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Sasken Technologies Ltd

| Audited Consolidated Financial Results For The Quarter And Year Ended March 31, 2026

Report Source

⬤8th May 26

Summary : Sasken Technologies reported strong FY26 growth with significant revenue and margin expansion, driven by strategic acquisitions, new client wins, and focused AI integration, despite new labor code impacts.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Consolidated Total Expenses FY26: Rs. 106,774.18 lakhs.
  2. Consolidated Employee benefits expense FY26: Rs. 63,117.87 lakhs.
  3. Consolidated Other expenses FY26: Rs. 15,853.73 lakhs.
  4. Exceptional item (new labour code) FY26: Rs. 830.80 lakhs (consolidated), Rs. 457.30 lakhs (standalone).
  5. Consolidated Revenue Q4 FY26: Rs. 334.02 crores (Up 33.5% sequentially, 125.7% YoY).
  6. Consolidated Revenue FY26: Rs. 1,113.17 crores (Up 102.1% YoY).
  7. Software services revenue FY26: Rs. 77,246.46 lakhs.
  8. Product solutions revenue FY26: Rs. 34,070.38 lakhs.
  9. Consolidated Net cash generated from operating activities FY26: Rs. (2,283.48) lakhs.
  10. Consolidated Net cash generated from investing activities FY26: Rs. 9,242.11 lakhs.
  11. Consolidated Net cash used in financing activities FY26: Rs. (4,863.85) lakhs.
  12. Consolidated Net increase in cash and cash equivalents FY26: Rs. 2,094.78 lakhs.
  13. Consolidated Total Assets as of March 31, 2026: Rs. 116,609.70 lakhs.
  14. Consolidated Total Equity as of March 31, 2026: Rs. 87,521.66 lakhs.
  15. Consolidated Trade receivables as of March 31, 2026: Rs. 17,472.72 lakhs.
  16. Consolidated Cash and cash equivalents as of March 31, 2026: Rs. 5,720.93 lakhs.
  17. Both standalone and consolidated audited financial results are presented.

Corporate Overview

  1. Europe and Middle East Markets (vehicle communication solutions)
  2. U.S.-based industrial security company
  3. India (electric two-wheeler ecosystem, Design-Linked Incentive scheme)
  4. Near-term outlook for Products segment remains cautious.
  5. Industry supply-chain dynamics affecting Products segment.
  6. Structural memory shortage impacting devices market.
  7. Reliance on key customers (Top 5 customers: 56.1%, Top 10 customers: 69.6%).
  8. Product engineering and digital transformation services.
  9. Chip-to-cognition R&D services for various industries.
  10. Global leader in IoT software, Android-based devices, 5G solutions.
  11. Advanced semiconductor design and engineering.
  12. Positive and confident, highlighting sustained momentum and structural transformation.
  13. Emphasizes disciplined execution, deeper domain expertise, and customer partnerships.
  14. Focus on innovation, AI integration, and long-term growth.
  15. Global automotive OEMs
  16. Global RTOS providers
  17. Industrial security companies
  18. Semiconductor innovators
  19. Consumer electronics brands
  20. Global enterprises
  21. Software services
  22. Product solutions
  23. Workforce headcount at 2,446 as of March 31, 2026.
  24. Sustained organizational growth throughout the fiscal year.
  25. Physical and talent footprint expanded with Hyderabad facility.
  26. Continued investments in innovative technologies (Chip-to-Cognition vision).
  27. Strategic expansion and diversification of customer base.
  28. Broadening reach across industries.
  29. Investing in GenAI-led accelerators for software development lifecycle.

Risk Factors

  1. Impact of new labour codes on costs.
  2. Cautious outlook for Products segment.
  3. Industry supply-chain dynamics challenges.
  4. Structural memory shortage in devices market.

Key Drivers

  1. Strong revenue growth, margin expansion.
  2. Significant new order wins, 6 new logos.
  3. Strategic investments in AI, digital transformation.
  4. Acquisition of Borqs International Holding Corp.

Auditor’s Report

  1. Unmodified opinion on consolidated financial results.
  2. Unmodified opinion on standalone financial results.

Board Commentary

  1. Re-appointment of M/s. M S K A & Associates LLP as Statutory Auditors for a second term of up to five years.
  2. Final dividend of Rs.13 per equity share of Rs.10 each for FY26 recommended.
  3. Subject to approval at forthcoming Annual General Meeting.
  4. Cumulative dividend for FY26 will be Rs.25 per equity share (including interim dividend of Rs.12).
  5. Impact of new labour codes (Code on Wages, Industrial Relations Code, Code on Social Security, Occupational Safety, Health and Working Conditions Code) on employee benefits.
  6. Acquisition of Borqs International Holding Corp and its subsidiaries (investment of Rs. 25,602.45 lakhs).

Corporate Governance

  1. Compliance with ethical requirements and Code of Ethics by auditors.
  2. No governance concerns explicitly stated.

Management Discussion & Analysis

Future Strategy

  1. Deepen technical capability and strengthen leadership pipelines.
  2. Create environment for meaningful employee contributions.
  3. Focus on scaling priority accounts and strategic segments.
  4. Calibrated investments in talent, reusable platforms, and automation.
  5. Improved execution discipline, stronger revenue visibility for FY27.

Industry Overview

  1. Generative AI, edge intelligence, intelligent automation redefining product design.
  2. Satellite communications space accelerating with NTN services and 5G integration.
  3. Cellular industry entering AI-native era with 3GPP Release 19.
  4. Smart devices segment shaped by hyperscaler partnerships and Borqs integration.
  5. Semiconductor sector driven by AI accelerators, advanced automotive electronics.

Macroeconomic Outlook

  1. Continued evolution of the global engineering R&D landscape.
  2. Accelerating digital transformation and convergence of software, connectivity, intelligence.
  3. Next-generation connectivity expanding innovation scope (5G, 6G, NTN, cloud integration).
  4. Global automotive industry undergoing software-led reinvention.

Operational Focus Areas

  1. Embedding AI into existing delivery for quality and speed.
  2. Developing and commercializing AI-native and AI-enabled offerings.
  3. Deploying AI internally to drive efficiency and productivity.
  4. Managing investments prudently in Products segment.
  5. Sustaining sub-10% attrition in competitive market.

Performance Drivers

  1. Sustained momentum over eight consecutive quarters.
  2. Improved portfolio mix, tighter cost alignment, and scale-led efficiencies.
  3. Strong services execution and growing Global Capability Center (GCC) engagements.
  4. Deeper participation in long-term engineering programs.
  5. First full-year contribution from Borqs acquisition.

Risk Control Measures

  1. Monitoring developments and accounting for implications of new labour codes.
  2. Execution stabilization and prudent investment management in Products segment.
  3. Leveraging engineering agility and manufacturing depth to navigate device market shifts.

Critical Risks

  1. Impact of new labour codes on employee benefits (one-time exceptional item of Rs. 830.80 lakhs consolidated, Rs. 457.30 lakhs standalone).
  2. Uncertainty regarding future implications of new labour codes pending rules notification.
  3. Industry supply-chain dynamics affecting Products segment.
  4. Structural memory shortage impacting devices market.