Saksoft Limited (NSE: SAKSOFT) Q3 2026 Earnings Call dated Feb. 03, 2026
Corporate Participants:
Aditya Krishna — Chairman & Managing Director
Niraj Kumar Ganeriwala — Chief Operating Officer and Chief Financial Officer
Analysts:
Unidentified Participant
Vinay Menon — Analyst
Anand Bhaskaran — Analyst
Jyoti Singh — Analyst
Bharat Gulati — Analyst
Priyam Shrivastava — Analyst
Rohit Balakrishnan — Analyst
Bharat Gulati — Analyst
Akshat Rohatgi — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome TO Saks Off Limited Q3FY26 Earnings Conference Call hosted by Munark Net Worth Telecom. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your Touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Vinay Menon from Monarch Network Capital Ltd. Thank you. And over to you, sir.
Thank you.
Vinay Menon — Analyst
Good afternoon everyone. On behalf of Monarch Network Capital, it’s my pleasure to host the senior management of Saxoft. We have with us Mr. Aditya Krishna, Promoter and CEO and Mr. Neeraj Kumar, CFO and CEO of the company. Now I’ll hand over the call to Aditya sir for his opening remarks. Thank you, sir.
Aditya Krishna — Chairman & Managing Director
Thank you, Vinay. Hello and good afternoon everyone. Welcome to our earnings call to discuss the performance of the third quarter and the nine months of financial year 26. Let me start off by briefing you on the key business highlights for the quarter. After which my colleague and our COO and CFO Mr. Neeraj Kaneriwala will brief you on the financials. The technology services environment today is marked by cautious enterprise spending and longer decision making cycles, particularly for discretionary projects. At the same time, clients continue to invest in initiatives focused on efficiency improvement, automation, platform modernization and practical adoption of AI where there is clear business value.
Against this backdrop, we delivered a steady performance during the first nine months of FY26 supported by healthy year on year revenue growth and stable operating margins. Even as near term demand remains selective, we have continued with our planned investments in strengthening front end sales capabilities and senior leadership. These investments are aligned with our long term strategy of positioning the company as an AI led digital transformation partner and building scale in the business. We remain confident of progressing steadily towards our Vision 2030 goal of achieving US dollars 500 million in revenues. From an operational standpoint, we made good progress across our verticals during the quarter.
In the logistics segment, we secured a multi year digital transformation engagement with a leading US based carrier focused on enterprise modernization, AI adoption and cost optimization. In the commerce vertical, we partnered with a leading technology distributor to establish a joint AI Innovation lab enabling AI driven initiatives across sales, IT and finance functions with a clear path from pilot programs to scaled implementation in our emerging verticals. We have started working with a leading telecom operator in the European region to deliver quality and process maturity transformation program across core operations. These engagements reinforce our role as a trusted long term technology partner for our clients and give us confidence in our ability to grow wallet share as technology spending conditions gradually improve.
While Neeraj will update on the operational metrics and the financial highlights for the third quarter and nine months ended FY26 let me apprise you of what gives us the confidence and clarity that we are steadily progressing towards our 2030 goal of 500 million USD. We mentioned now and in the past that we are expanding our long term outcome driven digital partnerships, expanding wallet share and building annuity led revenue streams through AI enabled engineering, platform modernization and managed operations. For us to do so we have identified certain strategic long term growth drivers basis which are annotized revenues would multiply and margins would improve.
Some of these growth drivers are scaling AI LED engineering data operations and intelligent operations, expanding the managed services and platform led delivery models, investing in agentic AI and industry accelerators and lastly increasing multi year engagements and vendor consolidation wins. The long term and perpetual benefits of these will be felt in the years to come. Now I would request my colleague Neerish to give you the financial highlights for the quarter under review.
Niraj Kumar Ganeriwala — Chief Operating Officer and Chief Financial Officer
Thank you Aditya and thank you everyone for taking the time and joining our earnings call today to discuss the results of the third quarter and the nine months of the financial year 2026 under review. For the third quarter of financial year 26 revenues reported at around INR 250 crores representing a growth of around 11% year on year. The EBITDA stood at INR 45 crores which grew by around 19% year on year with the EBITDA margins of 18.1% on a sequential basis. Revenues declined sequentially by around 3% primarily due to a temporary slowdown in spending from two of our large customers.
This was driven by timing and reprioritization of budgets rather than any project cancellations and our engagement levels with these customers remain unchanged. Margins were impacted due to revenue softness during the quarter along with the continued investments in growth initiatives, more feet on the ground in our key geographies of US and UK and capability building for the future. The net profit for the quarter stood at around INR 29 crores which grew by 7% year on year whilst the PAC margins stood at 11.57%. The net profit for the quarter is after making a one time exceptional provision of INR 4.86 crores towards the new labor code requirements for the nine months ended of the financial year 26.
The operating revenues were reported at around INR 758 crores representing a growth of nearly 18% year on year. The EBITDA stood at INR 142 crores which grew by nearly 29% year on year with the EBITDA margins being at 18.7%. The net profit was at INR 97 crores which grew 24% year on year with the profit after tax margins at 12.8%. Now coming to the revenue split by geography. For the nine months period, the Americas contributed 50% of our total revenues whereas Europe contributed 29% and the remaining 21% came from Asia Pacific and other regions. For the current nine months period under review, we have ramped our customer location.
We have remapped our customer locations basis, the global location of the master service agreements with the respective customers. The on site revenue mix was 44% and offshore is at 56%. The revenue split across verticals remain diversified. The BFS contributed 31%, the emerging verticals around 47%, logistics around 14% and commerce around 8% of our total revenues. Now coming to some of our customer metrics, we have around 16 customers of USD 1 million plus in revenues. The total employee count at the end of the quarter stood at 2,673 out of which 2,454 were technical with the utilization level of the employees excluding trainees being at 83% for the quarter.
3 FY26 this concludes the updates on the quarter and we can now open the floor for the Q and A session.
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press STAR and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press STAR and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question comes from the line of Anand Bhaskaran from Shema Wealth Private Limited. Please go ahead.
Anand Bhaskaran — Analyst
Good afternoon, can you hear me?
Niraj Kumar Ganeriwala — Chief Operating Officer and Chief Financial Officer
Yes, we can.
Anand Bhaskaran — Analyst
Yeah. Congratulations. A good set of numbers. My question is for the FY26 and FY27. Where do you see the segment revenue going forward for this this current financial year and the next financial year as well? Where would be bfsi? Logistics, Emerging and Commerce? As the share of revenue would be.
Aditya Krishna — Chairman & Managing Director
We would expect it to be approximately at the same level as it is today. Only thing to note is BFS is BFSI is not our focus area. It’s bfs. There’s no I. So we are not focused on the insurance Sector.
Anand Bhaskaran — Analyst
Okay, okay, okay. So are you saying that for the next two years or so the where it is now, today the revenue diversification would be around the same level as today?
Aditya Krishna — Chairman & Managing Director
Yes, mix would remain about the same.
Anand Bhaskaran — Analyst
Okay, I’ll join back to the Cuban. Have any questions? Thank you.
operator
Thank you. Our next question comes from the line of Jyoti Singh from arihant Capital Markets Ltd. Please go ahead.
Jyoti Singh — Analyst
Yeah, thank you for the opportunity. So I just wanted to understand that our top 10 client contribution 58% of revenue. So like how much of the recent slowdown was within the top two clients? And what is the, what are our plan on the client dependency and are we seeing any early sign of spending recovery from large clients? And how’s the feedback on that side? And another thing, how’s how strong is the deal wins for calendar year 26 and what percentage is AI? And digital transformation led.
Aditya Krishna — Chairman & Managing Director
The disappointment in our quarter three results. You know, we’ve had 20 quarters of quarter on quarter growth. So after 20 quarters this was our first quarter of 3% decline versus the the previous quarter. So quarter three was 3% lower in revenues versus quarter two. And it was primarily because there was deferment of spending by two of our top customers. Now this is the biggest challenge as you scale up because the focus is on growing revenues. It doesn’t matter where it comes from. So even if our top customer gives us more revenues, we’re going to take the revenue and not worry about increasing client concentration.
So this problem will over time disappear as the business scales. It’s not something that we can eliminate in the short term. Now having said that, both the clients have started to spend or the spending is recovering. So it was just a temporary blip and we’re very hopeful that over the next few months this will correct. Now in terms of deal wins, we are participating in many more large deals than I would say 12 months ago. We are being invited to many more RFPs. We are being invited to many more larger opportunities, some of them around AI, some of them around vendor consolidation.
And not only is our maturity on responding to these large deals improving, but our win ratio is also improving. I cannot give you the win ratio as of today because the numbers are still small. But from 12 months ago the traction on larger deals responses by us has increased considerably.
Jyoti Singh — Analyst
Great. And sir wanted to understand on the margin side, like are we expecting going forward will be reward to 19 to 20% as this quarter, like you mentioned, consistent performance but blip in this quarter. So what our expectation on the margin front.
Aditya Krishna — Chairman & Managing Director
The year to date EBITDA margin is 18.7%. This quarter was 18.1, previous quarter was 19.6. So I would say between 18 to 20 EBITDA margin is something that, you know, we would try and maintain.
Jyoti Singh — Analyst
Okay, thank you so much sir. I will come in again.
operator
Thank you. Our next question comes from the line of Bharat Gulati from Dalal and Procha. Please go ahead.
Bharat Gulati — Analyst
Yeah, hi sir, just a couple of questions on my side. Congrats on a decent set of results. Also just want to understand that how is AI getting implemented into our dealings? Because what I understand in the industry that rather than AI just being used as a tool, now it’s getting embedded into deals where it’s helping bring in revenue. So have we started to also build some products or platforms that we license out to clients that are helping us get the same kind of recurring revenues?
Aditya Krishna — Chairman & Managing Director
We don’t build any products, so there is no license revenue from any products that we build because we don’t have products. But where we use AI is to deliver more efficiency to our clients, both existing customers as well as prospects. So very simply put, in testing or application development in digital engineering, what could have been done by a 50 member team can now be done by a 30 member team or a 35 member team using AI. And that’s what customers expect. So the software development life cycle has become more efficient using AI. Now if we don’t use AI, we don’t become relevant to the deal or to our customer.
So it’s a must have, it’s not a nice to have, it’s a must have. So that’s in terms of using AI to deliver the services that we do to our customers as well as prospects. Now is there spending on building an agent or using agentic AI? Building an agent. I would say most customers are curious, but they’re not really spending much on building AI agents because they don’t see great value in one agent or two agents. They see value if the entire workflows of the business are made more efficient using AI. So the entire transformation of work is where we see value and long term revenue as well as annuity revenue, not in one off projects to build agents.
Bharat Gulati — Analyst
So can we say that the recent margin improvement is because of the use of AI and our utilizations have gone up? Or is it that we’ve started to just win higher contract deals? I mean, you know, what is the, what can we attribute to the higher margins in the recent quarters? And also just how will these margins trend going forward? Will we see an upward trend or is this where they stabilize at the 18 to 20% range?
Aditya Krishna — Chairman & Managing Director
I’ll ask Neeraj to answer that, please. I’ll request him. Yeah.
Niraj Kumar Ganeriwala — Chief Operating Officer and Chief Financial Officer
So Bharat, in terms of margins, you know, last couple of quarters we have seen a little higher margin. I think there’s been a constant question on whether we’ll be able to maintain this 19, 20% margin. I think this is at a slightly higher end. The steady state would be around 18% or so considering the investments which we.
Aditya Krishna — Chairman & Managing Director
Are doing both on in a number.
Niraj Kumar Ganeriwala — Chief Operating Officer and Chief Financial Officer
Of areas in terms of capability, feet on the ground and a lot of other avenues. So I think 18% would be a more realistic margin. The reason for the improvements? Yes. When we bring in our frameworks of AI and bring in some efficiencies in the short term, it is definitely helping in adding on margins added to it. I think the rupee factor has also been for the year, the rupee has been depreciating significantly. So that has also helped in adding to the margins. But I think from a mid to long term, 18% would be a more realistic margin base to be considered.
Bharat Gulati — Analyst
Got it. And just one final question I wrote to like $500 million. So is that going to be more. Are we going to diversify our revenues and you know, is our top 10 customers revenue is going to fall from 58% or are we going to continue to see growing wallet share within them? And you know, just if you can elaborate on how are we going to get to that 500 million mark, is it going to be through new clients or existing clients increasing wallet share? Yeah. And also what kind of an inorganic element will we see in that 500 million vision?
Aditya Krishna — Chairman & Managing Director
The revenue growth will come from, you know, I would say 80 to 85% will come from existing customers and there is enough Runway with our top 20 customers to make that happen. We will obviously get new clients. Today we have 16 $1 million clients. We will definitely add to our client base to get to four times where we are, four and a half times where we are. So scaling up will not happen with just one customer. It will happen across the board. Multiple customers, growth in wallet share and you know, and strategy, not an or strategy, but it will be more, you know, I would say more prevalent towards increasing wallet share.
Bharat Gulati — Analyst
Got it. Thank you. That’s about it.
operator
Thank you. Our next question comes from the line of Vikas Srivastava from rbc. Please go ahead.
Unidentified Participant
Yeah, hi. My question, more on this 500 million. Did I hear it right? Right. It’s 2030, so I’m saying approximately we’re talking about financial year 3031 and you also mentioned that it will be 85% organic. So you. We are looking at a dollar revenue growth of about to get there in this period with four and a half times we should be looking at a 26, 27% organic growth year on year. My first question was on that, that in terms of our past and how well geared are we is it again, I’m sorry I’m repeating this question I asked this last time.
Is it within the realm of possibility or is it just a little ahead of our targets? Are real estate targets? That was one question. My second question was on the three contracts. You know, in your investors note you had you mentioned that the, you know, the initiative and the two new contracts. If you could just without naming the client throw some light in terms of what these contracts are and what kind of visibility do we have? Do we have with these three new client stroke initiatives. Fourth is there is in the big clients, the top two clients.
What I’m hearing is that there is no structural change. It is a short term aberration which would kind of. We’ll catch up in the coming months and on a bit. I hear that, you know, last call. I think you are more on the 17 and a half now. You are on 18 to 20. Just reconfirmation of that.
Aditya Krishna — Chairman & Managing Director
Let’s start with the last one because I stand corrected. We will be around 18%.
Unidentified Participant
Okay. Which is. Which is a little higher than what we have done. You have promised in the past or you have guided in the past.
Niraj Kumar Ganeriwala — Chief Operating Officer and Chief Financial Officer
That’s right.
Aditya Krishna — Chairman & Managing Director
Yeah. And coming to the first question of 500 million, you know, it looks an uphill task considering where we are and our historic growth. Now the way I look at this is at this point it’s aspirational, you know, can we get to 500 million now? Let’s say we can’t get to 500 million. At least we’ll hit 400 million which is three and a half, four times where we are today, which is not bad. I’m not for a minute saying that we will not aspire to hit 500 million. All the effort will be to hit 500 million.
But if it doesn’t happen, we’ll be at least better than where we are today significantly because we are growing 15 to 20% year on year. Now we have learned how to grow 15, 20% organically. If we can tuck in a couple of reasonably sized acquisitions. Let’s say we tuck in a 300 crore acquisition, 250 crore acquisition, we can really sort of improve the growth rate. And historically we have always done these acquisitions through internal accruals and we will continue to do that. So do we have a strategy? Do I? Have you identified any targets? The answer is no.
But opportunities will come, you know, and we are ready for them. We have the management bandwidth to evaluate and integrate these companies if it was to happen. So you know, we are operating on, in, in sort of, in multi, sort of multi direction. Not multi direction but multi channels towards the goal of 500 million. I still remain very hopeful that, you know, we will achieve the target, if not 500 million, close to that. What doesn’t help us in meeting the target is that the rupee keeps depreciating, but that helps us in other ways in terms of EBITDA targets.
So coming specifically to your questions around the three contracts, the first one which was with a US carrier is very interesting because this was a customer of ours who had multiple vendors or multiple suppliers and they floated an RFP to consolidate suppliers. We won that RFP. So our team size grew from 50 people to over 100. But to win that RFP we had to give a 20% discount on our rates. Now that is the name of the game. So we, to get this business and to win this we had to give a discount which we will make up with efficiency over the next three years.
Because this is a three year contract and once we are wedded into the customer, the incumbency sort of, and we do a good job, there is no reason why we should not be able to renew it after three years. The second contract is where we are building an AI innovation lab for one of our new customers. This is also very interesting because the customer is keen to not only build this innovation lab but also to grow the innovation lab and use it to improve their business workflows in different parts of their business. So we see this as very sticky and long term nature.
The third 1/3, 1/3 one was a telecom operator in Europe where we are doing business transformation from an optimization perspective. That’s a new customer, it’s a small contract. We hope that, you know, depending on the quality of our work, we will be able to increase our revenues there and grow that account. But that’s the smallest out of the three.
Unidentified Participant
Got it? Got it. And the last question was on this, just a reconfirmation and that this, the top three customers was more of a few months or a few, one or two quarters aberration. There’s no structural change in terms of consolidation or other reasons why we are, you know, the, the revenue from those three customers has fallen in this quarter.
Aditya Krishna — Chairman & Managing Director
Yeah, this is just a temporary phenomena. That’s how we know it today. Because we have to also keep in mind that we are continuing to invest because we need to invest to get to 500 million. Now when I say investment, it’s investment in capability. It’s investment in senior talent. You know my biggest challenge, we are now close to a thousand crore company. The challenge at 100 crores was talent. The challenge at 1000 crores is talent. Okay. It’s just that quality and degree of talent. If there is one thing that keeps me awake at night, it is talent.
Now talent is becoming very expensive and that expense comes before revenue. So there will be some compromise. Unfortunately, being a listed company, we have to live quarter on quarter. So there will be volatility in earnings, there will be volatility in the stock. But if our shareholders believe in the management and they believe in our goal and where we are headed then you know, we should be okay. I think that’s really the bet. You know, people on this call have to understand and appreciate.
Unidentified Participant
Thank you for that, Aditya. One small housekeeping request. The investors presentation is never released with the quarterly result which keeps us a little, you know, some of the information which you put out in the investors is actually quite relevant to the shareholders. And it’s a little bit of a challenge to locate it and get it a few hours later. May I just request, like many other companies, if we can just, you know, release both of these together so that, you know, then we understand the results a little better and the reasons a little better. You know, that’s, that’s.
And that’s the practice generally. You know, the management commentary and presentation is released almost with most cases together. And I’ll come back in the queue. Thank you.
Aditya Krishna — Chairman & Managing Director
Yeah, okay, thanks.
operator
Thank you. Our next question comes from the line of Priyam Srivastava from KC Capital. Please go ahead.
Priyam Shrivastava — Analyst
Yes. Hi. Thank you so much for the opportunity. So my question is similar to the margin trajectory. Can you describe how the nature of your work has fundamentally changed over five, six years? Because we see the margins have moved from like 13, 14% to 17, 18% now.
Aditya Krishna — Chairman & Managing Director
Okay, good question. And you know, it’s a question which, you know, you will find the answer quite interesting. Most tech services companies want to stay away from providing bodies or providing just staff augmentation because that is the lowest end of the value chain. Now how do you stop doing that? You know, if customers want bodies can you really say I can’t give you a body, you know, and lose the business. So it’s, it’s a difficult scenario to overcome. The way we are trying to do it and we have had, I won’t say great success, we had limited success, but we are getting better at it, is to try and push it towards outcomes.
And where the customer doesn’t interview our resource, the KPI or the yardstick that we have started to measure is, is the customer interviewing the resource? If the customer is interviewing the resource, that means we are in the lower end of the value chain. We need to stay in the upper end or move towards the upper end. And that’s how we have seen that from the early days, four, five years ago, it was predominantly providing bodies. You can call them anyway, you can call it staff augmentation, you can call it consulting, you can call it whatever.
But at the end of it, it’s bodies. That is now changed to outcome based projects or outcome based contracts, you know, like the AI innovation lab, like the vendor consolidation, like you know, some of the new projects we’re winning and the more and more RFPs that we are responding to, which are around infrastructure, around help desk, service desk, desktop support, etc. Etc. So the texture of our revenue has changed considerably towards outcome in the last, you know, I would say four, five years. And our goal is to continue to move in the, in that direction to get to the upper end of the value chain.
Priyam Shrivastava — Analyst
Got it. Okay. Yeah, that helps. Thank you so much. One more question was when you talk about this Fintech and health tech, can you just tell a bit about what type of clients these are and just some example, like in some successful projects.
Aditya Krishna — Chairman & Managing Director
With them there is no health tech. We don’t have any health tech. So you’re confusing us with some other company. So in Fintech it is really bfs. So Fintech is a part of BFS and you know, projects are the same, you know, digital engineering, quality assurance infrastructure, cloud management, finops, cloud ops, data ops, you know, very similar to any other vertical.
Priyam Shrivastava — Analyst
Okay, that, that’s clear now. Thank you so much. And like, why don’t we work with banks? Is there any specific reason? We don’t. We don’t have bank lines much.
Aditya Krishna — Chairman & Managing Director
Say that again please. I didn’t understand. Can you repeat that question?
Priyam Shrivastava — Analyst
Do we have clients in bank segment as well?
Aditya Krishna — Chairman & Managing Director
Yes, we have two large banks as customers, one in India, one in Singapore.
Priyam Shrivastava — Analyst
Okay, got it. Thank you so much. Thank you, thank you.
operator
Thank you. Our next question comes from the line of Mahima from Alpha advices please go ahead.
Unidentified Participant
Yeah. Hi. Good afternoon sir. So just wanted to understand during the quarter we have seen exits. Sorry. That one is answered. Yeah, Just wanted to understand your current stance on inorganic growth. So are you planning any acquisition?
Aditya Krishna — Chairman & Managing Director
We’re always looking Mahimar. At this point we don’t have any specific target in mind. But we’re always open to something that will help us build capability or acquire a significant customer at a reasonable price.
Unidentified Participant
Okay. Okay. Another question is. So during the quarter we have seen a lower other income. So any reason there that.
Niraj Kumar Ganeriwala — Chief Operating Officer and Chief Financial Officer
This is. Neeraj, the primary reason for the decline in other income is the exchange factor. Almost 90% of that other income is the dollar rupee or the pound and euro rupee exchange gain. That was quite high in quarter two. Vis a vis what you are seeing in quarter three. That’s the reason for the decline in the other income.
Unidentified Participant
Okay. Okay, go ahead. Thank you.
operator
Thank you. Our next question comes from the line of Rohit from I thought pms. Please go ahead.
Niraj Kumar Ganeriwala — Chief Operating Officer and Chief Financial Officer
Yes, Rohit.
Rohit Balakrishnan — Analyst
Thank you sir. So just want to understand on this. I think you answered this question earlier in some form but just wanted to understand given the whole, The whole AI thing that is happening. So just in terms, I mean so we are at the outside a lot of different things are coming out in terms of the way the code is being written these days and how easy it is. And probably in terms of there is a lot of outcome based stuff then that can get more and more. So I mean just wanted to get your sense given you are at the center of this.
So how are you doing this? You said that AI is not like. Is almost like table stakes you have to have. Otherwise you’re not even relevant. So like how are you seeing this from your vantage point in terms of the kind of work that you do in terms of services. Will there be a case that a lot of the work that you are doing probably get lack of a better word automated or in house. I’m sorry, I’m not trying. I’m not able to probably said the right word. But I hope I’m able to articulate what I’m trying to ask in terms of the kind of cannibalization or the kind of work extinction that can happen for you guys or is that even something that you’re worried about or that is not the case.
Sorry for the long winded question.
Aditya Krishna — Chairman & Managing Director
We’re not worried about it for the simple reason that AI is. AI is not a nice to have. It’s a must have. AI has to be prevalent in anything that we do for our customers, whether it is application development, whether it is testing. If we don’t use AI and the improvement in the workflows that AI provides, customers will no longer want to deal with us. So it’s a necessary, I would just say that it’s like any other. Maybe there’s a new language that has come in to disrupt the existing languages. So, you know, I would just say AI is a hygiene factor.
It’s no longer a nice thing, it’s no longer a buzzword. You know, people talk about it because there is a lot of, you know, unknown areas around AI which you know, the media likes. And it’s a, it’s a nice thing to talk about. For example, you would have seen the social media platform called Moltbook. That is an AI social, an agent social media platform. So no humans are on it, only agents are on it. So now what is the business model? Don’t ask me, I have no idea. All I know is that for our services model, AI is a must have, it’s a hygiene factor and it helps us cement our relationship with our customers, make our services more efficient and more cost effective for our customers.
Rohit Balakrishnan — Analyst
And you mentioned that in terms of work that you’re doing, a lot of it is getting transitioned to outcome based kind of work. So can you give maybe a few examples of what kind of outcomes are these and can you just maybe talk a bit more in terms of how these are priced?
Aditya Krishna — Chairman & Managing Director
So for example, let’s take the case of customer who has a ticketing system. Now the customer will give us the ticket dump, they will give us, okay, over the last one month they had 10,000 tickets. Now each tick they’ll classify those tickets into different buckets, you know, level zero, level one, level two, level three, whatever. And they expect us to now manage that work for them based on SLAs. So response time for level zero, response time for level one, level two. Now whether we use five people or we use 50 people, that’s our problem. So now can we use AI? Can I, can we use automation? Can we use a combination of both to deliver it efficiently, not only to the customer to meet the sla, but to make margins for us.
So that is what I mean by outcome based. You don’t seem very happy.
Rohit Balakrishnan — Analyst
No, no. The other question was, so we’ve been talking about this $500 million and, and consistently talking about investing in the sales and marketing. And I think the last probably four or five quarters, you’ve hired a few people as well on the senior side. So on the sales and marketing side. So can you talk a bit about how has that initiative, how that initiative shaping up and anything that you can sort of call out in terms of that is giving you more confidence or there is much more work to be done?
Aditya Krishna — Chairman & Managing Director
Yes. So our business model, let’s take one geography, our business model, let’s say in North America. What’s our business model? How do we go to market? We have our customers and each customer has a client partner. Now one client partner could be managing either one customer or multiple customers. Normally it’s one or three. In rare cases it’s four customers. So now that client partner is responsible for growing wallet share with these customers. Now how does he do that? He does that by regularly meeting customers and regularly understanding from the customer what their business problems are, problem statements are and how we can use technology to overcome those business problems.
The more he meets, the more problem statements he’s able to unearth. Now as we move up the value chain, and I said this earlier, move up the value chain from providing bodies to outcome based selling, the client partners also have to change their way of selling. So they have to be mentored, they have to be trained, they have to evolve into now selling outcome based services rather than bodies. Selling bodies was easy. Now some will graduate to be able to sell outcome based, some will not. Our first job is to train them, mentor them. If they can’t do it, we have to replace them.
So that’s an investment. The leader of the client partners is an investment. You know, we have hired a leader in North America. We are in the process of hiring somebody in the us, UK and Europe. Now these two leaders will drive the client partners to grow wallet share with our existing customers. So most of our investment in sales and marketing will come in this form either by client partners or leaders. And it’s tough not only to identify the right person but also to work with that person to get him to understand the company. It takes time.
You know, transforming from selling bodies to outcome based is a transformation, you know, which, and it’s a journey which you have to, you know, go through. And we’re in the process of doing that. So you know, it’s, it’s, it’s, it requires both time and money. So the investment is happening in that direction. You know, that’s on the front end side. On the capability side, investment is also happening because we have six centers of excellence. We have testing, we have data, we have digital engineering, we have Salesforce, ServiceNow, Cloud Infrastructure and Security 6. There we are building accelerators.
You mentioned about AI. Now I gave you this simple answer of AI, that AI is a hygiene factor. But how do we now bring AI into application development? Coding is becoming easier. Can AI do the coding? Yes, but for that we need to accelerators, we need frameworks. Who builds that? These centers of excellence build that. That’s an investment. So you know, a lot of people think that tech services doesn’t have investment. It’s only an office space and laptops. No, the investment is really in people and building capability. And that’s where you know, we are also spending our money.
Rohit Balakrishnan — Analyst
Understood. And just on this point around.
operator
Please rejoin the queue. Thank you. Our next question comes from the line of Vikash Srivastava from rbc. Please go ahead.
Unidentified Participant
Yeah, hi. You know on the ROI on the investment in sales people. Aditya, you know we had mentioned that in the last call that we did, you know, there was attrition or we let go some sales people that you had a few recent hires. Just wanted to know is our experience in terms of who we’ve hired and in terms of getting traction from them and stability, are we a little higher on the curve now? Are we in a better position than what we were month or a quarter or two back and are we kind of is there traction and is there more visibility in terms of how people are hiring and their probability of success and settling within our system towards outcome based selling?
Aditya Krishna — Chairman & Managing Director
For sure it is better, Vikas, but just want to clarify a little bit that the team that got us to thousand crores is not necessarily the team that will get us to 5000 crores now. Some will and some won’t. Now the challenge is, you know, jettisong or getting, you know, letting go the ones that won’t and bringing in the new talent that will get us there. And that is not, you know, a switch on and off. It has to be done gradually. It has to be done in a nice manner, you know, because at the end of it these are people.
So we are on that process. We have made some big changes so far. You know, everything seems to be on track. You know, I’m happy with the progress and I would, the only thing I would say is I need to accelerate it more, you know, which I will do.
Unidentified Participant
You know, I was, I was actually alluding to the new hires in the last four quarters. I understand the transition and the training. And in terms of new hires, is that experience now being good in the last 34 quarters, are the new incumbents kind of or have you had some attrition there also just some idea there on the new hires and their absorption in the system.
Aditya Krishna — Chairman & Managing Director
In the last two quarters, we have only hired one person in the US geography and so far so good. He’s probably on this call also Vikas, so he’ll be listening in.
Unidentified Participant
Good to hear. Thank you.
Aditya Krishna — Chairman & Managing Director
Yeah.
operator
Thank you. Our next question comes from the line of Bharat Gulati from Dalal and Pruacha. Please go ahead.
Bharat Gulati — Analyst
Yeah, thank you for the follow up. Sir, just wanted to get a clarification on one point. Like we mentioned that we won a RFP where the vendor consolidation was taking place, where we gave it a discount of about 20% of our typical. So going forward, as we try to scale up and you know, reach another, reach the 500 million mark, I just want to understand we need to get into more larger clients and we need to, you know, be cost competitive. So then do we see our margins tapering off or then how do we see us, you know, kind of fight off the lower cost in terms of maintaining margins? If you can explain how we’re going.
To do that.
Aditya Krishna — Chairman & Managing Director
There is no question that we might have to buy some contracts. So if there’s an incumbent, we have to go in with strong capability. Automation. For example, we have a AI voice bot. It does any language, it does the work of a call center. Now we factor that in when we do automation for a prospect or a customer. Now that’s an example of how we will drive efficiency, reduce cost. And we might have to buy that contract by giving in a lower price. But if it’s a 3, and most of these contracts that you buy would be three four year contracts.
So over that three, three, four year period, we will be able to drive efficiency into the model to make sufficient margin. So yes, on a particular deal we might have to compromise on the margin, we might have to compromise on the price. But you know, we have to look at it from a perspective that if you’re not in the game or you’re not fighting the game, there is no way you can win. Right. So it’s going to be a little bit of mix and match.
Bharat Gulati — Analyst
So sir, just to understand that the deal that we just won, does that somewhat impact our near term margins? Is that a headwind for us or do we see that these efficiencies will still help us maintain that 18% kind of EBITDA.
Aditya Krishna — Chairman & Managing Director
Boss, think about it. There are 3,000 people in the company. We’re talking about 20% cut in 50 people. How will it affect margin?
Bharat Gulati — Analyst
Okay, thank you.
operator
Thank you. Our next Question comes from the line of Anand Bhaskaran from Sema well, Private Limited. Please go ahead.
Anand Bhaskaran — Analyst
Thank you. For the follow up question. I just want to ask about the, the India deal with both US and Europe first. Can you just say like how much we would gain from the company would gain from these two deals and how will the company gain, you know, gain from these specific details? Can you mention like what will be the impact of these two deals?
Aditya Krishna — Chairman & Managing Director
Can you repeat that question please? It was very unclear the earlier part of your question.
Anand Bhaskaran — Analyst
So the India deal with trade deal with the US and Europe as well. So how would impact the company and what sort of way it will impact the company will be positive, negative. And can you explain that in some detail?
Aditya Krishna — Chairman & Managing Director
Are you talking about the FTA deal?
Anand Bhaskaran — Analyst
Yeah, the FTA deal and the essays, you know, trade deal with us both.
Aditya Krishna — Chairman & Managing Director
Honestly, I don’t know. I mean, why would it affect us? I mean trade is more for, you know, goods, right. Services were not under tariff anyway.
Anand Bhaskaran — Analyst
Okay, what about the FDA deal?
Aditya Krishna — Chairman & Managing Director
Isn’t that the same thing? Where was the tariffs with Europe?
Anand Bhaskaran — Analyst
So like any of the contracts that you have, there is no beneficial impact that the company would not have at all?
Aditya Krishna — Chairman & Managing Director
No, I’m trying to think while you’re asking me this question. Where will it affect, in other words? I mean is there any work that we have not done with Europe because of tariffs? I don’t know. I mean services don’t normally come under the tariff brackets.
Anand Bhaskaran — Analyst
So.
Aditya Krishna — Chairman & Managing Director
But I would say, the only thing I would say is it can only be positive because the fact that there is a deal means that there is upbeat environment of spending with a partner like India. So I would say there will be more openness to use Indian suppliers as well as offshoring. I’m just, you know, thinking aloud whether this will help. Can it hurt us? I don’t think it should hurt us. Will it make European companies or European competitors to us more competitive vis a vis us unlikely. So I think it should be positive but honestly I haven’t given it much thought.
Anand Bhaskaran — Analyst
Okay. Okay. And my final question is like in which geography would you like focus more now in the next coming now currently it is USA with 50 percentage, Europe 29 and APAC is 21. Next let’s say FIDE 27, 28. Would you focus on any specific geographical region or it’ll be more or less the same?
Aditya Krishna — Chairman & Managing Director
I would put maximum focus on the US geography. Huge market, lots of potential, biggest market for the tech industry. So if I was to, you know, if I had hundred rupees to put. I would put 95 rupees in the US market just as an example.
Unidentified Participant
Okay, okay. Okay, thank you so much.
operator
Thank you. Our next question comes from the line of Akshat Rohatki from Rational Equity Partners llp. Please go ahead.
Akshat Rohatgi — Analyst
Hi, good afternoon. Can you hear me?
Aditya Krishna — Chairman & Managing Director
Yes, go ahead please.
Akshat Rohatgi — Analyst
Yeah, so we will be proud shareholders for Saxophone for the last I was a six months. So congratulations on what you guys are doing. So my question is that we actually hold a lot of small and micro cap IT services company in India and we do a lot of research in what’s happening in AI in the US and talking to a lot of promoters in the last two, three months we’ve been hearing that the theme of vendor consolidation is going across the board. Like a lot of enterprises are consolidating their vendors. They basically. So the thing that I’m hearing from promoters, from promoters of Indian IT companies is they are consolidating vendors because they want to reduce the SaaS tools and basically get their data at a single unified place and then they want to invest more into AI identity stuff.
So what are you guys like hearing across your clients and all? I wanted to know that.
Aditya Krishna — Chairman & Managing Director
Just if you can clarify. You said that they want to keep all that data in one place.
Akshat Rohatgi — Analyst
So they want to reduce their SaaS too. They want to reduce and consolidate data like 2, 3 places so that they can, when they are able to do, when they want to invest more in agentic AI, the integration becomes easy. The integration tax is reduced because having so many vendors, so many tools at their disposal.
Aditya Krishna — Chairman & Managing Director
Most suppliers work on the network of the customer. So it’s, you know, I don’t know how reducing vendors will make data more available to the customer because the customer anyway owns their own data. So I’m not able to understand the question. But if your question is is there vendor consolidation? Yes, there is vendor consolidation in most customers who are using multiple suppliers. And we see this as a big opportunity because we feel we are right sized, we have the right capabilities and we have the right AI frameworks to drive an efficiency in the process and win these longer term contracts.
I think what we are looking for is more opportunity and a level playing field. If we can get that, we are very confident that our capability as well as our agility will get us business.
Akshat Rohatgi — Analyst
So the follow up question to that is SaaS and software in the US is the sentiment is that it will be cannibalized by all these AI agentic AI automated SDLC platforms. So what kind of revenues are we Driving our platforms like Salesforce services or ServiceNow. And do you think that if AI platforms or SDLC, there’s a lot of companies that we track, startups that we attract or we’re tracking right now that are kind of cannibalizing some of the segments of the SaaS companies listed, SaaS companies in the US so would it affect us as well, the downstream ID services.
Aditya Krishna — Chairman & Managing Director
Is Salesforce in your mind or in your, in this context of our discussion, is that a SaaS company.
Akshat Rohatgi — Analyst
Not sales? I would mention, let’s say ServiceNow.
Aditya Krishna — Chairman & Managing Director
Okay. ServiceNow to you is a SaaS company, right?
Akshat Rohatgi — Analyst
Yeah.
Aditya Krishna — Chairman & Managing Director
Okay. Now tell me, why will ServiceNow be cannibalized? Because somebody who’s implemented sales ServiceNow, you know, is spending a lot of money on licenses. They will continue to, to optimize their workflows, business workflows. Using ServiceNow to switch out of ServiceNow to something like a managed engine requires a lot of tech services, which is positive for tech services. If you stay with ServiceNow is positive for tech services. So tech services, whether you stay with ServiceNow or you move to another provider like Manage Engine as an example, will still provide revenue to a tech services company. Now can you do without ServiceNow? Can you do without manage engine using a Gentic AI? As of now you can’t.
Akshat Rohatgi — Analyst
Correct.
Aditya Krishna — Chairman & Managing Director
So tech services is here to stay. Unless I’m missing something.
Akshat Rohatgi — Analyst
Understood, Understood. So okay, that answers my question. Thank you.
operator
Thank you. Our next question comes from the line of Vikash Srivastava from rbc. Please go ahead.
Unidentified Participant
My last question is where do you see headcount trends and onshore offshore trends considering the increase in turnover etc and more outcome based. Just some kind of assessment of where are we headed on headcount as compared to turnover and onshore offshore headcount.
Aditya Krishna — Chairman & Managing Director
As of this point because it will be proportional as revenue grows. So if revenue grows four times, headcount will go up four times. I think that’s the rule of thumb we have to work with. Now can AI can outcome base reduce that? It probably will. But for example, shared services, as our proportion of shared services and our revenue increases, then that will reduce the number of people in relation to revenue. But the flip side is as the company grows, you need more people in support, you need more people in pre sales, you need more people in sales.
So I think it’s fair to say that for our size, if we want to go four times revenue, we will have to take our headcount to 12,000, you know, so that’s on the first part, the second question was on site. Offshore. We ideally want to do a little bit more on site, because on site gives us four times the revenue of, you know, so we need four people onshore, sorry, offshore, which is equal to one person on site. So our focus is to increase on site for two reasons. One, revenue vis a vis headcount. And second, if you’re working on site with a customer, we also have more intelligence on that account because that person can give us more intelligence.
If we have one person today and we increase that to five, we’ll have five people on the ground with the customer. Customer to give us more intelligence. So that’s. That’s the plan.
Unidentified Participant
Okay, just one question then. What kind of visas are we looking for? Are these when? Especially if you’re talking about the US Now. And what kind of challenge would you face with visas? I’m assuming these are not H1BS.
Aditya Krishna — Chairman & Managing Director
So H1BS have become too expensive at this point. So these will be either L1s or local hires.
Unidentified Participant
And what is the talent, scarcity and availability for local hires?
Aditya Krishna — Chairman & Managing Director
No problem of talent in the US for tech services.
Unidentified Participant
Oh, good to hear. Okay, that was my last question. I’m not sure. You’re not coming back in the queue, though. Thank you.
Aditya Krishna — Chairman & Managing Director
You’re welcome. Because. Welcome. Yeah.
operator
Thank you. Ladies and gentlemen, in the interest of time. That was the last question. I would now like to hand the conference over to the management for closing comments.
Aditya Krishna — Chairman & Managing Director
We thank everyone for taking out time to participate in this call and for their interest in Saxoft. I hope we’ve been able to answer your queries. In case of any other queries, please reach out to us or our investor relations advisors, Ballorem Advisors. Thank you, everyone, for joining us.
operator
Thank you on behalf of Munark Net Worth Capital Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.