H2 FY26 stronger than H1
Management expects H2 gross sales and EBITDA to be higher than H1, consistent with historical seasonality (60% gross sales, 65% EBITDA in H2).
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revenue
Annuity mix to remain 40-45%
Annuity business as a percentage of gross sales is expected to stay in the 40-45% range, with absolute growth faster than overall gross sales.
Operating leverage to improve margins
Incremental gross margin flow-through to EBITDA is expected to be ~80%, as cost growth will lag revenue growth over the next 18-24 months.
FY26 gross sales growth of ~18% YoY
Management reiterated guidance of approximately 18% year-on-year growth in gross sales for FY26.
FY26 PAT growth of 20-22% YoY
PAT growth target of 20-22% year-on-year for FY26, implying Q4 PAT of ₹43-45 crore.
Sustained double-digit growth into FY27
Management expects continued double-digit growth supported by annuity scale-up and AI/OT opportunities.
Operating leverage of ~15 bps per year
Management targets approximately 15 basis points of operating leverage improvement annually.
FY27 revenue growth target of 18-20%
Management expects FY27 revenue growth to be in the range of 18-20%, faster than FY26's 19.5%.
FY27 PAT growth target of 20-22%
PAT growth is guided at 20-22% for FY27, driven by operating leverage and margin stability.
Operating leverage: >70% incremental gross margin to EBITDA
Over 70% of incremental gross margin is expected to flow to EBITDA over the next 2-3 years.
Potential dividend or buyback if no inorganic opportunity
Board may consider shareholder returns (dividend/buyback) if no suitable acquisition is pursued in FY27.