Octopus Digital Limited posted a net profit of PKR 205.55 million (EPS: PKR 1.31) in CY24, representing a 45% decline from PKR 373.11 million (EPS: PKR 2.52) in the previous year. The company entered CY25 with an order book of PKR 2.2 billion and has set a strategic target to derive 80% of its business from international clients.
The management reported increased traction from Marketing Qualified Leads, reflecting strong customer interest in digital transformation services. Octopus Digital’s core revenue drivers remain its Digital Business and After Market Support (AMS) services, spanning key geographies such as Pakistan, the UAE, KSA, and Qatar.
The company’s customer base includes manufacturing and oil & gas industrial units, with a two-pronged approach to sales growth through channel partnerships and direct outreach. Expansion plans also include entering the North American market by raising capital.
Management aims to grow revenue from existing customers by fivefold while achieving 40% of its revenue growth through these existing relationships and 60% from new client acquisitions. The company is working on developing data lakes to ensure unified and accessible data across platforms.
It acknowledged challenges in scaling IoT solutions, highlighting digital maturity, interoperability, cybersecurity, data privacy, and organizational change management as key headwinds. Despite these, the economic impact of IoT in the manufacturing sector is estimated to range between USD 1 to 3 trillion by 2030, positioning Octopus to capitalize on a sizable market opportunity. For CY25, Octopus Digital projects revenue of PKR 2.1 billion and a profit after tax of PKR 340 million. Of this, PKR 2.18 billion is expected from recurring revenue streams. In CY26, projected revenue stands at PKR 2.6 billion with profit after tax of PKR 450 million, comprising PKR 2.89 billion in recurring revenue and PKR 0.51 billion in non-recurring revenue. The company aims for 100% recurring business going forward.
The company continues to expand its direct sales network by strengthening its sales funnel through targeted adoption of Marketing Qualified Leads (MQLs) and Sales Qualified Leads (SQLs). During the Gulfood 2024 event in Dubai, Octopus secured two successful orders. In terms of pipeline activity, the AMS business in the Middle East has a total pipeline of USD 15 million, with expected order conversion of USD 8 million.
In Pakistan, the AMS pipeline stands at USD 2.2 million with projected orders of USD 1.2 million. Technologically, the company launched four machinelearning-based predictive tools and GenAI-powered industrial ChatGPT solutions. It is currently deploying these solutions for industrial pumps and plans to extend this offering to other critical industrial assets such as boilers, compressors, motors, and heat exchangers between CY25 and CY26.
Important Disclosures
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