1. At a Glance
eMudhra Ltd is that rare Indian IT company whose business model sounds boring (digital signatures, trust services, certificates) but whose numbers are quietly doing gym-level reps. Q3 FY26 just landed with ₹1,880 mn revenue (+35.6% YoY) and ₹290 mn PAT, EBITDA margin steady at ~23%, while the stock is chilling near ₹525, down ~30% over the last year like it forgot it’s a growth company.
Market cap sits around ₹4,343 Cr, P/E ~42x, ROCE 15.3%, ROE 12.1%, debt basically irrelevant (₹16.5 Cr, D/E 0.02). Enterprise Solutions now dominate the P&L, international revenues have hijacked the geography split, and management is shopping globally like a Silicon Valley mid-cap on caffeine.
In short: business is sprinting, stock is sulking. Which usually means either the market knows something scary… or it’s just bored. Let’s open the hood.
2. Introduction – From Aadhaar OTP to Global Cyber Trust
eMudhra started life as India’s digital signature poster boy. Every CA form, MCA filing, GST upload—somewhere, eMudhra was smiling and charging you a few hundred bucks. But like all good monopol-ish utilities, that party didn’t last forever. Regulation changed, volumes softened, and the company had two choices: cry about DSC commoditisation or evolve.
They chose evolution.
Between FY22 and H1 FY25, Enterprise Solutions jumped from 54% to 77% of revenue, while trust services politely stepped aside. Cybersecurity, paperless workflows, identity, access management—basically everything enterprises panic-buy after a breach—became the new growth engine.
Add aggressive international expansion (61% revenue now ex-India), multiple US/EU acquisitions, and a pricing reset forced by regulators, and you get a company in the middle of a proper business-model metamorphosis.
Question is: is this a butterfly… or just a very expensive caterpillar?
3. Business Model – WTF Do They Even Do?
Let’s simplify this without turning it into a Gartner PDF.
Segment 1: Enterprise Solutions (77% of H1 FY25 revenue)
This is where eMudhra stopped being boring.
a) Cybersecurity (79% of Enterprise Solutions)
Products like CertiNext (certificate lifecycle management), emCA (set up private certifying authorities), and SecurePass (identity & access management). Think less “USB token” and more “who the hell logged into our cloud at 3 AM?”
Cybersecurity revenue grew 174% between FY22 and FY24, with an order book of ₹149 Cr in FY24. This is subscription-heavy, sticky, and globally relevant. CFOs hate breaches more than taxes.
b) Paperless (21%)
emSigner enables digital workflows—contracts, approvals, compliance—without printing forests. Margins are decent, cross-sell is strong, and adoption rises every time someone hates printers a little more.
Segment 2: Digital Trust Services (23%)
This is the legacy engine—DSCs, eSign, SSL certificates. Still profitable, still cash-generative, but no longer the hero. Revenue grew 22% from FY22–FY24, which is respectable but not sexy.
The real kicker? Regulatory changes in July 2024 forced transparent pricing and direct billing, cutting partner margins by 40–50%. Volumes dipped, realizations improved. Welcome to adulthood.
4. Financials Overview – Q3 FY26 Scorecard
Quarterly Comparison Table (₹ million)
| Metric | Latest Qtr (Q3 FY26) | YoY Qtr (Q3 FY25) | Prev Qtr (Q2 FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 1,880 | 1,386 | 1,732 | 35.6% | 8.5% |
| EBITDA | ~434 | ~319 | ~415 | ~36% | ~4.5% |
| PAT | 290 | 212 | 265 | 36.7% | 9.4% |
| EPS (₹) | 3.46 | 2.53 | 3.05 | 36.8% | 13.4% |
