MathCo Profit Jumps 4.3× in FY25 Despite Flat Revenue

-Post by Aare Keerthi

MathCo has reported a remarkable jump in profitability for FY25, posting a 4.3-times surge in net profit even though its revenue growth remained nearly flat. The performance highlights the company’s strong cost discipline and efficient operational strategy during the year.

Revenue Stays Flat, But Costs Drop Sharply

In FY25, MathCo’s operating revenue inched up by only 0.5%, rising from ₹499 crore to about ₹501.5 crore. Total income also saw a marginal increase due to a slight rise in non-operating income.

Despite stagnant revenue, MathCo delivered a strong financial turnaround by reducing overall expenses by almost 9%, bringing total costs down from ₹489 crore in FY24 to around ₹444 crore in FY25.

A major contributor to this improvement was a significant reduction in employee-related expenses, which fell by about 7%, dropping from ₹402 crore to ₹374 crore. Other operational costs remained largely stable, while categories like travel and finance expenses saw only small increases.

As a result, MathCo spent ₹0.89 to earn every rupee of operating revenue, a notable improvement from the ₹0.98 spent per rupee in the previous year.

Profitability and Margins Strengthen

The aggressive focus on cost optimization led to a steep rise in profitability:

• Net profit increased to around ₹64 crore, up from ₹15 crore a year earlier.

• EBITDA margin improved to 14.36%, reflecting more efficient operations.

• ROCE climbed to 11.71%, indicating stronger returns on capital employed.

• The firm ended the year with nearly ₹53 crore in cash and healthy current assets of over ₹450 crore.

These improvements show MathCo’s growing financial resilience and better internal efficiency.

Why the Strategy Worked

MathCo operates primarily in the data analytics, AI, and machine-learning services sector. With delivery operations forming the bulk of its cost structure, streamlining staffing and optimizing project execution appears to have been the central focus in FY25.

Instead of aggressively pushing for revenue growth, the company prioritized operational discipline, productivity, and expense control—a strategy that paid off substantially.

Industry Implications

MathCo’s FY25 performance indicates that:

• Strong profitability doesn’t always require rapid revenue growth.

• Efficient execution and careful cost management can yield equally strong results for service-based firms.

• For the broader enterprise-AI and analytics landscape, MathCo’s approach may encourage peers to pursue more sustainable, efficiency-focused growth models.

With stronger margins and improved cash reserves, MathCo is positioned to reinvest in technology, talent, and expansion opportunities in the coming years.