ArMee Infotech Limited

Sector: IT Infrastructure & Managed Services, diversifying into Renewable Energy EPC/PPA/BESS

1. Overview

ArMee Infotech Limited, headquartered in Ahmedabad, Gujarat, is an IT infrastructure and IT managed services company that has diversified into retail (Experience Zones) and, more recently, the Renewable Energy space (EPC, PPA and BESS). The Company traces its roots to a partnership firm, M/s Armee Infotech, whose business was transferred to the corporate entity in 2017; it converted to a public limited company in 2024.

The Company's core business remains Government and PSU-oriented IT infrastructure deployment — supplying, installing and maintaining IT hardware and software, and executing large multi-year, multi-location contracts such as ICT labs, Atal Tinkering Labs, smart classrooms and digital infrastructure for the public distribution system. Revenue from operations generated from Government/PSU clients (including projects where the end-user is a Government/PSU entity) constituted 83.84%, 90.91% and 90.96% of total revenue from operations in Fiscal 2026, 2025 and 2024 respectively.

Over the past two fiscals, the Company has pursued diversification: it entered the Renewable Energy EPC segment in Fiscal 2026 (contributing 8.93% of revenue in its debut year), continues to build out its Renewable Energy PPA and BESS pipeline through five wholly-owned subsidiaries, and operates two Experience Zones in Ahmedabad under an exclusive tie-up with Acer. Geographically, the business remains concentrated in Gujarat and Maharashtra — 74 and 11 of the Company's 99 ongoing projects respectively as of June 30, 2026 — with a smaller but growing footprint across seven other states.

On a consolidated basis, revenue from operations grew from ₹1,020.57 Cr in Fiscal 2024 to ₹1,313.31 Cr in Fiscal 2025 and ₹1,396.63 Cr in Fiscal 2026, while EBITDA margin has moderated from 7.01% to 5.42% over the same period as the revenue mix has shifted toward lower-margin, Government-facing IT hardware supply. The order book, boosted sharply by new Renewable Energy EPC, PPA and BESS wins, stood at ₹2,663.44 Cr as of June 30, 2026 — more than double the ₹1,196.06 Cr reported as of March 31, 2026.

2. Business Model and Revenue Streams

Revenue by segment

The Company's revenue is drawn from four verticals: IT Infrastructure, IT Managed Services, Renewable Energy (EPC/PPA/BESS), and Experience Zones (bundled within IT Infrastructure/managed services reporting). IT Infrastructure remains dominant but its share is declining as the newer Renewable Energy vertical scales:

Note: no Renewable Energy Solar EPC revenue was recognized in FY2025 or FY2024 — this is a new revenue line for the Company.

Contract model and pricing

Projects are won through a competitive bidding process, predominantly for Government departments and PSUs, and are billed largely on a milestone basis. The Company is required to furnish Performance Bank Guarantees (PBGs), typically ranging from 3% to 10% of project value, secured against fixed deposits — a structure that ties up working capital ahead of revenue recognition. In Fiscal 2026, the Company issued PBGs of ₹15.32 Cr against a contract value of projects awarded of ₹646.67 Cr (2.37% of order value), a notable decline from 6.55% in FY2025, reflecting a shift toward lower-guarantee-intensity work.

In the Renewable Energy segment, the Company operates under three distinct models: EPC (turnkey engineering-procurement-construction, milestone billed), PPA (build-own-operate, revenue from long-term power sale agreements with State Electricity Boards), and BESS (long-term energy-supply contracts from battery storage assets).

Client and vendor concentration

Client concentration: the Company's top five clients contributed ₹1,070.62 Cr, or 76.66%, of FY2026 revenue from operations — a material concentration risk, though largely a function of the Government/PSU-contract nature of the business.

Vendor/technology-partner dependency: as of March 31, 2026, 65.84% of purchases from Technology Partners came from the Company's top three partners, underscoring reliance on a narrow hardware/software supply base.

Order book mix: as of June 30, 2026, the ₹2,663.44 Cr order book is now weighted toward Renewable Energy — EPC (51.71%), PPA (14.33%) and BESS (22.35%) together account for ~88% of the order book, versus IT Infrastructure (6.25%) and IT Managed Services (5.37%), even though IT Infrastructure still drives the bulk of recognized revenue. This signals a structural shift in revenue mix over the coming 1–2 fiscals as the Renewable Energy order book converts to revenue.

3. Products and Service Portfolio

IT Infrastructure (85.81% of FY26 revenue)

Supply, installation, integration and maintenance of computers, servers, interactive panels and peripherals, plus functional training and cyber-security services (firewall, antivirus, intrusion detection/prevention, cloud encryption). Flagship deployments include ICT labs, Atal Tinkering Labs (ATLs), smart classrooms, and digital infrastructure for the public distribution system, executed under Government schemes such as E-Gram Vishwagram (Gujarat), Deen Dayal Upadhyaya Grameen Kaushalya Yojana (Centre), Gyankunj (Gujarat) and Samagra Shiksha Abhiyan (Centre).

IT Managed Services (5.26% of FY26 revenue)

Technical manpower deployment, skill-development training, and annual maintenance contracts (AMC) delivered under service-level agreements with on-site/off-site support, plus emerging payment-device integration (PoS automation, fair-price-shop BOO models) and data migration services.

Renewable Energy — EPC / PPA / BESS (8.93% of FY26 revenue, ~88% of order book)

• EPC: end-to-end solar power plant execution — assessment, design, procurement, construction, commissioning and handover — for both public and private clients.
• PPA: develop-own-operate model; the Company sells power generated from its own solar assets under long-term agreements with State Electricity Boards.
• BESS: long-term battery-storage energy-supply contracts, positioned as a complement to solar generation for grid stability.

As of June 30, 2026 the Company had 10 ongoing EPC projects, 1 PPA project and 2 BESS projects, executed directly and through subsidiaries ArMee MH Renewable Energy, ArMee UP Renewable Energy, ArMee MP Renewable Energy and ArMee BESS Private Limited.

Experience Zones (retail)

Two operational, single-brand exclusive Experience Zones in Ahmedabad, run under an Authorized Re-Seller Agreement with Acer (effective December 2024) — engaging customers across IT products, consumer electronics, and gaming/merchandise categories, with slab-based, audit-linked payout terms from the brand partner.

Additionally, 464 completed projects remain within their contractual warranty period (typically 3–5 years).

4. Key Business Strengths

• Deep Government/PSU execution track record: 116, 97 and 62 projects completed for Government/PSU clients in FY2026, FY2025 and FY2024 respectively, built on successful delivery of large, multi-year, multi-location Government digitisation schemes.
• Sector-agnostic client base: services delivered across education, healthcare, public distribution, rural/urban development and science & technology sectors, reducing dependence on any single end-market vertical.
• Experienced promoter-led management: Promoters Kiritkumar Chimanbhai Patel and Ami Ridhish Patel have been associated with the business since inception (20+ years), and Ridhish Kiritbhai Patel (Chairman & Managing Director) has led operations since 2012 — providing continuity through the Company's transition from partnership firm to listed entity.
• Early-mover diversification into Renewable Energy: despite limited historical experience in the segment, the Company has already built an EPC/PPA/BESS order book of ₹2,354.04 Cr (as of June 30, 2026) — nearly 1.7x its Fiscal 2026 total revenue — signalling strong near-term revenue visibility from this newer, non-Government-dependent vertical. (EPC + PPA + BESS order book: ₹1,377.26 Cr + ₹381.60 Cr + ₹595.18 Cr = ₹2,354.04 Cr as of June 30, 2026.)

5. Future Growth Strategy

• Scaling the Renewable Energy vertical: continued investment in EPC, PPA and BESS capacity through dedicated subsidiaries, converting the segment's outsized order book (~88% of total order book) into recognized revenue over the coming fiscals.
• Deepening technology-adjacent offerings: planned expansion into payment-device integration (riding India's digital-payments growth, cited at 28,174 Cr transactions in FY2026) and data migration services, leveraging existing Government/PSU client relationships for cross-sell.
• STEM/ATL education infrastructure: continued participation in the Government's Atal Tinkering Labs program (10,000+ labs across 722 districts nationally), an established growth channel within the Company's core IT Infrastructure business.
• Geographic diversification: reducing concentration risk by expanding beyond the current Gujarat/Maharashtra core (85 of 99 ongoing projects) into other states, supported by new branch offices in Gurugram (Haryana) and Mumbai (Maharashtra).
• Balanced Government/private client mix: while continuing to bid for Government/PSU contracts, the Company intends to grow its private-client base to reduce reliance on public-sector budgetary and tender-process risk.