Creative Newtech has secured a major INR 3,195 crore contract from BSNL for the BharatNet project. Alongside this order win, the company reported strong H1 FY27 results, with PAT growing 35.49% to INR 39.47 crore. The firm is expanding its brand portfolio and nearing the acquisition of Infinova India, signaling a strategic shift toward higher-margin infrastructure and surveillance business.
Creative Newtech Wins 3,195 Crore BSNL Order; H1 Profit Rises 35%
Creative Newtech reported H1 FY27 Total Income of INR 1,231.65 crore with a net profit of INR 39.47 crore.
Reader Takeaway: Strong revenue visibility from a massive BSNL contract, though long-term margin stability remains linked to execution success.
What just happened
Creative Newtech has received an advance work order from BSNL for the BharatNet Middle Mile Network Project in Odisha. The contract is valued at approximately INR 3,194.83 crore, encompassing both capital and operational expenditure over a 3.5-year period. Simultaneously, the company posted a robust H1 performance, with EBITDA margins expanding significantly to 5.28% compared to 3.95% in the same period last year.
Why this matters
The BSNL order provides significant long-term revenue visibility, with management projecting contributions of INR 100-150 crore in the current fiscal, scaling up to INR 600 crore in the next. This pivot toward large-scale government infrastructure projects is expected to drive higher-value growth. Additionally, the company's brand business, notably the WOZOYO brand, is beginning to generate early sales, supporting the company's goal of reaching INR 2,400 crore in brand revenue by 2029.
The backstory
Creative Newtech has been actively optimizing its working capital and operational efficiency. Net working capital days improved to 45 days in H1, down from 75 days in FY26, largely due to successful vendor negotiations. The company is also in the final stages of acquiring Infinova India, a deal expected to close by November 15, 2026, to bolster its capabilities in high-end surveillance and smart city solutions.
Risks to watch
Execution risk is the primary concern, as the BSNL project requires massive mobilization and strict adherence to certification standards. Management has also warned that working capital cycles may normalize from the current 45-day level to 52-55 days. Furthermore, the company may consider raising equity capital if larger M&A opportunities emerge to support their aggressive expansion strategy.
What to track next
Investors should monitor the official closure of the Infinova acquisition, the pace of revenue booking for the BSNL BharatNet project, and the sustained growth trajectory of the WOZOYO brand sales.