Financial Performance Q1 FY27

Revenue: ₹41.4 crore, representing 10% year-on-year growth but 3.7% sequential decline. The sequential moderation was primarily driven by reduced technology spending and ramp-down of selected engagements by certain large clients.

EBITDA: ₹12.56 crore, up 26.2% year-on-year and broadly flat sequentially. EBITDA margin stood at 30.3% compared to 29.3% in previous quarter and 26.4% in Q1 FY26, representing 389 basis points year-on-year expansion.

PAT: ₹9.21 crore, up 43.3% year-on-year but down 5% sequentially. PAT margin improved to 22.2% from 17.1% in Q1 FY26.

EPS: Increased from ₹2.71 per share to ₹3.88 per share, up 43% year-on-year.

Business Mix and Geographic Revenue

Core IT services business contributed 98.3% of total revenue. Geographic diversification: North America (63%), India (18%), Europe (6%), Australia (3%), Rest of World (10%).

Balance Sheet and Dividend

Company remains debt-free with cash and bank balance of ₹17 crore as of June 30, 2026. Board declared interim dividend of ₹4 per share for FY27.

Key Business Developments

  • Completed six years as listed company (listed July 6, 2020)
  • Appointed Eric Paul as VP and Head of Global Sales
  • Appointed Najib Saiyed as Head of Sales, North America
  • Two large clients ramped down engagements due to geopolitical tensions and internal restructuring
  • $1 million deal pipeline currently under discussion

AI Implementation and Efficiency Gains

Company reported 25% developer efficiency gains through AI adoption. All employees are AI-certified using tools including Claude, Cursor, and Copilot. AI being used across code development, test automation, DevOps, security scanning, and non-tech functions like RFP bidding.

Guidance and Outlook

Management withdrew FY27 revenue guidance citing macroeconomic uncertainty and client caution. Maintained EBITDA margin target of 25-30% for full year. Expects revenue softness over next 2-3 quarters due to client ramp-downs. Long-term target of 20% revenue growth with 25-30% margins post-FY27.

New Vertical Expansion Plans

Planning to enter cybersecurity and SAP implementation verticals to diversify revenue streams beyond current Odoo expertise.

Client Concentration

Top 10 clients contribute more than half of revenue. Two specific clients significantly reduced business due to headcount reductions and management changes. Over 80% of revenue comes from repeat customers.