Saksoft FY26: Crosses INR 1,000 Crore, Expands Margins, and Bets on AI-Led Delivery

Saksoft closed FY26 with a clear milestone: consolidated operating income crossed INR 1,000 crores. For the full year, operating income came in at INR 10,071.91 million, up 14.1% year on year. Profitability improved faster than revenue. EBITDA rose to INR 1,870.82 million with margin expanding to 18.57%, while PAT increased to INR 1,332.70 million with PAT margin at 13.23%.

Q4 FY26 was stable on revenue but stronger on profitability. Operating income was INR 2,488.45 million, down 0.8% quarter on quarter but up 3.7% year on year. EBITDA margin held at 18.19% and PAT margin improved to 14.44%.

Management framed the year as one where macro uncertainty and geopolitical noise continued, but a new factor dominated customer conversations: AI. The company said decision-making cycles have elongated as customers evaluate what AI means for cost, security, and delivery models. At the same time, Saksoft described its sales pipeline as strong and said it is investing in AI capabilities and accelerators to strengthen its innovate, modernize and operate proposition.

FY26 performance: margin expansion stands out

The company’s FY26 results show operating leverage and margin improvement despite a cautious spending environment. EBITDA margin expanded by 201 basis points year on year to 18.57%, and PAT margin improved by 91 basis points to 13.23%.

In Q4, year on year EBITDA margin expanded by 302 basis points and PAT margin expanded by 192 basis points. In the concall, the CFO also explained that the other expenses line can include provisions, and the prior year quarter included a provision related to a customer that went bust. The absence of a similar provision in Q4 FY26 supported the year on year comparison.

The balance sheet continues to show meaningful acquisition footprint. Goodwill on consolidation stood at INR 5,182 million in FY26, up from INR 4,888 million in FY25. Liquidity remains a positive highlight. On the concall, the CFO stated net cash and bank balance was positive at around INR 223 crores as of March 31, 2026.

Mix and operating model: existing accounts remain the core engine

Saksoft’s FY26 revenue mix indicates meaningful diversification by vertical, but still a concentrated client base.

By vertical, FY26 revenue split was BFS at 31%, Emerging Verticals at 47%, Logistics at 14%, and Commerce at 8%. By geography, the Americas contributed 50% of revenue, Europe 29%, and APAC and others 21%. The onsite mix was 44% and offshore 56%.

A key message from management was that growth is expected to come largely from existing clients. The CEO stated multiple times that 95% to 98% of growth is expected to be driven by existing customers, with the top 20 accounts being the core focus. The presentation also notes that 58% of revenue comes from the top 10 clients, and the top 20 contribute about 70%.

Management’s rationale is tied to a changing buyer environment. Customers are consolidating vendors and shifting from fragmented support functions to centralized models, which increasingly include AI-enabled delivery. The company said it is pushing to increase wallet share, both as the easiest growth lever and as a defensive move to avoid being consolidated out.

AI: opportunity, uncertainty, and near-term pricing pressure

AI was the central theme in management commentary. The CEO described customer decision-making delays driven by AI noise. Customers are trying to assess how AI will affect the cost of delivery, what it means for security and guardrails, and whether AI tools will reduce or increase long-run technology spend.

Saksoft’s response has two parts.

First, capability building. Management said it is investing in AI capabilities and accelerators and training developers and project leaders across multiple LLMs, including customer LLMs. Second, operating model evolution. The company said it is pushing toward outcome-based delivery. On the concall, management estimated outcome-based work is roughly 10% today, with the balance largely time and material.

Management was also direct about the near-term trade-offs. It said it will try to maintain EBITDA margins in the 17% to 18% range, but expects some compression because of AI investments and because customers may demand lower pricing at renewal given AI productivity.

At the same time, management expects AI to be structurally margin-accretive once models stabilize. The CEO described a future model where teams shift from a pyramid of people to a blend of humans and AI agents, with fewer people required and agents taking a larger share of execution. He also noted that some areas like testing may see faster disruption, requiring re-skilling and re-purposing into areas such as AI assurance and forward deployment.

Pipeline and go-to-market: sharper front-end focus

A material change highlighted in the concall was pipeline growth. Management said the pipeline is about USD 25 million, compared with about USD 5 million six months earlier, and attributed this improvement to stronger sales execution and leadership.

The CEO credited the hiring of a Chief Growth Officer in the US, who joined around nine to ten months prior, and said a Chief Growth Officer for the UK and Europe would join at the end of June. Management also described focusing on six big bets, which are being taken to customers through client partners to generate proposals and build deal momentum.

Inorganically, management indicated acquisition appetite is limited by internal accrual discipline. It said a maximum acquisition appetite would be around INR 100 crores of topline. On prior acquisitions, management stated that the Zetechno and Ceptes acquisitions were doing well and contributed to growth, with capabilities largely around Salesforce and ServiceNow.

Closing view

FY26 for Saksoft was a year of steady revenue growth and stronger profitability. The company crossed the INR 1,000 crore revenue milestone, expanded margins, and continued to build around a few large vertical clusters, especially Emerging Verticals.

The near-term investor debate is likely to center on three factors. First, whether elongated decision cycles convert into wins as AI uncertainty settles. Second, whether the company can protect margins while investing in AI and navigating renewal pricing pressure. Third, whether its strategy of deepening wallet share in the top accounts delivers growth without increasing concentration risk.

Management’s message was consistent: the pipeline is the strongest it has been, and the company is positioning itself to win vendor consolidation and AI-enabled transformation work in existing customers. The next year will test execution, particularly in converting a larger pipeline into reported revenue while sustaining profitability.