Key Quantitative Figures & Financial Results

FY26 Full Year Performance:

  • Achieved a significant milestone by surpassing INR 1,000 crores in annual revenue.
  • Revenue growth in USD terms was approximately 20% year-over-year.
  • Growth was in line with previous guidance of 19-20%.
  • Adjusted EBITDA margin for the full year was 23%, in line with guidance.
  • The company has grown roughly 2.2x in USD terms since its IPO.

Q4 FY26 Performance:

  • Revenue in dollar terms grew 17% YoY and 0.5% sequentially (QoQ).
  • Revenue in rupee terms grew 24.3% YoY, aided by INR depreciation.
  • Adjusted EBITDA margin for the quarter was 24.1%.
  • EPS for the quarter was INR 2.55. This compares to INR 2.59 in Q4 FY25, but the prior year included a one-time forex gain of ~INR 4.5 crores. Stripping this out, EPS grew ~8% YoY.
  • Utilization rates increased to 89% in Q4, up from 85% in the previous quarter, partly due to large project wins.

Segment Performance & Diversification:

  • Vertical Concentration: The technology vertical's contribution has reduced from ~70% of revenue 8 quarters ago to ~55% in Q4 FY26. This diversification is driven by growth in other verticals.
  • BFSI Vertical: Grew in excess of 80% YoY in FY26, ending the year at ~$18 million in revenue.
  • CPG & Retail Vertical: Grew significantly, aided by the acquisition of Decision Point (consolidated from July 1, 2025).
  • Geographical Concentration: Revenue from the Rest of the World (including Europe) increased to 15% of total revenue, up from 6% 8 quarters ago, reducing dependence on the U.S. (previously 94%).

Profitability & Margins:

  • The Q4 EBITDA of 24.1% was impacted by several factors:
  • Positive Factors (~2.6% benefit): A 1.1% benefit from forex and the non-recurrence of costs from Q3, which included a 1.5% impact from wage corrections to comply with the Labor Code and severance pay for headcount rationalization.
  • Negative Factors (~1.1% impact): Higher spend on travel, visa costs (for H1B filings), and SG&A related to leadership hiring.
  • Gross margin for FY26 was reported at 50.8%.
  • Gross margins for AI-led projects are higher, in the range of 55-58%.
  • The expense related to transaction-related retention costs from the Decision Point acquisition is now complete and will not recur in FY27.
  • A Deferred Tax Asset (DTA) was created for unexercised ESOPs in the U.S., reducing the Effective Tax Rate (ETR) to 22% for the quarter from a typical 25%. This is a non-cash accounting item.

Balance Sheet & Operations:

  • Days Sales Outstanding (DSO) was 80 days at FY26 year-end, up from 73 in FY25 and 65 in FY24. The increase is attributed to the higher share of CPG revenue (from Decision Point), where clients typically have 90-120 day credit terms. Management noted that collections have progressed well post year-end.
  • The business model is 80% Time & Material/Managed Services and 20% Fixed-bid. Within the 80%, 65-68% is in a managed services construct (fixed monthly revenue for capacity, not based on timesheets).

Strategic Updates & Business Commentary

Artificial Intelligence (AI) Traction:

  • Management reported strong traction in AI, categorizing work into:
  • Primary AI (28% of FY26 Revenue): Work where the AI solution (Generative or Agentic) is directly visible to the end customer. Examples include agentic workflows for payments/invoice reconciliation, market intelligence orchestration, automated campaigns, fraud/counterfeit detection, and warranty claims handling.
  • AI Under the Hood (21% of FY26 Revenue): Work where AI powers decision-making or modeling workflows.
  • The company is using all major AI technologies (OpenAI's Codex, Anthropic's Claude, Google's Gemini).
  • A key strategic shift is towards building a team of "forward-deployed engineers" who combine data engineering, BI, data science, and AI skills to design and implement solutions.
  • Management is actively pursuing partnerships, including a new engagement with Anthropic. Over 200 employees are enrolled in a Claude certification program.
  • Management commented on OpenAI and Anthropic launching their own services arms, viewing it as a validation of the need for a strong services layer for governance, transparency, evaluation, and embedding AI into business workflows.

Databricks Partnership:

  • The Databricks practice is a key growth pillar. Revenue from the Databricks ecosystem was $17.5 million in FY26, up from ~$12 million in FY25 (~46% growth).
  • Management expects this practice to grow at 60%+ in FY27.
  • The company is strengthening this partnership by engaging with Databricks' professional services leadership and is evaluating inorganic acquisition opportunities to bolster this capability.
  • The company will have a strong presence at the upcoming Databricks Summit in June.

Investment in Healtheon:

  • The company made a small, first-investor investment in Healtheon, a startup building an agentic framework for revenue cycle management in healthcare.
  • Healtheon has two charter clients and is building its agentic suite. LatentView will get access to these agents for use in other client conversations and healthcare solutions.

Technology Vertical Headwinds & Outlook:

  • The company started FY26 with headwinds in one large technology client, resulting in a revenue shrinkage of $6.5-$7 million (higher than the initial $5.5-$6M estimate). This was due to consolidation of partners and a client leadership change favoring in-house work.
  • Management is confident in recouping 50-60% of the lost value from this client through new deals already in advanced discussions. The target is to reach 95% of the previous year's revenue with this client in FY27.
  • For FY27, growth guidance by vertical is:
  • Technology: 5-8% YoY growth.
  • BFSI: ~40% YoY growth (on a higher base).
  • CPG & Retail: 18-22% YoY growth.

Guidance & Outlook for FY27

Revenue:

  • Organic growth for FY26 was 18.2-18.3%.
  • For FY27, based on the current order book and high-probability pipeline, visibility exists for 12-13% growth at the start of the year.
  • The full-year target is to achieve 18-20% organic growth, consistent with FY26. Historically, the company adds 8-10% to its initial visibility through the year.

Profitability:

  • EBITDA margin guidance for FY27 is 21-22%. This factors in planned investments and was calculated assuming an USD/INR rate of 92.
  • The current USD/INR rate (~95-96) provides a potential upside to this margin guidance.
  • Investments will focus on hiring senior leadership for the AI Center of Excellence (including a potential CTO) and the Databricks practice, as well as forward-deployed engineers.

Capital Structure Impact

No material changes to capital structure were discussed in the call. The mention of ESOPs related to the accounting recognition of a Deferred Tax Asset, not new issuance.

Cash Flow Implications

No specific cash flow details were provided beyond the discussion of DSO and collections.

Forward-Looking Statements

Management provided explicit guidance and commentary on FY27 expectations:

  • Revenue growth target of 18-20%.
  • EBITDA margin expectation of 21-22%.
  • Vertical-specific growth expectations (Tech: 5-8%, BFSI: ~40%, CPG: 18-22%).
  • Continued investment in AI and Databricks capabilities.