This article first appeared on GuruFocus .
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Revenue:INR308 crores, a 2.7% growth from the previous quarter's INR300 crores.
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EBITDA:INR39.7 crores, a 5% increase from INR37.8 crores last quarter.
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PAT (Profit After Tax):INR25.5 crores, a 5.8% growth from INR24 crores last quarter.
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EBITDA Margin:12.9% for the quarter.
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PAT Margin:8.3% for the quarter, up from 8% last quarter.
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9-Month Revenue:INR905 crores, compared to INR812 crores in the previous year.
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9-Month EBITDA:INR113 crores, up from INR99.5 crores in the previous year.
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9-Month EBITDA Margin:12.5%, compared to 12.2% in the previous year.
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9-Month PAT Margin:8%, up from 7.4% in the previous year.
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Diluted EPS (9 Months):INR1.4, compared to INR1.3 in the previous year.
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Quarterly EPS:INR0.50, up from INR0.40 in the last quarter.
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Release Date: February 13, 2026
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 2.7% increase in revenue for Q3 FY'26, reaching INR308 crores compared to the previous quarter.
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EBITDA grew by 5% to INR39.7 crores, indicating improved operational efficiency.
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The company achieved a PAT growth of 5.8%, reaching INR25.5 crores, reflecting a stronger bottom line.
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Kellton Tech Solutions Ltd secured 11 new client wins, including engagements with global technology giants and leaders in various industries.
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The company has achieved the highest level of partnership with Microsoft in three areas: data and AI, digital and app innovation, and infrastructure.
Negative Points
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Despite the revenue growth, the overall market for IT services is facing challenges, with concerns about AI potentially impacting service demand.
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Many clients are hesitant to adopt AI, limiting the company's ability to leverage AI for efficiency gains in certain contracts.
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The majority of Kellton Tech Solutions Ltd's contracts are time and material-based, which restricts the company's ability to fully capitalize on AI-driven efficiencies.
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There is uncertainty about the long-term impact of AI on margins, as clients may demand cost savings from AI efficiencies.
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The company's growth strategy is heavily reliant on partnerships, such as with ServiceNow and Microsoft, which may pose risks if these partnerships do not yield expected results.
Q & A Highlights
Q: How does Kellton Tech Solutions view the impact of AI on the IT services industry, and what opportunities do they see in data center CapEx? A: Niranjan Chintam, CFO, explained that while there is concern about AI affecting services, Kellton Tech believes the impact will be minimal. They see opportunities in data center CapEx, as they have expertise in setting up and managing data centers. They are currently responding to RFPs for large data center projects.
Q: What productivity gains are being observed with AI deployment, and is there a move towards a leaner team? A: Karanjit Singh, Whole Time Director, noted that AI deployment has led to 20-30% efficiency gains in outcome-based projects. While there is potential for a leaner team, the focus is on handling increased volumes with the same workforce. The company is still assessing the long-term impact of AI on team size.
Q: How does the acquisition of Kumai Technologies contribute to Kellton's growth? A: Niranjan Chintam highlighted that the acquisition enhances Kellton's expertise in ServiceNow, elevating their partnership level and providing better access to customers. Karanjit Singh added that it accelerates their strategic intent by combining Kumai's expertise with Kellton's global sales reach.
Q: How are efficiency gains from AI expected to translate into higher margins? A: Niranjan Chintam stated that while AI brings efficiency, it's challenging to quantify its impact on margins due to customer demands for shared savings. The focus is on increasing volume with the same workforce, and any margin gains are often passed on to customers.
Q: What is the current trend in pricing for contracts where AI is not used? A: Niranjan Chintam mentioned that pricing for non-AI contracts remains unchanged, based on the experience and seniority of the engineers involved. The company provides resources as per customer requirements, with the customer driving the outcomes.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
