Saksoft

Saksoft reported Q3 FY26 revenues of INR 250 crores, reflecting an 11% year-on-year growth. However, the quarter experienced a sequential decline of approximately 3% in revenues compared to Q2 FY26. This dip was primarily attributed to a temporary slowdown in spending from two large customers, driven by timing and budget reprioritization rather than project cancellations. Management expressed optimism for recovery in the coming months, noting that both clients have started to increase spending.

The company reaffirmed its long-term vision to achieve US$500 million in revenues by 2030, targeting 15-20% organic year-on-year growth. Key strategic drivers include scaling AI-led engineering, data operations, and intelligent operations, alongside expanding managed services and platform-led delivery models. Saksoft also plans to invest in agentic AI and industry accelerators, and aims for increased multi-year engagements and vendor consolidation wins. Management indicated a willingness to consider tuck-in acquisitions of 250-300 crore size to accelerate this growth trajectory.

Saksoft achieved notable operational progress across its verticals. In logistics, a multi-year digital transformation engagement was secured with a leading U.S.-based carrier. The commerce vertical saw a partnership to establish a joint AI innovation lab with a technology distributor. Furthermore, the company won a significant vendor consolidation RFP with a US carrier, which led to an increase in team size from 50 to over 100 people, despite a 20% discount on rates, demonstrating its capability in securing larger contracts.

For the 9 months of FY26, EBITDA margins stood at 18.7%, with Q3 FY26 margins at 18.1%. Management guided for a steady-state EBITDA margin of 'around 18% or so' in the mid to long term, adjusting from a previous range of 19-20%. This outlook factors in continued investments in strengthening front-end sales capabilities, senior leadership, and capability building for the future, which are deemed essential for long-term growth and positioning as an AI-led digital transformation partner.

Saksoft views AI as a 'must-have' hygiene factor, essential for delivering more efficient and cost-effective services to clients. The company's AI strategy focuses on improving efficiency in application development and testing, enabling smaller teams (e.g., 30-35 members instead of 50) to achieve the same output. This shift towards outcome-based projects, where clients focus on service level agreements rather than resource numbers, has significantly transformed the company's revenue texture over the past 4-5 years, contributing to higher value realization.

The Americas contributed 50% of Saksoft's total revenues for the 9 months FY26, with Europe at 29% and APAC at 21%. Management intends to maintain this vertical mix for the next two years. Strategically, the company plans to place maximum focus on the US geography, recognizing it as the largest market for the tech industry. The onsite revenue mix was 44%, and management aims to increase this proportion to enhance revenue per headcount and gain deeper intelligence from working closely with customers.