Purple Wave Infocom has signed a five-year Digital Screens-as-a-Service (DSaaS) agreement with Vexto Commercials for the Neo Square project in Gurugram. The contract, valued at Rs 4.50 crore, includes the installation and maintenance of LED displays, vending kiosks, and cloud-based management systems. This deal marks a shift toward recurring-revenue models in the company's Pro AV segment, featuring a 10% annual price escalation. Investors should watch for the execution of this long-term service contract.
Purple Wave Infocom Bags Rs 4.5 Crore Digital Infrastructure Contract
Base Contract Value: Rs 4.50 crore; 5-Year tenure with 10% annual escalation.
Reader Takeaway: The deal secures long-term recurring revenue for Purple Wave, but operational costs remain a key monitoring point.
What just happened
Purple Wave Infocom Limited has entered into a significant Digital Screens-as-a-Service (DSaaS) agreement with Vexto Commercials Pvt. Ltd. The deal, valued at Rs 4.50 crore (inclusive of GST), spans five years and focuses on the Neo Square project in Sector 109, Gurugram. The company will manage the supply, installation, and ongoing maintenance of integrated technology systems.
Scope of the Agreement
The project involves a comprehensive technology rollout, including indoor and outdoor LED display screens, lobby displays, and digital automated vending kiosks. Furthermore, the company will deploy Hygi Air systems and cloud-based content management software. Purple Wave is responsible for the full lifecycle of these assets, providing technical support, preventive maintenance, and remote monitoring for the duration of the contract.
Why this matters
This engagement is a strategic win as it shifts the company’s business model toward recurring service revenue in the Professional Audio-Visual (Pro AV) space. With a 10% annual escalation clause and monthly service charges of Rs 7.50 lakh, the deal provides predictable cash flow. Management, led by CMD Manoj Kumar Singh, noted that this aligns with their strategy of catering to modern commercial spaces with integrated technology solutions.
Risks to watch
While the contract provides a steady revenue stream, shareholders should track the company’s ability to manage maintenance costs effectively over the five-year term. Execution delays in the Gurugram project could also impact projected timelines for service revenue recognition.
What to track next
Watch for further expansion into similar DSaaS models and potential project pipeline updates in upcoming quarterly reports.