Seshaasai Technologies Bets On IoT As Growth Engine, Targets 20% Revenue Share By FY27

Seshaasai Technologies is stepping up its focus on the Internet of Things (IoT) segment as a key growth driver according to CNBC TV18. The company sees a large market opportunity in India’s hardware and RFID market, projected to reach ₹10,000 crore by 2030. Chairman and Managing Director Pragnyat Lalwani described IoT as the company’s “growth engine.” Revenues from this vertical have already doubled in the past two years.

IoT As Growth Driver

Currently, IoT contributes about 7% of overall revenues, but this is targeted to reach 18–20% by FY27. Lalwani said the company is building on its capabilities to tap emerging demand in connected devices and RFID. The segment has grown rapidly, reflecting adoption in sectors like retail, manufacturing, and smart infrastructure. IoT is expected to drive both scale and diversification for the business.

He added that Seshaasai has historically grown revenues at a compounded rate of about 25%. This pace is likely to continue, supported by IoT expansion and steady performance in other business lines. The diversification ensures that while IoT brings acceleration, the other verticals provide resilience. This balance is key to sustaining long-term momentum.

Financial Performance

Seshaasai maintains strong profitability with EBIT margins of 24–25% and PAT margins of 14–15%. Lalwani attributed this performance to scale benefits, improved sourcing, and lower financing costs. “We are confident the current margins can be sustained,” he said. Proceeds from the IPO will be used to repay debt, saving ₹25–30 crore annually in interest.

The debt repayment is expected to further strengthen profitability and cash flows. The firm believes that the combination of margin discipline and reduced borrowing costs positions it well. The focus on managing costs alongside revenue expansion underpins financial stability. This foundation allows the company to explore new market opportunities.

Diversified Business Model

The company operates through three verticals, payment solutions, communication and fulfilment solutions, and IoT. The payment and communication businesses continue to provide steady revenue streams. IoT, meanwhile, offers high-growth potential as digital adoption accelerates. This structure allows the company to balance growth and stability across its operations.

While BFSI remains the largest contributor, accounting for 80–87% of revenues, expansion is under way into new industries. Lalwani highlighted ongoing efforts in retail, renewables, manufacturing, and eSIM solutions. These moves are aimed at reducing dependence on the financial sector. The diversified approach ensures resilience across market cycles.

Company Profile

Seshaasai Technologies is a technology-led solutions provider with a market capitalisation of ₹6,729.50 crore. It operates 24 manufacturing units across seven locations in India. The company’s client base includes leading financial institutions such as HDFC Bank, ICICI Bank, SBI, and HDFC Life. Its established presence and trusted relationships provide a strong platform for expansion.

Read More: Seshaasai Technologies Listed with Modest Premium

Conclusion

Seshaasai Technologies is betting on IoT as a major growth pillar, with revenues from the segment set to triple their share by FY27. Strong margins, debt reduction, and a diversified business model provide further support. The focus on new industries beyond BFSI broadens opportunities for expansion. With IoT as its “growth engine,” the company is positioned for balanced long-term growth.

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