1. At a Glance
Some companies run ads. Some run from SEBI. Brightcom Group Ltd decided to do both — and now it’s also building drones. Founded in 2010 asLycos Internet Ltd, the Hyderabad-based Ad-Tech survivor has turned into one of India’s most bizarrely diversified digital groups: part Google, part HAL, and part courtroom drama.
With amarket cap of ₹2,621 crore, astock price of ₹13, and aP/E of 3.24, it’s that rare Indian tech stock that’scheap but complicated. The firm posted aquarterly revenue of ₹1,644 croreandPAT of ₹233 crorefor Q2 FY26 — marking a solid26.2% jump in salesand25.1% jump in profits YoY.
But investors aren’t celebrating yet. Why? Because even withROE of 8.6%andzero debt, the share’s18.4% promoter holdingand past SEBI fraud allegations make it a masterclass in “mixed signals.”
While competitors chase AI in advertising, Brightcom went “full sci-fi” with itsBrightcom Defence Pvt Ltd, enteringAI-driven warfare systemsanddrone OS development. From “Programmatic Ads” to “Programmatic Airstrikes,” this pivot might be the wildest corporate plot twist since Vijay Mallya’s aviation dreams.
2. Introduction
Let’s start with the irony: a company that once tracked user clicks now wants to track enemy aircrafts.
Brightcom’s journey reads like a Netflix limited series —The Rise, Fall, and Rebrand of India’s Ad-Tech Phoenix. Once a global player under theLycosbanner, it owned online advertising platforms, served 50,000 publishers, and counted clients likeCoca-Cola, Toyota, and HBO. Then came the SEBI storm of 2023 — with allegations of₹1,280 crore accounting fraudanddodgy preferential allotments worth ₹836 crore.
Most firms would’ve gone silent after that. Brightcom? It went “defence-tech.”
In FY25, as its shares were suspended on the BSE for non-compliance, management coolly launchedTrenova— a London and Hong Kong-based Ad-Tech platform. Simultaneously, they unveiledBrightcom Defence Pvt Ltdin Hyderabad, signing MoUs withCQT Weapon Systems (USA)andProject DYNAMOto build AI warfare systems.
The company now claims to be “revolutionizing” both digital advertising and digital warfare. Somewhere between YouTube ads and missile guidance algorithms, Brightcom found its mojo.
Can a firm accused of cooking books successfully cook code for quantum AI drones? That’s the billion-rupee question.
3. Business Model – WTF Do They Even Do?
Short answer: everything digital. Long answer: everything that sounds futuristic enough to impress a PowerPoint.
Ad-Tech & Digital Marketing (91% of revenue)– This is the core. Brightcom runs campaigns invideo, mobile, display, CTV, and emailfor clients across 24 countries. It’s the “invisible layer” behind the ads you skip. Its proprietary platforms likeBrightcom,Onetag,Pangea, andVolomphandle programmatic buying and selling of ad inventory.
Software Development (9%)– Here they dive intoAI, machine learning, and IoT, building custom software for media analytics and monetization. Basically, this is where they justify the “tech” in Ad-Tech.
Defence & AI Warfare Systems (Launched FY26)– The wildcard entry. ThroughBrightcom Defence Pvt Ltd, the company plans to developAI operating systems for drones, autonomous battlefield software, and weapon integration tools. Partnered withCQT Weapon Systems (USA), they’re aiming for the $25 billion global AI-defence pie.
What’s next? An IPO for Brightcom Space Ltd, maybe? Because when you’re already in advertising, AI, defence, and quantum computing — space is just the next logical delusion.
4. Financials Overview
Quarterly Comparison (₹ crore)
| Metric | Latest Qtr (Sep’25) | YoY Qtr (Sep’24) | Prev Qtr (Jun’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 1,644 | 1,303 | 1,455 | +26.2% | +13.0% |
| EBITDA | 422 | 338 | 380 | +24.8% | +11.0% |
| PAT | 233 | 186 | 211 | +25.1% | +10.4% |
| EPS (₹) | 1.15 | 0.92 | 1.04 | +25.0% | +10.5% |
Annualized EPS:₹1.15 × 4 = ₹4.6 →P/E ~ 2.8xat CMP ₹13.But as every
seasoned investor knows:cheap can also mean “under investigation.”
Commentary:Brightcom’s Q2 FY26 numbers look like an ad campaign gone right — strong margins, healthy topline, and zero debt. But before you pop the champagne, remember thedebtor days: 278. That’s roughly nine months — the time it takes for a human to be born or for your ad invoice to be paid.
5. Valuation Discussion – Fair Value Range (Educational Purpose Only)
Let’s keep the math clean (and the disclaimers cleaner).
Method 1: P/E Method
EPS (FY26E): ₹4.6Industry Avg P/E: 34.1Given controversies, apply steep discount: 25–35%
Fair Value Range = ₹4.6 × (20x – 25x) = ₹92 – ₹115
Method 2: EV/EBITDA Method
EV = ₹1,393 Cr; EBITDA (TTM) = ₹1,485 CrEV/EBITDA =0.94x(absurdly low; likely market distrust)Industry Avg: 15xEven a 5x re-rating would yield EV = ₹7,425 Cr →Implied Share Price ~ ₹68–₹80
Method 3: DCF Snapshot (Educational Hypothesis)
Assume FCF turns positive by FY27 at ₹250 Cr with 8% growth, 12% WACC, and zero debt.
→ Fair Value Estimate: ₹55–₹85
🧾Educational Disclaimer:This fair value range (₹55–₹115) is foreducational purposes only. It does not constitute investment advice.
6. What’s Cooking – News, Triggers, Drama
If Brightcom were a TV show, it would be called“Ads, Allegations & Aerospace.”
- Aug 2025:LaunchesBrightcom Defence Pvt Ltd, aiming to build AI-driven drone OS. Investors blink twice.
- Sep 2025:Signs MoU withCQT Weapon Systems(USA). LinkedIn rejoices, SEBI sighs.
- Oct 2025:Announces collaboration withProject DYNAMO, a defense think-tank, and centralizes subsidiary funds.
- Nov 2025:Partners withDailymotion Advertisingto boost global video monetization for the holiday season.
- Trading Suspension Saga:BSE suspended trading in Dec 2024 for non-compliance; company claims it’ll be revoked “by January.” (Which January, though, remains unspecified.)
Drama Rating: 10/10.Execution Risk:
