Orient Technologies has unveiled an aggressive growth strategy, targeting over 30% year-on-year top-line growth for the next three years. The company plans to achieve this through expansion into high-margin ventures in cybersecurity and managed services.

Strategic Focus on New Ventures

Chairman and Managing Director Ajay Sawant outlined the company's growth strategies, which center around:

1. Device as a Service (DaaS)
2. Security Operations Centre (SOC)
3. Cloud offerings

These new initiatives are expected to significantly boost service revenue and improve profit margins.

Strong Order Book and Revenue Projections

Orient Technologies' current order book stands at Rs 414.00 crore, which is fully billable and expected to be realized in Q3 and Q4 of FY26. The company projects its order book to reach approximately Rs 600.00 crore in the second half of FY26, indicating strong growth potential.

Navigating Cash Flow Challenges

The company faced cash flow challenges in FY25, reporting a negative cash flow of Rs 11.00 crore. This was primarily due to high receivables from delayed projects. However, management expects to return to a cash-positive status within a couple of quarters, demonstrating confidence in their financial recovery.

SOC Business: A Key Growth Driver

The Security Operations Centre (SOC) business is set to become operational by mid-Q3 of FY26. Initial projections for the SOC business include:

• First year: Single-digit percentage contribution to overall revenue
• Years two and three: Expansion to higher double-digit share of revenue
• Target margins: Exceeding 20% by calendar year 2026

Margin Improvement Goals

Orient Technologies has set ambitious targets for improving its profitability:

The company's focus on high-margin ventures and improved operational efficiency is expected to drive these margin improvements.

Conclusion

Orient Technologies' aggressive growth strategy, coupled with its expansion into high-margin sectors like cybersecurity and managed services, positions the company for significant growth. While current cash flow challenges exist, the strong order book and clear strategic direction provide a positive outlook for the company's future performance. Investors and industry observers will be keenly watching Orient Technologies' progress as it implements these ambitious plans over the coming years.

Orient Technologies has announced a significant new contract, further solidifying its position in the IT services sector.

Contract Details

Orient Technologies has been awarded a Purchase Order from The New India Assurance Company Limited for the Annual Maintenance Contract (AMC) of Network, Backup, and Storage Devices at NIA Data Centres. The contract, valued at approximately ₹30.81 crore (₹308.12 million), is inclusive of GST and spans over a period of three years.

Scope of Work

The order encompasses:

• Maintenance of Network infrastructure
• Management of Backup systems
• Upkeep of Storage Devices

This comprehensive AMC demonstrates Orient Technologies' expertise in managing critical IT infrastructure for large-scale operations.

Strategic Implications

This new contract is expected to strengthen Orient Technologies' foothold in the Managed Services domain, particularly for Network, Backup, and Storage infrastructure. It showcases the company's growing capabilities in providing essential IT services to major corporations.

Company's Statement

In its regulatory filing, Orient Technologies stated, "This order further strengthens the Company's position in delivering Managed Services for Network, Backup, and Storage infrastructure, reinforcing our capabilities in the services domain."

About Orient Technologies

Orient Technologies, formerly known as Orient Technologies Private Limited, is a player in the IT services sector. The company is listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).

This latest contract underscores Orient Technologies' continued growth and its ability to secure significant deals in the competitive IT services market.