All E Tech

All E Tech reported a total revenue of ₹34.07 crores for Q1 FY26, marking a 3.8% increase year-on-year but a 5.2% reduction quarter-on-quarter. Net profit stood at ₹6.32 crores, growing 2.3% YoY, with a net profit margin of 17.4%. The EBITDA margin was 24.2%, reflecting a 4.4% YoY growth. Management noted that while momentum appeared moderated this quarter, the underlying health of the business remains strong, with repeat and recurring revenue at 96.4% and 11 new customers added.

The company is heavily investing in AI transformation, including internal skilling and IP development, and has seeded AI solutions with several customers. Management emphasized that AI is driving a paradigm shift, with Microsoft leading the competition in cloud, AI, and business applications. They are embedding AI agents into their industry solutions (EPC 365, Travel 365, EdTech 365) and using AI for internal development and testing to optimize costs. The company aims to be an 'AI-first' organization, recognizing that failure to adopt AI will lead to loss of market share.

Geographically, Americas accounted for 58.9% of revenue, followed by India at 24.4%. Europe, Africa, and the Middle East contributed 5%, 4.8%, and 3.3% respectively. The UAE operation has become fully operational, and the Africa business has been strengthened with a new sales leader. The company secured a $0.5 million tender in Saudi Arabia, which is seen as a potential sample project for further global expansion. Management expects these initiatives to drive results in the coming quarters.

All E Tech added 11 new customers in Q1 FY26, with 7 being international. The company's business model is characterized by direct engagement with end customers and project-based engagements, which typically complete within six to nine months. This model leads to inherent variations in quarterly revenue and differs from SaaS or BPO models that track long-term order books. Management focuses on the velocity of their pipeline and recurring/repeat business, which stood at 96.4% this quarter.

The company has made progress in its cybersecurity offerings, identifying resources and completing projects focused on SOPs, device management, and application management, primarily using Microsoft-led solutions. While currently a nascent practice, management sees huge potential, especially for international customers, by focusing on consulting-led security solutions rather than product selling. They anticipate these offerings will become a more meaningful contributor to revenue in the next couple of quarters.

All E Tech's approach to attracting and retaining talent centers on providing challenging and impactful work that benefits customers and fosters continuous learning. The company has consistently qualified as a 'Great Place to Work,' indicating high employee satisfaction. Management acknowledges the ongoing challenge of securing high-caliber talent, especially in specialized AI skills, and emphasizes continuous effort in this area.