Concall transcriptAug 2026
Aug 2026 · Transcript
Source: Nse
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.
₹306
+0.85 · +0.28%
Market cap ₹403 Cr
Data qualityFresh enough for analysisQuote updated 19 Oct, 03:31 pm ISTDetails
Quote19 Oct, 03:31 pm IST
Base fundamentals16 Oct 2026 · screener
Latest result16 Aug, 12:41 am IST
Score20 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
87Strong Bullfull bull SMA stack · SMA20 +10.9% / mo · RSI overbought · MACD + · near 52W high · sector +14.5pp vs Nifty 500 (3M)
Stock trend: 78
Sector RS: 100
Sector 3M: +8.9% vs Nifty 500 -5.6%
IT FPI tailwindNot confirmed
Latest mapped FPI equity flow was not positive. View sector evidence
Technical chart
ESCONETD candles · FIT view+137.3%Latest close ₹306.00 on 2026-10-19
Bar
-3.5%
RSI
75
MACD hist
6.54
52W pos
95%
2026-10-19O ₹317.00H ₹317.00L ₹290.50C ₹306.00Vol 32,000 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
ESCONETNifty ITNifty 500
- ESCONET
- +131.9%
- Nifty 500
- -5.6%
- Nifty IT
- +8.1%
- Vs Nifty 500
- +137.5 pp
Chart stats
19 Oct 2026- From 52W high
- -3.5%
- 52W range position
- 95%
- ATR (14)
- 5.4%
- Volume vs 20D
- 0.88x
- Avg traded value
- ₹0.9 Cr
- 20D price channel
- ₹195.7 - ₹317
₹317
₹91.3 - ₹317
₹16.6
Latest completed session
20-session average
59.3% annualized volatility
Research snapshot
What the evidence says now
Weak fundamentals, while price trend supports entry. This looks more like momentum/speculation than a clean fundamental investment setup.
Weak U-Score but strong trend: momentum may be ahead of fundamentals.
Suggested next step
Check latest quarters
Result consistency is weak; verify whether the thesis is improving or deteriorating.
U-Score
Legacy · OVERVALUED21
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
Latest result
Pending data—
Revenue NDF · PAT NDF YoY
Technical
Strong Bull87
Price trend and sector-relative-strength timing.
Valuation
Legacy model-104.1%
Legacy margin-of-safety estimate; the revised evidence label remains in shadow validation.
Trust
Limited evidence59
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 30 Jun 2026
Pending dataYoY comparison unavailable - result verdict pending data
Filed 30 Jun 2026
Open results browser →| 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.
Fundamentals
Valuation
- P/E
- 66.80
- P/B
- 5.02
- EV/EBITDA
- 37.82
- Market Cap
- 403.00Cr
Profitability
- ROE
- 8.03%
- ROCE
- 11.80%
- ROA
- 3.85%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 55.03%
- EPS 5Y
- 25.99%
- Revenue 3Y
- 55.00%
- EPS 3Y
- 28.00%
Balance Sheet
- Debt/Equity
- 0.16
- Interest Coverage
- 9.00×
- Altman Z
- 6.43
- Book Value
- 60.80
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 0/5
- OCF
- -9.00 Cr
- EPS TTM
- 4.67
Shareholding
- Promoter Hold
- 59.15%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 100%
Financial History
Updated 20/10/2026
Revenue
₹ CrLatest: 354+53.9% vs prev
Net Profit
₹ CrLatest: 6.0-25.0% vs prev
Return on Equity
%Latest: 7.5-34.4% vs prev
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
Bullish setupTrend is constructive — long-term uptrend intact. RSI 75.
- Price > SMA20 > SMA50 > SMA200 — full bullish stack.
- SMA20 rising (~9.9% over last month) — short-term momentum positive.
- RSI(14) at 75 — overbought zone; risk of mean reversion.
- MACD above signal, histogram expanding — bullish momentum building.
- 3% off 52W high · 235% 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
95
RS percentile
Stage 2 UptrendEstablished S2
1M return
+42.7%
3M return
+131.9%
6M return
+121.7%
1Y return
+30.4%
RS 1D
0
RS 20D
+11
Sector rank
#8
Industry rank
#39
Stage evidence
- Price is 94.8% above the 30-week proxy.
- The 50-DMA is above the 30-week proxy and its slope is rising +11.6%.
- Both 3-month and 6-month returns are positive.
50-DMA
price above
200-DMA
price above
S2 entered
13 Aug 2026
S2 age
46 trading sessions
Sector
improving
Industry
improving
Relative-strength line vs Nifty 500 (base 100)
262 observations
19 Oct 2026Value 124.98+1.32%
RS vs Nifty 500125
Valuation & peers
U-Score 21 · legacy U-Score band OVERVALUED · valuation evidence and comparable companies
Valuation & peers
U-Score 21 · legacy U-Score band OVERVALUED · valuation evidence and comparable companies
OVERVALUED
Fundamental score breakdown
U band · OVERVALUEDValuation0/30
Growth13/25
Quality0/20
Balance Sheet9/15
Cash Flow0/10
Piotroski
5/9 (+3)
Penalties
-4
Raw sum
21
Why this score?
Top U-Score contributors and drags from the latest stored fundamentals.
21/100 · legacy band OVERVALUED
Positive drivers
- Balance sheet contributes 9/15 to the score.
- Growth contributes 13/25 to the score.
- Valuation contributes 0/30 to the score.
Main drags
- Penalty bucket subtracts 4 points.
- Fair-value margin of safety is negative at -104.1%.
- Valuation is weaker at 0/30; verify the latest quarterly trend.
Sector valuation model
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.
Primary lens
PE, EV/EBITDA, margin of safety, and FCF yield together.
Secondary checks
ROE/ROCE, growth, cash conversion, leverage, promoter risk.
Main risk check
One cheap metric is not enough if quality or cash flow is weak.
PE
66.8
PB
5.0
EV/EBITDA
37.8
ROE
8.0%
ROCE
11.8%
FCF Yield
—
Debt/Equity
0.2
MoS
-104.1%
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: 20 Oct 2026
v4.3-runtime-valuation
Final score
21
Previous: 21
Legacy U-Score band
OVERVALUED
Previous: OVERVALUED
Margin of safety
-104.1%
Previous: -107.5%
Score history
12 stored score snapshots. Latest stored move: +0 points.
20 Oct 2026
v4.3-runtime-valuation
24
24
24
24
24
24
24
21
21
21
21
21
Factor attribution
No pillar movement versus the latest stored run. Historical score trend will appear after snapshot storage is enabled.
Modelled fair value
Graham Number
₹79.93
-282.8% MoS
Growth-justified P/E
32.1
Growth-justified Value
₹149.91
-104.1% MoS
PEG
2.49
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
KORE
SME
Jay Jalaram Technologies Ltd.
IT Services / Digital
match 129
35
33.3
13.7%
-11%
WATCHLIST
ARHAM
SME
Arham Technologies Ltd.
IT Services / Digital
match 129
40
36.9
18.8%
-12%
WATCHLIST
TECHD
SME
TechD Cybersecurity Ltd.
IT Services / Digital
match 129
56
29.4
29.9%
+16%
FAIR VALUE
APEXECO
SME
Apex Ecotech Ltd.
IT Services / Digital
match 127
60
19.6
31.1%
+38%
UNDERVALUED
OPTIVALUE
SME
Optivalue Tek Consulting Ltd.
IT Services / Digital
match 127
49
37.2
22.2%
-16%
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 2026-08-16T07:47:53.015Z
Management commentary snapshot
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.
Growth engines
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.
Capacity and execution
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.
Tailwinds
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.
Headwinds
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.
Risk radar
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
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Analyst reading lens
Compare BOTH
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.
Sector KPIs management disclosed
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.
Management forward view
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.
Thesis monitor
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.
Trust Score
59Limited 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 25th percentile of the scored universe and 22nd percentile within IT. Main check: cash conversion is weak at 28/100.
This is a financial-behaviour screen, not a claim-tested management reliability verdict.
Computed 05 Sept 2026
management-trust-v1
7 docs text-extracted · 1 concalls text-extracted
Score band
Limited evidence
Financial behaviour is scored, but management claims do not yet have enough outcome checks.
Relative rank
25th percentile
overall median 67 · IT: 22nd pctile, median 69 · SME: 27th pctile, median 64
Evidence depth
Financial-only
7 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
Needs extra due diligence; demand valuation comfort and recent improvement.
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
86
strong · holding, pledge, alignment
Cash flow
28
weak · profit to cash conversion
Balance sheet
89
strong · leverage and solvency
Discipline
50
watch · capital discipline
Results
48
watch · quarterly consistency
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.
Continue researching Esconet Technologies Ltd.
Important announcements & filings
Latest exchange and company disclosures found within the past two years.
Open source ↗
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All information is for study purposes only. For investment decisions, consult your financial advisor. See Playbook for methodology.