Esconet Technologies Ltd. (ESCONET)
SME CapIT stocks · SME cap · NSE
Esconet Technologies is an Indian IT company offering a 'Sovereign Stack' of compute (HexaData), cloud (ZeaCloud), cybersecurity (Fluidech), and systems integration (Esconet core). It serves domestic and international markets via Esconet Singapore, focusing on Made-in-India solutions for critical IT infrastructure.
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, while price trend supports entry. This looks more like momentum/speculation than a clean fundamental investment setup.
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 30 Jun 2026
Average · 30/100YoY data unavailable — classification deferred
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹116.3 Cr | NDF | NDF |
| EBITDA | ₹8.2 Cr | NDF | +17.0% |
| Operating margin | 7.0% | NDF | +404 bps |
| PAT | ₹6.5 Cr | NDF | NDF |
| PAT margin | 5.6% | NDF | +320 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
FY26 consolidated total income grew 53.4% YoY to ₹357.84 Cr. H2 saw a strong recovery with EBITDA up 183% and PAT up 262% over H1, despite full-year profit decline driven by H1 component cost inflation and deliberate growth investments.
The thesis remains intact as the reported full-year profit decline was primarily an H1 event, attributed to component cost inflation and strategic investments. The strong H2 recovery in EBITDA and PAT, coupled with the repayment of a working capital loan, indicates a healthier operational run-rate and validates management's explanation for the H1 dip.
ZeaCloud MeitY Empanelment
Targeted for FY27, expected to unlock government and public-sector data hosting, setting up a 2 to 3 year hyper-growth runway.
NVIDIA Elite Partner Status
Highest NPN tier in Compute, conferring privileged allocation of scarce GPUs for HexaData, a structural moat.
International Expansion
Esconet Singapore was profitable in its first year, serving as a base to extend HexaData, ZeaCloud, and Fluidech abroad.
AI Infrastructure Demand
Surging demand for GPU and HPC compute, aligned with HexaData's offerings.
Capex into Delivery Capability
Property, plant and equipment increased from ₹4.75 Cr to ₹9.89 Cr, reflecting investment in delivery capability.
Fluidech Team Build-out
Deliberate investment in team build-out for the cybersecurity business in FY26, with a planned ~₹0.67 Cr loss.
AI Infrastructure Demand
Surging demand for GPU and HPC compute, directly benefiting HexaData's offerings.
Data Localisation Mandates
Sovereignty mandates favor Indian platforms like ZeaCloud, built for data-residency and compliance.
Cybersecurity & Compliance
Rising enterprise security spending, aligning with Fluidech's full security practice and NCIIPC accreditation.
Government Digitisation
Public-sector cloud and modernisation initiatives create opportunities for ZeaCloud and Esconet's integration services.
Component-Cost Inflation
Dominant driver for profit dip, causing gross margin to fall from ~15.2% to ~13.2% as purchases rose 58% vs revenue 54%.
Working-Capital Bridge
A short-term loan was taken to cover a delayed enterprise receivable, leading to non-recurring finance costs, though fully repaid in April 2026.
Component Cost Volatility
Component-cost inflation significantly impacted gross margins in FY26, with some components rising over 100%.
Working Capital Management
A delayed enterprise receivable necessitated a short-term loan, highlighting potential working capital pressures, though the loan was repaid.
Execution of Growth Investments
Fluidech's planned ~₹0.67 Cr loss in FY26 for team build-out requires successful revenue ramp-up in FY27 to achieve breakeven.
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.
While full-year YoY shows strong revenue growth, the H1 vs H2 comparison is crucial to understand the profit recovery and impact of one-time factors and investments, indicating a materially healthier run-rate exiting FY26.
Consolidated Total Income
₹357.84 Cr, ▲ 53.4% YoY
Consolidated EBITDA
₹12.25 Cr; H2 EBITDA ▲ 183% over H1
Consolidated PAT
₹6.16 Cr; H2 PAT ▲ 262% over H1
Gross Margin
Declined from ~15.2% to ~13.2% due to component-cost inflation.
Improve Esconet's Bottom Line
Priority is to improve the bottom line ahead of the top line, focusing on margin discipline at the profitable core.
Turn Around Fluidech
Aim to turn around the cybersecurity business by ramping team size and revenue toward breakeven in FY27.
Secure ZeaCloud MeitY Empanelment
Key priority to secure MeitY empanelment to host government data, expected to ignite a 2 to 3 year hyper-growth runway.
Robust Pipeline & Growth Outlook
Management sees good growth across all four verticals in FY26-27, with a robust pipeline, but is not committing growth numbers.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| ZeaCloud MeitY Empanelment | Targeted for FY27. | Official announcement of MeitY empanelment and subsequent contract wins. |
| Fluidech Profitability | Planned ~₹0.67 Cr loss in FY26. | Progress towards breakeven and positive EBITDA in FY27 as team and revenue ramp up. |
| Esconet Core Margin Discipline | Gross margin ~13.2% in FY26. | Improvement in gross and operating margins, indicating successful bottom-line focus. |
| Quarterly Financial Disclosures | Will report quarterly from FY2026-27. | Timely and consistent quarterly reporting, providing more frequent operational insights. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
69Bullishfull bull SMA stack · SMA20 +50.0% / mo · RSI overbought · MACD +
Technical chart
ESCONETdaily · 1Y · AUTO+96.1%Daily technical trend read
Bullish setupTrend is constructive — long-term uptrend intact. RSI 71.
- Price > SMA20 > SMA50 > SMA200 — full bullish stack.
- SMA20 rising (~33.3% over last month) — short-term momentum positive.
- RSI(14) at 71 — overbought zone; risk of mean reversion.
- MACD above signal, histogram expanding — bullish momentum building.
- 15% off 52W high · 161% 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 24 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 24 · 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.
- Growth contributes 14/25 to the score.
- Valuation contributes 0/30 to the score.
Main drags
- Penalty bucket subtracts 3 points.
- Fair-value margin of safety is negative at -51.0%.
- Valuation is weaker at 0/30; 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: -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 25th percentile of the scored universe and 22nd percentile within IT. Main check: cash conversion is weak at 28/100.
Mixed Trust Lite: Promoter holding is 60.2%. Key concern: Operating cash flow is negative at ₹-9 Cr.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · IT: 22nd pctile, median 69 · SME: 27th 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 holding is 60.2%.
- ▸Promoter pledge is zero.
Trust risks
- ▸Operating cash flow is negative at ₹-9 Cr.
- ▸Only 0 years of positive FCF.
- ▸ROCE trend is -9%.
- ▸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
- 51.10
- P/B
- 3.93
- EV/EBITDA
- 29.82
- Market Cap
- 315.00Cr
Profitability
- ROE
- 8.20%
- ROCE
- 12.00%
- ROA
- 4.58%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 55.03%
- EPS 5Y
- 25.99%
- Revenue 3Y
- 55.00%
- EPS 3Y
- 29.00%
Balance Sheet
- Debt/Equity
- 0.16
- Interest Coverage
- 9.00×
- Altman Z
- 7.57
- Book Value
- 60.80
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 0/5
- OCF
- -9.00 Cr
- EPS TTM
- 4.67
Shareholding
- Promoter Hold
- 60.19%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 78%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in IT, ranked by similarity
Peers
Business-comparable names in IT, ranked by similarity
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.