MathCo's Revenue Crosses Rs 620 Crore in FY26, But Profit Tumbles 94% as Costs Outpace Growth
Data and analytics solutions firm MathCo, formerly known as TheMathCompany, reported a 23.7% year-on-year growth in revenue for FY26, with operating revenue climbing to Rs 621 crore from Rs 502 crore in FY25. But that growth came at a steep cost, profit after tax crashed 94% to just Rs 3.83 crore, down from Rs 63.7 crore the previous year.
Here's what's driving the disconnect between top-line growth and bottom-line collapse. MathCo, which helps organisations use data and analytics to generate business insights and make data-driven decisions, saw its total revenue rise to Rs 650 crore once you include Rs 29 crore in other income, mostly from interest. But total expenses grew even faster, jumping 41.4% to Rs 628 crore in FY26 from Rs 444 crore in FY25, comfortably outpacing the 23.7% revenue growth.
Employee costs are the real story here. Employee benefit expenses remained MathCo's single largest cost head, rising 33% to Rs 497 crore from Rs 374 crore, and now account for roughly 80% of the company's total expenses. Add in higher spending on technology, travel, legal costs, and depreciation, and the combined effect pushed profitability sharply into reverse. The numbers reflect this clearly, MathCo's return on capital employed stood at -2.78%, and its EBITDA margin thinned out to just 1.81%.
The turnaround from FY25 makes this drop even more striking. Just last year, MathCo had actually posted flat revenue growth but managed to boost profit 4.3X to Rs 64 crore through tight cost control, with employee costs then declining 7% and total expenses falling 9%. FY26 essentially reverses that entire playbook, more revenue, but far less discipline on the cost side.
The bigger picture matters too. MathCo has raised a total of $53 million in funding to date, with Brighton Park Capital and Patni Wealth Advisors as its lead investors, so this isn't a cash-strapped startup, it's an established AI and analytics player navigating the classic scaling trade-off between growth investment and profitability.
Revenue is climbing, but MathCo's FY26 numbers are a reminder that scaling a services-heavy AI business without controlling headcount costs can erase profitability fast.
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— Sandeep Raiza