Saksoft Limited delivered a mixed performance in Q3 FY26, reporting revenue growth of 11% year-on-year while experiencing its first sequential decline in 20 quarters. The IT services company continues to navigate cautious enterprise spending while securing strategic long-term engagements that position it for future growth.

Financial Performance Overview

The company's financial metrics for Q3 FY26 demonstrated resilience despite market challenges:

The sequential revenue decline of 3% marked the first quarter-on-quarter drop after 20 consecutive quarters of growth. This decline was attributed to temporary spending deferrals by two large clients due to budget timing and reprioritization rather than project cancellations.

Nine-Month Performance Highlights

The nine-month period ending Q3 FY26 showed stronger overall performance:

Strategic Contract Wins and Market Position

Despite near-term challenges, Saksoft secured several significant engagements during the quarter that demonstrate its evolving market position:

Major Contract Highlights:

• Multi-year digital transformation engagement with a leading U.S.-based logistics carrier focused on enterprise modernization and AI adoption
• Partnership with a technology distributor to establish a joint AI innovation lab for AI-driven initiatives across sales, IT, and finance functions
• Quality and process maturity transformation program with a European telecom operator

The logistics sector vendor consolidation win was particularly noteworthy, as Saksoft's team size with the client grew from 50 to over 100 people through a competitive RFP process, though it required a 20% rate discount to secure the three-year contract.

Operational Metrics and Geographic Distribution

The company's operational structure reflects its global reach and diversified client base:

Key Operational Data:

• Total employee count: 2,673 (2,454 technical)
• Utilization rate: 83% (excluding trainees)
• Onsite revenue mix: 44%
• Offshore revenue mix: 56%
• Clients above $1 million: 16

Sector-wise Revenue Distribution

Saksoft maintains a diversified revenue portfolio across multiple verticals:

Vision 2030 and Growth Strategy

Management reaffirmed its commitment to achieving $500 million in revenues by 2030, representing approximately 4X-4.5X growth from current levels. The strategy focuses on expanding long-term outcome-driven digital partnerships and building annuity-led revenue streams through AI-enabled engineering and managed operations.

Key growth drivers include scaling AI-led engineering and data operations, expanding managed services delivery models, investing in agentic AI and industry accelerators, and increasing multi-year engagements through vendor consolidation wins. The company expects 80-85% of revenue growth to come from existing customers, with sufficient runway identified among the top 20 clients.

Market Outlook and Investment Focus

The technology services environment remains characterized by cautious enterprise spending and extended decision-making cycles for discretionary projects. However, clients continue investing in efficiency improvement, automation, platform modernization, and practical AI adoption where clear business value exists.

Saksoft continues strategic investments in front-end sales capabilities and senior leadership to support its transformation from a staff augmentation model to outcome-based engagements. The company maintains EBITDA margin guidance of approximately 18%, balancing growth investments with profitability targets.

Saksoft Limited has announced its Q3FY26 financial results following the Board of Directors meeting held on February 2, 2026. The company reported consolidated revenue of ₹25,078 lakhs with a net profit of ₹2,902 lakhs for the quarter ended December 31, 2025.

Board Meeting Outcome

The Board of Directors approved the unaudited standalone and consolidated financial results at their meeting that commenced at 10:53 AM IST and concluded at 12:46 PM IST on February 2, 2026. The results were reviewed by the Audit Committee and received approval without any qualifications or adverse remarks from statutory auditors.

Q3FY26 Consolidated Financial Performance

The company's consolidated financial results show revenue from operations of ₹25,078 lakhs compared to ₹25,849 lakhs in the previous quarter. Net profit for the period stood at ₹2,902 lakhs, while profit before tax reached ₹3,802 lakhs after accounting for exceptional items.

Segment-wise Revenue Performance

The company's business segments showed varied performance during the quarter. The Emerging vertical segment contributed the highest revenue at ₹11,220 lakhs, followed by BFS at ₹8,090 lakhs.

Impact of New Labour Codes

Saksoft recognized an exceptional item of ₹486 lakhs in Q3FY26 related to the impact of New Labour Codes that became effective November 21, 2025. This one-time provision for employee benefits affected the consolidated results, while the standalone impact was ₹375 lakhs.

Upcoming Earnings Discussion

The company has scheduled its Q3FY26 earnings call for February 3, 2026, at 2:00 PM IST, hosted by Monarch Networth Capital. Senior leadership including Chairman and MD Mr. Aditya Krishna, COO & CFO Mr. Niraj Kumar Ganeriwal, and Chief Sales Officer Ms. Avantika Krishna will participate in the virtual group meeting to discuss the quarterly performance with investors and analysts.