Workmates Core2Cloud Solution Ltd.

About Workmates Core2Cloud

Incorporated in 2018 in Kolkata, Workmates helps enterprises modernize their digital core through business-to-business cloud services delivered in collaboration with AWS. It has served 300+ clients; IT/ITES and FSI/BFSI were its largest industry segments, contributing 37.41% and 30.40% respectively. The company operates three delivery centers in Kolkata, Hyderabad and Bhubaneshwar.

Workmates Core2Cloud IPO Details

Use of Proceeds

• Repayment of secured loans: INR 8.60 Cr. is allocated for prepayment or repayment of secured loans.
• Working capital: INR 29.20 Cr. is allocated to funding working capital.
• General corporate purposes: The amount is shown as [●] in the issue summary.

Strengths

• Recurring revenue and low churn: Management states that around 80% of revenue on every new order is annual recurring revenue, with churn below 2%. Revenue inherited from the last financial year was INR 113 Cr., which the company expects to carry into FY26.
• Lifecycle-based services: The company’s engagement model spans cloud onboarding, modernization, AI integration and long-term managed services.
• AWS partnership and Gen AI competency: The company describes itself as a premier-tier, cloud-first AWS services company and says it has AWS Gen AI competency certification. Management claims it is one of 65-70 companies globally with this competency; Gen AI is intended as an add-on to existing services rather than a separate revenue stream.
• Domestic order booking ambition: Management is confident of achieving INR 100 Cr. of new order bookings from the domestic market this year.
• Revenue growth: Revenue rose from 29 in FY23 to 53 in FY24 and 108 in FY25. The report estimates FY26 and FY27 revenue of INR 185 Cr. and INR 231.25 Cr. based on the working capital cycle in the RHP; its separate order-based estimate gives exit revenue of 171 for 2026(E) and 247 for 2027(E).

Workmates Core2Cloud Key Financials

Business and Revenue Mix

IT/ITES accounted for 37.41% of revenue and FSI/BFSI for 30.40%. Other reported segments were Manufacturing (8.74%), E-Commerce (6.02%), Media (4.58%) and a mix of other sectors (9.39%). The company was described as one of the 8 companies in India with Premier Level AWS Partner status.

Management

• Kamal Nath: Promoter, Whole-time Director and Chief Executive Officer, with over three decades of experience. Previous roles include Country Business Head (India) at HCL Technologies and Chief Executive Officer at Sify Technologies.
• Anirban Dasgupta: Promoter and Strategy and Growth Office, with expertise in cloud strategy, network infrastructure, cybersecurity and managed services. His experience includes HCL, IBM, HPE and Sify Technologies.
• Debasish Sarkar: Promoter, Whole-time Director and Chief Financial Officer. He is a Chartered Accountant with 39 years of experience in financial strategy and SME advisory.

Peer Comparison

The RHP names Persistent Systems Ltd. and Orient Technologies Ltd. as peers. The report’s peer comparison lists Workmates’ FY25 P/E ratio at 18.95x, compared with 58.4x for Persistent Systems and 32.4x for Orient Technologies. It also notes that the average P/E for 17 listed IT companies in the SME space was 23x on a TTM basis, while the sector range was 26x-32x on a TTM basis.

IPO Valuation and Our View

At the IPO price, the issue is valued at a P/E ratio of 18.95x based on FY25 PAT. The note describes the issue as fairly valued with some comfort and recommends May Subscribe for aggressive investors seeking listing gains. It says longer-term investment decisions will depend on execution and continued topline and bottom-line growth.

INR 200 to 204 per share

IPO price band

May Subscribe

Recommendation

For aggressive investors seeking listing gains

18.95x

P/E based on FY25 PAT

Key Risks

• Industry concentration: IT/ITES and FSI/BFSI together contributed 67.81% of FY25 revenue.
• Receivables: Receivables rose as a share of revenue from 14.4% in FY23 to 22.9% in FY25, which the note identifies as a key monitorable.
• AWS dependence: The company relies heavily on AWS as its primary cloud platform; the report says 66% of costs are AWS-related and flags disruption as a monitorable.
• Customer concentration: Customer concentration increased from 38.15% in FY23 to 51.02% in FY25.
• Open-ended contracts: Most contracts are open-ended, so customers can leave at any time.

Our View

The note’s May Subscribe recommendation for aggressive investors is based on recurring revenue, low reported churn, rapid historical revenue growth and a valuation it considers fairly valued with some comfort. The key monitorables include AWS dependence, rising receivables and customer concentration; longer-term prospects depend on execution and growth in revenue and profit.

Standard disclosures

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For any queries or grievances: Mr. Nishant Gupta | Email: nishant.gupta@mcapital.in or guptanishant.iimi@gmail.com | Contact Number: 8171433387 | Website: www.mcapital.in | Twitter: @Mcapital_In

• Research Analyst for this note: Mr. Shubham Upadhyay (+91-9953459775)

Rating rationale

Minerva Capital Research Solutions endeavors to provide objective opinions and recommendations. Ratings are assigned to stocks according to their fair value vs current market price and then categorizes them as Buy, Hold, Reduce, Sell. The performance horizon is one year unless specified and fair value is defined as analyst’s valuation for a stock.

• Buy:> 15%
• Hold: -5% to 15%
• Reduce: -15% to -5%
• Sell: <-15%