Canarys Automations Ltd. (CANARYS)
SME CapIT stocks · SME cap · NSE
Canarys Automations Ltd. is a 30+ year engineering-led organization evolving into an AI-enabled engineering and infrastructure solutions platform. It helps enterprises accelerate digital transformation, enhance operational resilience, and unlock business value through technology, intelligent automation, and domain expertise.
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.
Investable fundamentals, management trust is supportive, price trend supports entry, and recent execution is mixed.
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
Average · 42/100margin compression · Rev +120% YoY · PAT +20% YoY
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹97 Cr | +120.5% | -4.0% |
| EBITDA | ₹10 Cr | +66.7% | -16.7% |
| Operating margin | 10.0% | -100 bps | -200 bps |
| PAT | ₹6 Cr | +20.0% | -33.3% |
| PAT margin | 6.2% | -150 bps | -272 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
Canarys Automations achieved historic milestones in FY26, surpassing Rs 100 Cr standalone revenue and Rs ~200 Cr consolidated revenue, driven by strong execution and the Fortira Inc. acquisition. Consolidated revenue grew 121% YoY, with PAT up 79% YoY.
The company delivered robust FY26 results, driven by the Fortira acquisition and strong IT Solutions growth. The strategic pivot to Agentic AI with the CAR framework positions it for future growth, though consolidated EBITDA margins moderated due to integration costs. International expansion is a key positive.
Consolidated Revenue by Vertical (FY26)
Latest issuer-disclosed distribution across 2 reported categories.
AI-Embedded Growth Platform
AI is embedded across our ecosystem, enhancing how we design, build, deliver, and operate for our customers.
Global Expansion & Fortira Integration
Strengthening international presence through expanded customer access, enhanced technology capabilities, deeper North American penetration.
AI Products & Platforms
Scale AURYIS, ClubAce, Scholaris, and future AI-powered offerings.
Cross-Sell & Wallet Share Growth
Leveraging a broad portfolio of solutions to deepen customer relationships, increase solution adoption, and drive revenue per customer.
Fortira Inc. Acquisition
Acquired Fortira Inc., USA in April 2025, significantly strengthening presence in North American technology services market.
Talent & Capability Development
Investing in future-ready talent, continuous learning, AI upskilling, and capability building.
Agentic AI Adoption
Agentic AI boosts productivity, margins & competitive edge, with potential for 5x productivity multiplier and +12 pts gross margin.
Digital Transformation Demand
Helps enterprises accelerate digital transformation, enhance operational resilience, and unlock business value.
Strong Order Book
Order book grew to Rs 4,409 Mn in FY26, providing strong revenue visibility.
Integration Costs
Strategic growth investments, including integration costs and talent onboarding, led to a moderation in EBITDA margins.
One-time Exceptional Loss
PAT growth was affected by a one-time exceptional loss related to the implementation of labour code provisions.
Margin Pressure from Integration
Consolidated EBITDA Margin moderated to 12% in FY26 from 16% in FY25 due to strategic growth investments and integration costs.
Execution Risk of AI Pivot
The success of the 'Agentic AI' strategy and CAR framework relies on effective implementation and customer adoption.
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.
FY26 results are annual, making year-over-year comparisons most relevant for assessing overall business growth, financial performance, and the impact of strategic initiatives like the Fortira acquisition.
Number of Clients
Increased to 212 in FY26 from 115 in FY25.
Attrition
Reduced to 11% in FY26 from 14% in FY25.
Avg. Revenue/Employees
Increased to Rs 4.4 Mn in FY26 from Rs 1.6 Mn in FY25.
Order Book
Grew to Rs 4,409 Mn in FY26 from Rs 1,050 Mn in FY25.
AI at Core of Strategy
FY26 marked the beginning of Canarys' next growth chapter. With AI at the core of our strategy, we are well-positioned to drive sustainable growth.
Vision 2028
Becoming a leading AI-powered engineering and infrastructure solutions platform with differentiated capabilities.
Operational Improvement Expected
Operational performance is expected to improve as synergies are realized and scale benefits accrue.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Consolidated EBITDA Margin | 12.3% (FY26) | Improvement as synergies from Fortira acquisition are realized and scale benefits accrue. |
| International Revenue Contribution | ~48% (FY26) | Continued expansion and diversification of global presence. |
| Order Book Growth | Rs 4,409 Mn (FY26) | Sustained growth indicating strong demand and future revenue visibility. |
| Attrition Rate | 11% (FY26) | Maintenance of low attrition to ensure talent retention and delivery capabilities. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
66BullishSMA20 +18.6% / mo · MACD +
Technical chart
CANARYSdaily · 1Y · AUTO+13.0%Daily technical trend read
Mixed signalsSignals are conflicting — long-term uptrend intact. RSI 65. Wait for confirmation.
- Price above SMA200 (long-term uptrend) but mid-term MAs not aligned.
- SMA20 rising (~15.7% over last month) — short-term momentum positive.
- RSI(14) at 65 — falling, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- 26% off 52W high · 79% 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 63 · UNDERVALUED · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 63 · UNDERVALUED · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
UNDERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 63.3%.
- Valuation contributes 24/30 to the score.
Main drags
- Penalty bucket subtracts 8 points.
- Cash flow is weaker at 1/10; verify the latest quarterly trend.
- Quality is weaker at 11/20; verify the latest quarterly trend.
Consumer valuation: PE/PEG and brand-quality premium
Consumer franchises can deserve higher multiples, but only when growth quality supports them.
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: +0 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.
Healthy Trust: Claim history is still being built. It ranks around the 83rd percentile of the scored universe and 78th percentile within IT. Main check: cash conversion is weak at 43/100.
High Trust Lite: Promoter holding is 58.2%. Key concern: Only 1 years of positive FCF.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · IT: 78th pctile, median 69 · SME: 97th pctile, median 64
11 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
Healthy 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 holding is 58.2%.
- ▸Promoter pledge is zero.
- ▸Promoter holding increased 1.6%.
- ▸Debt/equity is 0.10.
Trust risks
- ▸Only 1 years of positive FCF.
- ▸1 of the latest 4 quarters had PAT decline worse than 25% YoY.
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
- 11.10
- P/B
- 1.48
- EV/EBITDA
- 7.41
- Market Cap
- 153.00Cr
Profitability
- ROE
- 14.60%
- ROCE
- 22.60%
- ROA
- 10.64%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 51.00%
- EPS 5Y
- 46.00%
- Revenue 3Y
- 39.00%
- EPS 3Y
- 17.00%
Balance Sheet
- Debt/Equity
- 0.10
- Interest Coverage
- 22.00×
- Altman Z
- 5.58
- Book Value
- 17.60
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 1/5
- OCF
- 6.00 Cr
- EPS TTM
- 2.10
Shareholding
- Promoter Hold
- 58.16%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 56%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
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Peers
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Peers
Business-comparable peers in IT — 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.