Workmates Core2Cloud Reports 34% Revenue Growth in FY26

Revenue: Rs 143.82 crore | Profit After Tax: Rs 15.92 crore

Reader Takeaway: Strong recurring revenue and high client retention drive growth, despite talent costs and hyperscaler dependency risks.

What just happened

Workmates Core2Cloud Solution Ltd, in its first full year since its BSE SME listing, reported a consolidated revenue of Rs 143.82 crore for FY26, marking a 33.6% increase over the previous year. EBITDA grew to Rs 23.32 crore from Rs 19.06 crore, while net profit climbed to Rs 15.92 crore. The company declared a 20% dividend of Rs 2 per share, paid in June 2026.

Why this matters

The company’s performance highlights the robustness of its business model, which relies on a 95% customer retention rate. Recurring revenue now accounts for 82.5% of total income, providing a stable foundation for the Rs 159 crore revenue visibility heading into FY27. Operational efficiency also saw gains, with billable utilization reaching 84%.

Strategic Outlook

Management is prioritizing expansion into the SME digital economy and international markets like Singapore, while strategically pausing entries into the UK and US markets. The firm is heavily focusing on cloud, cybersecurity, and AI capabilities to sustain its growth momentum. Proposed remuneration hikes for the MD and CFO reflect long-term commitment to leadership stability.

Risks to watch

• Dependency on Amazon Web Services (AWS) partner programs remains a key structural risk.
• High competition for specialized AI and cloud architecture talent may pressure future margins and project timelines.
• Investments in high-end skill development could weigh on profitability in the short term.

What to track next

Watch for the shareholder vote on the proposed remuneration revisions and the company's ability to maintain its double-digit revenue growth target in a volatile talent market.