Colab Platforms Ltd: From Leasing Boring Assets to Leasing Cloud Dreams
1. At a Glance
Colab Platforms (ex-JSG Leasing) has pulled the ultimate Bollywood transformation – from a finance NBFC-style snoozefest into a “cloud and esports” play. Market cap ₹1,589 Cr, revenue ₹69 Cr, PAT ₹2.9 Cr, and a P/E of 556x. Yes, you read that right. This isn’t a valuation; it’s an April Fool’s prank.
2. Introduction
Once upon a time, in 1989, this company lent out money and did leasing. Nobody cared. Then in 2022, promoters changed, name changed, auditors changed – basically, Colab went into witness protection and re-emerged as “Colab Cloud Platforms.” Now, it deals in computer hardware/software, dabbling in securities trading, and most recently – esports and online gaming alignment with Government policy.
Investors? They’re loving the story. Stock is up 858% in 1 year. Somewhere, Nykaa and Zomato are clapping in admiration. But let’s not forget – profits are ₹2.8 Cr, book value ₹1.2/share, CMP ₹78. Which means investors are paying 65x book for a company that till yesterday was doing job work on computers. This is like paying Taj Hotel rates for a dhaba that just repainted its board.
3. Business Model (WTF Do They Even Do?)
Colab Platforms has the business model equivalent of a teenager’s CV – random internships, buzzwords, and nothing consistent.
IT Hardware & Software Processing (core): Job-work contracts, system assembly, basic IT services.
Securities Trading: Yes, they also trade in shares & securities. When IT is boring, they play Dalal Street.
Interest Income: Still some old NBFC-flavour – FY22 saw 26% revenue from interest.
Esports / Gaming (new flavour): In Aug’25, announced alignment with Govt’s esports vision. Basically – slapping “gaming” onto the name for hype.
Revenue mix in FY22: Services ~67%, Interest ~26%, Other Income ~7%. By FY25, services ballooned thanks to some ₹69 Cr turnover. Whether this is sustainable or one-time – that’s the mystery.
4. Financials Overview
Q1 FY26 Results (₹ in Cr)
Metric
Latest Qtr (Jun’25)
YoY Qtr (Jun’24)
Prev Qtr (Mar’25)
YoY %
QoQ %
Revenue
21.8
11.2
20.4
+95%
+6.6%
EBITDA
-0.06
0.45
1.19
Loss
Down
PAT
1.20
0.45
0.95
+167%
+26%
EPS (₹)
0.06
0.02
0.05
—
—
Commentary: Revenues doubled YoY, PAT also grew. But margins are microscopic (3.1% OPM). Market is valuing this as if it were Infosys 2.0, but numbers look more like a small IT reseller.
5. Valuation (Fair Value RANGE only)
Method 1: P/E EPS = ₹0.14 (FY25). CMP = ₹78. P/E = 556x. Industry P/E = ~35x. FV Range (if at 30–40x) = ₹4.2–₹5.6 per share.
Method 2: EV/EBITDA EV = ₹1,586 Cr. EBITDA (FY25) = ₹3.2 Cr. EV/EBITDA = 500x. Industry IT
