Synopsis: Canarys Automations has secured a Rs 9.85 crore government contract from the Greater Noida Industrial Development Authority (GNIDA) to develop an AI- and digital twin-based stormwater management system. The project strengthens the company’s climate-tech capabilities and expands its presence in high-value government infrastructure digitisation projects.
The contract contains a strict constraint where full delivery and clearance of the Phase A digital twin, equipment, and field surveys must be completely finalized before the company can advance to subsequent project phases.
Canarys Automations Limited is currently trading at Rs 19.95. The stock opened at Rs 19.9, reached a day high of Rs 20, and has so far recorded a day’s low of Rs 19.8. The current market capitalisation of the company is Rs 117 crore, and it is trading at a p/e ratio of 8.45, which is much lower than the industry peer median of 20.36.
Order Details and their relevance
The Rs 9.85 crore contract, equivalent to nearly 8 percent of Canarys’ Rs 117 crore market capitalisation, is financially significant and provides revenue visibility over the next 12 months while strengthening the company’s government order book. The project involves deploying advanced technologies, including drone-based LiDAR mapping, 80 GHz microwave radar water level sensors, smart 4G telemetry loggers, and integrated 1D/2D hydraulic simulation models, to create an intelligent digital twin of Greater Noida for flood prediction and urban planning.
More importantly, it marks another commercial validation of Canary’s transition from a traditional IT services company into a niche climate tech and digital twin infrastructure player.
The company highlighted that this is its third consecutive project for managing water resources, following similar deployments in Gorakhpur and Chennai, reinforcing its expertise in AI-driven flood management and digital infrastructure solutions. The order also comes as the company’s business continues to expand, with annual revenue growth of around 18–20 percent while maintaining profitability for the last six consecutive years.
The contract is in line with the company’s long-term strategy to grow its climate tech and digital twin portfolio, which has been a key focus repeatedly highlighted by the management. The order further strengthens the company’s execution capabilities in a specialised niche, backed by a 5-year revenue CAGR of 51 percent, profit CAGR of 44 percent, improving receivable and inventory cycles, stronger reserves and continued investment in technology platforms.
Financials
The company posted revenue from operations of Rs 97 crore in H2 FY26 against Rs 52 crore in H2 FY25, registering a strong YoY growth of 86.5 percent. Operating profit also increased to Rs 10 crore from Rs 6 crore in the previous year, while the operating margins were at 10 percent against 11 percent from H2 FY25 to H2 FY26.
The company posted a net profit of Rs 6 crore in H2 FY26 compared to Rs 4 crore in H2 FY25, a robust growth of 50.0 per cent. The improved profitability was reflected in the earnings per share (EPS), which jumped to Rs 1.02 from Rs 0.71 from H2 FY25 to H2 FY26.
The company posted a strong ROCE of 22.6 per cent and ROE of 14.6 per cent, indicating effective capital utilisation and good returns to shareholders. The debt-to-equity ratio was a low 0.09x, meaning the balance sheet was almost debt-free.
Canarys Automations Limited is a digital transformation and technology solutions company providing Digital Twin, GIS, cloud, AI, IoT, DevOps & Enterprise software services. The company enables government and enterprise customers in smart infrastructure, water resource management, manufacturing and digital engineering to do more with less by leveraging technology-driven solutions to enhance operational efficiency.
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