Rox Hi-Tech guides 20% FY27 growth, orders ₹75 cr in hand
FY26 revenue rose 11% to ₹210.63 cr despite supply snags; AI practice now 3-4% of revenue; EBITDA margin seen recovering to 15-17%.
What's new
- FY27 revenue growth guidance of 20% backed by ₹75 cr order book
- Agentic AI practice (SAP Joule, Blue Prism) contributes 3-4% of revenue with 15 live projects
- NOC/SOC hits 25 recurring customers; target of 100 customers in 3 years
Why this matters
For a ₹73 cr market cap company, a 20% growth target with a visible order book (36% of FY26 revenue) and margin recovery to 15-17% from 13.86% is a credible acceleration. The AI and NOC/SOC units provide new legs, and an active M&A pipeline adds optionality. The key is execution: translating the order book into revenue and scaling NOC/SOC customers from 25 to 100.
What we're watching
- Order book execution pace; ₹75 cr due by September
- EBITDA margin trajectory in H1 FY27
- M&A progress: tech services and data center targets under evaluation
The full read
Rox Hi-Tech navigated supply disruptions to post ₹210.63 crore FY26 revenue, up 11.33%, a solid outcome for a nano-cap. The real story is what comes next: management guided 20% growth in FY27, backed by an order book of ₹75 crore executable by September. The agentic AI practice built on SAP Joule and Blue Prism now contributes 3-4% of revenue, while the NOC/SOC unit has onboarded 25 customers on recurring contracts with a three-year target of 100 customers (15% of revenue). EBITDA margins, compressed to 13.86% in H2 FY26, are seen recovering to 15-17% in FY27. An active M&A pipeline, including a tech services firm and data center targets, adds optionality. With a trailing ROE of 18.1%, low debt (0.42 D/E), and a $1 million international contract win, the company is building a credible growth story. The open question is whether the nano-cap can convert its order book and customer targets into consistent execution.
Questions answered
- What drove FY26 revenue growth despite supply disruptions?
- Revenue rose 11.33% YoY to ₹210.63 cr, aided by global contract wins and new service lines (AI, NOC/SOC) that partially offset West Asia crisis and semiconductor shortages.
- How large is the agentic AI practice and what technologies does it use?
- It contributes 3-4% of revenue with 15 live projects, built on SAP Joule and Blue Prism. This is early but a growth lever.
- What is the NOC/SOC target and current run-rate?
- The network/security operations center now has 25 customers on recurring three-year contracts. The target is 100 customers in three years, which would contribute 15% of revenue.
- Why did EBITDA margins compress and what is the recovery path?
- EBITDA margin compressed to 13.86% in H2 FY26 due to cost pressures. Management expects recovery to 15-17% in FY27 through operating leverage and higher-margin service mix.
- What is the status of international operations?
- Subsidiaries in Singapore, Denmark, US, and UK are operational. A recent global win includes a $1 million engagement over three years.
- What is the M&A strategy?
- Management disclosed an active pipeline including a technology services firm and data center targets under evaluation, indicating potential inorganic growth.