IT stock with 35% EBITDA margin guidance for FY26 to keep an eye on

Synopsis: Shares of this tech stock came into focus after Q3FY26, with YoY and QoQ declines in sales and EBITDA. Despite this, management remains confident of achieving FY26 EBITDA margin guidance of 35%, backed by a strong order book and growth in IoT and Automotive segments.

The shares of the company are engaged in a data and technology products and platforms company, offering proprietary digital maps as a service (“MaaS”), software as a service (“SaaS”), and platform as a service (“PaaS”) are in the spotlight after it fell by 6.5 percent in yesterday’s session following Q3 results but the management reiterated that the full-year EBIDTA margin guidance of 35% is intact. 

With a market capitalisation of Rs. 6,290 cr, the shares of CE Info Systems Ltd were trading at Rs. 1,149 per share, down from its previous close of Rs. 1,152.50 per share. 

The stock posted a negative return of 30% over the past year. Year-to-date, it has declined by 33%, dropped 35% over the last six months, and fell 19% in the past month.

Q3 Results 

• Quarter-on-Quarter (QoQ) Performance: C.E. Info System’s quarterly performance shows a modest decline in key metrics. Sales fell from Rs. 114 cr in Q2FY26 to Rs. 93.7 cr in Q3FY26, marking a 18% decrease. EBITDA dropped from Rs. 26.4 cr to Rs. 24.6 cr, a 7% decline, while net profit edged slightly higher from Rs. 18.5 cr to Rs. 18.8 cr, reflecting a 2% increase. Earnings per share (EPS) also rose slightly to Rs. 3.43 from Rs. 3.38, up 1% QoQ.
• Year-on-Year (YoY) Performance: On a yearly basis, the company faced significant declines. Sales decreased from Rs. 115 cr in Q3FY25 to Rs. 93.7 cr in Q3FY26, a 18.5% drop. EBITDA fell sharply by 41%, from Rs. 41.4 cr to Rs. 24.6 cr. Net profit was down 42%, falling from Rs. 32.3 cr to Rs. 18.8 cr, and EPS decreased from Rs. 5.96 to Rs. 3.43, a 42% decline YoY, reflecting the overall pressure on profitability.

Management Commentary

The management stated that the quarter was weak financially due to seasonality and deferred deliveries at customers’ request. Significant investments were made in developing IPs in Navigation Software and HD Maps. 

Despite this, the company secured major wins across all business sectors, with several projects in the pipeline expected to be completed in Q4FY26. Management reiterated that the full-year EBIDTA margin guidance of 35% remains intact and expects stronger revenue growth in Q4FY26 compared to Q4FY25. Additionally, the implementation of basic Labor Code rules in FY23 had no financial impact, as confirmed by the statutory auditors, so no provisions were required.

Order Book 

The company’s open order book grew to Rs. 1,770.7 cr as of 31st December 2025, up from Rs. 1,500 cr on 31st March 2025, providing clear long-term revenue visibility. 

Segment Results 

• Map-led Business: Revenue from operations fell from Rs. 87.2 cr in Q3FY25 to Rs. 51.0 cr in Q3FY26, a 41.5% decline. EBITDA decreased from Rs. 39.4 cr to Rs. 21.4 cr, down 46%, with the EBITDA margin slightly lower at 41.9% versus 45.2% last year. 
• IoT-led Business: Revenue grew strongly from Rs. 27.3 cr in Q3FY25 to Rs. 42.7 cr in Q3FY26, up 56%. EBITDA more than doubled from Rs. 2.4 cr to Rs. 5.3 cr, and EBITDA margin improved to 12.4% from 8.8%. Hardware sales rose from Rs. 12.1 cr to Rs. 15.0 cr, while IoT map data & services jumped from Rs. 15.2 cr to Rs. 27.6 cr, reflecting robust segment growth.

A&M (Automotive & Mobility Tech) business

The Automotive & Mobility (A&M) business reported a 12% YoY growth in Q3FY26. Key highlights include new passenger vehicle programs and renewals with major 4W and 2W OEMs in India, such as the XUV700 facelift, XEV9S, Tata Sierra, and Simple Energy. 

Innovations include 3D building maps and navigation for 1,000+ cities. IoT-led wins span ride-hailing fleets, bus operators, logistics, cement, chemical, and cash van businesses, improving safety and efficiency. Additionally, Delhi Metro Rail Corporation signed an MoU with Mappls MapmyIndia to integrate metro data for enhanced commuter convenience.

C&E (Consumer Tech & Enterprise Digital Transformation) business

The Consumer Tech & Enterprise (C&E) business reported a 6% YoY decline in revenue for 9MFY26 due to deferred deliveries, though the project pipeline remains strong, with expectations of stronger growth in Q4FY26. 

Key corporate go-lives include order tracking for a major e-commerce platform, territory management in Indonesia, and geo-analytics for large fintech, cement, and FMCG companies. 

New corporate wins include workforce automation for banks/NBFCs, site selection for a QSR major, and an address picker for luxury e-commerce. Government highlights include IOCL for centralised vehicle tracking, Survey of India, DRDO-ADE, and CPCB’s citizen app for real-time AQI and complaint management, along with environmental impact assessment empanelment with MECON.

About the company 

C.E. Info Systems Ltd (MapmyIndia) is a leading Indian deep-tech company offering digital maps, geospatial software, and location-based IoT products. It provides MaaS, SaaS, and PaaS solutions to tech firms, automotive OEMs, government bodies, developers, and consumers under the Mappls MapmyIndia brand.

The top non-promoter shareholders of the company include PhonePe Private Limited holding 13.7% of shares, followed by Zenrin Co Ltd and Tata Mutual Fund – Tata Small Cap Fund with 3.4%. Other significant institutional investors include Franklin India Opportunities Fund at 2.2% and ICICI Prudential Technology Fund holding 1.8% of the company’s shares.

In conclusion, despite a weak Q3FY26 marked by YoY and QoQ declines in sales and EBITDA,  the company’s management remains confident of achieving its full-year EBITDA margin guidance of 35%, supported by a strong Rs. 1,770 crore order book, robust IoT and Automotive segment growth and a healthy pipeline of projects expected to boost Q4FY26 performance.

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