Transline Technologies Limited

Transline Technologies Business Model, Revenue Model and FY26 vs FY25 Performance Transline Technologies Limited is a Delhi-headquartered security and intelligence company incorporated in 2001 (CIN: U72900DL2001PLC109496). In FY2025-26 it reported revenue from operations of ₹488.46 crore and profit after tax of ₹70.28 crore. Below is a breakdown of how Transline Technologies makes money and how FY26 compared with FY25 — using figures taken only from the company's audited Annual Report 2025-26. What is the Transline Technologies business model? Transline Technologies operates as an end-to-end systems integrator in security, surveillance and identity infrastructure. Per the annual report, its principal lines of business are video surveillance, biometric systems and IT infrastructure solutions. The model is project-led and contract-based. The company wins tenders, supplies the hardware, integrates it, deploys the software layer, and maintains it — in its own words, "the cameras and hardware on the ground, the infrastructure that connects them, and the AI that turns what they see into understanding," with one partner accountable from the first sensor to the final decision. Customer segments served: Government & Public Sector — smart cities, command centres, critical infrastructure Industrial & Infrastructure Banking & Finance — branches, vaults, ATMs Healthcare Retail Education Corporate & Real Estate The company reports 250+ clients and 8+ proprietary platforms over 25+ years. Milestones include Aadhaar enrolment work for UIDAI (2011), Aadhaar kit supply to banks, postal circles, education and telecom (2019), a biometric attendance project for a State Judiciary (2017), and large-scale implementations across PSUs, Railways and Police departments (2024), along with the launch of StorePulse AI. The core characteristic: this is a fixed-price, milestone-billed project business with a hardware-heavy cost base, selling largely to government and PSU buyers — not a subscription software business. Transline Technologies revenue model explained The annual report identifies two reportable segments under Ind AS 108: Solutions — supply of equipment and accessories, along with integration. Services — installation, commissioning and integration, software supply and support, and warranty management solutions. Segment performance, FY26 vs FY25 (₹ crore): Segment FY26 Revenue FY25 Revenue Growth FY26 Segment Result FY25 Segment Result Solutions 377.76 298.19 +26.7% 34.71 36.76 Services 110.70 72.89 +51.9% 100.11 66.11 Total 488.46 371.08 +31.6% 134.82 102.87 Solutions contributes 77% of revenue but only 26% of segment result. Services contributes 23% of revenue and 74% of segment result. Scale comes from hardware and integration; profitability comes from the services layer. Services also grew nearly twice as fast, a favourable mix shift. How revenue is recognised, per the accounting policy: Fixed-price development contracts follow the percentage-of-completion method, while invoicing follows contractual milestones — creating a timing gap between recognition and billing. Revenue in excess of billings is recorded as unbilled revenue under Contract Assets. Fixed-price maintenance contracts are recognised straight-line over the contract period. Customers withhold retention money, released per contract terms. Contract price for FY26 was ₹488.46 crore with nil discount, rebate or credits. FY26 vs FY25 financial performance Profit & Loss (₹ crore): Particulars FY26 FY25 Change Revenue from Operations 488.46 371.08 +31.6% Other Income 1.34 0.83 +61.5% Total Income 489.80 371.91 +31.7% Purchases & other direct expenses 379.88 282.12 +34.7% Changes in inventories of finished goods (36.83) (20.69) — Employee Benefits Expense 24.78 18.91 +31.1% Finance Costs 10.95 7.05 +55.3% Depreciation & Amortisation 4.35 3.75 +16.1% Other Expenses 12.73 12.20 +4.3% Total Expenses 395.86 303.34 +30.5% Profit Before Tax 93.94 68.57 +37.0% Total Tax Expense 23.66 20.24 +16.9% Profit After Tax 70.28 48.33 +45.4% Total Comprehensive Income 70.53 48.30 +46.0% EPS — Basic & Diluted (₹) 7.84 5.44 +44.1% EBITDA (PBT + finance costs + depreciation) was ₹109.23 crore in FY26 versus ₹79.37 crore in FY25 — a margin of 22.4% against 21.4%. Balance sheet (₹ crore): Particulars 31-Mar-2026 31-Mar-2025 Property, Plant & Equipment 13.68 13.80 Total Non-Current Assets 24.65 19.70 Inventories 66.53 29.70 Trade Receivables 218.07 189.59 Contract Assets (unbilled revenue) 145.51 90.64 Other Financial Assets (incl. retention ₹63.40 Cr) 73.61 55.74 Cash & Cash Equivalents 0.13 0.13 Total Current Assets 523.46 377.77 Total Assets 548.11 397.47 Equity Share Capital 17.94 17.94 Other Equity 231.15 160.63 Total Equity 249.09 178.56 Non-Current Borrowings 7.02 6.26 Current Borrowings 103.69 79.82 Total Borrowings 110.71 86.08 Trade Payables 152.87 109.23 Total Current Liabilities 289.26 209.95 Key ratios disclosed by the company: Ratio FY26 FY25 Current Ratio 1.81 1.80 Debt-Equity Ratio 0.44 0.48 Debt Service Coverage Ratio 0.95 0.88 Return on Equity 32.87% 36.86% Net Profit Ratio 14.35% 13.00% Return on Capital Employed 46.99% 53.37% Inventory Turnover 7.13x 13.51x Trade Receivables Turnover 2.40x 2.26x Trade Payables Turnover 3.00x 3.27x Net Capital Turnover 0.41x 0.33x Cash flow — the number to read closely Cash flow summary (₹ crore): Particulars FY26 FY25 Operating profit before working capital changes 111.19 79.61 Increase in inventories (36.83) (20.69) Increase in trade receivables (29.69) (50.81) Increase in financial assets (74.80) (102.34) Increase in other assets (8.17) (4.08) Increase in trade payables 43.10 38.21 Other financial liabilities & provisions 6.32 (2.57) Cash generated from operations 11.13 (62.66) Income tax paid (18.34) (17.26) Net cash used in Operating Activities (7.21) (79.93) Net cash used in Investing Activities (5.83) (6.02) Net cash from Financing Activities 13.05 83.78 Closing cash & cash equivalents 0.13 0.13 Despite PAT of ₹70.