Saksoft Q4 FY26 Results: Revenue ₹1,007 Cr in 2026

Revenue crosses the INR 1,000 crore milestone

Saksoft Ltd (BOM:590051) closed FY26 by crossing INR 1,000 crore in annual revenue, reporting operating income of INR 1,007.19 crore. The company said the milestone came despite a year marked by geopolitical uncertainties and a cautious customer spending environment. On a year-on-year basis, FY26 revenue rose 14% to INR 1,007 crore. The quarter ended March 31, 2026 (Q4 FY26) remained steady on execution, but sequential growth stayed muted. Q4 revenue from operations was about INR 248.85 crore, up roughly 3.7% to 3.8% year-on-year. On a quarter-on-quarter basis, Q4 revenue declined 0.8%, reflecting flat sequential momentum in recent quarters.

Q4 FY26: steady revenue, faster profitability improvement

For Q4 FY26, consolidated operating income came in at INR 248.85 crore. Operating EBITDA for the quarter stood at INR 45.26 crore, up 24.3% year-on-year, with EBITDA margin improving to 18.19% from 15.17% in the year-ago quarter. Profit after tax for Q4 FY26 was INR 35.93 crore, up 19.7% year-on-year, taking the PAT margin to 14.44%. The company reported Basic EPS of INR 2.81 for the quarter. Saksoft’s Q4 EBITDA margin of 18.19% was also slightly higher than Q3 FY26 at 18.10%, according to the reported comparison.

FY26: EBITDA grows faster than revenue

At the full-year level, profitability expanded faster than revenue. Saksoft reported FY26 EBITDA of INR 187.08 crore, up 27.9% year-on-year, with EBITDA margin improving to 18.57%. The company also reported FY26 net profit (PAT) of INR 133.27 crore, up 22.5% year-on-year, with annual EPS at INR 10.42. Reported margin improvements were notable at the annual level, with EBITDA margin expanding by 201 bps to 18.57% and PAT margin improving by 91 bps to 13.23%. The reported numbers point to a stronger profit mix and operating efficiency gains through FY26.

Cash position and dividend announcement

Saksoft ended FY26 with a net cash and bank balance of INR 223 crore, indicating strong cash generation and liquidity to fund growth initiatives. Alongside the FY26 results, the company declared a total annual dividend of 100% of face value, equivalent to INR 1 per share. Management commentary also referenced a final dividend of 55%, equal to INR 0.55 per equity share, which takes the total dividend to INR 1 per share for the year. The combination of net cash and dividend payout signals a balance between shareholder returns and funding capacity.

Pipeline strength and AI-led investments

Saksoft described its sales pipeline as the strongest in the company’s history. The company also highlighted increased traction in customer discussions around AI-led revenues. Management said it is strategically investing in AI capabilities and accelerators to strengthen service offerings and improve client engagement. These investments were positioned as part of the company’s response to shifting customer priorities as enterprises evaluate how to use AI in delivery and operations.

Demand environment: decision cycles are getting longer

While management indicated that growth is picking up, it also acknowledged that customer decision-making cycles have elongated due to uncertainties around AI. This change in buyer behaviour has affected growth momentum, with sequential revenue growth remaining flat in recent quarters. The company said it expects decision-making to improve in Q1 and Q2 of FY27, supporting steadier growth. However, the FY26 close underlined that conversion timelines can extend even when the pipeline is strong.

Margin risks: AI productivity and pricing expectations

Saksoft flagged a risk of margin compression as some customers expect lower contract prices as AI productivity increases. The company also pointed to challenges in customer adoption of AI, which could affect the pace of growth and revenue realisation. These dynamics matter because they can change the balance between revenue growth and profitability, particularly for projects where productivity gains are expected to be passed on to clients through pricing. FY26 margins improved, but the company’s own risk commentary suggests pricing discussions could become more demanding.

Client concentration remains a key monitorable

Saksoft’s revenue concentration is high, with 58% of revenue coming from just 10 clients. This creates exposure to spending decisions, project ramp-ups, or delays among a small set of large customers. In an environment where decision cycles are already lengthening, concentration can amplify volatility in quarterly outcomes. The company’s strong pipeline may help diversify over time, but the reported revenue mix indicates that customer concentration remains a central operational risk.

Key numbers at a glance (all figures in INR crore)

What investors will track into FY27

Two near-term signals stand out from the company’s disclosures. First is whether customer decision-making timelines normalise, as management expects improvement in Q1 and Q2 FY27. Second is how pricing and margin discussions evolve as AI productivity becomes a more explicit part of contract negotiations. Investors will also watch whether the company can convert its stated strongest-ever pipeline into sequential revenue growth while maintaining the FY26 margin expansion.

Conclusion

Saksoft’s FY26 result combined a revenue milestone of INR 1,007 crore with faster growth in EBITDA and improved margins. Q4 remained stable with a 0.8% sequential revenue dip but stronger year-on-year profitability. The company’s net cash of INR 223 crore and a total dividend of INR 1 per share highlight financial flexibility. The next set of updates will be important for clarity on decision-cycle normalisation in Q1 and Q2 FY27 and the impact of AI-driven pricing expectations on margins.