Growth acceleration expected in Q2-Q4 FY24
Management expressed confidence that strong deal pipeline in automotive, healthcare, and design businesses will drive accelerated revenue growth in subsequent quarters as deal closures materialize.
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Transportation deal closures expected in Q2
Pipeline remains strong with large opportunities in SDV and EV spaces; management expects delayed deal closures from Q1 to materialize in Q2 and Q3 as macroeconomic conditions stabilize.
Healthcare growth momentum to continue
Healthcare and life sciences demonstrated recovery with 3.2% QoQ growth and new product wins; management expects continued growth trajectory returning to earlier growth rates.
Target utilization improvement to ~80%
Current utilization at 72-72.5% provides headroom; management aims to push utilization higher as business picks up and trained resources get deployed on projects.
FY25 Revenue Growth to exceed FY24
Management reaffirmed guidance that FY25 growth rate will be better than FY24, driven by continued transportation momentum and recovery in media & comm.
EBITDA margin targeted around 28%
Management expects to maintain margins within stated range, with utilization improvement as key lever to offset wage hikes and one-time expenses.
Healthcare to normalize in H2
Revenue decline in healthcare due to delayed renewals with a major US client is expected to continue in H1 but recover in H2 as renewals come through.
25% AI-ready talent by December
Targeting over 25% of workforce to be trained in AI/GenAI technologies by December 2024, with 100+ POCs across verticals including automotive, media, healthcare, and design.
Margin Recovery Trajectory
Management expects gradual margin improvement over the next three quarters as transportation and media businesses return to growth and utilization improves.
Media Vertical Recovery
Media & communications expected to return to growth in Q2 FY26 on back of deal ramp-ups from large consolidation wins and healthy deal pipeline.
Healthcare H2 Recovery
Healthcare vertical expected to see recovery in H2 FY26 with ramp-up of new logos (European pharma/biotech leader, Japanese medtech leader) and paused US projects restarting in Q2.
Aerospace & Defense Revenue Target
Targeting INR 50 crore revenue this year from aerospace & defense vertical; medium-term goal to ramp up significant business over 2-3 years.
H2 Revenue Growth Target
Management aims to improve H2 performance over H1, though no specific numbers are provided. Focus on converting automotive deal pipeline and media recovery.
Continued Hiring Pace
Headcount additions expected to continue at similar run rate (approximately 500-600 net adds per quarter) through H2.
Industrial Design Annual Target
Targeting approximately INR 500 crore annually from industrial design business within next year, up from INR 100 crore quarterly run rate.
Double-digit constant currency revenue growth target for FY25
Management maintains target of double-digit CC growth for full year FY25, acknowledging H2 must be "extremely strong" to achieve this given H1 performance. Guidance to be reassessed at Q3 end.
Margin maintenance in communicated band
Management continues to target margins within the previously communicated band, expecting H2 to be a "better half" aided by fresher hiring push in Q3 and improving revenue trajectory.
$50M deal ramp-up to begin January 2025
Major SDV deal signed in Q2 will see meaningful revenue contribution starting January 2025, with ramp-up beginning mid-Q3. Deal spans 5 years with global European OEM.
Healthcare recovery expected from Q3
Healthcare vertical has bottomed in Q2 (per management). Partial restart of delayed programs expected in Q3 with full recovery targeted by Q4 FY25.
H2 FY26 Revenue Growth Guidance
Management expects H2 to be significantly better than H1, with double-digit growth anticipated in both automotive and healthcare verticals for FY27 based on deal pipeline, ramp-ups, and new customer wins.
H2 FY26 Margin Recovery
Margins expected to improve versus H1 as revenue grows and utilization improves; target is 75% utilization by fiscal year-end which should restore margins to historical trajectory.
Utilization Target 75% by FY26 End
Focus on improving employee utilization from current ~70% to 75% by end of financial year, and further to 80% in FY27 as key to margin recovery.
Media & Communications H2 Outlook
Growth will moderate in H2 compared to Q2 as the large deal ramp-up impact normalizes; segment under stress due to M&A activity among customers.
Healthcare targeting 20% of company revenues by FY2026
Management confirmed they are on track to reach this target, driven by new product development and digital healthcare opportunities, with the team having successfully retargeted skills from MDR to other regulatory areas.
Transportation deal ramp-ups expected in Q4 and Q1
Several large deals won in Q2 with planned Q3 ramp-ups were delayed due to customer-side issues (union problems, shorter quarter/holidays); management is ready with resources and expects these to accelerate into Q4.
Accelerating AI and Gen AI investments
The company is ramping up investments in AI infrastructure, talent, and training in the coming quarters, expanding applications across product lifecycles and domains, as demonstrated by AI being embedded in recent deal wins (media consolidation and healthcare automation).
Margin Recovery to 25-26%
Management plans to return to 25-26% EBIT margins in the near term by improving billability and utilization, driven by top-line growth and completed wage hike cycle.
Tax Rate Outlook Above 25%
Effective tax rate expected to be upwards of 25% going forward as SEZ benefits normalize, with full-year FY25 likely at 24.5-25%.
Healthcare and Media Recovery Starting Next Quarter
Green shoots in healthcare and media/communications verticals should translate to pickup from Q4 onwards with ramp-ups from large deal wins.
Double-digit growth aspiration for FY27
Management maintains aspiration for double-digit growth in transportation and healthcare verticals heading into FY2027, contingent on strong Q4 performance momentum and early Q1 results.
Margin recovery trajectory
CFO Gaurav Bajaj stated confidence in returning to historical margin levels (mid-to-high 20s) by end of next financial year, supported by continued operating leverage and utilization improvement from current ~75% toward 80-85%.
Healthcare and media turnaround from Q4
Healthcare business has bottomed out in Q3 with management expecting recovery starting Q4 FY26. Media & communications showing positive signs from large deal ramp-ups and pending deal closures expected in Q4.
FY25 Growth: Better than FY24
Management expects stronger overall revenue growth in FY25 compared to FY24's 13% YoY growth, with transportation OEM business continuing strong momentum and media/communications recovery contributing to acceleration.
FY25 Margin: Recovery to FY24 levels of ~29.5%
Management expressed confidence in returning to FY24 EBITDA margin levels (29.5%) despite Q4's 28.8% dip, citing capacity levers and talent investments already made.
Fresher Hiring: 1,500-2,000 engineers in FY25
Company plans fresher additions of 1,500-2,000 engineers in FY25 (metered based on business conditions), with lateral hiring on need-basis. This continues the capacity-building strategy.
AI Readiness: 25% of engineers by Q3 FY25
Company targets 25% of engineers to be AI-ready by Q3 FY25 through specialized training programs, GenAI hackathons (76 teams participated), and integration into platforms like Neuron, iCX, and TECare.
FY2026 growth to exceed FY2025
Management explicitly stated FY2026 will be a much better financial year compared to FY2025, driven by large deal wins (EUR 100M+ media, EUR 50M auto) and recovery in transportation and healthcare verticals. Confidence supported by four full quarters to scale new deals.
Q1 FY26 sequential revenue growth
CEO confirmed the focus is to grow from Q4 FY25 levels, with encouraging customer discussions and large deal ramp-ups beginning Q1 FY26. Full deal value expected from Q2 onwards.
Margin recovery tied to revenue growth
CFO stated margins will improve as growth returns. Current 70% utilization provides headroom to absorb deal ramp-ups without significant hiring. Discretionary cost controls (contractors, travel, office consolidation) will sustain hygiene. Path to 'normal' margins from 1.5-2 years ago confirmed.
Aerospace & Defense revenues expected in FY26
New vertical building over two years with strategic partnerships (NAL, Garuda Aerospace) and empanelments with global aerospace majors and eVTOL company. Management expects to report revenues and potentially announce large deal wins during FY26.
FY27 Revenue Growth: High Single-Digit
Management revised FY27 growth outlook downward from double-digit to high single-digit, citing geopolitical uncertainty, delayed deal momentum, and mixed customer signals across verticals.
Q4 FY27 PBT Margin Target: 27%
CFO Gaurav Bajaj indicated target to exit FY27 at 27% PBT level (not EBITDA), up from current levels, with improvements gradual and aligned to top-line recovery rather than dramatic sequential jumps.