Panache Digilife Ltd (PANACHE) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day, and welcome to Panache Digilife Limited Q2 and H1 FY '24 Earnings Conference Call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Amit Rambhia, Chairman and Managing Director. Thank you, and over to you, sir.
Amit Rambhia (Panache Digilife Ltd): Thank you, and good evening, everyone. On behalf of Panache Digilife Limited, I warmly welcome you all to the Q2 and H1 FY '24 earnings conference call. Joining me today is our CFO, Ms. Jinal Rambhia, and SGA, our Investor Relations Advisor. I hope everyone has had a chance to view our financial results and investor presentation which have been uploaded on both stock exchanges and the company's website. In Q2 FY '24, we delivered revenue of INR21.72 crores representing a 10.68% year-on-year increase, driven by sustained client traction across our key focus areas. EBITDA was at INR2.10 crores, with an EBITDA margin of 9.68%, down slightly by 10 bps year-on-year. Profit after tax reached INR0.86 crores, reflecting an 8.64% increase year-on-year, with a PAT margin of 3.96%. For H1 FY '24, total income grew by 23.36% year-on-year to INR43.20 crores, and EBITDA increased by 19.86% year-on-year to INR4.47 crores. PAT surged by 57.51% year-on-year to INR1.96 crores with a margin expansion of 98 bps to 4.53%. Our current order book position is strong, at about INR43 crores, providing solid revenue visibility for H2 FY '24. This order book is supported by increasing client trust and high demand across our core verticals, primarily smart audio, retail IoT, and smart education. During the quarter, our smart audio segment maintained solid momentum, and we are well on track to fulfill significant orders. We recently completed the development of new advanced smart audio products, and these are now in the sampling stage, positioning us well for the coming quarters. In smart education, demand remains strong, though delayed government project tenders in some states have impacted Q2 shipments. However, we anticipate these tenders will be resolved in H2 FY '24, allowing us to accelerate our delivery timelines. Our retail IoT vertical is also tracking well, with steady client additions and consistent demand for our point-of-sale solutions. With a strong product pipeline, high client engagement, and an expanding order book, we are well positioned to capitalize on key growth opportunities ahead. I would like to extend my sincere gratitude to our dedicated team, our customers, and our shareholders for their continued support. We look forward to maintaining this momentum as we head into the second half of FY '24. With this, I would now like to open the floor for questions.
Moderator: Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question is from the line of [inaudible] from [inaudible] Capital. Please go ahead.
Moderator (Arihant Capital Markets Limited): Ladies and gentlemen, good day, and welcome to Panache Digilife Limited Q2 FY '27 earnings conference call hosted by Arihant Capital Markets Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touchtone phone. Please note this conference is being recorded. I now hand the conference over to Ms. Khushi. Thank you, and over to you, ma'am.
Khushi (Arihant Capital Markets Limited): Thank you. Good morning, everyone. On behalf of Arihant Capital, I welcome everyone to the Panache Digilife Limited Q2 FY '27 earning call. We have pleasure of having with us the senior management team of Panache Digilife, led by Managing Director, Mr. Amit Rambhia; CFO and Whole-time Director, Mr. Nitesh Savla; and GM in R&D, Mrs. Neha Madiyar. We also have with us the Head of Veritas Advisors, IR Advisor to Panache Digilife, Mr. Sanjeev Sancheti. Without further delay, I would like to hand over the call to the IR, Mr. Sanjeev Sancheti. Over to you, sir.
Sanjeev Sancheti (Veritas Advisors): Thank you, Khushi. Hello, participants. Before I hand over the call to Mr. Amit Rambhia for his opening remarks, I would like to draw your attention to the Safe Harbor statement included in the earnings presentation. I request all the participants to kindly review the same and have a good look at it prior to commencing this call. Over to you, sir.
Amit Rambhia (Panache Digilife Ltd): Good morning. Good morning, everyone, and thank you for joining us. As this is our first earnings call, I would like to begin with a brief introduction to Panache Digilife, our journey so far and how we have evolved over the years. I will then take you through our performance for the quarter. So Panache Digilife, you know, began in the year of 2000 as Vardhaman Computers and subsequently transitioned to Vardhaman Technology Private Limited in March 2007, 2007. We started as a desktop manufacturing company, addressing India's growing demand for computing technologies. Over the years, we have evolved into a design-led technology solutions and ESDM company, with capabilities spanning product design, engineering, system integration, manufacturing and lifecycle management. Our early portfolio included desktop PCs, thin clients, mini PCs and embedded computing solutions. These products helped us build a strong engineering foundation and develop expertise in compact and specialized computing. In 2015, we introduced the Panache Air PC, an ultra-compact computing device weighing just 44 g. It was an example of our ability to innovate and rethink traditional computing through new and compact form factors. As our capabilities grew, we expanded into all-in-one computers, point-of-sale systems, digital signage, education technologies and specialized computing solutions. This enabled us to serve a wider range of customers across commercial, industrial and institutional markets. An important milestone in our journey came in 2017 when we listed on NSE EMERGE platform. And in 2020, we migrated to the NSE mainboard, marking another significant step in our corporate evolution. We continue to strengthen our manufacturing capabilities, establish a facility spanning over 50,000 square feet in Bhiwandi, Maharashtra,
Amit Rambhia (Panache Digilife Ltd): Today, Panache has evolved from a computer hardware manufacturing into diverse technology design and manufacturing company. Our portfolio now spans across smart and secure computing devices, EduTech solutions, audio visual and display solutions, digital surveillance, and telecom solutions. Our industrial computing and specialized computing for, you know, various applications, you know, such as medical devices are evolving into, you know, many more sectors now. We also offer OEM and ODM design and contract manufacturing services. Looking ahead, we are expanding into next-generation computing, including AI PCs, AI laptops, AI mini PCs, and AI servers. These solutions position us to address emerging opportunities across education, banking, financial services, industrial automation, and enterprise computing. As we look back at our journey, our focus has remained consistent: building engineering capabilities, expanding our product portfolio, strengthening manufacturing, and moving towards higher-value technology solutions. Our performance and growth -- so, with this foundation in place, I would say, let us now take through our performance area. So, in financial year 2025-26, Panache reported consolidated revenue of approximately 243 Cr compared with 116 Cr in financial year 2024-25, representing growth of over 100% year-on-year. This is an important milestone in our journey and reflects the progress we have made in scaling our business. Today, we serve customers across multiple industries and international markets, supported by a strong network of technology partners. Our experience in electronics design, computing, and manufacturing provides a solid foundation for our next phase of growth. Going forward, our focus is on expanding our design and manufacturing capabilities, strengthening our presence across key markets, and developing high-value technology solutions, including next-generation AI computing. Our journey is one of continuous evolution, from computer hardware to integrated technology solutions, and from product manufacturing to design-led innovations. We believe these capabilities will play an important role in shaping Panache's next phase of growth. With that, now I would like to hand over to our GM R&D, Mrs. Neha Matiyar, who will take through R&D and the products.
Neha Madiyar (Panache Digilife Ltd): Good morning, everyone, and thank you, Mr. Amit. What differentiates Panache is our ability to bring together R&D, product engineering, and manufacturing under one roof. This has enabled us to evolve from a computing hardware company into a design-led technology solutions and electronics manufacturing partner. Our vision is simple: making human life easy. We follow the ABCD of technology, where A stands for artificial intelligence, B stands for big data and analytics, C stands for cloud and connectivity, and D is for devices we manufacture. These four pillars guide us to developing technology solutions that address real-world needs. Our engineering capabilities allow us to work with customers from the very beginning of product development. We support the entire journey, from understanding customer requirements and product design to prototyping, testing, validation, and mass production. This means we are not just a manufacturing partner, we are a technology partner who helps turns ideas into market-ready products. By integrating design, engineering, and manufacturing, we help customers develop reliable products, reduce the gap between design and production, and scale their businesses more efficiently. Our approach creates a continuous cycle of innovation, product development, manufacturing, and further improvement. It also helps us build long-term customer relationships and expand our technology capabilities. Ultimately, our goal is to transform ideas into commercially viable products and build the capabilities to manufacture them at scale. Talking about our business verticals now, we operate across six business verticals, leveraging our engineering design and manufacturing capabilities to develop technology solutions for diverse industries. First, smart and secure computing: We offer AI PCs, laptops, desktop PCs, all-in-one PCs, mini PCs, and AI servers with computing platforms ranging from 10 to 2000 TOPS to address different AI computing requirements. Second, education technology, or EdTech: Our portfolio includes interactive flat panels, tablets, rugged laptops, multi-user computing systems, and
Neha Madiyar (Panache Digilife Ltd): clever charging solutions that support digital learning environments. Third, is AV and displays. We provide video conferencing cameras, indoor and outdoor displays, touch monitors, digital signage and video walls for commercial and enterprise applications. Fourth, is telecom solutions. We offer routers, switches, 4G and 5G Wi-Fi devices and set-top boxes supported by capabilities in device management, network operations and geographic information systems. Fifth, is the medical devices. We provide computing platforms for medical equipment, medical all-in-one PCs, IOT gateways and medical video recording systems. And the last category is the digital surveillance. Our portfolio includes CCTV cameras, AI-enabled network video recorders, smart surveillance towers and network security solutions including SD-WAN and firewalls. Across these six verticals, our focus is on combining technology, engineering and manufacturing to deliver solutions tailored to customer requirements. This diversified portfolio allows us to serve multiple industries while building capabilities in emerging areas such as AI computing, connected devices and intelligent infrastructure. Now coming to our business model. Our business model is built on two around two engines: contract-led manufacturing or CLM, and design-led manufacturing or DLM. The first is contract-led manufacturing or CLM. In this model, customers provide the design and specifications while we bring our manufacturing capabilities, engineering support and quality expertise. CLM helps us scale production, build customer relationship and secure long-term manufacturing engagements. The second is design-led manufacturing or DLM. Here we take a more active role developing products from concept and design to manufacturing supported by our R&D team. DLM creates opportunities for us to improve product cost and performance, earn higher margins and generate additional revenue through software, firmware and life cycle services. It also helps us build deeper, long-term customer relationships. We see these two models as complementary. CLM helps us build scale while DLM allows us to capture greater value through design, engineering and intellectual property. Our strat strategy is to strengthen both businesses while expanding our design-led capabilities. In addition, we work with select customers through co-engineering arrangements where we jointly develop products and agree on intellectual property ownership based on terms of each engagement. Ultimately, our objective is to move up the value chain from manufacturing products to designing, developing and manufacturing complete technology solutions. With this, I would like to hand over to our Managing Director, Mr. Amit Rambhia, who will take you through our financial performance in detail.
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