Crayons Advertising Ltd. (CRAYONS)
SME CapMedia stocks · SME cap · NSE
Crayons Advertising Ltd. is India's premier independent full-stack marketing communications agency, founded in 1986. It offers brand strategy, creative campaigns, digital marketing, PR, events, and analytics across diverse sectors, with operations in major Indian cities and Dubai. The company balances private sector brands and government accounts.
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 needs verification, price trend argues for patience, 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 · 2/100PAT -91% YoY · margin compression · Rev +35% YoY · +22% QoQ
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹172 Cr | +35.4% | +22.0% |
| EBITDA | ₹2 Cr | -50.0% | -33.3% |
| Operating margin | 1.1% | -200 bps | -110 bps |
| PAT | ₹1 Cr | -90.9% | -66.7% |
| PAT margin | 0.6% | -683 bps | -155 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
Management anticipates a strong Q4 FY26 and projects at least 20% revenue growth for FY26 over FY25, with similar 20-25% growth expected for FY27, driven by government business and AI adoption.
Management projects robust revenue growth for FY26 and FY27, underpinned by strategic focus on government clients and technology integration. However, historical margin pressures in traditional segments and high debtor days warrant close monitoring of AI's impact on profitability and working capital efficiency.
Revenue by Media Category (Current)
Latest issuer-disclosed distribution across 4 reported categories.
Government-backed Businesses
Thrust is on moving into government-backed businesses (PSUs, state/central governments), which are realizing the need for visibility and offer large volumes. Expected to give 20-25% growth year-on-year.
Technology & AI Adoption
AI is a 'very big tool' expected to lead to 'a lot more revenue, and obviously, lower costs' by increasing efficiencies in media buying, creative, and systems.
Events Segment
Events are the 'highly profitable side of the business.' Management assumes achieving 'about 25% of our top line through events' in FY27.
International Market Expansion
A subsidiary has been established in Dubai for the Middle East market (UAE, Saudi Arabia, Bahrain, Qatar). The company is in the process of setting up a team there.
Dubai Subsidiary Establishment
A subsidiary has been registered in Dubai for the international market, with plans to put up a team and start work in the next few months.
AI-Trained Talent Acquisition
The company is hiring new talent that is 'completely AI, let's say AI-trained professionals' to ramp up in-house capabilities.
Increased Government Advertising Spend
Governments (central, state, PSUs) have realized the need to improve public image and communication, leading to 'a lot more advertising' and new, large-volume projects.
AI-Driven Efficiency and Revenue
Technological advancement with AI is expected to create 'a lot more revenue, and obviously, lower costs' by increasing output and efficiencies across various business segments.
Intense Competition
Initial competition 'has been pretty, pretty strong in the last few years,' contributing to lower margins in some segments.
Changing Media Mix
The volume of spend in print (newspapers and magazines) is decreasing, while the digital part is 'going up year on year,' impacting segment margins.
Global Economic Conditions
Advertising 'takes a hit first and foremost if anything goes wrong on the global side, or even on the national side, and any crisis which comes up leads to problems.'
Key Client Loss
Losing a key client is 'always a risk,' though a good balance of private and government clients, with fixed tenure contracts, provides a safeguard.
Talent Retention
The industry is 'category driven by the source' (people). However, the company notes 'most of our key people at the senior management have been there for long,' providing a stable structure.
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.
Management explicitly states expectations for 'better this year, as compared to last year' and '20% to 25% growth in the years to come. Every year, year on year,' indicating a primary focus on annual performance.
Revenue Growth
Management expects 'at least a 20% growth' for the current year (FY26) compared to last year, and '20% to 25% growth' for the next year (FY27).
EBITDA Margins
Margins 'have really not been as good as maybe, let's say, 4 years ago, or 5 years ago' due to strong competition. Management assumes new technological shift will increase margins.
Debtor Days
High debtor days are 'the norm for the industry' and 'a standard industry' practice, with no specific strategy mentioned to reduce them.
Strong Q4 FY26 Outlook
Management is 'looking at a very exciting last quarter' (Q4 FY26) as clients typically exhaust most of their budgets during this season, expecting 'really good numbers'.
AI Integration Strategy
The company is ramping up by hiring AI-trained professionals and plans to use AI to expand its offerings, aiming to become a 'much more efficient and a much more swift agency'.
Shareholder Wealth Creation
Management states that 'increasing business and margins would automatically lead to shareholders benefiting' and it is their 'full effort to make sure that in the coming years, shareholders are happy'.
Mainboard Listing Consideration
The company will 'take a call on this when we come there' and are 'ready to qualify for it,' noting that rules may change in the next 6-7 months.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| AI Integration Impact | Hiring AI-trained professionals and investing in technology. | Tangible improvements in operational efficiency, cost reduction, and new revenue streams from AI adoption. |
| Government Business Growth | Specializing in government-backed businesses, expecting 20-25% annual growth. | Consistent year-on-year growth in revenue contribution from government and PSU clients, and successful tender acquisitions. |
| Events Segment Contribution | Events are a highly profitable segment, currently part of 20% mix with TV. | Progress towards the management's goal of achieving 25% of top line through events in FY27. |
| EBITDA Margin Improvement | Margins are lower than historical levels due to competition. | Evidence of margin expansion driven by technological shifts and a more profitable business mix, as anticipated by management. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
31Bearishfull bear SMA stack · SMA20 -1.6% / mo · MACD − · near 52W low
Technical chart
CRAYONSdaily · 1Y · AUTO-36.2%Daily technical trend read
Bearish setupTrend is weak — long-term trend down. RSI 42.
- Price < SMA20 < SMA50 < SMA200 — full bearish stack.
- SMA20 falling (~1.7% over last month) — short-term momentum negative.
- RSI(14) at 42 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 58% off 52W high · 6% 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 19 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 19 · 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
- Balance sheet contributes 10/15 to the score.
- Valuation contributes 11/30 to the score.
- Growth contributes 4/25 to the score.
Main drags
- Penalty bucket subtracts 7 points.
- Fair-value margin of safety is negative at -2195.8%.
- Quality is weaker at 0/20; verify the latest quarterly trend.
Blended valuation: PE, EV/EBITDA, FCF yield, and balance-sheet checks
For this sector, IndiaPulse uses a blended lens rather than relying on a single valuation ratio.
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.
Weak Trust: Claim history is still being built. It ranks around the 12th percentile of the scored universe and 20th percentile within Media. Main check: cash conversion is weak at 28/100.
Mixed Trust Lite: Promoter holding is 73.5%. Key concern: Operating cash flow is negative at ₹-5 Cr.
Management or financial behaviour needs caution. Demand stronger valuation compensation.
overall median 67 · Media: 20th pctile, median 62 · SME: 13th pctile, median 64
2 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
Weak 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 73.5%.
- ▸Promoter pledge is zero.
Trust risks
- ▸Operating cash flow is negative at ₹-5 Cr.
- ▸2 latest quarters had PAT decline worse than 25% YoY.
- ▸Only 1 years of positive FCF.
- ▸ROCE is low at 5.6%.
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
- 16.30
- P/B
- 0.51
- EV/EBITDA
- 7.53
- Market Cap
- 61.30Cr
Profitability
- ROE
- 3.16%
- ROCE
- 5.55%
- ROA
- 1.70%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 15.65%
- EPS 5Y
- -52.86%
- Revenue 3Y
- -46.00%
- EPS 3Y
- -46.00%
Balance Sheet
- Debt/Equity
- 0.12
- Interest Coverage
- 5.00×
- Altman Z
- 2.48
- Book Value
- 49.50
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 1/5
- OCF
- -5.00 Cr
- EPS TTM
- 1.54
Shareholding
- Promoter Hold
- 73.50%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 4%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in Media, ranked by similarity
Peers
Business-comparable names in Media, ranked by similarity
Peers
Business-comparable peers in Media — 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.