1. At a Glance – Blink and You’ll Miss the Cash
Meta Infotech Ltd is that classic SME stock which quietly went from “bhai ye kaun hai?” to “arre iska ROCE toh 50% hai!” Market cap sitting around ₹236 Cr, current price hovering near ₹125, and stock P/E at a modest ~17.5 while the industry lounges around ~32 like it pays rent. Over the last three months, the stock corrected ~20%, which is the market’s polite way of saying “thoda shaant ho jao, boss.” Latest H1 FY26 results show revenue of ₹210 Cr and PAT of ₹10.4 Cr, with operating margins slipping a bit but still respectable. ROCE at 51% and ROE at 42% scream efficiency, but client concentration screams “ek hi shaadi mein poori baraat.” Add an order book of ₹578.9 Cr stretching over five years, and suddenly this cybersecurity reseller starts looking less like an IT dukaan and more like a disciplined cash machine. Or is it? That’s what we’re here to interrogate.
2. Introduction – Cybersecurity with Desi Tadka
Meta Infotech Ltd (MIL) has been around since 1998, which in IT years is basically ancient. While most cybersecurity firms love to pretend they’re inventing AI-powered, quantum-resistant, zero-trust unicorn dust, MIL is refreshingly honest: it partners with global OEMs, resells their cybersecurity products, and wraps services around them.
Think of MIL as the high-end security consultant who doesn’t manufacture the lock but knows exactly which imported lock to install, how to maintain it, and whom to yell at when it breaks. The company operates squarely in India, serving banks, NBFCs, capital markets, IT companies, and basically anyone paranoid enough to pay for digital safety—which, in 2025, is everyone.
But don’t let the “reseller” tag fool you. Reselling cybersecurity software at scale requires deep client trust, certifications, implementation skills, and—most importantly—relationships. MIL has 99 customers, and 21 of them have stuck around for over three years, which in enterprise IT is basically a long-term relationship with shared Netflix passwords.
Yet, one customer alone contributes ~58.5% of revenue. That’s not diversification; that’s emotional dependence. Is MIL managing this risk well, or just hoping the client never switches vendors? Keep that thought.
3. Business Model – WTF Do They Even Do?
MIL’s business model is simple on paper but execution-heavy in reality.
They source cybersecurity software products from global OEMs and act as an authorized reseller. This includes licenses, subscriptions, renewals, upgrades—basically the annuity goldmine of enterprise IT. Products form ~84% of FY25 revenue, while services contribute ~16%.
But services are where the stickiness comes
from. MIL doesn’t just sell you a firewall and vanish like your gym trainer after New Year. They offer:
- Implementation services (install, configure, integrate)
- Managed security services (monitoring, threat detection)
- Annual maintenance contracts
- On-site sustenance services (yes, actual humans sitting at client offices)
Their solution bouquet covers everything fashionable in cybersecurity jargon: SASE/ZTNA, database security, EDR, cloud security, SIEM, identity security, API security, email security—the full buffet.
In FY24, SASE alone contributed ~61% of revenue, which tells you where the demand is flowing. Banks and financial institutions dominate the client list, contributing over 70% of sales. That’s great for ticket size and seriousness, but again—sector concentration risk is waving politely.
So the business is not rocket science, but it is relationship science. The real moat is trust, compliance, and the pain of switching vendors. Question is: how deep is that moat really?
4. Financials Overview – Numbers Don’t Lie, But They Smirk
Result Type Locked: HALF-YEARLY RESULTS
The latest official result heading clearly states “Half Yearly Results”, so EPS annualisation will be latest EPS × 2. Lock applied. No cheating mid-article.
Financial Comparison Table (₹ Crores)
| Metric | Latest H1 FY26 | H1 FY25 (YoY) | H2 FY25 (QoQ proxy) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 210 | 184 | 219 | 14.1% | -4.1% |
| EBITDA | 16 | 19 | 25 | -15.8% | -36.0% |
| PAT | 10 | 11 | 14 | -9.1% | -28.6% |
| EPS (₹) | 5.53 | 146.71* | 8.22 | NA | -32.7% |
*EPS distortion due to equity structure changes post IPO.
Annualised EPS (H1 FY26) = ₹5.53 × 2 = ₹11.06
At current price ₹125, recalculated P/E ≈ 11.3, which is much lower than the headline trailing P/E shown on dashboards. This is where reading results properly actually pays.
Yes, margins dipped. Yes, PAT declined YoY. But revenue grew, order book expanded, and efficiency ratios remain elite. Is this temporary margin pressure or the
