Orient Technologies Limited presented a mixed performance in Q3 FY26, facing significant challenges from global semiconductor shortages and supply chain disruptions while securing important new contracts for future growth. The company held its earnings call on February 19, 2026, to discuss quarterly and nine-month results with investors and analysts.

Financial Performance Overview

The company's quarterly results reflected the impact of market challenges, while the nine-month performance demonstrated underlying business strength:

For the nine-month period, the company achieved an earnings per share of Rs. 2.02, with profit before exceptional items and tax of Rs. 31.90 crores.

Operational Challenges and Market Dynamics

Chairman and Managing Director Ajay Sawant explained that Q3 was particularly challenging due to global semiconductor shortages affecting hardware availability and creating pricing pressures. The company executed committed orders at previously agreed prices to maintain customer relationships, resulting in temporary margin pressure. Additionally, the loss of a large telecom client significantly impacted revenue and margins during the quarter.

The semiconductor shortage is expected to continue throughout FY27, driven by increased demand for AI infrastructure requiring GPUs and related components. This has created supply constraints as manufacturers need 8-10 months to ramp up production capacity.

Business Segment Performance

The Q3 FY26 revenue mix across business segments showed diversification:

The mid-market segment, including healthcare, manufacturing, infrastructure, real estate, logistics, and education, emerged as the largest contributor to revenue.

New Contract Wins and Strategic Initiatives

Despite quarterly challenges, Orient Technologies secured several significant contracts during Q3 FY26:

The Digital India Corporation contract represents a significant annuity-based revenue stream, potentially contributing Rs. 60 crores annually over the three-year minimum term.

Infrastructure Expansion

The company inaugurated a new service delivery center in Navi Mumbai, Turbhe, to enhance its 24x7 monitoring, cybersecurity, cloud, and managed services capabilities. The facility includes Network Operations Center (NOC) and Security Operations Center (SOC) capabilities, with full utilization expected over the next 24-36 months as enterprise contracts and managed services migrations complete.

Financial Position and Outlook

Orient Technologies maintains a current debt position of Rs. 52.50 crores against equity of approximately Rs. 340 crores. The company has an order book of around Rs. 200 crores for Q4, including infrastructure deployment projects and cloud and managed services contracts.

Management expressed confidence in recovery prospects, expecting margin pressures to ease in FY27 as customers adapt to new pricing structures and existing fixed-price contracts expire by March 2026. The company continues focusing on managed services, cybersecurity, and unified infrastructure management as key growth drivers.

Orient Technologies Limited has published its regulatory intimation under Regulation 30 and Regulation 47 of SEBI Listing Regulations regarding variation in terms of issue objects on February 25, 2026. The company simultaneously announced the commencement of its postal ballot process for extending the timeline to utilize ₹51.36 crore unutilized IPO proceeds from March 31, 2026 to March 31, 2027.

Regulatory Compliance and Publication

The company has fulfilled its regulatory obligations by publishing the Form PAS-1 notice in multiple newspapers on February 25, 2026. The publication appeared in The Financial Express and Free Press Journal (English editions) and Navshakti (Marathi edition), ensuring comprehensive reach to stakeholders.

E-Voting Schedule and Process

The remote e-voting facility commenced on February 25, 2026 at 09:00 a.m. (IST) and will conclude on March 26, 2026 at 05:00 p.m. (IST). National Securities Depository Limited (NSDL) provides the e-voting platform for all shareholders, with the cut-off date for determining eligible voters set as February 20, 2026.

IPO Proceeds Utilization Status

The company's IPO, conducted through a prospectus dated August 26, 2024, comprised 10,425,242 equity shares of face value ₹10 each. The fresh issue component raised ₹1,200.00 million through 5,825,242 equity shares. As of February 12, 2026, the company has unutilized proceeds of ₹51.36 crore from the total IPO amount of ₹107.93 crore.

Strategic Reallocation and Timeline Extension

The company plans to transfer the balance unutilized amount from NOC and SOC equipment purchases to the Device-as-a-Service (DaaS) business segment. This reallocation reflects cost optimization achieved in the original equipment procurement while maintaining operational capabilities. The proposed timeline extension to March 31, 2027 will enable calibrated deployment of funds in the DaaS segment with comprehensive creditworthiness assessments and evaluation of long-term strategic engagement potential.

Governance and Approval Process

CS Alwyn D'Souza of M/s Alwyn D'Souza & Co., Practicing Company Secretary (Membership No. FCS 5559 & Certificate of Practice No. 5137), has been appointed as the Scrutinizer for the e-voting process. The postal ballot notice, approved by the Board of Directors on February 13, 2026, is being sent electronically to shareholders whose email addresses are registered with the company's Registrar and Share Transfer Agent, MUFG Intime India Private Limited. The resolution requires approval as a Special Resolution and will be deemed passed on March 26, 2026 if approved by the requisite majority.