Saksoft Limited: Navigating Digital Transformation with AI-Led Growth in H1 FY26

Saksoft Limited, a prominent player in digital transformation, has reported a robust financial performance for the second quarter and first half of the financial year 2026. The company continues to demonstrate strong sequential and year-on-year growth, driven by strategic investments in AI-powered frameworks and an expanding portfolio of intelligent products and platforms. These results underscore Saksoft's commitment to innovation and its ability to capture increasing wallet share from existing clients amidst a rapidly evolving technology landscape.

For Q2 FY26, Saksoft's operating income reached INR 258.49 crore, marking a significant 20.1% year-on-year increase. Operating EBITDA grew by an impressive 37.7% year-on-year to INR 50.62 crore, with a healthy margin of 19.58%. Net profit for the quarter also saw a substantial rise of 37.5% year-on-year, totaling INR 35.97 crore, reflecting a PAT margin of 13.91%. The first half of FY26 continued this positive trend, with operating income at INR 507.57 crore, up 21.9% from the previous year. H1 FY26 operating EBITDA stood at INR 96.45 crore, a 34.3% year-on-year growth, achieving a 19.00% margin. Net profit for H1 FY26 was INR 68.32 crore, a 32.0% year-on-year increase, with PAT margins at 13.46%. These figures highlight the company's consistent operational efficiency and strong financial discipline.

Strategic Focus on AI and Digital Engineering

Saksoft's strategic narrative is firmly anchored in AI-led transformation. The company has made continued investments in AI-powered frameworks to accelerate the digital engineering lifecycle, which is proving instrumental in driving better predictability in revenues. This half year saw the expansion of its intelligent products portfolio with the launch of two major accelerators: SakMod, a composable framework for legacy modernization and system integration, and Sakcelerate, a unified AIOps and FinOps automation platform for enterprises. Furthermore, Saksoft introduced new agentic AI-based solutions, including a Conversational AI Agent and an Emergency Care Agent, built with wrappers on leading enterprise platforms to enhance customer and employee experiences.

Management emphasized that 75% of their AI focus is on productivity improvements, helping customers achieve greater efficiency in technology spending, while the remaining 25% is dedicated to agentic solutions for automating workflows. This proactive approach to AI innovation not only strengthens their roadmap but also reinforces their commitment to delivering next-generation enterprise capabilities. The company's ability to secure small deals in AI, including a recent testing AI opportunity with a large Indian bank, indicates growing customer interest and spending in this domain.

Diversified Revenue Streams and Client Engagement

Saksoft maintains a well-balanced revenue composition across various sectors and geographies. For H1 FY26, the revenue split by verticals was: Emerging Verticals at 47%, BFS at 31%, Logistics at 14%, and Commerce at 8%. Geographically, the USA contributed 44% of total revenues, Europe 21%, and Asia Pacific and other regions accounted for the remaining 35%. The company also maintains a healthy onsite-offshore revenue mix, with 44% onsite and 56% offshore, showcasing its global delivery capabilities.

A significant portion of Saksoft's growth strategy revolves around deepening engagement with its existing client base. The company boasts 16 customers with over $1 million in revenues, and management believes there is massive runway to increase wallet share within these accounts, given their currently small share. This focus on becoming mission-critical partners to large customers like Honeywell and Broadcom is expected to drive substantial organic growth. The company's approach to talent development, particularly in Europe, by building local nearshore teams, ensures time zone compatibility and efficient solution delivery, further strengthening client relationships.

Outlook and Management Commentary

Looking ahead, Saksoft's management has provided clear guidance for the financial year. They aim for an annual top-line revenue of INR 1,000-1,100 crore. While Q2 FY26 EBITDA margins were strong at 19.58%, management anticipates a normalization to 17-18% in coming quarters and years as sales costs, including new hires like a senior Chief Growth Officer for the West Coast, catch up. The company is confident in achieving a 25-30% year-on-year CAGR towards its Vision 2030 target of $500 million in revenues, supported by both organic growth and strategic acquisitions of companies with$10-15 million in top line. Headcount growth is also expected to be symmetric with revenue growth, maintaining the 25-30% CAGR, and the effective tax rate is projected to be between 24-25%.

Saksoft's performance in H1 FY26 reflects a company that is not only delivering strong financial results but also strategically positioning itself for future growth in the dynamic digital transformation and AI landscape. With a clear vision, disciplined execution, and a proactive approach to technology trends, Saksoft continues to build confidence among its partners and stakeholders, aiming to grow its wallet share in their technology spending and sustain its growth trajectory.