This article first appeared on GuruFocus .
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Revenue:INR300 crores for Q2 FY26, 11.1% year-on-year growth.
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EBITDA:INR37.8 crores for Q2 FY26.
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Net Profit:INR24 crores for Q2 FY26.
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EBITDA Margin:12.6% for Q2 FY26.
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PAT Margin:8% for Q2 FY26.
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EPS:INR0.42 for Q2 FY26.
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H1 FY26 Revenue:INR597 crores.
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H1 FY26 EBITDA:INR73 crores.
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H1 FY26 Net Profit:INR46.8 crores.
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H1 FY26 EBITDA Margin:12.3%.
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H1 FY26 PAT Margin:7.8%.
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H1 FY26 EPS:INR0.90.
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Warning! GuruFocus has detected 2 Warning Signs with BOM:519602.
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Release Date: November 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Kellton Tech Solutions Ltd ( BOM:519602 ) reported a revenue of INR300 crores for Q2 FY26, marking an 11.1% year-on-year growth.
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The company achieved an EBITDA of INR37.8 crores with a margin of 12.6%, which is higher than the previous quarter.
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Kellton Tech Solutions Ltd successfully implemented a next-generation integration platform for a global food services company across 10 countries and over 1,500 stores.
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The company played a key role in powering a leading OTT platform for the live streaming of the Asia Cup, showcasing expertise in cloud-native engineering and large-scale digital platforms.
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Kellton Tech Solutions Ltd signed a memorandum of understanding with a leading European technology company to develop a sovereign human-centric AI ecosystem under the EU-India framework agreement.
Negative Points
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Despite higher profits, the EPS remained flat due to the conversion of FCCB round one into equity, increasing the number of equity shares.
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The company is facing challenges in expanding its brand recognition outside India, which is a focus area for future growth.
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Kellton Tech Solutions Ltd is planning a new round of FCCB primarily for working capital and acquisitions, indicating potential financial strain or need for external funding.
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The company is targeting acquisitions in deep tech and data-related companies, which may initially have low margins, impacting short-term profitability.
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There is a significant geographic concentration risk with a large portion of revenue coming from North America, amidst geopolitical uncertainties.
Q & A Highlights
Q: Can you clarify the purpose of the recent fundraising efforts? A: Niranjan Chintam, Chief Financial Officer, explained that the fundraising is intended for building intellectual property, working capital, expanding Kellton's brand internationally, and opportunistic acquisitions. The first round of FCCB was used for these purposes, and the new round will also focus on working capital and acquisitions.
Q: What is the timeline for deploying the funds raised through FCCB? A: Niranjan Chintam stated that the company aims to deploy the funds within a year after receiving them.
Q: What is the target margin profile for potential acquisitions? A: The CFO mentioned that while some new tech companies may have minimal margins, Kellton aims for a 20% EBITDA target. They plan to improve margins post-acquisition by leveraging management expertise and economies of scale.
Q: How does Kellton plan to address the geopolitical risks associated with heavy reliance on the North American market? A: Niranjan Chintam highlighted that Europe, despite its current recession, remains a focus area. The company is also expanding in Canada, Asia Pacific, and the Middle East to diversify its market presence.
Q: What impact does the H-1B visa situation have on Kellton's operations? A: The CFO noted that the impact is minimal as existing H-1B visas are grandfathered, and the company is adapting to changes by potentially outsourcing more work to India. The evolving rules are becoming more favorable, reducing immediate concerns.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
