computing, cybersecurity, automation and data analytics remain central to its long-term growth strategy as it develops scalable digital public infrastructure and enterprise solutions.