Saksoft

Saksoft Limited achieved a significant milestone in FY26, crossing INR 1,000 crores in annual revenues, reaching INR 1,007 crores, a 14% year-on-year growth. The company demonstrated robust profitability, with EBITDA growing 28% to INR 187 crores and margins expanding by 201 basis points to 18.57%. Net Profit also saw a strong increase of 23% to INR 133 crores, resulting in a PAT margin of 13.23% for the full financial year.

For the fourth quarter of FY26, Saksoft reported revenues from operations of INR 249 crores, marking a 4% year-on-year growth but a slight decrease of 0.8% quarter-on-quarter. EBITDA for Q4 stood at INR 45 crores, a 24% year-on-year increase, with EBITDA margins improving by 301 basis points to 18.19%. Net Profit for the quarter was INR 36 crores, growing 20% year-on-year, with PAT margins at 14.44%. Management noted that sequential growth has been flattish in recent quarters due to external factors.

The global IT services industry continues to navigate macroeconomic uncertainties and geopolitical developments, leading to elongated customer decision-making cycles. Despite a strong sales pipeline, which has grown from USD 5 million to USD 25 million in six months, customer decisions are being deferred, largely attributed to the evolving conversations and 'noise around AI.' Management anticipates a pick-up in decision-making during Q1 and Q2 of the next financial year.

Saksoft is strategically investing in AI capabilities and accelerators to enhance its offerings. The company views AI as an integral enabler, with almost all its revenues having an AI component. Management expects AI to lead to 'cannibalization in contracts' but not in total spending, as customer savings will be re-invested in other areas. The long-term vision involves a shift towards outcome-based models and a human-agent operating model, which is projected to improve margins by reducing human headcount and increasing AI agent utilization.

For FY26, the Americas contributed approximately 50% of total revenues, Europe 29%, and Asia Pacific and other regions 21%. The revenue mix across verticals remains diversified, with Emerging Verticals accounting for 47%, Banking and Financial Services 31%, Logistics 14%, and Commerce 8%. The company's strategy focuses on increasing wallet share with its top 20 existing customers, from whom 95-98% of future growth is expected, rather than pursuing new logos.

At the end of Q4 FY26, Saksoft's total employee count was 2,494, with 2,277 technical personnel. The utilization level for employees, excluding trainees, stood at 83% for the full financial year. Management acknowledges that AI will lead to a non-linear relationship between headcount and revenue growth, necessitating significant re-purposing and training of the workforce. This includes transforming roles like testing engineers into AI assurance engineers, which is identified as a major challenge and focus area.

The Board approved a final dividend of 55% (INR 0.55 per equity share), bringing the total dividend for FY26 to 100% of the face value (INR 1). Saksoft maintains a strong liquidity position, with a net cash and bank balance of INR 223 crores as of March 31, 2026. This healthy cash generation supports strategic investments and growth initiatives. Recent acquisitions, Zetechno and Ceptes (completed in FY24/FY25), have contributed positively to current year's growth, particularly in Salesforce and ServiceNow capabilities.