CE Info Systems shares fell over 6% in intraday trading on Wednesday, August 5, 2026, despite the company returning to double-digit revenue growth in Q1 FY27. The stock opened at ₹1,088.95 against the previous close of ₹1,134.40 and touched a day's low of ₹1,054, shedding as much as 6.08%. As of 10:42 AM, shares were trading at ₹1,073.10, down 5.40%. The stock has nearly halved from its 52-week high of ₹2,000 and remains 37% lower for the year so far. The sharp decline came after domestic brokerage JM Financial downgraded the stock to 'reduce' and revised earnings estimates down by 1-7% following the earnings miss. Trading activity picked up significantly with volumes running at nearly twice the stock's 20-day average, indicating heightened investor participation amid the selloff.
According to reports from Business Standard, C.E. Info Systems delivered strong financial performance in the quarter ended June 2026, with consolidated net profit rising 7.94% to ₹49.77 crore compared to ₹46.11 crore in the corresponding quarter of the previous year. The company demonstrated robust growth momentum across key financial metrics during this period. However, EBITDA margin declined to 40.2% from 45.6% a year ago and 44.6% in the previous quarter, indicating operational challenges despite revenue growth. Management attributed the margin compression to a one-time write-off of ₹4 crore related to a specific government customer and a shift in product mix. Despite the write-off, the company reiterated its full-year EBITDA margin guidance of over 35%.
As reported by CNBC TV18, the company's revenue increased to ₹140 crore for Q1 FY2026, marking a return to double-digit growth. IoT-led revenue grew 75% during the quarter, with hardware revenue up 224%. The automotive business remained the key growth driver, with revenue rising 29% year-on-year to ₹59 crore. Enterprise revenue grew 6% to ₹64 crore, while the government business reported an 11% increase to ₹17 crore. The growth trajectory remains anchored on the open order backlog of ₹1,750 crore, which was up 17% year-on-year. Chairman and Managing Director Rakesh Verma stated that the performance reflects the continued strength and moat of products, platforms, APIs and solutions, alongside disciplined execution and growing customer trust across Automotive, Enterprise and Government segments.
JM Financial downgraded CE Info Systems' stock to 'reduce' from 'add' and lowered its target price to ₹1,040, the revised target suggesting a downside of about 8.7% from the stock's previous closing price. The brokerage's downgrade weighed on investor sentiment, triggering sharp selling in the counter. The downgrade cited that MapMyIndia's revenue and EBITDA margin missed estimates, impacted by the ₹4 crore receivable write-off by a government customer and a higher hardware mix within IoT. Despite near-term challenges, JM Financial raised its target multiple to 22x FY28E EPS from 18x given healthy order backlog and medium-term growth visibility. The brokerage revised the target price to ₹1,040 from ₹870 earlier, while maintaining that near-term visibility remains soft.
According to latest market data, C.E. Info Systems is currently trading at a P/E ratio of 44.16x based on its current market capitalization of ₹6,216.5 crore and trailing twelve months earnings of ₹140.8 crore as of August 4, 2026. This valuation places the company within the median range for the IT software industry, which has an average P/E ratio of 28.01x. Despite the recent correction, analyst views remain mixed with five of the eight analysts covering the stock continuing to recommend a 'buy' while one analyst has a 'hold' rating and two analysts recommend 'sell'. The Bloomberg consensus target price stands at ₹1,280.71, implying a potential upside of about 21% from the last regular traded price. The stock has lost 38.83% since the beginning of 2026 and lost nearly 40% of its value over the past year, making it one of the weaker performers in its segment during the period.
