Buy C. E. Info Systems Ltd For Target Rs. 2,620 By JM Financial Services
MapMyIndia (MMI) reported robust performance across key financial and operating metrics. Revenues grew 34% YoY, ahead of JMFe: 28%. Underlying construct was even better. Mapled revenues – which are predictable and of higher margin - grew 62% YoY, highest since this metric is being disclosed. It more than offset the decline in IoT-led revenues (-30% YoY). Better mix, operating leverage and calibrated B2C spend flowed into margins, driving 350bps YoY margin expansion (JMFe: 50bps). FY25’s order inflows – a metric disclosed only annually - were healthy at 1.36x book-to-bill. Importantly, FY25-end order backlog of INR 15bn (with 3-4 years tenure; down from 3-5% at FY24-end) lends visibility. Unsurprisingly, management reiterated their aspiration to reach INR 10bn revenue by FY28, implying c.30% CAGR. As we expounded in Location Intelligence’s Cambrian explosion, use cases are proliferating. MMI’s expansion in adjacent areas – Defense Technologies, Digital Twin, HD Maps for Auto OEMs to name a few – position it well to capture the burgeoning market opportunity. Decision to retain Rohan and to cancel plan of a separate B2C entity should allay investor concerns around succession planning and RPT. We therefore raise our target PER multiple to 50x (from 40x) – at 1.5x PEG. We reiterate BUY with a revised TP of INR 2,620, implying 34% upside.
* 4QFY25 – Strong all round performance: MMI reported revenue of INR 1,436mn (+34% YoY), 5% ahead of JMFe. Map-led revenue grew 62% YoY (JMFe: 35%) while IoT-led revenue declined 11% YoY (JMFe: 30%). Among markets, A&M grew 7.2% YoY while C&E grew 60% due to seasonality and lumpiness. EBITDA margin expanded 350bps YoY to 40.4% (vs JMFe: 37.5%) due to better mix and operating leverage. Segmental EBITDA margin for IoT segment increased to 19% (17% in 4Q24) due to higher share of SaaS revenues (+12 ppt YoY). Map-led margins declined 100bps YoY to 48%. Higher other income was offset by higher tax and losses in Hyundai Autoever JV. As a result, PAT grew 28% YoY to INR 490mn, 21% ahead of JMFe.
* Outlook - Intact: MMI won INR 6.33bn new orders in FY25, at a book-to-bill of 1.36x. While this was below FY24’s (INR 8.33bn) due to Hyundai-Kia deal (INR 4bn) in the base, there were two differences. One, 66% of order wins were fixed-price, implying more predictable revenue conversion. Two, the order-to-revenue conversion timeline came down to 3-4 years (from 3-5 years in FY24). This implies c.25% growth in annual order executable (at mid-point of tenure), despite only 10% increase in order-backlog. Besides, FY26 should see full year impact of Hyundai-Kia contribution. MMI also started recognising revenues from Indonesia market, which could accelerate in FY26. Increased focus on government business (20% of rev.), including Defense Technologies, should lend consistency. MMI reiterated its aspiration to reach INR 10bn revenue by FY28. Focus on SaaS (in IOT-led) and calibrated spend on B2C investment should help sustain margins.
* Minimal changes to EPS; Maintain BUY: Our revenue estimates are largely unchanged as higher map-led revenues is offset by lower IoT-led, driving 40-80bps higher margins. EPS changes are however minimal as we build losses in Hyundai Autoever JV. But better order backlog and revenue-mix (hence margins) improve visibility to our 38% EPS CAGR. BUY.
Key Highlights from the call
* Demand: The company reported broad-based growth across both map-led and IoT-led segments, with continued traction in automotive, corporate, and government verticals. They mentioned that Consumer & Enterprise revenue grew 30% year-on-year, supported by robust upselling and cross-selling to both new and existing clients. They also highlighted that automotive license additions were driven by increased penetration across leading two-wheeler OEMs and early momentum from international markets. It was reported that IoT revenue saw meaningful shift towards SaaS, reflecting a strategic move away from hardware-centric engagements. Management reiterated strong funnel activity across enterprise segments, particularly for mobility and logistics use cases.
* Outlook: The company reaffirmed confidence in achieving its FY28 milestone of INR 10bn revenue, underpinned by INR 15bn open order book and growing international opportunities. Management expects contributions from Southeast Asia to ramp up meaningfully by the end of FY26, following initial revenue recognition and the business development phase of the JV. While acknowledging some quarterly lumpiness— particularly in government contracts—leadership emphasized the structural strength of long-cycle fixed-price orders and the diversified nature of customer wins across sectors.
* Margin: EBITDA margins stood at 40% in Q4, with map-led margins at 47%. Management reported that IoT-led business saw a margin improvement from 12% to 14%, aided by higher SaaS contribution. They highlighted that margins may fluctuate in the short term due to upfront investments in subsidiaries focused on government and IoT businesses. Leadership mentioned that ~INR 800mn has been earmarked for deployment toward these areas. They reiterated EBITDA margin guidance in the 35–40% range.
* AutoEver JV: The company highlighted progress on its international automotive expansion through its JV with Hyundai AutoEver. They noted that initial revenues have started to flow from the Southeast Asia market. Despite near-term financial impact, the company expressed strong optimism about the region’s long-term potential, positioning Southeast Asia as a market opportunity comparable in scale to India. The company expects the JV to gain operational momentum by the end of FY26, with management confident that this initiative will materially contribute to revenue growth over the coming years. ? Government Business: The government segment contributed approximately 20% to both revenue and new order inflows in FY25, with management indicating strong year-on-year growth in the 40–50% range. The company emphasized its differentiated positioning versus peers by offering proprietary products, platforms, APIs, and full-stack solutions, enabling wide applicability across central, state, and local government bodies. Management highlighted that to scale this vertical, a dedicated subsidiary—Mappls DT— has been established, focusing on digital transformation, digital twin, and defence technologies.
* IoT Business: Management highlighted a notable shift in IoT revenue composition toward SaaS, which now contributes over 50% of segment revenue compared to less than 40% in the previous year. Management attributed this improvement to a deliberate strategy of prioritizing recurring SaaS income over hardware sales, as reflected in the decline in new IoT device deployments from 2.9 lakh in FY24 to 2.1 lakh in FY25. The business is now being overseen through a dedicated subsidiary, G2P Systems, aimed at enhancing delivery and execution capabilities in mobility and logistics SaaS.
* Defence Opportunity: The company outlined defence as a key strategic pillar within its newly established subsidiary, Mappls DT, emphasizing its relevance across land, air, and sea domains. Management highlighted prior deployments for various arms of the Indian defence ecosystem, including navigation, tracking, geospatial analytics, and digital twin technologies tailored for command centers and field operations. The company is also engaged in AI-driven solutions for emergency response and law enforcement, with several use cases already generating revenue. Leadership noted that drones represent an important, but not exclusive, area of focus, and reiterated that MapmyIndia’s indigenous, AI-first and digital transformation-centric platforms position it as a credible partner for future defence modernization initiatives.
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