Skip to content

    Kellton Tech Solutions Q4 FY26 earnings call

    KELLTONTEC
    Information Technology·1 Jun 2026
    Management Summary

    Kellton Tech reported Q4 FY26 revenue of ₹319 crores with a 9.8% EBITDA margin, contributing to a full-year revenue of ₹1,225 crores, up 11.4% YoY. While the company secured several key client wins and sees a strong AI-led pipeline, US business growth was impacted by geopolitical uncertainties and client caution regarding AI adoption, leading to slower deal closures and accounts receivable. Management is targeting over 10% revenue growth for FY27 and expects AI deals to pick up in the coming quarter.

    Highlights

    5

    • Q4 FY26 Revenue at ₹319 crores, with an EBITDA margin of 9.8%.

    • Full-year FY26 Revenue reached ₹1,225 crores, marking an 11.4% year-on-year growth.

    • Company credit rating upgraded to A-, reflecting financial stability.

    • Secured six new client wins in travel technology, financial services, private sector banking (AI-powered video KYC), and ServiceNow implementations.

    • Strong pipeline for AI-led enablement and core AI solutions, with management expecting deals to close in the next quarter.

    Concerns

    3

    • Q4 is a 'balancing quarter' with potential regrouping of numbers, making it not directly comparable to prior quarters.

    • US business growth slower than expected due to 'war situation' and clients evaluating AI impact, leading to slower accounts receivable and deal signings.

    • EPS for Q4 and FY26 impacted by FCCB conversion, increasing the number of shares.

    What Changed3

    vs Q1 FY27

    Guidance items3 → 1 (-2)Risks discussed4 → 2 (-2)Q&A highlights8 → 4 (-4)
    Key financials

    Metrics

    5

    Periods

    2

    Q4

    2
    • Revenue
      ₹319 Cr
    • EBITDA Margin
      9.8%

    FY26

    3
    • Revenue
      ₹1,225 Cr
      YoY+11.4%
    • PAT
      ₹91 Cr
    • EPS
      ₹0.018

    Order Book

    low confidence

    Pipeline

    deal pipeline tcv

    Big pipeline for AI-led enablement and core AI solutions

    "Management reported six client wins this quarter and a big pipeline for AI-led projects, but no quantified order book or TCV was disclosed."

    Source:
    Prepared remarks

    Guidance & targets

    1
    CategoryTargetPriority
    Revenue
    Revenue Growth
    0.10
    		Medium

    What to watch in Q1 FY27

    3

    US Business Growth & Accounts Receivable

    Next quarter (within 60 days for AR)
    CurrentSlower than expected, AR slowed down due to 'war situation'
    TargetReturn to expected growth, AR normalization

    Why it matters

    US is a key market; AR slowdown impacts cash flow and overall revenue growth.

    Though the growth might be constant, I think we are seeing some issues with our accounts receivable where they have slowed down a little bit. That is basically customers holding on to a little bit and saying how this war will impact. And we are hoping that in the 60 days this will all subside and things will move back to normal.

    Risks & concerns

    2
    RiskSeverity

    Geopolitical 'war situation' and economic uncertainty

    The 'war situation' has caused customers to hold back, impacting US business growth and slowing down accounts receivable, leading to deal signing delays. — Management acknowledged

    medium

    Client caution and evaluation of AI impact

    Clients are in a planning stage for AI, asking for efficiency gains, leading to delays in signing new AI-enabled projects, despite a strong pipeline. — Management acknowledged

    medium

    Q&A highlights

    4

    “To answer your question, yes, we are seeing the growth in Kumori. Kumori has given us the capability to partnership with ServiceNow. One of the strategies that we came up with one year ago was to target partnership level or growth.”

    Confirms positive impact and strategic value of a past acquisition, specifically in ServiceNow partnership and US market expansion.

    asked by Priyanka

    2 min read6 chapters

    Detailed Narrative

    01

    Q4 & Full Year FY26 Financial Performance

    Kellton Tech reported Q4 FY26 revenue of ₹319 crores, achieving an EBITDA margin of 9.8% and a PAT of ₹19.5 crores. For the full fiscal year 2026, the company recorded a revenue of ₹1,225 crores, representing an 11.4% year-on-year growth, with a full-year EBITDA of ₹143-144 crores and PAT of ₹91 crores. The EPS for Q4 was ₹0.0034 and for FY26 was ₹0.0179, both impacted by the full conversion of FCCB into equity.

    02

    Strategic Client Wins and Operational Highlights

    The company secured six new client wins across various sectors, including a leading travel technology platform for cloud-native integration, a global financial enterprise for application modernization, and a private sector bank for AI-powered video KYC solutions. Kellton also highlighted its proprietary KAI platform receiving the 'AGBA Innovation Star Rating Certification' and its upcoming AI-first B2B travel platform, Journey, which aims to modernize global travel distribution.

    03

    US Business Headwinds and AI Adoption

    The US business experienced slower-than-expected growth due to geopolitical 'war situations' and client caution regarding AI adoption. This led to delays in accounts receivable and the signing of new AI-led projects, despite a strong pipeline. Management noted that while clients are interested in AI, they are in a planning stage, causing project initiation delays, but expects these deals to pick up in the next quarter.

    04

    AI-led Modernization and Product Development

    Kellton Tech is actively developing AI-driven solutions, including 'Phoenix.ai' for legacy ERP modernization, which automates 80-90% of code conversion, significantly outperforming market alternatives. They also introduced 'Structy.ai,' a framework for automating data workflows to prepare data for AI applications. The company emphasizes its iterative adoption of AI internally, positioning itself at the 'leading edge' of AI development.

    05

    Credit Rating Upgrade

    The company announced an upgrade to an A- credit rating, which management stated reflects its financial stability and supports its long-term strategic initiatives. This upgrade is seen as a positive indicator of the company's robust financial health and operational strength.

    06

    FY27 Revenue Growth Outlook

    Management provided a revenue growth target of over 10% for the upcoming fiscal year (FY27), contingent on favorable market conditions. This guidance reflects confidence in the company's strategic focus on AI and its ability to convert its growing pipeline into revenue, especially as global conditions stabilize.

    This is an AI-generated summary of a publicly available earnings call transcript.