Kellton Tech Solutions Limited reported a 6.8% year-on-year increase in consolidated revenue to ₹3,163 million (Rs. 31,561.96 lakhs) for the quarter ended June 30, 2026, driven by strong execution in digital transformation and new client acquisitions. While net profit dipped marginally to ₹223 million (Rs. 2,231.81 lakhs) from ₹226.5 million in Q1FY26, the company maintained an EBITDA margin of 11.1%, reflecting stable operational efficiency despite higher employee benefit costs. The Board of Directors approved the unaudited results on July 23, 2026, following review by the Audit Committee and an unqualified limited review opinion from statutory auditors Anant Rao & Mallik.

Financial Performance Overview

Total revenue from operations stood at Rs. 31,561.96 lakhs, up from Rs. 29,547.44 lakhs in the corresponding quarter of the previous year. Other income contributed Rs. 67.31 lakhs, bringing total revenue to Rs. 31,629.27 lakhs. Total expenses were Rs. 29,060.40 lakhs, with employee benefits accounting for the largest share at Rs. 14,153.51 lakhs. Profit before tax was Rs. 2,568.87 lakhs, resulting in a net profit of Rs. 2,231.81 lakhs. Basic and diluted earnings per share (EPS) were Rs. 0.42 each.

On a standalone basis, revenue from operations grew to Rs. 5,773.65 lakhs from Rs. 5,298.15 lakhs in Q1FY26. Standalone net profit declined to Rs. 184.95 lakhs from Rs. 276.70 lakhs in the year-ago quarter.

Operational Highlights and New Wins

The company strengthened its AI-led portfolio during the quarter, launching Phoenix.AI, an agentic legacy modernization platform that claims to accelerate modernization by up to 80% while reducing costs by up to 50%. It also launched Structi.ai, an enterprise AI context engine processing over 10 million data assets daily. Kellton attained Snowflake AI Data Cloud Services Select Tier Partner status, reinforcing its data transformation capabilities.

Key operational milestones included:

• Deploying the Optima Digital Oilfield Platform for Oil India Limited, enabling real-time monitoring of 77 production wells across 46 plinths within six months.
• Modernizing the Loan Origination System for a leading NBFC, facilitating a Loan Against Property offering.
• Receiving the BW Businessworld PEOPLE TECH.FUTURE 2026 Gold Award for Best HR Tech for implementing the Government of Karnataka’s HRMS2 program, serving over 520,000 employees.

New client wins included engagements with a Fortune India 500 conglomerate for workflow automation, a UAE enterprise group for cloud-native operating platforms, and a global pest management leader for intelligent field service solutions.

Segment Performance

The Digital Transformation segment remained the primary revenue driver, contributing Rs. 26,493.76 lakhs, or 84% of total consolidated revenue. Enterprise Solutions added Rs. 4,201.39 lakhs, while Consulting contributed Rs. 866.81 lakhs. Segment profit before tax, interest, and depreciation totalled Rs. 9,095.65 lakhs, compared to Rs. 9,497.71 lakhs in Q1FY26.

What the Numbers Show

While top-line growth accelerated to 6.8%, the slight dip in net profit indicates pressure from rising employee benefits, which constituted nearly 49% of total expenses. However, the maintenance of an 11.1% EBITDA margin suggests that operational leverage is holding steady despite cost increases. The expansion into AI-specific platforms like Phoenix.AI and Structi.ai positions the company to potentially improve margins in future quarters through IP-led delivery models.

Kellton Tech Solutions Ltd has announced it will host an earnings conference call to discuss the financial performance of Q1 FY2026-27. The meeting is scheduled for Friday, July 24, 2026, at 5:00 PM IST, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The conference call will feature representation from the company's senior management, including Mr. Niranjan Chintam, Chairman & Whole Time Director; Mr. Karanjit Singh, Chief Executive Officer, India; and Mr. Srinivas Potluri, Chief Executive Officer, US.

Participants can join the discussion via specific dial-in numbers provided for domestic and international access. The company has also facilitated an express join option to minimize wait times for attendees.

Conference Dial-In Details

The disclosure was submitted by Rahul Jain, Company Secretary and Compliance Officer, on July 21, 2026.