Saksoft Limited , an AI-led product engineering company, has reported strong financial results for the first quarter, with significant year-on-year growth across key metrics.

Financial Highlights

Business Performance

Saksoft's CEO, Aditya Krishna, highlighted the company's repositioning as an AI-led product engineering firm in response to evolving market dynamics. The company's recent acquisitions of Salesforce and ServiceNow partners, Ceptes and Zetechno, have begun to yield positive results, driving increased conversations and traction across $1 million-plus accounts.

Customer Metrics and Geographic Distribution

• 16 customers generating over $1 million in revenue
• Added one new customer in the $0.5 million bracket within the logistics vertical
• Successfully scaled an existing client from $0.5 million to $1 million bracket in the commerce vertical
• Geographic revenue distribution:
  • Americas: 44%
  • Europe: 21%
  • Asia Pacific and others: 35%

Operational Metrics

AI and Product Engineering Focus

Saksoft is investing in AI frameworks across various stages of the software development life cycle. The company is developing a suite of frameworks to enable faster and intelligent development and deployment of code, as well as address the challenge of legacy code modernization.

Future Outlook

• Management has provided guidance of INR 1,000-1,100 crores for the current financial year
• The company maintains its $500 million revenue target by 2030
• EBITDA margins are expected to normalize to the 16.5%-17.5% range due to annual increments and currency headwinds

Cash Position and Acquisition Strategy

• Cash reserves of approximately INR 190-200 crores
• The company continues to evaluate acquisition opportunities in the $8-10 million revenue range

Aditya Krishna emphasized the company's focus on increasing wallet share with existing customers and adding new logos strategically. He stated, "If we can increase the wallet share with existing customers, and the appetite is there because we are still -- the wallet share with most of our customers is small. So we have enough band -- I mean, enough runway to, if not double, maybe 4 or 5x grow our revenue to where it is today with existing customers."

Despite global headwinds and uncertainties related to potential tariffs, particularly in the U.S. market, Saksoft remains committed to its growth strategy and long-term revenue targets. The company's adaptability and focus on AI-led solutions position it to navigate the rapidly evolving technology landscape and capitalize on emerging opportunities in the product engineering space.

Saksoft Limited , a leading IT services and solutions provider, has announced a strategic move to consolidate its operations and reported robust financial results for the first quarter.

Merger with Augmento Labs

The Board of Directors of Saksoft Limited has approved a scheme of amalgamation to merge its wholly-owned subsidiary, Augmento Labs Private Limited, with the parent company. This decision aims to streamline the group structure and enhance operational efficiencies.

Key points of the merger include:

• The appointed date for the merger is set as April 1, 2026, subject to necessary regulatory approvals.
• Augmento Labs, a digital engineering company with enterprise clients across India and the US, generated revenue of Rs 535.41 million for the year ended March 31, 2025.
• No new shares will be issued as Augmento Labs is a wholly-owned subsidiary, and there will be no change in Saksoft's shareholding pattern.

The merger is expected to bring several benefits:

• Consolidation of entities and simplification of the group holding structure
• Improved operational efficiency and cost competitiveness
• Enhanced cash flow management and resource utilization
• Reduction in administrative and regulatory compliance costs

Q1 Financial Highlights

Saksoft Limited also reported its unaudited financial results for the quarter ended June 30:

The company demonstrated strong performance across its business segments:

• Banking and Financial Services (BFS): Revenue of Rs 77.37 crores
• Logistics: Revenue of Rs 34.08 crores
• Emerging Verticals: Revenue of Rs 118.04 crores
• Commerce: Revenue of Rs 19.59 crores

Management Commentary

Aditya Krishna, Chairman & Managing Director of Saksoft Limited, stated, "We are pleased with our Q1 performance, which reflects the strength of our diversified business model. The proposed merger with Augmento Labs is a strategic step towards simplifying our corporate structure and achieving greater synergies. This consolidation will enable us to leverage our combined capabilities more effectively and drive long-term value for our shareholders."

Future Outlook

The merger is expected to position Saksoft for stronger growth by:

• Enhancing its digital engineering capabilities
• Expanding its client base across India and the US
• Improving overall operational efficiency and profitability

As Saksoft Limited moves forward with this strategic consolidation and continues to deliver strong financial results, the company appears well-positioned to capitalize on the growing demand for IT services and digital solutions in the global market.

Disclaimer: This article is for informational purposes only and should not be considered as financial advice. Investors are advised to conduct their own research and consult with financial professionals before making investment decisions.