Cadsys (India) Ltd. (CADSYS)
SME CapServices stocks · SME cap · NSE
Cadsys (India) Ltd. provides design and engineering support for wireline OSP and ISP deployments to U.S. telecommunications providers. The company focuses on deepening client relationships, expanding regionally, and integrating AI capabilities to improve efficiency across telecom infrastructure workflows.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is acceptable, price trend is neutral, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Bad · 0/100Rev -56% YoY · PAT -229% YoY · margin expansion
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹47 Cr | -56.1% | -31.9% |
| EBITDA | ₹4 Cr | +116.7% | +122.2% |
| Operating margin | 8.0% | +6600 bps | +3400 bps |
| PAT | ₹-9 Cr | -228.6% | NDF |
| PAT margin | -19.1% | +11744 bps | +1273 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Cadsys reported FY24-25 EBITDA of (28.76) Cr and PAT of (37.05) Cr, impacted by a 20.40 Cr unbilled receivables write-off and Q3/Q4 2024 operational slowdown due to adverse weather. New projects commenced, and a $1.44M court judgment recovery enhanced short-term cash flow.
The company's financial results for FY24-25 show significant losses, exacerbated by a large write-off and weather-related operational disruptions. While new projects and strategic initiatives are underway, and a court judgment provided cash flow relief, the core profitability remains a concern. The thesis is under stress due to current losses and execution risks.
New Project Wins
Commenced five new projects extending design and engineering support to two leading U.S. telecommunications providers.
Regional Expansion
Strategic plans are underway to expand into new regions through organic growth, supported by repeat orders from key customers in early 2025.
Strategic Alliances & Portfolio Company Services
Equity partners in USA acquired a turf vendor of major Telecom carrier in Q4 2024. A significant opportunity has been awarded to the company to provide comprehensive design, engineering, and offshore services to the portfolio company.
Technology Enablement (AI)
The company is actively supporting enhancements to ProWorks™ by integrating AI capabilities aimed at improving efficiency across telecom infrastructure workflows.
New Professionals Hired
The company recruited 300 new professionals during March and April 2025, currently undergoing structured training and onboarding programs.
Additional Office Space
The company has acquired additional office space in Hyderabad to support this scale-up and future growth.
Federal Broadband Funding
The broadband market is expected to rebound in 2025, driven by federal initiatives like the Broadband Equity, Access, and Deployment (BEAD) program ($42.45 billion) and the Affordable Connectivity Program (ACP) ($14.2 billion).
Alternative Network Growth
Despite regulatory obstacles, Municipal Networks are gaining popularity. Electric Cooperatives are also finding success with Fiber.
Accounts Receivable Recovery
Secured a favorable U.S. court judgment resulting in a $1.44M accounts receivable recovery, enhancing short-term cash flow.
U.S. Telecom Spending Decline
In 2023, U.S. telecommunications companies witnessed a 10% decline from the previous year. Projections for 2024 indicate a further 5% decrease in broadband spending.
Adverse Weather Conditions
Adverse weather conditions, including Hurricane Milton in October 2024, led to a slowdown in project execution across parts of the Southeastern U.S.
Unbilled Receivables Write-off
The company had written-off of unbilled receivables amounting to Rs. 20.40 Cr from the customer.
Unbilled Receivables Recovery
The company had written-off of unbilled receivables amounting to Rs. 20.40 Cr from the customer. However, your company is in the process of claiming these amounts from the customer.
Operational Disruptions
Adverse weather conditions led to a slowdown in project execution. Proactive steps are being taken to mitigate future operational disruptions by forming strategic alliances with regional Turf Vendors.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Annual financial results are presented for FY24-25, but operational impacts (weather, project resumption) are discussed quarterly (Q3/Q4 2024, Q1 2025), indicating sequential momentum and disruptions are relevant alongside annual performance.
New Projects Commenced
Commenced five new projects extending design and engineering support (wireline OSP and ISP deployments) to two leading U.S. telecommunications providers.
Client Trust & Repeat Business
Continued business from existing customers reflects strong client trust; the company is focused on deepening core relationships across multiple regions while driving volume growth.
Project Execution Impact
Adverse weather conditions, including Hurricane Milton in October 2024, led to a slowdown in project execution across parts of the Southeastern U.S., contributing to operational losses in Q3 & Q4 of 2024.
Project Resumption
Projects have resumed in Q1 2025 and are adding to the 2025 execution plan.
Expand into New Regions
Strategic plans are underway to expand into new regions through organic growth, supported by repeat orders from key customers in early 2025.
Comprehensive Services for Portfolio Company
A significant opportunity has been awarded to the company to provide comprehensive design, engineering, and offshore services to the portfolio company.
AI Integration for Efficiency
The company is actively supporting enhancements to ProWorks™ by integrating AI capabilities aimed at improving efficiency across telecom infrastructure workflows.
Mitigate Future Operational Disruptions
Proactive steps are being taken to mitigate future operational disruptions by forming strategic alliances with regional Turf Vendors.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| EBITDA/PAT Trend | FY24-25 EBITDA: (28.76) Cr, PAT: (37.05) Cr | Improvement in profitability and reduction of losses in subsequent quarters/years. |
| Unbilled Receivables Recovery | 20.40 Cr written-off, process of claiming underway. | Successful recovery of the written-off unbilled receivables from the customer. |
| New Project Execution & Ramp-up | Five new projects commenced, projects resumed in Q1 2025. | Successful execution and revenue generation from new projects and the portfolio company opportunity. |
| Utilization of New Capacity | 300 new professionals recruited, additional office space acquired. | Effective onboarding and deployment of new professionals and optimal utilization of new office space to support growth. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
49NeutralSMA20 +15.8% / mo · RSI oversold · MACD −
Technical chart
CADSYSdaily · 1Y · AUTO+3.3%Daily technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 25. Wait for confirmation.
- SMA20 rising (~13.6% over last month) — short-term momentum positive.
- RSI(14) at 25 — oversold zone; bounce conditions.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 38% off 52W high · 30% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation & score drivers
U-Score 22 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 22 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 271.0%.
- Cash flow contributes 8/10 to the score.
- Balance sheet contributes 7/15 to the score.
Main drags
- Penalty bucket subtracts 8 points.
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Valuation is weaker at 4/30; verify the latest quarterly trend.
Execution business valuation: EV/EBITDA plus order and working-capital risk
Capital-intensive execution stories need cash-flow and balance-sheet checks alongside valuation.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +1 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 32nd percentile of the scored universe and 32nd percentile within Services. Main check: results consistency is weak at 19/100.
Healthy Trust Lite: Promoter pledge is zero. Key concern: 3 latest quarters had PAT decline worse than 25% YoY.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Services: 32nd pctile, median 66 · SME: 36th pctile, median 64
7 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is 271%.
- ▸4 years of positive FCF.
Trust risks
- ▸3 latest quarters had PAT decline worse than 25% YoY.
- ▸ROCE is low at -14.1%.
- ▸ROE is low at -36.9%.
- ▸ROCE trend is -29.4%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- —
- P/B
- 1.33
- EV/EBITDA
- —
- Market Cap
- 46.50Cr
Profitability
- ROE
- -36.90%
- ROCE
- -14.10%
- ROA
- -40.79%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 30.00%
- EPS 5Y
- -13.00%
- Revenue 3Y
- -13.00%
- EPS 3Y
- -33.00%
Balance Sheet
- Debt/Equity
- 0.20
- Interest Coverage
- -5.00×
- Altman Z
- 2.19
- Book Value
- 34.80
Cash Flow
- FCF Yield
- 270.97%
- FCF Positive Y
- 4/5
- OCF
- 97.00 Cr
- EPS TTM
- -18.50
Shareholding
- Promoter Hold
- 47.78%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 28%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in Services, ranked by similarity
Peers
Business-comparable names in Services, ranked by similarity
Peers
Business-comparable peers in Services — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.