All E Tech

All E Technologies reported Q3 FY26 total revenue of ₹35.7 crores and total income from operations of ₹38.7 crores. The EBITDA margin stood at 26.2%, with an adjusted net profit margin of 19.4% after accounting for government-mandated PF adjustments. Total income growth for Q3 was 4.2% (1.5% YoY), while for the nine months, total income grew 0.9% YoY to ₹112.15 crores. Repeat and recurring revenue remained high at 88.2% for Q3 and 92.1% for 9M, and the company added 7 new customers in Q3, bringing the 9M total to 27.

The company emphasized its distinct business model focused on Microsoft AI business solutions, moving beyond traditional IT services and resource augmentation (less than 2% of business). AI is heavily embedded in their product lines, with data and AI practice now contributing approximately 10% of revenue and growing faster than other segments. Management highlighted that AI strengthens ERP/CRM systems by requiring unified enterprise data, an area of Alletec's core competence, and creates new revenue opportunities through data platform engineering and AI agent development, expected to add to revenues over the next one to three years.

In terms of services revenue, the Americas (US and Canada) remained the largest region, approximately twice the size of India. However, when including product margins, India's contribution becomes comparable to the international market, with India's product plus services revenue in the range of 47-48% of the total. The revenue mix by industry saw professional services as the largest contributor at 35%, followed by manufacturing at 16%, and green energy, EPC, and retail each at 9%.

Management acknowledged a period of modest growth in recent quarters, attributing it partly to macroeconomic situations and delays in large deal closures. While Microsoft's ecosystem growth is seen as a positive indicator, the company's growth does not always directly mirror Microsoft's. They are focusing on acquiring larger customers and are upbeat about building traction, expecting 'decent growth in the coming years' but refrained from giving specific short-term guidance due to the project-based nature of their business.

The company maintained a stable team size of about 350 people. The attrition rate was reported to be in the range of 10-12%. When excluding employees who left within one year of joining (including trainees and lateral hires), the attrition rate was stated to be 6%, indicating effective talent retention for experienced personnel. Management also noted that their workforce is not typically software development-heavy, with only about 40% being technical, and the rest being domain experts.

The company has a significant portion of its balance sheet in cash, which it intends to utilize for inorganic growth or building additional lines of business. Management confirmed being 'in the middle of some conversations' for acquisitions but noted that market disruption^🌐s and valuation expectations could impact these deals. A previous partnership in Canada was discontinued as the company became directly active in the region. The long-term aspirational revenue target of ₹1,000 crores remains unchanged.