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    All E Tech

    ALLETEC
    Information Technology·10 Jun 2026
    Management Summary

    All E Technologies reported a 'soft operating year' for FY26 with a slight revenue dip to INR 137.87 crores, impacted by macro headwinds and longer sales cycles. Despite this, the company maintained a strong financial position with INR 163 crores in cash and investments and achieved all six Microsoft solution partner designations. Strategic investments in AI and a focus on larger deals are expected to drive future growth towards a midterm revenue goal of INR 500 crores.

    Highlights

    5

    • Generated INR 26.1 crores cash from operations, maintaining a PAT margin of 17.2%.

    • Strong balance sheet with INR 163 crores in cash and investments, and net worth increased by 17% to INR 169 crores.

    • Achieved all six Microsoft solution partner designations, a rare feat globally.

    • Increased focus on larger deal sizes and IP-driven revenues, with growing traction in India, Middle East, and Africa.

    • Recommended a dividend of INR 1.5 per equity share.

    Concerns

    4

    • FY26 was a 'soft operating year' with revenue of INR 137.87 crores, slightly less than last year.

    • Macro stress, geopolitical conflicts, and rapid technology shifts led to customer hesitation, longer decision cycles, and higher pre-sales costs.

    • Q4 margin decline attributed to prolonged sales cycles, one-time PF adjustments of INR 1.3-1.4 crores, and increased business development costs.

    • Africa revenue contribution reduced from 8-10% to less than 4% due to longer sales cycles and currency crises.

    Key financials

    Metrics

    15

    Periods

    3

    Headline

    11
    • Annual Revenue
      ₹137.87 Cr
    • Annual Total Income from Operations
      ₹149.59 Cr
    • Annual EBITDA
      ₹36.3 Cr
    • Annual EBITDA Margin
      24.3%
    • Annual Reported Net Profit
      ₹25.7 Cr

    Q4

    2
    • Standalone Revenue
      ₹34.74 Cr
      YoY-0.5%
    • Recurring Revenue Rate
      85%

    FY26

    2
    • Recurring Revenue Rate
      90.6%
    • Rupee Exchange Impact (Other Income)
      ₹11.71 Cr

    Order Book

    medium confidence

    Pipeline

    deal pipeline tcv

    Expectation of new order book worth $1 million across all solution areas in June 2026.

    Cancellations / Deferrals

    • deferred:Many decisions halted due to conflict in the neighbourhood, impacting Q4 revenue.
    • deferred:Deals dragging on for 9-12 months instead of normal 4-6 months.

    "The company experienced a soft operating year due to cautious customer demand and geopolitical conflicts, leading to halted decisions and prolonged sales cycles."

    Source:
    Prepared remarks

    Capital allocation

    4
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Debt

    Debt disclosed

    Dividend

    ₹1.5/share (interim)

    Liquidity

    Cash ₹163 crores

    Company is practically debt-free with significant cash reserves.

    Guidance & targets

    6
    CategoryTargetPriority
    Revenue
    Midterm Revenue Goal
    INR 500 crores
    		Medium
    Revenue
    Inorganic Growth Contribution to Midterm Goal
    30-40%
    		Medium
    Partnership
    Frontier Partner Status
    Achieved
    		Medium
    Product Strategy
    IP Share in Licenses
    10%
    		Medium
    Corporate Action
    Mainboard Migration Decision
    Decision made
    		Medium
    Order Book Inflow
    New Order Book Inflow
    $1 million
    		Medium

    Closure of deals in contracting stage

    June 2026
    CurrentDeals ongoing for 9-12 months, expected to close in June 2026
    TargetClosure of these long-pending deals

    Why it matters

    These deals are expected to contribute to new order book and revenue, signaling a recovery from prolonged sales cycles and macro headwinds🌐.

    some of the deals that I mentioned are in a contracting stage and we expect them to happen this month - have been going on for close to a year, close to 9 months.

    How to verify

    order_book.pipeline.value_amount or key_financials.metrics[label='Revenue']

    Risks & concerns

    5
    RiskSeverity

    Global macro shocks and geopolitical conflicts

    Unforeseen global macro shocks and geopolitical conflicts (e.g., Hormuz, Middle East) can cause customer hesitation and impact business decisions. — Management acknowledged

    high

    Prolonged sales cycles and customer hesitation

    Rapid technology shifts and macro uncertainty lead to longer decision cycles, extended evaluation processes, and higher pre-sales effort costs. — Management acknowledged

    medium

    Currency crises in key international markets

    Deep currency crises, such as the Naira depreciation in Nigeria, can force the company to pull back from important markets. — Management acknowledged

    medium

    Mid-market segment caution

    Mid-market customers, a key segment for ALLETEC, tend to become cautious and defer new commitments more quickly during macro stress. — Management acknowledged

    medium

    AI's potential deflationary impact on maintenance services

    While AI can reduce man-hours in maintenance, management states this is not their primary business model, focusing instead on domain knowledge and product building. — Analyst downplayed

    low

    Q&A highlights

    7

    “So, they basically need a thousand seats of M365 Copilot to be sold. We have everything else but we do not have a thousand seats of M365 Copilot sold. And that's the reason that we don't have that yet but I'm sure we'll get there sometime during the year.”

    Clarifies a specific quantitative requirement (1000 M365 Copilot seats) for achieving a key Microsoft partnership status and provides a timeline for its potential achievement.

    asked by Sandesh Kumar

    2 min read6 chapters

    Detailed Narrative

    01

    Q4 & FY26 Performance Overview

    All E Technologies reported a 'soft operating year' for FY26, with annual revenue reaching INR 137.87 crores, slightly less than the previous year. Despite this, the company demonstrated financial resilience, generating INR 26.1 crores in cash from operations and maintaining a PAT margin of 17.2%. The balance sheet remains robust, with INR 163 crores in cash and investments, and net worth increased by 17% to INR 169 crores. A dividend of INR 1.5 per equity share has been recommended by the board.

    02

    Strategic Investments & Market Alignment

    The company utilized FY26 as a transitional period to build scale and align with the rapidly evolving IT ecosystem. A key achievement was securing all six Microsoft solution partner designations, which is rare globally and strengthens their ability to offer comprehensive solutions. Strategic investments were made in business development activities and building AI capabilities, with an enhanced focus on engaging larger customers and strengthening data and AI solutions.

    03

    Geographic Performance & Challenges

    India experienced growth in enterprise modernization and Dynamics 365 adoption. The Middle East and Africa markets are showing strengthening traction, with Africa specifically expected to grow immensely in the coming quarter. However, Africa's revenue contribution decreased from 8-10% to less than 4% due to longer sales cycles, a strategic shift to larger clients, and deep currency crises in regions like Nigeria. The Americas market is undergoing consolidation, with a focus shift from small to larger accounts.

    04

    AI Integration & Capability Building

    ALLETEC is actively integrating AI into its offerings, with proprietary IPs natively leveraging Microsoft Copilots and incorporating its own AI agents. Investments are directed towards modernizing solutions with specific point agents and developing a generic intelligence layer on Microsoft Fabric. This strategy aims to transform their existing 300+ customer base into a 'farming ground' for AI adoption, with 3 customers already converted. Employees are also undergoing training to adapt to AI-driven workflows, leading to less manual coding.

    05

    Capital Allocation & M&A Strategy

    With INR 163 crores in cash and a debt-free status, ALLETEC maintains strategic flexibility for capital allocation. The company is committed to pursuing value-accretive acquisitions, targeting companies in the $5-10 million range. Inorganic growth is projected to contribute 30-40% towards the midterm revenue goal of INR 500 crores. While some M&A conversations are at an advanced stage, the company emphasizes prudence and avoiding acquisitions at unrealistic valuations.

    06

    Outlook & Midterm Goals

    ALLETEC has set a midterm revenue goal of INR 500 crores, aiming to achieve this within 4-5 years through a combination of organic and inorganic growth. The company is also considering a mainboard migration, with a decision expected in the coming months. Management anticipates a significantly better year ahead, assuming no further global macro shocks, and expects several long-pending deals, some ongoing for 9-12 months, to close in June 2026.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.