At a Glance
Pelatro is not your typical IT minnow; it’s a customer engagement wizard for telecom and BFSI that just delivered 56% YoY revenue growth in Q1 FY26. From a measly ₹18 Cr last year to ₹26.7 Cr this quarter, margins soared to 22%. PAT doubled to ₹3.6 Cr, giving it an ROE of 26% and ROCE of 22%. Yet, at a P/E of 35x, the stock is priced like it’s the next Salesforce (spoiler: it’s not).
Introduction
Imagine a startup that started small, cracked data-driven marketing for telcos, and now wants to play with the big boys. Pelatro, born in 2013, seems to be on a caffeine high – revenue up, profits up, debt up too. But with acquisitions (hello Estel subsidiaries) and fresh capital from Atlanta Capital, it’s gearing up for an aggressive growth sprint. The real question: can it run without tripping on its debt?
Business Model (WTF Do They Even Do?)
Pelatro builds customer engagement platforms. In simpler terms, they’re the guys behind those creepy-yet-effective SMS offers and app nudges that telcos/BFSIs send you. They provide:
- Data Analytics: Understanding customer behavior.
- Campaign Management: Targeting the right audience.
- Execution & Reporting: So the client can spam smarter, not harder.
Revenue comes from SaaS licensing and long-term service contracts, giving them a sticky (read: high-margin) model.
Financials Overview
Q1 FY26 Highlights
- Revenue: ₹26.7 Cr (+46% YoY)
- Operating Profit: ₹5.8 Cr (OPM 21.7%)
- Net Profit: ₹3.6 Cr (EPS ₹3.4)
- PAT Growth: +55% YoY
FY25 Recap
- Revenue: ₹86 Cr (+56% YoY)
- PAT: ₹12 Cr
- EPS: ₹11.4
- Margins expanded from 6% to 19%.
Commentary: Growth is insane; execution matches it. But debt doubled (₹42 Cr), so watch leverage.
Valuation
1. P/E Method
- EPS FY25: ₹11.4
- CMP ₹402 → P/E = 35x
2. EV/EBITDA
- EBITDA FY25: ₹16 Cr
- EV = MCap ₹418 Cr + Debt ₹42 Cr – Cash ₹28 Cr ≈ ₹432 Cr
- EV/EBITDA ≈ 27x
3. DCF (Quick & Dirty)
- Growth high, risk high. Fair value ₹300–₹420.
Verdict: Fully priced, no margin of safety.
What’s Cooking – News, Triggers, Drama
- Acquisition: Estel subsidiaries acquired (synergy TBD).
- IPO Funds: Fully utilized – hope they spent wisely.
- Fresh Capital: ₹7 Cr raised from Atlanta Capital.
- Contracts: Amendment/termination updates – mixed bag.
Balance Sheet – Lean but Leveraged
| Assets | ₹ Cr |
|---|---|
| Total Assets | 137 |
| Fixed Assets | 68 |
| Other Assets | 69 |
| Liabilities | ₹ Cr |
|---|---|
| Borrowings | 42 |
| Other Liabilities | 16 |
| Net Worth | 79 |
Remark: Assets doubled YoY; debt doubled too.
Cash Flow – Sab Number Game Hai
| Year | Ops (₹ Cr) | Investing (₹ Cr) | Financing (₹ Cr) |
|---|---|---|---|
| FY24 | 25 | -23 | 0 |
| FY25 | 20 | -44 | 53 |
Remark: Ops cash healthy, but capex and acquisitions burn cash.
Ratios – Sexy or Stressy?
| Metric | Value |
|---|---|
| ROE | 26.4% |
| ROCE | 22.4% |
| P/E | 35x |
| PAT Margin | 14% |
| D/E | 0.5x |
Remark: Sexy returns, manageable debt (for now).
P&L Breakdown – Show Me the Money
| Year | Revenue ₹ Cr | EBITDA ₹ Cr | PAT ₹ Cr |
|---|---|---|---|
| FY24 | 55 | 3 | -2 |
| FY25 | 86 | 16 | 12 |
| TTM | 86 | 16 | 12 |
Remark: Turnaround from loss to strong profitability.
Peer Comparison
| Company | Rev ₹ Cr | PAT ₹ Cr | P/E |
|---|---|---|---|
| OnMobile | 573 | -30 | NA |
| Adcounty Media | 69 | NA | 19x |
| Pelatro | 86 | 12 | 35x |
Remark: Best performer among peers, but also the priciest.
Miscellaneous – Shareholding, Promoters
- Promoters: 53.6%
- FIIs: 4% (down)
- DIIs: 1%
- Public: 41% (retail loves it)
EduInvesting Verdict™
Pelatro is a classic small-cap rocket: high growth, high risk, high valuation. It cracked customer engagement SaaS for telcos, now eyeing BFSI expansion. But acquisitions, debt, and rich valuations keep risk elevated.
SWOT
- Strengths: Sticky SaaS contracts, strong ROE.
- Weaknesses: Small scale, rising debt.
- Opportunities: BFSI, global expansion.
- Threats: Tech disruption, client concentration.
Final Word:
Pelatro is promising but priced to perfection. If it keeps delivering 50%+ growth, the ride continues. If not, gravity will have its say.
Written by EduInvesting Team | 01 Aug 2025
SEO Tags
Pelatro, Customer Engagement SaaS, Q1 FY26 Results, Telecom Tech, Smallcap Growth
