Creative Newtech Signs Strategic Licensing Deal With AT&T For Tech Infrastructure

Market snapshot: Creative Newtech Limited has executed a strategic licensing agreement with AT&T to manufacture, market, commercialise, and sell specified tech infrastructure products. The deal grants rights to use AT&T trademarks and trade dress across data centre solutions, networking, and structured cabling systems in India and global markets.

Data Snapshot

• Creative Newtech secured brand licensing rights for AT&T trademarks across technology infrastructure, including data centre solutions, copper systems, fiber systems, and structured cabling.
• Creative Newtech reported Q2 FY27 standalone PAT of ₹12.65 crore, up 78.43% YoY compared to ₹7.09 crore in Q2 FY26.
• Standalone total income for Q2 FY27 grew 7.68% YoY to ₹664.55 crore, while EBITDA expanded 77.99% YoY to ₹26.16 crore.

What's Changed

• Q2 FY27 standalone PAT increased to ₹12.65 crore from ₹7.09 crore in Q2 FY26 (derived: 78.43% YoY growth).
• EBITDA margin expanded by 156 bps YoY to 3.94% in Q2 FY27 from 2.38% in Q2 FY26.

Key Takeaways

• Strategic Expansion into Tech Infrastructure: Partnership grants rights to manufacture, market, and commercialise AT&T-branded infrastructure products.
• Diverse Product Spectrum: Licensed categories include Containment Systems, Copper Systems, Data Centre Solutions (switches, routers, racks), Fibre Systems, and Structured Cabling.
• Phased Commercialisation: Introduction of AT&T-branded product lines will take place in phased rollouts across India and international markets.

SAHI Perspective

The strategic licensing agreement with AT&T accelerates Creative Newtech's strategic transition from traditional technology distribution into higher-margin brand licensing. Expanding into data centre hardware and connectivity infrastructure positions the business directly in front of growing enterprise capex trends.

Market Implications

Aligning with AT&T's trade dress and global trademark credibility provides Creative Newtech access to larger infrastructure tenders and B2B deployments. Successful commercial execution across phased rollouts could support margin expansion over medium-term reporting periods.

Trading Signals

Market Bias: Bullish

Grounded in strong Q2 FY27 net profit expansion of 78.43% YoY to ₹12.65 crore and strategic entry into high-value AT&T infrastructure product licensing.

Overweight: Technology Infrastructure, Brand Licensing & Distribution

Trigger Factors:

• Product launch timelines for AT&T-branded infrastructure SKUs.
• Outcome of board meeting for fund-raising options evaluated on Nov 4, 2026.
• Margin trajectory in upcoming quarterly financial disclosures.

Time Horizon: Medium-term (3-12 months)

Industry Context

Enterprise network upgrades, data centre additions, and cloud migration initiatives are driving sustained demand for structured cabling, fiber systems, and enterprise connectivity hardware across India and international markets.

Key Risks to Watch

• Execution and lead-time risks during phased product commercialisation.
• Working capital expansion required for setting up new technology infrastructure product lines.

Recent Developments

On October 31, 2026, Creative Newtech notified stock exchanges of a board meeting to evaluate fund-raising options for financing proposed acquisitions. On October 28, 2026, the company reported standalone Q2 FY27 PAT of ₹12.65 crore, up 78.43% YoY.

Closing Insight

Creative Newtech's licensing partnership with AT&T expands its brand portfolio into data centre and networking hardware, building on recent earnings momentum to drive higher-margin business growth.

High Performance Trading with SAHI.