All E Technologies Limited (NSE: ALLETEC) Q3 2026 Earnings Call dated Feb. 16, 2026
Corporate Participants:
Vinay Pandit — Investor Relations team,
Ajay Mian — Managing Director
Rajiv Tyagi — Executive Director
Ritu Sood — Executive Director
Analysts:
Sandesh Kumar — Analyst
Pratik Shetty — Analyst
Divy Agrawal — Analyst
Shashank Rastogi — Analyst
Akshay Bharde — Analyst
Siddharta Mathew — Analyst
Mayank Agarwal — Analyst
Salil Chitale — Analyst
Ganesh Kumar Sankar — Analyst
Presentation:
Vinay Pandit — Investor Relations team,
Ladies and gentlemen, on behalf of Captify Consulting Investor relations team I welcome you all to the Q3 and 9 months FY26 post earnings conference call of Oli Technologies Limited. Today on the call from the management team we have with us Dr. Ajay Mia, Managing Director. Mr. Rajiv Tyagi, Executive Director, Ms. Ritu Sood, Executive Director Mr. Sandeep Jain, Chief Financial Officer and Mr. Sandeep Sanwan, Head of Cloud and Managed Services. As a disclaimer I would like to inform all of you that this call may contain forward looking statements which may involve risk and uncertainties. Also a reminder that this call is being recorded.
I would now request the management to run us through the investor presentation for the period ended December 2025. The growth plan and vision for the coming year. Post which we will open the floor for Q and A over to the management team.
Ajay Mian — Managing Director
Thank you very much Vinay and thank you everyone who has joined us for this call today we had uploaded this presentation and of course the numbers over the weekend starting Friday we will go through some of the key slides and then you know open up for any conversation soon thereafter. So we are going to go over the numbers. We will talk about what’s happening in the AI era and things which have not changed. And then we have. First the numbers. We had a total revenue of 35.7 crores. Total income from operations was 38.7 which meant an EBITDA of 26.2%.
And the reported net profit was 16%. But this is after the adjustment that we had to do due to government changes on the on the PF front. So if you take that into account then our adjusted net profit and margin were 19.4% which means a total income growth of 4.2%. Total income growth Y on Y of 1.5 of which the repeat and recurring revenue was 88.2. And we added a total of seven customers in this quarter. The nine month figures are the total revenue stands at one hundred and three crores. Total income from operation in the nine months was one hundred and twelve.15 crores.
The EBITDA and EBITDA margins have been 26.2%. The reported net profit was 17.7%. But again doing the adjustment the adjusted net Profit has been 18.9%. That’s an income growth Y on Y of 0.9% of which the repeat and recurring is 92.1. The total customers added 27 and we have maintained the same team size of about 350 people. If we compare the ratios, the quarterly and nine months y on y income grew by 1.5%, EBITDA growth has been 0.8%, the EBITDA margin has been 26.2%, adjusted net profit growth has been 4.3 and the adjusted net profit margin has been 19.4.
Looking at the nine month figures y on y the income growth is 0.9%, EBITDA growth 6.5%, EBITDA margin has been at 26.2%, adjusted net profit Growth 5.8% and adjusted net profit margin has been 18.9%. These are the numbers in graphs and you can analyze them at your leisure. I will skip this this slide gives us the geographic spread. The Americas, which is basically US and Canada have been our largest regions in terms of the services revenue. So India has comprised of 27% and Americas has been about twice of that. But they’re just services. If we were to add the product margin then India become very very close to the international market.
The product plus services for India would have been in the range of 47 48% and the remaining would have been international. All the regions, Europe, Middle East, Africa have had slight movements, not that much. We have had if you look at the top five and top 10 customers they have been broadly within the range slightly more as compared to the previous quarter. You will see that the top five has been a slightly lower percentage from and then the top 10 have also been 28% this time. The new customers added in this quarter has been two for domestic and five for international.
Oh. This is a spread of the percentage of business that we had from industries. So professional services continues to be the biggest percentage 35 revenue from professional services, manufacturing 16% green energy and EPC 9%. Retail has been 9%, food and beverages has been 7. So have been the financial services and then the remaining are also given in this chart here. So broadly these are the numbers, these are the percentages and our growth drivers continue to be what we have been mentioning. We have been making some progress in all these fronts. Our comprehensiveness of offerings has only increased.
We added the one missing element of security here. We are now also Microsoft certified partner for Security Solutions. We have been making some progress in that front. We have continued to focus more to see that our geographic spread now in the area that we already have been in, we try to strengthen there. All of us know how Microsoft’s Business has strengthened in the areas of our operations. More and more of our solutions and our new projects have been led by our own IP and our work on inorganic growth has been in progress. And I think besides all of that, we mentioned the biggest element that is in the mind of all the people we running the company and you people as the investors has been what impact is AI going to bring to the IT industry, particularly in India? So as we have been mentioning in our past conversations, our business is different from that of a traditional IT services business.
If you look at a traditional IT services business from India, this has been focused very heavily on resource augmentation which has comprised 60 to 80% of revenue for these businesses. For companies of our size, their reliance on large players has been very high because they would just become part of the supply chain, they would have limited end customer engagements and the whole thing has been very heavily biased towards the labor arbitrage model. Our business model on the other side has been different. Our entire business model has been around providing what are now known as Microsoft AI business solutions.
They were called business solutions earlier, now they are called AI business solutions because all these product lines have got AI heavily embedded into them and now bringing impact on customers business. And we see that happening fairly regularly and customers using these new features and functionalities and new power of AI to further their business. So we have been working with the AI business solutions. We have been working with the Microsoft fabric which is the data engineering platform and then of course the AI transformation services which bring in the decision layer and the intelligence. If we look at our business, resource augmentation comprises of probably less than 2% of our business and more than 85% of our business is the digital transformation.
With ERP and CRM being at the core. These things are going to remain and these things become the fundamentals of everything that needs to be that that is needed in place for AI to work. Our data and AI practice is now approximately 10% and this is obviously growing faster than other lines of businesses. So the three structural advantages that protect Olli tech businesses. One is the data foundation, the AI system. They require unified enterprise data, they require governed data quality, real time integration, historical context and all these things live in Microsoft Dynamics 365 and Microsoft 365, Microsoft Fabric and power platform.
And these are areas of our core competence. The other area which has been of concern over the during this recent period has been the scarcity of expertise. Now AI does so many things, but it does not replace a set of things at least yet you still need the domain specific business process expertise. You require enterprise application architecture decisions. You require user adoption and change management, stakeholder navigation. These are areas which you require organizations like ours to actually come in and do for customers. We have multi year experience doing this. We have the needed certifications, the domain expertise.
And these are IRreplaceable value which AI only helps strengthen further and trigger more need of rather than replace. And in this whole AI value it is the last mile which is important, which brings 80% of the enterprise value. Now, as things progress, there are some things that become a commodity. So the LLMs and other AI infra is quickly and rapidly becoming, strengthening and becoming a commodity at the same time. You require organizations like us who will help the customers and businesses consume this. So we need generic AI to be leveraged to convert and become enterprise AI.
We require data unification, governance framework, process integration. We require custom agent development and change management as AI models get commoditized. This last mile work, which is complex, expertise intensive and resistant to AI automation, this is what brings 80% of the AI value. It’s like taking example of something that we probably have known now for a few years. If you look at the cloud infrastructure, be it Azure or be it aws, everybody has access to it, everybody has access to the same infrastructure. But the differentiation is in the expertise that you use for bringing and optimizing these infrastructures for the end customer.
That is where the value lies, that is what defines the winners and the losers. It may also be, you know, a long time back, you know, when electricity was invented, you know, it, it was, it was a novelty. But then over a period of time this became a commodity. Now, now everybody takes it for granted. But then there is still value that has to be driven on top of it. Similarly, all of this infrastructure, it was the cloud side of the hardware earlier and now it is the AI side. These are all becoming such integral parts of our lives that they are going to become fundamental infrastructures and value will have to be derived on top of them.
And olli tech is geared up to capture the value just because of the business model that we have and what we have been doing for customers over these years. So there are two ways in which we look at our business. So there’s a core business that we are working to protect. And this business is not the traditional ERP CRM only. It is a traditional ERP CRM with the AI capabilities embedded there. So now you still have the Dynamics 365 implementation projects which are now AI enhanced with copilots and agents. You have the Microsoft 365 modernization which now go with Copilot deployments and adoption and you still have these support and managed services which require AI optimization and monitoring.
But then with that you also have the. The expansion in the business comes from the AI services. And these AI services come in different forms. You have the data platform engineering where you require the fabric and the onelake and the lake houses to bring data from various sources and get them ready for being utilized and strengthening the AI capabilities of organizations. Now this is going to be there almost perpetually. You have this whole work coming in for AI agent development. Now earlier people used to work on doing custom software development, but now you have this AI agent development and some of these are now custom developed agents.
And of course you have enhancements that are going to happen on Copilot Studio and other agents and AI tools which come in and then the value is going to be in the decision layer. And this decision layer requires domain expertise. So with Olli Tech, we are not an IT services company. We are a company which is providing business solutions. We understand the customer’s domain, we understand what processes they require and how do they optimize those processes. So knowing the business domain enables us to work on this decision layer which will then result into an action by some of these agents.
And that is where we are. And this is going to be the expansion to the business which we will see happening in the next couple of years. If the traditional ERP project for us was somewhere in the range of 50 to 250k with 2030% margins, these AI enhancements are going to bring similar revenues. In addition, on top of it, if you look at the new stack, the ERP and CRM now form the base of that stack. And on top of it you have got all the other layers. The layers which are coming with data engineering layers which are coming with all the various agentic orchestration and then the AI applications.
And that actually brings an additional revenue opportunity for us over the next one to three years. The reason that we are so confident of winning in this era is we have a protected core. We don’t do any resource augmentation. We are expertise driven and not labor arbitrage. Microsoft platform itself is growing quite rapidly. In fact, Microsoft had internally reported that the growth they are seeing on the ERP side has been higher than they have seen ever before. AI only makes the ERP and CRM systems more critical. It doesn’t replace them because it needs those ERP and CRM systems to provide the basic Data that AI works on.
Then we are capturing the upside. We have the new higher margin service lines, 25 to 30% premium on AI projects domain knowledge that we have. Then the sustainable edge comes because of the 25 plus years of Microsoft expertise that we have and the deep domain knowledge that we have which prepares us for the coming and changing times. For us this is not a threat, it is an opportunity. An opportunity that we are going to leverage over the next one to three years. The rest of the slides I guess you have seen before in our earlier presentations.
We have not changed much there. We still have these broad lines of solutions and services. We leverage the full stack of Microsoft and all of these products are now AI capable. So they bring these new found capabilities to customers business and we help them to consume these. The board of directors is the same, the lead management is the same and we have the statement that you might have looked at. All of this is standard stuff. So I’ll stop presenting and just open for conversation in case anybody wants to discuss something.
Questions and Answers:
operator
Thank you sir for the detailed presentation. All those who wish to ask a question may use the option of raise hand. In case you are unable to raise hand, just drop a message on the chat window and we’ll invite you to ask a question. So we’ll take the first question from Sandesh. You can go ahead please.
Ajay Mian
Yeah. Hi sir. Thanks for the opportunity. Hello sir, can you hear me?
operator
Yes, you are audible
Ajay Mian
whenever you have. A couple of hands raised. You want to start?
Sandesh Kumar
Yes sir. Sir, like we are Microsoft inner circle member placing us in like almost top 1% partners globally. And we are specialized.
Ajay Mian
You want to go first?
Sandesh Kumar
Yes sir. Can you hear me sir?
operator
Hello sir, you are not able to hear us.
Sandesh Kumar
Hello sir. Hello
operator
Ajay. Sir, we are audible to you.
Vinay Pandit
Just a minute. Sandesh, I think there’s a problem at the end of Dr.
Ajay Mian
You hear me?
Vinay Pandit
Sir, your voice is not audible.
Sandesh Kumar
But can you.
Ajay Mian
Am I audible?
Vinay Pandit
Can you Hear us, sir? 1, 2, 3, 4. Test.
Sandesh Kumar
No, I don’t think so. You can. The recording has stopped for some reason.
Vinay Pandit
Is one second recording?
Ajay Mian
Recording has paused for some reason.
Vinay Pandit
Sir, I have paused it. Are you able to hear?
Ajay Mian
I am able to hear.
Vinay Pandit
Okay, we’ll get the recording started because. You could not
Ajay Mian
something went wrong in between.
Vinay Pandit
Yeah, just hold on one second. I’ll get the recording started. We’ll take the first question from Sandesh.
operator
Kumar after that this meeting is being recorded.
Sandesh Kumar
Hello sir, can you go ahead?
Ajay Mian
Yes, and please go ahead.
Sandesh Kumar
Yes sir. Sir, we are Microsoft inner circle member placing us in like almost top 1% of patents globally and we are specialized focus as a full stack Microsoft placement year only. However like looking at the Microsoft numbers, Microsoft India grew almost at 28% this year and globally dynamic 365 revenue grew like 23% and Microsoft Cloud is growing 23% and Microsoft itself growing like 20% in all the countries like Europe, Middle East, Africa where we are working and being our revenue base is low and we are only focused towards Microsoft product and we are already including AI agents in all our modules.
Like like these things should grow revenue at least double digit. Like in contrast our income is like kind of flat. Could you please comment on this?
Ajay Mian
No. It’s a valid question and you know that is what we expect to happen and we know that it will happen. You know first of all we all we have to recognize that the Microsoft revenue does not always directly reflect in how a partner number grows. But very clearly we have had a rather modest couple of quarters. But then what we take from the Microsoft numbers is that we still are in the right space. We have picked up the right platform for multiple reasons. Whether those reasons are you know earlier on we had several macroeconomic situations impacting you know the businesses.
But you know these are things that we hope will get addressed now in this coming year and we should see that changing. But your expectation is not incorrect at all.
Sandesh Kumar
Okay, so like okay sir, my next question. Like we are like since two year we are trying for some acquisition that delaying acquisition look like it’s good decision compared to a disruption and global sentiment. Now I think like we got some clear direction on a adoption like and now like many BTIC firms are currently undervalued due to global sentiment. Does management intend to capitalize on this good companies at good valuation. You the cousin fiscal year.
Ajay Mian
So I think it’s a little bit early to comment on this. We are in the middle of some conversations. But the disruption in the whole valuation system has become such that some of those deals might just get stuck because of the initial expectations that the you know companies on the other side had and what the situation looks today. But this is, this is something that we keep working on and it is as I said we are, we are right in the middle of some of it. Whether or not you know these deals get impacted by the change in the market situation and valuations, I think we will know in some time.
Sandesh Kumar
Okay so my last question is like we, we have all the prerequisites to move to main board. I think earlier we plan to move to main board now it’s already three years. We got all the prerequisite to move to main. Main board. Like when we can expect to move to main board.
Ajay Mian
Sir, you are right. We, we have everything that is needed from a statutory point of view and eligibility point of view. I think we just will go by recommendations that are made by our management team and the board and also maybe seek external opinion. There are at times that you have, you have some priorities which might take, which might, you know, come ahead of some of the other things. But it certainly is an area that we are closely watching and I think we will be able to take a call on it sometime during the year.
Sandesh Kumar
Okay, sir, my last question, like next year, can we expect double digit growth next year for whole year?
Ajay Mian
Well, we would want it to be that way. But whether it will happen or not happen, I think I can say anything or anybody else can say anything. But you know, we do have, you know, the elements are in place and we, we have no reason to be pessimistic on this front.
Sandesh Kumar
Okay, sir, thank you.
Ajay Mian
Thank you.
operator
We’ll take the next question from Pratik Shetty. I think you can go ahead please.
Pratik Shetty
Hi, am I audible?
Ajay Mian
Yes, Pratik.
Pratik Shetty
Thanks for taking my question. Sir, can you give us a sense of what you’re seeing on the ground? How’s business like right now this quarter as well, since we are halfway into the quarter and what is the pipeline looking like? Like what can we expect from the quarter?
Ajay Mian
You see, we have had a fairly interesting last, I would say two months or so, you know, post December. And we have, we have done some really nice business closures. Not every business that gets closed gets invoiced in the same quarter. So that is one aspect of it. And you know, some of the long duration projects will bring you revenue over a period of time rather than in the same quarter. But then we have been able to close some, I would say sizable accounts with some important customers. So overall, if you see within, within the organization internally, we are fairly upbeat with the traction that we are, we are building and we are seeing.
Pratik Shetty
Is it possible to give like a guidance for the quarter?
Ajay Mian
You see, we are already in the, as you said, we are, we are, you know, at the, at the mid of the quarter. And I think it is not, I wouldn’t say appropriate, you know, our, as you know, as you, you know, if you see our business, it’s not about, you know, a number of people multiplied by a rate. So you make that easy competition, it doesn’t work that way. So a lot of Our projects are milestone based and sometimes a milestone happening a week here or a week there will decide whether the invoicing is happening here or not happening here.
But you know, we do sense that we should have a healthy quarter.
Pratik Shetty
Okay. And continuing with the question asked by the previous participant, is there a rational to why Microsoft is going 20% plus but we being the number one partner or for us they being a number one customer still, we are kind of flattish since one year, one and a half years.
Ajay Mian
Yeah. So you see for organizations like Microsoft, first of all there are various different areas in which they keep growing and you know, their practically entire revenue is now cloud revenue which just keeps building up on top of what they have done in the past. It’s also easy for them sometimes to, you know, you know, change the rates a little bit or tweak the margins a little bit so you know, they have more levers with them. But that does not necessarily, you know, convey, you know, what’s happening in the, in the partner ecosystem. We are happy that we are working with Microsoft because it’s, it’s really important that the ecosystem in which you are working is healthy.
So those numbers and will certainly start reflecting in, in the partner businesses as well. We have had it, this has been happening in the past. There are periods when it doesn’t happen. But then we have no hesitation in saying that we’ll see that happening.
Rajiv Tyagi
If I can just add that. Prateek. What also happens is that Microsoft has a very, very broad product portfolio. So the product mix which is gaining ground in one quarter, is it aligned exactly with the product mix? The sales that we are doing may not necessarily be the case. So for them, you know, at times the product that might be the star sellers which may be like they may be doing very well in security but for us that is an area which we are still developing and may not be the, you know, so it, it will not always be a direct correlation because even in business applications there are multiple suite of applications and for six months plus we have a service component.
Microsoft doesn’t have a service component. So if it does six month project, we always have a lag by the time we’ll realize the entire value. Product sales, obviously lion’s share go to Microsoft. We only get the margins there.
Pratik Shetty
So logically with the lag that growth should show up on.
Rajiv Tyagi
It should and it would. It should and it would. And as I said, it is only at times bit of a product mix which may matter because if you’ll see in their quarter, two quarter thing Also so our line share will be in business application and there in business application, which product maybe in whether we have also like the CRM, they might take a more revenue growth in CRM because of certain large closures either in us, India or anywhere else. And we might not have done the CRM closures in those six months. But logically the whole ship is moving. So yes, there will be, you know, derive momentum that will definitely be there.
It can only be the lag of few quarters here and there.
Pratik Shetty
Got it. Oh, that’s helpful. And lastly, on the inorganic growth front, sir, at like what is the. Is there a timeline that the management has decided on? As in it’s been three years already and a large portion of our balance sheet, like 70, 80% is stuck in cash, which is not kind of generating the kind of returns that your core business would. So at what point do we think that maybe the cash is better utilized at the hand of the investor, if at all? We are not finding the right acquisition companies.
Ajay Mian
So I don’t think that’s going to happen. We will find because we work on it quite intensely. But even if it so happens that we don’t find it in this changing AI era, there are areas of investment that we have identified because we need to prep the company for the next 10 years and we would need to be armed with the needed amount of capital for that. You know, taking money out is a very simple job. It just requires a board decision and then you spend that money and consume that money. That can be done, but then that wouldn’t yield the same kind of returns as one would expect, you know, by growing the business itself.
So that is where we are focused and we will either be spending this money in inorganic growth and or building additional lines of businesses.
Pratik Shetty
Is there a timeline that the management has committed to internally or can you share that? Is it possible?
Ajay Mian
Well, some of these things are not a matter of commitment because if you’re working on an acquisition, you can never say till the ink hits the paper that it is happening or not happening. And we also don’t want to do any, you know, any, any commitments which then just for this, for meeting that commitment, you take a decision which is not then a sensible decision. What we can say is that we currently are in some serious conversations. But you know, whether, you know, it happens or it does not happen and you know, as things are moving, whether, you know, doing that becomes sensible or not is also a question.
So these things always stay top of our mind. It is the intent of the board and the Executive team to utilize this money in growing the business rather than just keeping it in the bank.
Pratik Shetty
Got it sir, thank you. Or those are all the questions from my side. A good luck to the team.
Ajay Mian
Thank you.
operator
We’ll take the next question from.
Divy Agrawal
Yeah, hi sir, am I audible?
Ajay Mian
Yes, David.
Rajiv Tyagi
Yes.
Divy Agrawal
Yeah, hi sir, thanks for taking my question. So a few questions from my end. So firstly, Microsoft, Microsoft azure grew by 39 year on year and they guided for 37 to 38 for next quarter. While if you see Dynamics 365 grew by 19 year on year and it is expected to remain in the mid to high teens of around 15%. So given your view that H1B has no material impact on Olitech and we should not be viewed as a regular IT service player. So why has our growth taken a hit for 9 months FY26 and how soon can we revert back to the 25 to 30% growth run rate?
Ajay Mian
Sure. So Divi, what happens is, you know, sometimes growth comes in spurts. You grow for some time and then, you know, it takes some time for you to kind of adjust to it and then put new seeds which start growing and bringing outcomes. So you know, you, you get into some of these phases and one could say that that probably has been the phase for us over this year. As I have mentioned a couple of times earlier today, that the Microsoft platform and the Microsoft ecosystem is growing is very heartening to know because it, it kind of just re emphasizes the fact that we are working in the right space and with the right set of products.
So because we keep working at this, we know that this will change and you know that we are a leading partner is not something that we say, it is what Microsoft says. So Microsoft’s growth is bound to start. Also impacting our own growth. It happened in the past couple of years. It did not happen so much this year. But you know, in the coming year, two years, three years, we definitely will see those things happening.
Pratik Shetty
Right. So we can expect a 25 to 30% growth on debt like in medium term.
Ajay Mian
Well, I don’t know whether, you know, putting a number to it is the right thing to do. There is so much of disruption which is happening anyways in the, in the market today. It could be 25%, it could be 20% but you know, we expect to see, you know, a decent growth in the in the coming years.
Divy Agrawal
Got it. Next, I just wanted to know, could you share the current attrition rate as on date also for better comparability, what is the attrition rate excluding the employees who live during the training period that is year one.
Ajay Mian
So you want to address that.
Ritu Sood
Yeah. So our attrition rate is much below the standards we maintain, somewhere in the range of about 10 12%. But then some of these attritions are also people who we want to let go rather than people deciding to leave. Right. And in terms of the other part of the question where you mentioned about the, you mentioned about the people who started with us in the first year or so. So we have, we’ve been stable on that. We have not seen any attention as such for the initial year and a half, two years of the people who we take from the campus.
Divy Agrawal
Right. So right now the addition, it is 1012. And what, what was it like before a year ago?
Ritu Sood
Similar. It has not changed.
Ajay Mian
So in the, in the past we had reported that if you, if you exclude the people who left within one year of joining, which included, you know, be them, be these are people who came in as trainees, or be these the people who were lateral hires, if you exclude the one year, under one year, then our attrition was 6%, as I had mentioned, I think a couple of calls back.
Divy Agrawal
Right. So right now it should be in the similar range, excluding the one year.
Ajay Mian
Attrition has not been a matter of. Nothing has changed much on that front.
Divy Agrawal
Right, got it. Next, I just wanted to know at a broad level, could you quantify the margin differential between the Indian US Businesses? Like without getting into exact segment disclosures, an approximate range would be very helpful, sir.
Ajay Mian
Sure. So our business has two components. There’s a product component and there is a services component. The product component margins are roughly the same, although sometimes in some geographies there is stiffer competition wherein you have to give some discounts. But broadly speaking, the margin on the product sides are similar across geographies because Microsoft has roughly the same price points and they have roughly the same partner margins. On the services side though, margins are better internationally by, by a factor, you know, which could be, you know, 50 to 75%.
Divy Agrawal
For the services side.
Ajay Mian
Yes.
Divy Agrawal
And for the product side, can you quantify it?
Ajay Mian
That’s what I said. On the product side, the margins are similar.
Divy Agrawal
Similar. Okay, got it. Lastly, sir, since you mentioned Olitech is a professionally run company, do you have any plans to introduce a new ESOP program to attract and retain talent, especially at mid and senior levels? If yes, what broad structure are you evaluating in terms of pool size, eligibility and investing talents?
Ajay Mian
We don’t have anything for that. On the, on, on the I would say plan at this point in time. We don’t rule out any of these things. But we are, we will be the. The last tranche of our previous esop will be exercised now. So, so that scheme is still not, you know, ended. So that will happen now. And whether we have to do something thereafter is something that will be put up in due course with the management and the board.
Divy Agrawal
Thanks. Thanks a lot for answering all my questions. And all the best.
Ajay Mian
Thank you.
operator
Thanks, Deep. So we’ll take the next question from Ganesh Kumar Sankar. Ganesh, you can go at least. Ganesh, you there? Sir, we’ll move on to Shashanki. You can go.
Shashank Rastogi
Yeah. Hello. Sir. Do you still maintain your long term target of reaching thousand crore?
Ajay Mian
Of course. I mean the only thing you did not mention is long term is what? So you know,
Shashank Rastogi
that’s what I wanted to know from you.
Ajay Mian
You see, things will, things will, you know, nothing, nothing, you know, keeps moving in the same. At the same rate and in the same direction perpetually. And it’ll be just too naive of anybody to think that something will maintain the same slope every time. If it was so predictable and it was so simple then, you know, everybody would have been doing it. But this is more a matter of what aspiration you have.
And it’s also a matter of whether you are doing and working towards it. It does not necessarily guarantee that you will succeed at the same pace and you will always succeed, you know, at every turn of the event, but that we will keep working on it. There is absolutely no question on it. We might have had a little subdued last couple of quarters, but that’s okay. We understand it. But it doesn’t, you know, it doesn’t in any manner dilute the overall aspiration that we have as an organization.
Shashank Rastogi
I mean, right now the company billing structure is what is it, man? Hour billing base or you are gradually shifting towards outcome based.
Ajay Mian
Our predominant business model has always been outcome based. Well, I would say, you know, when you talk of outcome based, I don’t know whether, you know, everybody understands it a little bit differently. An outcome based could be a project which is milestone based. And an outcome based would also be the outcome which a customer gets from something. Okay, so the IT industry has not yet matured to a point where it will. So we are mature, you know, right from our initial days we have been doing projects and billing milestone based. But whether it is outcome based, I would say that, well, if you look at our overall billing, some of our products are SaaS products be these the Microsoft products are our own IP.
So customer pays us when they are using the product. Whether we measure the outcome that the customer got from the product is not something that happens in most cases today. But we expect to be able to get to that point in, in the period of next two to three years time.
Shashank Rastogi
Okay, sir, sir, my last question is that, I mean last. This year has kind of a standstill for us. So next year, can we think that we will be back to, you know, back to the game and. Right. And we will follow our directionally growth of 20 to 25% if we can get clarity.
Ajay Mian
See, first of all, we are already in the game. So it’s not a matter of being back to the game. We are already in the game. But you know, in the game, you know, you don’t, you know, nobody scores a century every time that he goes out to bat. So sometimes you score a century and sometimes you don’t. Sometimes you are out very cheaply. But that does not mean that you stop playing. But when you say 20, 25%, it’s like saying that, well, will Virat Kohli hit a century every time he goes out in the field? Well, not necessarily.
But does he? Will he stop playing? Well, not necessarily. But in our case, because it’s an organization and not an individual, the organization will go on, we will keep working and we are working in the areas which have been our core. We might have had a little modest year this year, but that doesn’t stop us from learning and doing more for the next years.
Shashank Rastogi
Sir, actually like this disruption has recently gained a lot of traction, this AI thing. So that’s why your response is quite critical in this regard. So that’s why I asked.
Ajay Mian
No, absolutely. Did I? Maybe I missed your last question. What is the point that you are making?
Shashank Rastogi
Sir, I was saying that this AI thing is getting a lot of fractions in January and fab. So now your commentary is quite critical that whether you are, you know, confident enough that the company.
Ajay Mian
Exactly.
Shashank Rastogi
Will continue growing the similar manner.
Ajay Mian
Exactly. You see, that is what one section of my presentation was dedicated to that. So if you look at AI, AI is basically helping organizations to leverage the data that they have to do things in an automated manner using the agentic frameworks and by using the various AI tools. But AI feeds on data. This data comes from systems like ERP and CRM and other applications. Now what we have been doing so far is helping organizations bring these systems which are ERP and CRM in place which enable them to start gathering this data. And now we are working to help them use this data to start building their AI systems.
So this is very much aligned with what we have always been doing.
Shashank Rastogi
Yeah. So you maintain your, you know, status that the company will continue growing. There is no such problem.
Ajay Mian
of course.
Shashank Rastogi
Thank you, sir.
operator
Thanks, Sasha. So we’ll take the next question from Akshay. Akshay, you can vote, please.
Akshay Bharde
Good day, everyone. Thanks for giving me the opportunity. Sir, I have just a couple of questions. First one is now, in this time and this thing of AI, now even in my company, we are transitioning into more prompting and stakeholder management and all that instead of coding, because coding is now mostly becoming a commodity. So how do we see our own people transitioning going forward? Like this 350 people team that we have, how do you see we transitioning going forward from the software development to something more valuable?
Ajay Mian
So I do not know for how much time you have observed us or studied us, but we are not a software development company. If you look at this 300 plus people that we have, only about 40% of this total workforce would be what you may call technical people. And the remaining have always been domain people who understand finance and who understand supply chain management or manufacturing or distribution. And then these are the people who have been in the past working in successfully deploying ERP and CRM projects for our customers. The work which the technical people have been doing in the past, that work has been changing.
That work is getting. Large parts of it are getting automated even by us. So our people are spending less and less time in coding because code now gets generated largely by the large language models or copilots. And then they spend time in doing other things like integrations and in other things, like translating a customer’s requirements and seeing that how do we best, and in the most efficient manner get their systems up and running? So the changes that you see happening because of AI in the world, we are a customer zero for many of these and we use these ourselves.
So that brings us productivity gains.
Akshay Bharde
Perfect. Thank you, sir.
Ajay Mian
The second question, you would have also seen that in the. You would have also seen that in the past several quarters we were able to increase the revenue without increasing our headcount.
Akshay Bharde
Yeah, perfect. That might be because of.
Ajay Mian
Yeah, absolutely.
Akshay Bharde
Okay, perfect. Thank you. The second question is, we, the, the, the new customer addition numbers that we have, when do we see the uptick coming there? Because I think last time we said that because of tariffs and the other uncertainties, many of our deals were not closing or they’re getting. They were getting Delayed. So the number that we used to have previously, like the, the high number of the new customer additions, quarter by quarter. Now, how do you see that coming in after the tariff trade deal and everything is done now? Most certainly in terms of.
Yeah, yeah.
Ajay Mian
So I think some of these things are, you know, a little bit more tricky than just this because when we talk in terms of the new customer additions, you know, sometimes we are also looking at making a shift to say that what is the minimum size of a customer that we should acquire? And sometimes when something is smaller than a certain size, we just let it pass. So we are as an organization, we are also gradually moving up the chain. We are trying to acquire customers which are larger in size. So the success will not always and necessarily reflect only in the count that we give.
We typically report this count because this count is a reflection of the velocity with which operations are moving. It’s an important factor because it gives. It’s a reflection of the energy that goes in the sales and the marketing teams. So we do look at it. But they are not necessarily a high count here does not necessarily mean that it will always be a good thing. Sometimes we may want a lesser number of larger customers than a large number of very small customers.
Akshay Bharde
Perfect. Thank you, sir. And the last question is now, in our AI presentation that you gave, we said that the margins could be higher due to AI, but do we see the revenue per unit of work going down due to the expectation of AI tools during the heavy lifting? And if that is so, do we see it will get compensated due to much more work coming in like both ways? Yeah.
Ajay Mian
So things will change. There are things that we were doing, you know, manually earlier which now gets done automatically. So clearly you don’t get the same revenue from there. But then there are new things to be done. So those new things not only replace what was being done earlier and is no longer needed, but they also open up new opportunities and maybe radiv you want to add anything there.
Rajiv Tyagi
What you are thinking is the right direction though it will not happen just in 1/4 or 2/4. But going forward, the overall cost of an ERP or CRM implementation will go down. Which on the other hand in a country like India can expand the market in a much larger multiple because it’s a very price sensitive market and there are a lot of, you know, small and medium enterprises who are still not gone for standard ERP CRM implementation. So there should be an uptick in terms of the number of customers that you’ll be able to add.
Though there will be slight reduction in the implementation value that you offer to the customer because of the efficiency gains through AI and whatnot.
Akshay Bharde
Okay.
Ajay Mian
The other very important thing, you know, that you also have to know is that the changes which AI is bringing are, are quite dramatic. And anyone who thinks that, you know, he, he will just keep going as before without having to fundamentally change the way of working will probably be proven wrong. So even on our side, while we do keep giving a push to add business momentum, a good part of our time, mind share energy also goes in rethinking our own product lines, reinvesting. So for example, some of our own IP that we have built for various industries in the past, you know, we are busy making them AI enabled.
We are busy bringing agents into them so that they are ready for tomorrow. Now, some of this work does not show up as revenue. Some of this work would probably take our time and energy away from what would have, you know, added more numbers to our financial statements in this quarter and next quarter maybe. But then we are working on some of these things which are longer term value rather than immediate. So there are some other product lines that we are currently building up, working on because we are looking at how the life and the organization will be in the next three to five years time and not just in the next two or three quarters.
Akshay Bharde
Perfect. Thank you. Sir. That was my last question, which you already answered that are we then thinking of transitioning into something? Thank you very much. All the best to everyone. Thank you.
Ajay Mian
Thank you.
operator
Thanks, Akshay. We’ll take the next question from Siddharth. Matthew Siddharth, you can do it, please.
Siddharta Mathew
Hello. Hi, Dr. Mia. Am I audible?
Ajay Mian
Yes. Siddharth.
Siddharta Mathew
Hi. Thank you for taking my question. So you mentioned data and AI services. Is now roughly 10%. Where do you see that settle, say. Two to three years from now or even, even longer?
Ajay Mian
What will happen in two to three years time is that some of this will become indistinguishable from the rest. It will become so much a part of everything that you wouldn’t be able to say that this is data and AI and that is not so. That is what is going to happen at the moment. We are able to say, because we are coming from with a historical background and we are able to say, okay, this is data and this is data and that is not. But then in the next three to five years, it will all become an integral part of everything that we do.
Siddharta Mathew
Okay, okay, that’s helpful. And, and that has been coming with. Higher margin to your company. As well. Right.
Ajay Mian
It will, you know, at the moment, you know, we cannot say that because a lot of these things are in. Sometimes they’re in experimental stage, sometimes you are just, you know, investing in doing pilots. But eventually it will.
Siddharta Mathew
Okay, okay. And with a lot of the optimization that you mentioned, even in your own. Processes with AI, is that in a. Way cannibalizing some of our existing revenue, would you say?
Ajay Mian
You see, the thing is, I wouldn’t say that it is cannibalizing. The right way to look at it is that if we don’t do it, then we would either not win the customer or that need from customer will anyway go away. The thing is that you have to do all of this. It’s not a choice you have to do because you can’t assume that the customer is captive. You have to do all of this to stay relevant. You have to do all of this to be more competitive and you have to keep bringing the customers timeline and prices down.
So we are not, you know, to stay at the edge. You have to sometimes take some calls. So you do, for example, say that if you were doing, let’s say, a certain task, just to give an example, a certain task of some report writing or some bi dashboard creation which was being done earlier, and now when you use AI to do that, you are able to do it significantly faster. So that’s, you know, that’s cannibalizing what was being done earlier. But it’s not a choice that you have.
Siddharta Mathew
Right, right. Just wanted to get a sense of that. My final question. I noticed that US has come down slightly this quarter and India has gone slightly up. Is that sort of a trend that we can expect going forward or not really.
Ajay Mian
You see, first of all, I think those percentage points are very, very small. You know, so it is not really an indication of any, any big shift. But then, and as I have mentioned in some of my earlier calls, if you see India as a whole, which is product plus services, it’s fairly competitive where rest of the world, India plus product plus services still accounts for like 47, 48% of the total revenue. But then the proportion of product and services in India is very different from the proportion of product and services in the international market.
In India, in international market, our product versus services is in the range of the product is typically between 22 to 25% of the total revenue. In India, the same number can go somewhere between 55 to 60% also.
Siddharta Mathew
Okay, okay, okay. Those are all my questions. Thank you for us.
Ajay Mian
Thank you very much.
operator
Thank you. Siddharth. Sir, I request participants to limit their questions to two questions. Sir, we’ll take the next question from Mayank Agrawad. Mayank, you can go ahead please.
Mayank Agarwal
Yeah, hi, am I audible?
Ajay Mian
Yes.
Mayank Agarwal
Yeah. Thank you for the opportunity. I have just one question on the AI and data services. Like which is currently around 10% of the overall pie and it’s growing at 25%. Right. So like if you can share like what percent of the new deal wins in the last few quarters like included AI components and how much has the average deal size increased due to the AI net cross sell.
Ajay Mian
I think I responded to a part of your question in the previous last conversation I was having with this gentleman. You see, some of these things are getting so much integrated with your overall work. More and more customers when they are looking and thinking about their ERP and CRM systems are also seeing that what other data they need to bring in and how do they bring that data and put it together in let’s say a data lake and what bi. And then ultimately AI work can be done out of that. We have given broadly that we are seeing it at around 10% now and I think trying to fine tune it to a more specific number will probably be just an artificial way of looking at something which is not so indistinguishable.
Rajiv Tyagi
And just give him some feel factor. If we added five customers in the last quarter, I can tell you that in for three of them there was data and AI as a component part of the proposal and it constituted ballpark around 20%.
Mayank Agarwal
Okay, yeah, yeah, that was mine. Thank you so much for the answering question and all the best of the team.
Rajiv Tyagi
Okay, thank you.
operator
Thanks sir, we’ll take the next question from Salil. You can go it please.
Salil Chitale
Thanks for the opportunity. Just I would like to think so now everyone was expecting a 2530 growth because we have been having that for the last three, four hours. But we had flat results. So I just wanted to know from you giving the macroeconomic conditions, I mean the flat results are a good thing for us. You’re expecting worst scenario or. I’ve looked at your take on that.
Ajay Mian
You know, you were breaking. I’m not sure if I heard you fully, but were you saying that getting a flat result is. We were expecting worse and therefore we are happy getting a flat result. Is that.
Salil Chitale
Yes, yes, yes, yes, yes, yes.
Ajay Mian
No, I, I don’t think that would be accurate to say, you know, we don’t, you know, we don’t go with that design to say that, you know. Okay, we expected it to be much worse. So we are happy that it is flat. There isn’t, there isn’t that much of time to think about all this. You know, we just keep moving forward. You know, you keep working on opportunities and deals and you keep changing the organization, you know, on, you know, whatever is needed to win in, in this race. So I don’t think it will be.
It’ll be right to say that we expected worse and we are happy that it stayed flat. No, that’s not the case. Invariably at the end of a quarter, we are always thinking that, oh, you know, this deal slipped and that deal slipped and, you know, in the following quarter, again, the same thing happens. And then. So it’s an ongoing thing, but I think it is not right to say that we expected worse and we are happy that we are flat.
Salil Chitale
Okay, fine. Thank you. So. And one more question. I think so a couple of quarters back, or I don’t be able to recollect the name, I think so. We had a partner with someone in Canada for business development or something. So have we done, I mean, since we have cash. So are we doing the same thing in other geographies as well? And whether that was fruitful, the partnership.
Ajay Mian
What we have done. So what we have done, you see, in the last couple of weeks. So by the way, you know, that partnership that we had is no longer active because we became more active directly in the region. And the company that we had a partnership with, their own level of activities in this area kind of started tapering down. But Canada is a very active region for us. We have some extremely important customers and sizable customers from whom we have been building a good business traction in Canada. But broadly speaking, otherwise, in the last couple of weeks, we have added more headcount in at least three regions.
We have added a senior consulting person, project management and consulting person in the US and we have added, you know, junior salespeople in both Africa and in the Middle East.
Salil Chitale
Okay. Okay. Thank you, sir. And all the best.
Ajay Mian
Thank you very much.
operator
We’ll take the last question for the day from Ganesh Kumar Sankar. Ganesh, you can go ahead, please.
Ganesh Kumar Sankar
Am I audible, sir?
Ajay Mian
Yes, Ganesh.
Ganesh Kumar Sankar
Yeah. So if you slice and dice your customer and prospect base based on, you know, SMEs, larger enterprises and all that. Do you see any common pattern or. Any common challenges with respect to, you know, any delay in decision making?
Ajay Mian
Oh, yeah, absolutely. You know, and this has, this has varied a little bit, you know, geography to geography. But I think the best will be that, you know, I will just ask Rajiv to talk about what he is experiencing in India and Ritu to talk about what she’s experiencing in some of the other geographies. Radhiv, you want to go first?
Rajiv Tyagi
Sure. So from India perspective I can tell you that in the SME the momentum is going on. There is no direction impact on the decision making. But for the enterprise and the large organization and related to their child account they’re definitely they, they have that impact and they can, you know that there was a delay in the decision making in terms of what, what they will go but not in the SME segment. There the momentum is going on. Ritu can tell about.
Ritu Sood
No, we see the same thing in other geographies as well where since the SME is the decision making lies with say 1, 2 people on the top. So definitely it’s easier. But then the more you go to the mid sized and large enterprises it’s, it’s a multi stakeholder then sometimes board approvals also take time. So yeah, we see the same thing but then at the same time we also then because of that sometimes see decisions slipping between one quarter or the other quarter. But it’s, but, but the momentum is on in all the regions that we are active in.
Ajay Mian
Africa though is one region where you know, decision making has been significantly longer than other regions. But I guess, you know, it’s been like that, you know, for all sizable accounts there.
Ganesh Kumar Sankar
Great. Thank you sir.
Ajay Mian
Thank you.
operator
Since there are no further questions. Sir, would you like to give any closing comments?
Ajay Mian
Well, you know, I think we kind of summed up everything that I would have wanted to say in my presentation and then also as part of the responses to various questions. We are in very interesting times. We might, you know, not have had a, you know, a big growth year behind us. But you know, we know that we are in a space and we are at times where you know, things are moving on and we are doing what is needed to catch on with this. Product lines are changing, customer requirements are changing and we are changing, you know, our whole set of offerings to make sure that we stay at leadership positions here.
And you know the one consistent question that everybody had was that Microsoft is growing rapidly. Why are we not growing? Very correct observation. It has been the case. But then Microsoft’s numbers do not always immediately reflect into customer partner numbers. And this is not just for us. There’s also for various other partners, particularly if you are in consulting and biz app space and not just in the product selling, licensing, license selling space. But it just proves that we are in the right space working with the right on the right technology stack with the right company, which is Microsoft and this will start bringing impact in the coming years.
More importantly, I would say that our focus at this point in time, given the pace at which technology and the business environment has moved, our focus is not so much in terms of what happens just this quarter and the next quarter. We have to put focus on what happens, you know, next year and the next three years because AI is going to change the customer requirements and AI is going to change what we have to deliver to customers to stay relevant to their needs.
operator
Thank you, sir. Thank you to the management team for your valuable time and thank you for all the participants for joining on the call. This brings us to the end of today’s conference call. You all may disconnect now. Thank you.
Ajay Mian
Thank you very much.