Summary
Saksoft Limited - Q3 FY26 Earnings Call Summary Monday, February 03, 2026
Event Participants
Executives 2 Aditya Krishna (Promoter & CEO), Niraj Kumar (CFO & COO)
Analysts 6 Akshat Rohatgi, Anand Bhaskaran, Bharat Gulati, Jyoti Singh, Mahima, Vikas Srivastava
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Operating Revenue | ₹250 crores | +11% YoY, -3% QoQ; Softness due to budget reprioritization by two top customers. |
| EBITDA | ₹45 crores | +19% YoY; Reflects stronger operational efficiency despite sequential revenue dip. |
| EBITDA Margin | 18.1% | +120 bps YoY, -150 bps QoQ; Impacted by growth investments and revenue softness. |
| Net Profit (PAT) | ₹29 crores | +7% YoY; Includes a one-time exceptional provision of ₹4.86 crores for new labor code. |
| PAT Margin | 11.57% | -40 bps YoY; Impacted by exceptional provision and lower other income. |
| 9M FY26 Revenue | ₹758 crores | +18% YoY; Demonstrates steady growth across the first three quarters. |
| 9M FY26 EBITDA | ₹142 crores | +29% YoY; Margin at 18.7% for the 9-month period. |
| Utilization | 83% | Excluding trainees; Management aims to maintain high utilization through AI-led efficiency. |
| Headcount | 2,673 | Total employees; Includes 2,454 technical staff. |
| Net Worth | Not Disclosed | Management noted strong internal accruals for future inorganic acquisitions. |
Geographic & Segment Commentary
- Americas: Contributed 50% of total 9M revenue. Management identifies the US as the primary growth engine, planning to allocate 95% of incremental investment capital here due to market potential.
- Europe: Contributed 29% of 9M revenue. Recent wins include a business transformation program for a telecom operator, though focus remains selective compared to the US market.
- BFS (Banking & Financial Services): Contributed 31% of revenue. Focus is strictly on Banking and Financial Services, explicitly avoiding the Insurance sector (BFS, not BFSI).
- Emerging Verticals: The largest segment at 47% of revenue. Includes various digital transformation and engineering projects across non-core legacy sectors.
- Logistics & Commerce: Contributed 14% and 8% respectively. Secured a major multi-year vendor consolidation deal with a US carrier and established a joint AI innovation lab with a technology distributor.
Company-Specific & Strategic Commentary
- Vision 2030: Management reiterated a target of US$ 500 million in revenue by 2030, implying a 4.5x scale-up from current levels through 85% organic growth and selective acquisitions.
- AI Integration: AI is treated as “table stakes” rather than a standalone product. Saksoft is using AI frameworks in Centers of Excellence (CoEs) to reduce project team sizes (e.g., from 50 to 35 members) while maintaining output.
- Outcome-Based Transition: Shifting from “selling bodies” (staff augmentation) to outcome-based contracts. Success is measured by whether clients bypass interviewing individual resources, focusing instead on SLAs and deliverables.
- Vendor Consolidation: Strategic focus on participating in larger RFPs where enterprises are reducing supplier counts. Won a recent US carrier deal by offering a 20% discount to secure a 3-year recurring revenue stream.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| EBITDA Margin | 18% - 20% | Steady-state target is ~18% considering ongoing investments in senior talent and US front-end sales. |
| Revenue (Vision 2030) | $500 Million by FY31 | Aspirational target driven by wallet share expansion in top 20 customers and internal accrual-funded M&A. |
| Revenue Mix | Stable | Management expects the vertical split (BFS, Logistics, etc.) to remain largely unchanged over the next 24 months. |
| Headcount | Linear Scaling | Management anticipates needing ~12,000 employees to support a $500M revenue run rate, assuming current productivity. |
Risks & Constraints
| Risk | Context |
|---|---|
| Client Concentration | Top 10 clients contribute 58% of revenue; Q3 saw a 3% sequential dip specifically due to spending deferment from two major clients. |
| Talent Acquisition | CEO noted that finding 1,000-crore to 5,000-crore scale talent is the “biggest challenge”; talent costs often precede revenue, causing margin volatility. |
| Pricing Pressure | Vendor consolidation wins (like the recent US carrier deal) may require upfront discounts (up to 20%) to displace incumbents. |
| Macro Environment | Cautious enterprise spending and longer decision cycles for discretionary projects remain a near-term headwind. |
Q&A Highlights
Sequential Growth Blip
- Question: What caused the first QoQ revenue decline after 20 quarters of growth? (Jyoti Singh)
- Answer: It was a temporary 3% decline due to budget reprioritization by two top customers. Spending is already recovering, and engagement levels remain unchanged (Aditya Krishna).
AI and Margins
- Question: Is the higher margin driven by AI efficiencies? (Bharat Gulati)
- Answer: Short-term margins benefited from AI frameworks and rupee depreciation. However, 18% is a more sustainable base given the need for “feet on the ground” in the US and UK (Niraj Kumar).
Outcome-Based Selling
- Question: How has the nature of work changed to support higher margins? (Priyam Srivastav)
- Answer: We moved from providing “bodies” to outcome-based projects where we manage SLAs. If a customer doesn’t need to interview our resource, we are in the higher value chain (Aditya Krishna).
Scaling to $500 Million
- Question: Is the $500M target realistic given historical growth? (Vikas Srivastava)
- Answer: It is aspirational. Even if we hit $400M, it is a significant 3.5x scale-up. We will use internal accruals for acquisitions of ₹250–₹300 crores to accelerate this (Aditya Krishna).
US Market Strategy
- Question: Which geography will see the most focus? (Anand Bhaskaran)
- Answer: The US is the biggest market. If I had ₹100, I would put ₹95 in the US. We are hiring local talent and L1 visa holders there to gain better account intelligence (Aditya Krishna).
Key Takeaway
Saksoft Limited reported a steady 18% YoY revenue growth for 9M FY26, despite a minor 3% sequential dip in Q3 due to budget deferrals by two major clients. The company maintained robust 9M EBITDA margins of 18.7%, supported by a strategic shift from staff augmentation to outcome-based contracts and AI-driven delivery efficiencies. Management remains committed to its “Vision 2030” of $500 million in revenue, focusing heavily on the US market and vendor consolidation opportunities. While talent costs and pricing pressure from large-deal acquisitions remain watch points, the company is leveraging internal accruals to fund its next phase of growth. Saksoft enters the final quarter of FY26 with a recovery in client spending and a strengthened leadership pipeline to drive long-term wallet share expansion.
Want more insights like this?
Subscribe to get deep dives delivered to your inbox.
More Earnings Summaries
Explore more Q3 FY26 earnings call analyses:
Aptus Value Housing Finance India Limited Q3 FY26
Aptus Value Housing Finance delivered a steady Q3 FY26 with 21% AUM growth and a sector-leading ROE of 20.2%. The quarter was characterized by a strategic pi...
NHPC Limited Q3 FY26
NHPC delivered a resilient performance in 9M FY26, with revenue up 10% to ₹8,800 crores and generation increasing 15% following the commissioning of Parbati-...
Zota Health Care Limited Q3 FY26
Zota Health Care reported a robust 98.2% YoY revenue growth in Q3 FY26, driven by the aggressive expansion of its Davaindia network to 2,331 stores. While to...