Synopsis:
Shares gained after securing a ₹10.55 crore NICSI order, supported by strong revenue and profit growth. With expanding capacity, strategic acquisitions, and a diverse client base, the company focuses on cloud, cybersecurity, and global expansion, driving sustainable long-term growth.
The shares of this cloud computing service provider gained up to 4.2 percent in today’s trading session after the company secured a significant work order from National Informatics Centre Services Inc. worth Rs 10.55 crores.
With a market capitalisation of Rs 253.37 crore, the shares of Esconet Technologies Ltd were trading at Rs 192 per share, increasing around 3 percent as compared to the previous closing price of Rs 187.05 apiece.
The shares of Esconet Technologies Limited have seen positive movement after winning a ₹10.55 crore order from NICSI for supplying and installing a Data Storage System at the National Data Centre. This significant deal strengthens the company’s presence in government projects, enhancing credibility while supporting growth momentum and expanding its footprint in the data infrastructure segment.
Examine the company’s financial performance, revenue zoomed by 15 percent from Rs 107 crore in H1FY25 to Rs 123 crore in H2FY25, further, during the same period last year, net profit magnified significantly by 67 percent from Rs 3 crore to Rs 5 crore.
The company delivered strong FY25 results with revenue rising 65.59% YoY to Rs 233.3 crore and PAT up 47.27 percent to 799.79 lakh. Strategic acquisitions, including a 70% stake in Fluidech IT, and a ₹32.69 crore capital infusion, strengthen growth. Future plans emphasize cybersecurity, sector diversification, and client expansion for sustained performance.
Hexadata currently contributes around 35% of revenue, with system integration forming the bulk of the rest. ZeaCloud and Fluidech, though small at ₹5 crore and ₹2.5 crore, are projected to grow sharply in FY26 to ₹8–8.5 crore and ₹15–20 crore respectively. Both businesses are expected to achieve 30–40% CAGR, strengthening future revenue diversification.
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The company boasts a strong and diverse clientele across sectors, including manufacturing, education, healthcare, logistics, defense, government, and financial services. Notable clients include Adobe, Siemens, Wipro, Bharat Electronics, Indian Oil, Genpact, and GMR, reflecting its credibility and trust among leading global and Indian organizations, ensuring a well-rounded and sustainable business portfolio.
The company is expanding capacity with Hexadata manufacturing and a new micro data centre, while developing advanced HPC software for “Make in India.” Cloud infrastructure saw a major upgrade to 100Gbps access, targeting MEITY empanelment. Geographically, it launched South India operations and a Singapore subsidiary to strengthen global service delivery and cross-border billing.
Management remains confident about growth, though cautious of margin volatility from large, low-margin deals and upfront investments. No new acquisitions are planned unless unexpected opportunities arise. The focus is on scaling ZeaCloud and Fluidech, cross-selling to existing clients, and enhancing value addition, with strong confidence in surpassing current margin levels next year.
Esconet Technologies Limited is an IT company that offers supercomputing solutions and data center facilities, including network security, storage servers, data protection, and virtualization. The company’s clientele includes SMEs, large organizations, and public sector companies.
Written by Abhishek Singh
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