Financial Performance Highlights

Q4 FY26 Performance:

  • Constant currency revenue growth: 0.5% sequential, 6.4% year-over-year
  • Operating revenues: INR 604 crores (2.8% sequential growth, ~11% YoY)
  • Total income: INR 621 crores (3.1% sequential growth, 9% YoY)
  • Operating margin: INR 106 crores (17.5% of revenue)
  • PAT: INR 61 crores
  • Adjusted PAT: INR 72 crores (11.5% of total income)
  • Utilization rate: 81% (vs 77.4% in Q4 FY25)
  • DSO: 94 days (increased from 92 days)

Full Year FY26 Performance:

  • Operating revenue: INR 2,315 crores (12.3% YoY growth)
  • Constant currency growth: 9.2% (slightly below 10% guidance due to delayed Arttha license deals)
  • Total income: INR 2,400 crores (11% growth)
  • Operating margin: 17.4% (INR 401 crores, 12.3% growth)
  • PAT: INR 213 crores (15% YoY growth)
  • Adjusted PAT: INR 279 crores (11.61% of total income)
  • Return on capital employed: 22% (vs 21% previous year)

Operational Metrics

  • Active customers: 306 (51 additions during FY26)
  • Fortune 500 clients: 91 (up from 82, contributing 58% of revenue)
  • Employee count: 6,500 (slight drop from previous year)
  • Attrition rate: 17%
  • Repeat business: 92-94%

Strategic Initiatives and Business Updates

AI-First Strategy Implementation:

  • Generative AI Business Services (GBS) unit contributes 3.3% of revenues
  • Enterprise AI Platform launched to accelerate AI adoption with intelligent agents, orchestration capabilities, and governance framework
  • 50 AI use cases identified and implemented
  • Building dedicated 1,000-person AI and generative AI team by end of FY27
  • Targeting 90% of engineers trained on AI productivity tools by FY27 end
  • New partnerships established with Anthropic and UnifyApps

Vertical Performance:

  • Growth led by BFSI and Healthcare & Life Sciences
  • Retail and travel/media/entertainment delivered steady growth
  • Industrial sector remained stable
  • Education sector showing revival signs driven by GenAI adoption
  • Hi-Tech vertical declined due to one major Canadian customer completion

Geographic Performance:

  • US remained largest market with healthy momentum
  • India, Europe and Rest of World showed good growth

Leadership Additions:

  • Prathamesh Kulkarni: Executive VP leading BFSI, Healthcare & Life Sciences, and Retail CPG
  • Suresh Chettur: Digital First Automation CoE Head
  • Siddharth Dhandapani: GCC business head
  • Samarjeet Singh: VP of newly launched SAP Center of Excellence

Guidance and Outlook

FY27 Guidance:

  • Revenue growth guidance: 12.5% constant currency (aspirational for 15%)
  • Operating margin target: 17.5-18.5% (100 bps improvement)
  • Headcount addition: 1,050 employees (bulk in generative AI and analytics/AI CoE)

Growth Drivers:

  • Record pipeline growth of 27% in Q4
  • Strong momentum in AI-led transformation opportunities
  • Multiple large deals in pipeline including:
  • $12-15M 3-year deal with warehouse/logistics company
  • $10M+ expansion with Southeast Asian insurance provider
  • 5-year deal with large CPG company for marketing experience
  • PE initiative: Preferred partner for 4 PE firms
  • GCC strategy development

Capital Allocation

  • Final dividend: INR 3.65 per share (subject to shareholder approval)
  • Total dividend for FY26: INR 6.40 per share
  • Healthy balance sheet with robust cash flow generation

Key Customer Wins

  • US-based insurance and financial service provider for product engineering
  • Global warehouse automation leader for engineering and security applications
  • European healthcare software company for hospital management platform modernization
  • African bottling company for IoT-enabled AI asset performance optimization
  • Large Indian automobile company for Agentic AI infrastructure
  • Major CPG company for AI-powered marketing survey application