1. At a Glance

Magellanic Cloud Ltd — a smallcap IT phoenix that rose from “South India Projects Ltd” ashes — has once again dropped a quarter that’s equal parts fascinating and hilarious. At ₹60.4 per share (as of Nov 4, 2025), the ₹3,532 crore market-cap company has all the quirks of a high-beta tech stock wrapped in a desi start-up’s swagger.

Let’s start with the spicy bits. Revenue for the quarter stood at ₹164 crore (up 4.54% QoQ) and PAT clocked in at ₹27.8 crore (up 14.4% QoQ). The OPM strutted in at 33%, showing that despite IT slowdown memes, this company knows how to squeeze its lemons. The full-year TTM profit is ₹107 crore — giving a P/E of 32.9x — a bit higher than industry average of 29.5x, but then, who said ambition was cheap?

With ROE at 22.2%, ROCE at 22.9%, and debt of ₹271 crore (Debt/Equity = 0.47), Magellanic Cloud isn’t shy of leveraging like an overconfident MBA grad. Promoters still hold 58.3%, though slightly shaved from 67% back in 2022 — perhaps some early profit-taking after that preferential issue at ₹290 per share.

But the star of this show? The drone and e-surveillance segment that’s quietly morphing this IT consultancy into India’s tech-police hybrid. ₹119 crore of railway surveillance orders, ₹31 crore ATM surveillance contracts, and even a fintech acquisition — because why not?

If this were a Netflix series, Season 2’s title would be:“Magellanic Cloud – The Rise of Drones, Deals & Debugging Drama.”

2. Introduction

Once upon a time, in 1981, “South India Projects Limited” wanted to build… well, projects. Fast forward four decades, and here we are: the same company, reborn asMagellanic Cloud Ltd, an IT player juggling DevOps, drones, and digital dreams across three continents — USA, Europe, and Asia.

It’s the corporate equivalent of a software developer who learned machine learning, then tried real estate, then became a surveillance tech guru — because apparently, in India, diversification is not a strategy, it’s a personality trait.

The name itself sounds cosmic — “Magellanic Cloud” — as if the founders wanted to remind investors that their ambitions are literally astronomical. Yet, the company’s transformation has been grounded in acquisitions: Motivity Labs and JNIT Technologies together account for 90% of the revenue pie, and the 2022 addition of IVIS International Pvt Ltd and Provigil Surveillance Ltd pulled them deep into security-tech territory.

Over time, Magellanic Cloud’s focus sharpened from “anything that sells” to “everything IT.” The food business divisions were dumped in 2022, because who needs snacks when you can sell surveillance?

And now, with ₹636 crore in trailing sales, 33% OPM, and 22% ROE, the company has positioned itself as a quirky hybrid — an IT consulting shop that also builds drone systems for governments. It’s Infosys meets DRDO, with an HR arm.

But is this strategy visionary or chaotic? Keep reading — because the numbers have more plot twists than a Saas-Bahu serial.

3. Business Model – WTF Do They Even Do?

So, what exactly does Magellanic Cloud do besides confusing retail investors on Twitter?

Think of it as an “IT and Surveillance Thali” — you get a bit of software, a spoonful of HR outsourcing, a dash of consulting, and a surprise drone in the dessert.

Human Capital– They run HR and staffing operations, helping clients hire talent. Basically, “Tech Naukri.com” with extra invoicing.

Consulting & DevOps– The serious side of business: IT modernization, cloud architecture, and software development for global clients.

Drone & E-Surveillance– The new kid on the block. Through subsidiaries like IVIS and Provigil, Magellanic is building CCTV and drone-based monitoring systems for Indian Railways, NHAI, and even toll plaza audits. The company’s FY25 and FY26 order wins from Western Railway (₹2.45 Cr), RVNL (₹85 Cr), and NHAI (₹32 Cr) suggest it’s doubling down on this segment.

Subsidiaries Doing the Heavy Lifting

• JNIT Technologies Inc. (USA)– contributes ~60% of consolidated revenues.
• Motivity Labs Inc. (USA)– brings ~30%.
• IVIS International Pvt Ltd– the surveillance tech baby acquired for ₹291 Cr.
• Provigil Surveillance Pvt Ltd– the ₹36 Cr add-on for camera & monitoring contracts.

So yes, this “cloud” company has more subsidiaries than a joint family wedding.

The business mix, in FY22, was 90% IT consulting and