Magellanic Cloud Limited, formerly known as South India Projects Limited, has officially announced that it has received a purchase order worth Rs 40 crore from a customer for the implementation and maintenance of e-surveillance services over a period of five years. The disclosure was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, along with SEBI Master Circular SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024.

The announcement was made via an official communication dated May 19, 2025, addressed to both Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE). The company's shares are listed under the Scrip Code: 538891 and Symbol: MCLOUD, respectively.

What the order entails

The e-surveillance order, which carries a basic value of Rs 40 crores, is for a project that will span five years. While the nature of the e-surveillance project hasn't been elaborated in the official disclosure, such contracts typically involve a range of services including real-time monitoring, video analytics, incident alerting, remote access systems, and data storage and management.

This deal is expected to significantly strengthen Magellanic Cloud's portfolio in the fast-growing surveillance and security domain. With increasing demand for digitally monitored and AI-powered surveillance systems, this project aligns well with current industry trends and government mandates focusing on security enhancement in both public and private sectors.

No related party transactions involved

The company was transparent in confirming that no promoter, promoter group, or group companies have any kind of interest in the customer that awarded the order. Additionally, it clarified that this contract does not fall under related party transactions, which implies a clean and independent business deal. This detail is crucial for investor confidence and reflects robust corporate governance practices.

Regulatory and compliance aspects

The disclosure was made in full compliance with the SEBI Listing Regulations and follows all necessary mandates. As per the guidelines, any material event, such as receiving a significant business order, must be promptly shared with the stock exchanges. This ensures transparency, timely dissemination of information, and fairness to all investors.

The communication was signed by Mr. Joseph Sudheer Reddy Thumma, the Managing Director of Magellanic Cloud Limited, bearing DIN: 07033919. His role in the company's ongoing transformation and compliance has been significant.

Background of the company

Magellanic Cloud Limited has been making consistent efforts to rebrand and reposition itself in the digital transformation and surveillance technology sector. Earlier known as South India Projects Limited, the company now operates from a modern registered office located at Dallas Center, Knowledge City, Rai Durg, Hyderabad, reflecting a clear transition toward technology-led services.

The company has diversified interests and aims to be a leading player in surveillance, cloud services, AI-driven analytics, and other digital infrastructure solutions.

Financial implications

A Rs 40 crore order spread over five years suggests an average annual revenue of around Rs 8 crore from this single project alone. While the financial impact will be realized over time, such large orders tend to improve a company’s top-line visibility, attract investor interest, and can positively influence the company’s stock performance in the near term.

Strategic importance of the order

Given the company's recent trajectory and focus on technology-driven services, this order is a strategic milestone. It indicates growing trust from customers and validates the company’s capabilities in delivering high-end surveillance solutions.

This deal also potentially opens up future opportunities, such as:

• Cross-selling additional tech services like AI analytics, cloud integration, or cybersecurity

• Renewal and upscaling of contracts based on performance over the 5-year period

• Reputation building, which can attract other government and enterprise clients

Market response and stock analysis

While the immediate market reaction will unfold in the trading sessions post-announcement, such orders typically result in bullish sentiment, particularly among retail investors and long-term institutional stakeholders. With the market increasingly favoring companies that showcase consistent order inflows, this disclosure may serve as a trigger for renewed interest in MCLOUD shares.

Investors will be keen to observe how this contract impacts:

• Quarterly earnings performance

• Cash flow trends

• Long-term EBITDA margins

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