Investor presentationJul 2026
Jul 2026 · PPT
Source: Nse
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.
₹26.8
-1.30 · -4.63%
Market cap ₹159 Cr
Data qualityFresh enough for analysisQuote updated 21 Oct, 03:31 pm ISTDetails
Quote21 Oct, 03:31 pm IST
Base fundamentals16 Oct 2026 · screener
Latest result01 Jun, 07:51 pm IST
Score21 Oct, 04:30 am IST · v4.3-runtime-valuation
Tags24 Apr 2026
Coverage13/14 · 93%
Valuation2026-07-20 · Rf 6.8% · IT P/E 21.4 (n=204)
Technical timing lens
Trend score and candlestick chart
77BullishSMA20 +14.2% / mo · MACD − · sector +19.3pp vs Nifty 500 (3M)
Stock trend: 61
Sector RS: 100
Sector 3M: +13.7% vs Nifty 500 -5.6%
IT FPI tailwindBuilding
Latest FPI flow is positive, but a second consecutive positive fortnight is still required. View sector evidence
Technical chart
CANARYSD candles · FIT view+36.7%Latest close ₹26.80 on 2026-10-21
Bar
-4.6%
RSI
49
MACD hist
-0.24
52W pos
59%
2026-10-21O ₹28.10H ₹28.15L ₹26.50C ₹26.80Vol 1.7L sh
Up bar
Down bar
EMA 20
EMA 50
Volume + 20D avg
Result date
RSI(14)
MACD / signal
Market context
Relative performance and chart statistics
Adjusted completed-session prices, rebased to 100
CANARYSNifty ITNifty 500
- CANARYS
- +40.3%
- Nifty 500
- -6.5%
- Nifty IT
- +12.0%
- Vs Nifty 500
- +46.8 pp
Chart stats
21 Oct 2026- From 52W high
- -23.9%
- 52W range position
- 59%
- ATR (14)
- 6.3%
- Volume vs 20D
- 1.11x
- Avg traded value
- ₹0.4 Cr
- 20D price channel
- ₹25.3 - ₹32.6
₹35.2
₹14.6 - ₹35.2
₹1.7
Latest completed session
20-session average
56.4% annualized volatility
Research snapshot
What the evidence says now
Investable fundamentals, management evidence is still limited to a financial-only Trust Lite signal, price trend supports entry, and recent execution is mixed.
Suggested next step
Research, do not rush
The evidence is not strongly aligned. Compare peers and wait for a cleaner setup.
U-Score
Legacy · UNDERVALUED61
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
Latest result
Average42
Revenue +120.5% · PAT +20.0% YoY
Technical
Bullish77
Price trend and sector-relative-strength timing.
Valuation
Legacy model+60.3%
Legacy margin-of-safety estimate; the revised evidence label remains in shadow validation.
Trust
Limited evidence77
Financial-only signal; management claim evidence is not sufficient yet.
Financials
Fundamentals, quarterly history, margins, returns and balance-sheet evidence
Financials
Fundamentals, quarterly history, margins, returns and balance-sheet evidence
Latest result
Quarter ended 31 Mar 2026
Average · 42/100margin compression · Rev +120% YoY · PAT +20% YoY
Filed 31 Mar 2026
Open results browser →| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹97 Cr | +120.5% | -4.0% |
| EBITDA | ₹10 Cr | NDF | -16.7% |
| Operating margin | 10.0% | NDF | -200 bps |
| PAT | ₹6 Cr | +20.0% | -33.3% |
| PAT margin | 6.2% | NDF | -272 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Fundamentals
Valuation
- P/E
- 11.50
- P/B
- 1.53
- EV/EBITDA
- 7.68
- Market Cap
- 159.00Cr
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
- 5.68
- Book Value
- 17.60
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 0/5
- OCF
- 7.00 Cr
- EPS TTM
- 2.10
Shareholding
- Promoter Hold
- 58.16%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 60%
Financial History
Updated 21/10/2026
Revenue
₹ CrLatest: 97.0-4.0% vs prev
Net Profit
₹ CrLatest: 6.0-33.3% vs prev
ROE is shown only in the Annual view — quarterly equity data isn't published.
Technicals
Trend interpretation, Stage 2, relative strength, volume and indicator evidence
Technicals
Trend interpretation, Stage 2, relative strength, volume and indicator evidence
Daily technical trend read
Mixed signalsSignals are conflicting — long-term uptrend intact. RSI 49. Wait for confirmation.
- Price above SMA200 (long-term uptrend) but mid-term MAs not aligned.
- SMA20 rising (~12.4% over last month) — short-term momentum positive.
- RSI(14) at 49 — falling, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 24% off 52W high · 84% 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.
Nifty 500 leadership
Relative Strength & Trend Stage
77
RS percentile
Stage 2 UptrendRecent S2
1M return
-6.1%
3M return
+40.3%
6M return
+22.1%
1Y return
-6.0%
RS 1D
-1
RS 20D
+2
Sector rank
#7
Industry rank
-
Stage evidence
- Price is 23.0% above the 30-week proxy.
- The 50-DMA is above the 30-week proxy and its slope is rising +3.4%.
- Both 3-month and 6-month returns are positive.
50-DMA
price above
200-DMA
price above
S2 entered
05 Oct 2026
S2 age
12 trading sessions
Sector
improving
Industry
unranked
Relative-strength line vs Nifty 500 (base 100)
260 observations
21 Oct 2026Value 90.9-3.74%
RS vs Nifty 50091
Valuation & peers
U-Score 61 · legacy U-Score band UNDERVALUED · valuation evidence and comparable companies
Valuation & peers
U-Score 61 · legacy U-Score band UNDERVALUED · valuation evidence and comparable companies
Deep Value
Fundamental score breakdown
U band · UNDERVALUEDValuation23/30
Growth18/25
Quality11/20
Balance Sheet11/15
Cash Flow1/10
Piotroski
8/9 (+5)
Penalties
-8
Raw sum
61
Why this score?
Top U-Score contributors and drags from the latest stored fundamentals.
61/100 · legacy band UNDERVALUED
Positive drivers
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 60.3%.
- Valuation contributes 23/30 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.
Sector valuation model
Consumer valuation: PE/PEG and brand-quality premium
Consumer franchises can deserve higher multiples, but only when growth quality supports them.
Primary lens
PE and PEG relative to growth, ROE, margins, and brand strength.
Secondary checks
Volume growth, pricing power, distribution, same-store or category growth.
Main risk check
Premium valuation needs durable growth and margin resilience.
PE
11.5
PB
1.5
EV/EBITDA
7.7
ROE
14.6%
ROCE
22.6%
FCF Yield
—
Debt/Equity
0.1
MoS
+60.3%
Score movement
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.
Stored run: 21 Oct 2026
v4.3-runtime-valuation
Final score
61
Previous: 59 (+2)
Legacy U-Score band
UNDERVALUED
Previous: FAIR VALUE
Margin of safety
+60.3%
Previous: +58.3%
Score history
12 stored score snapshots. Latest stored move: -1 points.
21 Oct 2026
v4.3-runtime-valuation
61
61
61
59
61
59
60
61
62
62
60
59
Factor attribution
Valuation
23+2
was 21
Modelled fair value
Graham Number
₹28.84
+7.1% MoS
Growth-justified P/E
32.1
Growth-justified Value
₹67.41
+60.3% MoS
PEG
0.33
Comparable companies
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.
Ticker
Name
Why peer
Score
PE
ROE
MoS
Verdict
PATTECH
SME
Pattech Fitwell Tube Components Ltd.
IT
match 87
15
54.8
6.2%
-70%
OVERVALUED
PATILAUTOM
SME
Patil Automation Ltd.
IT
match 76
13
44.5
12.8%
-502%
OVERVALUED
RACLGEAR
Small
RACL Geartech Limited
IT Services / Digital
match 69
42
36.7
17.0%
-9%
WATCHLIST
TUNWAL
SME
Tunwal E-Motors Ltd.
Auto Components
match -42
52
12.4
10.7%
+48%
FAIR VALUE
ETML
SME
Emerald Tyre Manufacturers Ltd.
Auto
match -44
48
12.8
9.2%
+67%
FAIR VALUE
Business, management & trust
Growth engines, risks, management commitments and evidence-backed delivery
Business, management & trust
Growth engines, risks, management commitments and evidence-backed delivery
Business and thesis
Where growth can come from, and what can break the case
Thesis intactReviewed 2026-07-23T16:11:33.339Z
Management commentary snapshot
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.
Current business mix
Consolidated Revenue by Vertical (FY26)
Latest issuer-disclosed distribution across 2 reported categories.
IT Solutions93.0%
Water Resource Management7.0%
Growth engines
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.
Capacity and execution
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.
Tailwinds
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.
Headwinds
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.
Risk radar
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
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Analyst reading lens
Compare YOY
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.
Sector KPIs management disclosed
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.
Management forward view
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.
Thesis monitor
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.
Trust Score
77Limited evidence · low confidenceTrust Lite
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Limited evidence: Claim history is still being built. It ranks around the 83rd percentile of the scored universe and 77th percentile within IT. Main check: cash conversion is weak at 43/100.
This is a financial-behaviour screen, not a claim-tested management reliability verdict.
Computed 05 Sept 2026
management-trust-v1
11 docs text-extracted · 4 concalls text-extracted
Score band
Limited evidence
Financial behaviour is scored, but management claims do not yet have enough outcome checks.
Relative rank
83rd percentile
overall median 67 · IT: 77th pctile, median 69 · SME: 97th pctile, median 64
Evidence depth
Financial-only
11 documents have extracted text, but claim history is not strong enough yet.
Claim delivery
Outcome history still building
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Limited evidence · low confidenceWhat it measures
Reliability of management and financial delivery, using financial behaviour only.
Confidence
Treat this as an early read until more concalls and outcomes are matched.
Investor use
Can support position sizing if valuation and trend also agree.
Read 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.
Promoter
90
strong · holding, pledge, alignment
Cash flow
43
weak · profit to cash conversion
Balance sheet
96
strong · leverage and solvency
Discipline
90
strong · capital discipline
Results
72
acceptable · quarterly consistency
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.
Continue researching Canarys Automations Ltd.
Important announcements & filings
Latest exchange and company disclosures found within the past two years.
Open source ↗
Concall transcriptJul 2026
Jul 2026 · Transcript
Source: Nse
Annual reportMar 2026
Mar 2026 · Annual Report 2026
Source: Nse
Annual reportMar 2026
Sep 2026 · Shareholders meeting 8 Sep - Canarys Automations released FY2025-26 annual report and AGM notice for 30 September 2026.
Source: Nse
Annual reportMar 2026
Sep 2026 · Copy of Newspaper Publication 9 Sep - Newspaper ads filed on 09 Sep 2026 confirming dispatch of 35th AGM notice and FY2025-26 annual report.
Source: Nse
Investor presentationDec 2025
Dec 2025 · PPT
Source: Nse
Concall transcriptDec 2025
Dec 2025 · Transcript
Source: Nse
Investor presentationJul 2025
Jul 2025 · PPT
Source: Nse
Concall transcriptJul 2025
Jul 2025 · Transcript
Source: Nse
Annual reportMar 2025
Mar 2025 · Annual Report 2025
Source: Nse
All information is for study purposes only. For investment decisions, consult your financial advisor. See Playbook for methodology.