SAKSOFT - Saksoft
📢 Recent Corporate Announcements
Saksoft reported a steady Q3 FY26 with revenue of ₹250 crores, up 11% YoY, despite a 3% sequential decline caused by budget reprioritization from two major clients. EBITDA grew 19% YoY to ₹45 crores, though margins softened to 18.1% from 19.6% in the previous quarter due to growth investments and a one-time ₹4.86 crore provision for labor code requirements. For the 9M FY26 period, the company showed robust performance with net profit rising 24% YoY to ₹97 crores. Management remains confident in its 'Vision 2030' goal of reaching $500 million in revenue through AI-led digital transformation.
- Q3 FY26 revenue stood at ₹250 crores, up 11% YoY but down 3% QoQ due to client spending deferrals.
- 9M FY26 net profit increased by 24% YoY to ₹97 crores with a PAT margin of 12.8%.
- EBITDA margins for the quarter were 18.1%, with management targeting a steady state of around 18% long-term.
- Top 10 clients contribute 58% of total revenue, highlighting significant client concentration risks.
- The Americas remain the largest geography at 50% of revenue, followed by Europe at 29%.
Saksoft Limited has officially released the audio recording of its earnings conference call conducted on February 03, 2026. The recording is now accessible on the company's investor relations website as per SEBI Listing Obligations and Disclosure Requirements. This follows the initial intimation of the call made on January 27, 2026. Accessing these recordings allows investors to hear direct management commentary regarding the company's recent financial performance and strategic direction.
- Earnings call recording for the recent quarter is now live on the company website.
- The call took place on February 03, 2026, and the link was provided on February 04, 2026.
- Compliance with SEBI Regulation 30 and 46 regarding investor disclosures.
Saksoft reported a mixed Q3-FY26 with revenue growing 10.6% YoY to INR 2,507.79 Mn but declining 3.0% sequentially due to spending slowdowns from its top two clients. Operating EBITDA rose 19.2% YoY to INR 453.79 Mn, though margins contracted by 148 bps compared to the previous quarter. The company maintains its ambitious 'Vision 2030' goal of reaching $500 million in revenue despite the short-term quarterly dip. For the nine-month period, the company showed strong growth with PAT increasing 23.6% to INR 973.39 Mn.
- Q3 Operating Income grew 10.6% YoY to INR 2,507.79 Mn, but fell 3% QoQ due to top-client spending cuts.
- 9M-FY26 Net Profit increased by 23.6% YoY to INR 973.39 Mn with a healthy PAT margin of 12.84%.
- Operating EBITDA margins stood at 18.10% for Q3, showing a 132 bps improvement YoY but a 148 bps drop QoQ.
- The company maintains a strong return profile with an ROE of 27.0% and ROCE of 19.4%.
- Revenue concentration remains high with the top 10 clients contributing 58% of total revenue.
Saksoft Limited's Board of Directors approved the unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, during their meeting on February 2, 2026. The statutory auditors have issued a Limited Review Report without any qualifications or adverse remarks, indicating clean financial reporting. While the specific profit and revenue figures were not detailed in the cover letter, the procedural approval marks the completion of the Q3 reporting cycle. Investors should refer to the detailed financial tables for specific growth and margin metrics.
- Board approved Unaudited Standalone and Consolidated Financial Results for Q3 and 9M ended Dec 31, 2025.
- Statutory Auditors issued a Limited Review Report with no qualifications or adverse remarks.
- The Board meeting commenced at 10:53 AM and concluded at 12:46 PM on February 2, 2026.
- Results were duly reviewed and recommended by the Audit Committee prior to Board approval.
Saksoft Limited has announced its Q3 FY26 earnings conference call scheduled for February 3, 2026, at 2:00 PM IST. The session will be hosted by Monarch Networth Capital and will feature top management, including the Chairman and MD. The discussion will center on the financial results for the quarter ending December 2025. No unpublished price-sensitive information is expected to be shared during this virtual group interaction.
- Earnings call set for Feb 3, 2026, at 2:00 PM IST to discuss Q3 FY26 performance.
- Management team including MD Aditya Krishna and CFO Niraj Kumar Ganeriwal to lead the discussion.
- The interaction is hosted by Monarch Networth Capital via a virtual group meeting format.
- Universal dial-in numbers provided are +91 22 6280 1455 and +91 22 7115 8828.
Saksoft Limited has scheduled an analyst and institutional investor meeting for February 3, 2026, at 2:00 PM IST. The virtual group meeting, hosted by Monarch Networth Capital, will focus on the company's Q3 FY26 earnings performance. Key management, including the Chairman & MD and the COO & CFO, will be present to interact with participants. This is a routine regulatory disclosure following the conclusion of the third quarter of the 2025-26 fiscal year.
- Conference call scheduled for February 3, 2026, at 2:00 PM IST to discuss Q3 FY26 results.
- Interaction hosted by Monarch Networth Capital via a virtual group meeting format.
- Management representation includes Chairman & MD Aditya Krishna and COO & CFO Niraj Kumar Ganeriwal.
- The company confirmed that no unpublished price sensitive information (UPSI) will be shared.
- Dial-in numbers provided for both domestic (+91 22 6280 1455) and international investors.
Saksoft Limited has announced the resignation of Mr. Saswat Swain, the Chief Delivery Officer and a designated Senior Management Personnel (SMP), effective December 26, 2025. The resignation applies to his role across the entire Saksoft Limited Group and was cited as being for personal reasons. As the Chief Delivery Officer, Mr. Swain held a key operational role responsible for service execution. The company has not yet announced a successor or an interim arrangement for this leadership position.
- Mr. Saswat Swain resigned as Chief Delivery Officer and Senior Management Personnel on December 26, 2025.
- The resignation is effective immediately across the Saksoft Limited Group.
- The departure is attributed to personal reasons rather than professional disputes.
- Saksoft is a mid-cap IT firm where delivery leadership is critical for maintaining client SLAs and project margins.
Saksoft Limited has officially announced the closure of its trading window for all designated persons starting January 1, 2026. This action is in compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015, ahead of the Q3 financial results. The window will remain closed until 48 hours after the declaration of the unaudited financial results for the quarter ended December 31, 2025. This is a standard regulatory procedure for listed companies in India to prevent insider trading during the sensitive period before earnings releases.
- Trading window closure commences on Thursday, January 1, 2026.
- Closure is related to the upcoming declaration of Q3 unaudited financial results for the period ending December 31, 2025.
- The restriction applies to all designated persons and their immediate relatives as per the company's code of conduct.
- The window will reopen 48 hours after the financial results are made public.
Saksoft Limited announced the resignation of Mr. Deepak Agarwal, the Business Unit Head- Ecommerce, effective from December 12, 2025. Mr. Agarwal was designated as Senior Management Personnel (SMP) of the company. He resigned from his position as Director of the eCommerce Business Unit (Solveda) at Saksoft. The company has ensured a smooth transition and handover of responsibilities.
- Deepak Agarwal resigned as Business Unit Head- Ecommerce
- Resignation effective from 12th December 2025
- Mr. Agarwal was Director of the eCommerce Business Unit (Solveda)
Saksoft Limited has announced the resignation of Mr. Deepak Agarwal, the Business Unit Head for Ecommerce, effective December 09, 2025. Mr. Agarwal was designated as a Senior Management Personnel (SMP) within the group and cited personal reasons for his departure. The company disclosed this change in compliance with Regulation 30 of SEBI Listing Regulations. Investors should monitor the transition in leadership for the Ecommerce vertical to ensure business continuity.
- Mr. Deepak Agarwal resigned from his role as Business Unit Head - Ecommerce on December 09, 2025.
- The executive was classified as Senior Management Personnel (SMP) under SEBI regulations.
- The resignation applies to the entire Saksoft Limited Group.
- The stated reason for the departure is personal reasons.
Saksoft Limited has submitted its machine-readable financial results for the quarter ended September 30, 2025, confirming a strong year-on-year performance. The company reported a consolidated net profit of ₹35.97 crore for Q2 FY25, a 37.5% increase compared to ₹26.16 crore in the same period last year. Revenue from operations grew by 20% YoY to ₹258.49 crore, driven largely by the 'Emerging vertical' and 'BFS' segments. The company maintains a healthy balance sheet with total assets of ₹997.62 crore as of September 30, 2025.
- Consolidated Revenue for Q2 FY25 grew 20.1% YoY to ₹258.49 crore compared to ₹215.29 crore.
- Net Profit for the quarter increased by 37.5% YoY to ₹35.97 crore from ₹26.16 crore.
- Half-year (H1 FY25) Net Profit stood at ₹68.31 crore, up from ₹51.75 crore in H1 FY24.
- The 'Emerging vertical' segment was the largest contributor with Q2 revenue of ₹120.19 crore.
- Basic Earnings Per Share (EPS) improved to ₹2.80 in Q2 FY25 from ₹2.06 in Q2 FY24.
Financial Performance
Revenue Growth by Segment
Application Development, the primary focus, grew at a CAGR of 38% over the three years ending FY24. Digital Transformation services grew at a CAGR of 35% over the same period. Total Operating Income (TOI) reached INR 883.16 Cr in FY25, representing a 16% YoY growth compared to INR 761.63 Cr in FY24.
Geographic Revenue Split
The USA and UK markets are the primary contributors, accounting for 76% of total revenue in FY24 and Q1 FY25. The APAC region is seeing increased contribution driven by global players establishing centers in India.
Profitability Margins
Operating margins have remained stable at approximately 16-17% over the past few years. PAT margins improved as PAT grew from INR 81.98 Cr in FY23 to INR 96.17 Cr in FY24 (17.3% growth) and reached INR 108.80 Cr in FY25 (13.1% growth).
EBITDA Margin
PBILDT margin was 16.58% in FY25, a slight moderation from 17.91% in FY24. This 133 bps decline was primarily due to one-time acquisition-related expenses and higher provisions, though margins recovered to 18.4% in Q1 FY26 (INR 45.83 Cr PBILDT on INR 249.07 Cr revenue).
Capital Expenditure
Inorganic CAPEX included INR 156 Cr (USD 18.8 million) for Solveda in August 2023 and INR 61.50 Cr for Ceptes Software in 2024. The company maintains a strong cash balance of INR 197 Cr as of March 2025 to fund future growth.
Credit Rating & Borrowing
Long-term bank facilities are rated CARE A; Stable and short-term facilities are rated CARE A1. Borrowing costs are low as the company is virtually debt-free with an overall gearing of 0.12x in FY25, up from 0.05x in FY24 due to a INR 29.4 Cr loan for the Ceptes acquisition.
Operational Drivers
Raw Materials
As an IT services firm, the primary 'raw material' is human capital. Employee costs and third-party service costs are the key determinants of margins, typically representing the largest portion of operating expenses.
Import Sources
Not applicable for IT services; however, talent is primarily sourced from India (offshore) and local markets in the US, UK, and Singapore (onsite).
Key Suppliers
Not applicable; the company relies on technology partners like Salesforce for platform-specific service delivery.
Capacity Expansion
Capacity is measured by headcount and delivery centers. The company is expanding its offshore delivery mix, which increased from 53% in FY22 to 56% in FY25, with a long-term target of a 60:40 offshore-to-onsite ratio.
Raw Material Costs
Employee costs are managed through a judicious mix of permanent staff and third-party consultants. Offshoring is the primary strategy to optimize these costs, as seen in the 3% increase in offshore mix over three years.
Manufacturing Efficiency
Efficiency is tracked via the offshore-onsite delivery ratio (currently 56% offshore) and employee utilization rates to ensure optimal cost structures.
Logistics & Distribution
Not applicable; services are delivered digitally or onsite at client locations.
Strategic Growth
Expected Growth Rate
16%
Growth Strategy
Growth is driven by a 'string of pearls' acquisition strategy, such as Solveda (e-commerce) and Ceptes (Salesforce), which contributed INR 115 Cr in incremental revenue in FY25. The company focuses on cross-selling these new capabilities to its existing 16+ 'million-dollar' clients to increase wallet share.
Products & Services
Business intelligence solutions, information management, Salesforce consulting, application development, cloud migration, IoT solutions, and software testing services.
Brand Portfolio
Saksoft, Solveda, Ceptes, DreamOrbit, Three Sixty Logica, Faichi Solutions.
New Products/Services
Salesforce platform-related services (via Ceptes) and AI accelerators are expected to be major growth drivers, with inorganic expansions contributing roughly 13% of FY25 revenue.
Market Expansion
Expansion is focused on the APAC region and deepening presence in niche verticals like Logistics, Fintech, and Healthcare in the US and UK markets.
Market Share & Ranking
Saksoft is a mid-tier niche player in the fragmented global IT services market, specializing in digital transformation for mid-market enterprises.
Strategic Alliances
Strategic partnerships with platform providers like Salesforce to enhance service delivery in digital transformation.
External Factors
Industry Trends
The IT industry is shifting toward AI-driven automation and cloud-native engineering. Saksoft is positioning itself by acquiring specialized firms to avoid obsolescence and capture the 35%+ growth in digital transformation spending.
Competitive Landscape
Faces intense competition from large Tier-1 IT multinationals with deeper pockets and smaller regional players with lower overheads.
Competitive Moat
The moat is built on 'switching costs'—once Saksoft manages a client's core applications and data migration, the relationship becomes 'sticky,' leading to repeat business and consistent revenue.
Macro Economic Sensitivity
High sensitivity to US and UK GDP growth and interest rates; high interest rates in developed markets have previously led to moderated growth (13.6% in FY24 vs 39% in FY23).
Consumer Behavior
Enterprise clients are increasingly moving toward 'vendor consolidation,' preferring partners who can provide end-to-end digital transformation rather than isolated services.
Geopolitical Risks
Geopolitical tensions and wars in Europe have decreased client spending in those regions, impacting the pace of new contract signings.
Regulatory & Governance
Industry Regulations
Compliance with global labor laws and data privacy regulations (like GDPR in the UK/EU) is critical for maintaining international service contracts.
Environmental Compliance
Saksoft voluntarily adopted BRSR reporting in 2022 and achieved carbon-neutral status in FY24.
Taxation Policy Impact
The company operates across multiple tax jurisdictions including India, USA, UK, and Singapore, with a consolidated PAT of INR 108.80 Cr in FY25.
Legal Contingencies
No specific pending high-value court cases or litigation values were disclosed in the available documents.
Risk Analysis
Key Uncertainties
Macroeconomic volatility in the US/UK could impact growth by 5-10% if clients defer projects. Attrition and wage inflation pose a risk to the 16% operating margin target.
Geographic Concentration Risk
High concentration with 76% of revenue derived from the USA and UK, making the company vulnerable to regional economic downturns.
Third Party Dependencies
Dependency on third-party consultants for project-specific scaling, which can impact cost optimization if not managed judiciously.
Technology Obsolescence Risk
Rapid advancements in AI could make traditional testing or application development services obsolete if the company fails to integrate AI accelerators.
Credit & Counterparty Risk
Receivables quality is high, with a focus on mid-tier and enterprise clients; credit periods are 60-75 days for international and 90 days for Indian clients.