Orient Technologies

Orient Technologies shares jumped 18% on Friday with strong trading volumes, extending gains to 21% over five days. The stock is trading near Rs 416, holding above its support zone of Rs 405-400. Technical analysts suggest a breakout above Rs 430 could drive the stock toward Rs 455-470. The company provides data center solutions including servers, storage, and networking hardware. Orient announced plans to deploy up to 6,000 GPUs in its data center infrastructure under the IndiaAI mission to provide remote compute and AI services. The stock has shown strong volume accumulation over 15 trading days, indicating institutional participation. India's data center demand is expected to more than double over three years, requiring Rs 90,000 crore in investment. However, the sector faces challenges including high capital requirements for power, cooling, and regulatory compliance, with significant execution risks in scaling operations profitably.

Orient Technologies plans aggressive top-line growth exceeding 30% year-on-year for the next three years, driven by new high-margin ventures in cybersecurity and managed services. Chairman and Managing Director Ajay Sawant outlined growth strategies focusing on Device as a Service (DaaS), Security Operations Centre (SOC), and cloud offerings to increase service revenue and margins. The company's current order book stands at Rs 414 crore, fully billable and expected to be realized in Q3 and Q4 of FY26, with projections to reach approximately Rs 600 crore in the second half of FY26. Orient Technologies faced cash flow challenges in FY25 with negative cash flow of Rs 11 crore due to high receivables from delayed projects, but management expects to return to cash-positive status within a couple of quarters. The SOC business will become operational by mid-Q3 of FY26, projected to contribute single-digit percentage to overall revenue in its first year, expanding to higher double-digit share by years two and three, with target margins exceeding 20% by calendar year 2026. The company aims to improve EBITDA margins from current 6-7% to 9-10% within a couple of years, expecting to reach around 8% within 3-4 quarters.

Orient Tech has secured an order worth ₹31 crore.