Reliable Data Services Ltd. – New Government Supply Business

Announcement Date: 29 April 2026

Overview

Reliable Data Services Limited (ISIN INE375Y01018, NSE: RELIABLE) announced the addition of a new line of business: supplying white goods to government agencies, starting with a contract with Bihar Medical Services and Infrastructure Corporation Limited.

Strategic Significance

• Diversification: Moves beyond core data services into government procurement.
• Stable Revenue: Government contracts typically offer longer tenure and lower credit risk.
• Market Entry: Opens potential for further contracts with other state and central agencies.

Financial Implications

• Revenue Upside: Initial contract size not disclosed; however, government procurement can add incremental revenue of 5‑10% of FY2026‑27 earnings if scaled.
• Margin Impact: White‑goods supply may have lower margins than data services; expect modest impact on overall EBITDA.
• Capital Expenditure: Minimal upfront capex; mainly working‑capital for inventory.

Risks & Considerations

• Execution Risk: Ability to meet delivery schedules and quality standards.
• Regulatory Compliance: Must adhere to government procurement norms and pricing guidelines.
• Concentration: Early reliance on a single state contract could expose the business to regional policy changes.

Outlook for Investors

The initiative signals a strategic diversification that could enhance top‑line growth and reduce earnings volatility. Monitoring contract roll‑out and subsequent win‑rate will be key.

Prepared by the Finance Analysis Team