Kellton Tech Solutions Limited reported a 6.8% year-on-year increase in consolidated revenue for the quarter ended June 30, 2026, driven by strong performance in its Digital Transformation segment. However, net profit declined marginally to ₹223 million from ₹227 million in the corresponding period of FY26, reflecting increased employee benefit costs. The company has formally submitted these unaudited financial results to the Bombay Stock Exchange (BSE) and the National Stock Exchange of India Ltd (NSE), ensuring regulatory compliance under SEBI LODR Regulations.

The Board of Directors approved the unaudited consolidated and standalone financial results on July 23, 2026, based on recommendations from the Audit Committee. Niranjan Chintam, Chairperson of Kellton Tech Solutions, authorized the release. The filing was signed by Rahul Jain, Company Secretary and Compliance Officer, on July 27, 2026. Copies of the results were published in Business Standard (English) and Mana Telangana (Telugu) newspapers, as required by Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance Highlights

Consolidated revenue from operations stood at ₹3,156 million, up from ₹2,955 million in Q1FY26. Total expenses rose to ₹2,813 million, primarily due to employee benefit costs of ₹1,415 million. Profit before tax was recorded at ₹257 million, leading to a net profit of ₹223 million. Earnings per share (EPS) decreased to ₹0.42 from ₹0.46 in the prior year quarter.

On a standalone basis, revenue grew to ₹5,774 lakhs from ₹5,298 lakhs. However, standalone net profit fell to ₹185 lakhs from ₹277 lakhs in the same period last year.

Segment and Geographic Breakdown

The Digital Transformation segment remained the primary revenue driver, contributing 83.9% of total consolidated revenue. Geographically, the USA accounted for 81.5% of total revenue, underscoring the company’s heavy reliance on the North American market. This concentration highlights both the stability of its client base and the potential risks associated with regional economic fluctuations.

What the Numbers Show

While top-line growth remains healthy at 6.8%, the divergence between consolidated and standalone profitability warrants attention. The significant drop in standalone net profit (-33.2%) compared to the marginal decline in consolidated net profit (-1.8%) suggests that subsidiary operations or other income may be offsetting core cost pressures. The maintenance of an 11.1% EBITDA margin indicates operational resilience despite rising employee costs. Investors should monitor whether this cost structure is sustainable as the company scales its digital transformation offerings.

Kellton Tech Solutions Ltd reported revenue from operations of ₹316 crore for the first quarter of fiscal year 2027 (Q1 FY27), marking a year-on-year growth of approximately 7%. The company posted an EBITDA of ₹35 crore, translating to an EBITDA margin of 11.1%, and a profit after tax (PAT) of ₹22.3 crore, with a PAT margin of 7.1%. The earnings per share (EPS) stood at 42 paise. Management highlighted that the company maintains an order book covering the next nine months, providing predictable revenue visibility despite global headwinds causing delayed project starts.

The transcript of the earnings conference call, held on July 24, 2026, was filed with the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on July 27, 2026, pursuant to Regulation 30 and Regulation 46 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Rahul Jain, Company Secretary and Compliance Officer, submitted the disclosure.

Financial Performance

Chairman and Whole-Time Director Niranjan Chintam noted that while absolute receivable balances have increased due to revenue growth, the days sales outstanding (DSO) remain stable at over 100 days. He attributed this to payment terms with Fortune 100 US clients, where invoices are collected after 90 days, and long clearance cycles with Indian government entities. The company has not significantly provisioned against these receivables, writing off only a "handful of crores" annually for disputes or uncollectible amounts.

Operational Highlights and Client Wins

Karanjit Singh, Chief Executive Officer, India, detailed several strategic wins and operational milestones:

• Fortune India 500 Conglomerate: Deploying a unified enterprise workflow platform using low-code/no-code tools to modernize financial and governance processes, with future integration of AI-assisted automation.
• UAE Enterprise Group: Designing a cloud-native enterprise operating system with API-led integration and AI-driven insights for business decision-making.
• Middle East Energy Infrastructure: Building an enterprise workflow platform to digitize time-critical operational processes and regulatory approvals.
• Global Industrial Services: Engineering a mission-critical field operations platform for performance optimization and user experience improvements.
• Pest Management Leader: Developing a cloud-native intelligent field service platform on GCP, featuring AI-assisted scheduling and route optimization.

Additionally, the company successfully completed the deployment of its Optima digital oil fields platform for Oil India across 46 sites in Northeast India in under six months. This project involved deploying sensors and the Optima platform to enhance operational visibility and production intelligence.

Strategic Initiatives and AI Platforms

Kellton launched two key AI-driven products: Phoenix.ai, an accelerator for modernizing legacy systems at 80% faster speed and half the cost, and Structi.ai, an AI context engine for transforming unstructured data into contextual intelligence. The company also acquired a Select Tier partnership with Snowflake, strengthening its data analytics capabilities.

In the GCC region, Kellton formed a joint venture with Action Energy to target 5% of the billion-dollar digital oil field market within three years. Niranjan Chintam stated that this partnership leverages local knowledge and relationships to expand beyond the UAE into Kuwait and other GCC countries.

Guidance and Outlook

Management declined to provide specific numerical guidance for the next two quarters due to global geopolitical uncertainties and delayed project starts by clients concerned about cash flows. However, Chintam affirmed that the company aims to meet or beat the revenue growth achieved in FY26 for the current fiscal year. He emphasized that demand remains strong, with many contracts signed but delayed in execution. The company’s strategy focuses on embedding AI into core solutions rather than treating it as an add-on, leveraging partnerships with ServiceNow, Microsoft, and Snowflake to drive future growth.