Kellton Tech Solutions Limited (NSE: KELLTONTEC) Q1 2026 Earnings Call dated Aug. 13, 2025
Corporate Participants:
Unidentified Speaker
Niranjan Chintam — Chairman and Whole time Director
Karanjit Singh — Chief Executive Officer
Srinivas Potluri — Chief Executive Officer, USA
Analysts:
Unidentified Participant
Gaurav Shah — Analyst
Prateek Dedhia — Analyst
Presentation:
operator
Ladies and Gentlemen, good day and welcome to the Kelton Tech Solutions Limited Q1FY26 earnings conference call. 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. I would like to thank you all for participating in the company’s earning call for the first quarter of the financial year. Before we begin I would like to mention a short cautionary statement.
Some of the statements made in the today’s con call may be forward looking in nature and such forward looking statements are subject to risks and uncertainties which could cause actual results to differ from those anticipated. Such statements are based on management’s beliefs as well as assumptions made from the information currently available to the management. Audience are cautioned not to place any undue reliance on these forward looking statements in making any investment decision. The purpose of today’s earnings conference call is purely to educate and bring awareness about the company’s fundamental business and a financial quarter under review.
I would now like to introduce you to the management participating with us in today’s earnings call. We have with us today Mr. Niranjan Chintam, Chairman and Whole Time Director, Mr. Karanjit Singh, Chief Executive Officer and Mr. Srinivas Potluri Chief Executive Officer from us. Thank you and over to you Mr. Niranjan ChintaM. Thank you and over to you.
Niranjan Chintam — Chairman and Whole time Director
Thank you Pallav Good morning. Good evening wherever you are. Want to start off with the financial numbers and then we’ll talk about operational highlights. So on a consolidated financial we were happy to post 296 crores as the top line for Q1FY26 with an EBITDA of 35 crores and a PAT of 22 crores. The EBITDA percentage is 12.1% and the EPS stands at 2 rupees 32 paisa. The revenue growth shows about 12.8% on a year on year growth and a 3% growth on a quarter on quarter and EBITDA growth is 10.2% on year on year growth with a path of 13.5% year on year growth.
Now on a standalone basis we showed a top line of 53 crores which is about 15.7% increase over the last quarter. Just want to caution here. This quarter reflected hardware sale. I think we announced this Oil India contract that we have won. There was a big hardware component to this quarter hence you see an increase of this size whereas the profitability has not increased. The reason for that is typically in a hardware the margins are lower compared to services. The EPS on a standalone basis we came up with is 28 paisa. With that I want to hand over to Karanjit to to talk about operational and customer wins. Karanjit, over to you.
Karanjit Singh — Chief Executive Officer
Hello, good evening everyone and thank you Niranjan. So let me first give you a little bit of details on the client wins. So we had three significant client wins in this quarter. I’ll speak a little bit about them. The first one is basically we partnered with a global beverages leader to implement a configuration compliance solution that will provide continuous monitoring and streamlined automation that will ensure regulatory adherence and operational control. So this was basically targeted towards improving their governance, the client’s governance and audit readiness and reducing the compliance risks. The second one is also something similar but this is with a leading US health care health insurer to integrate their security center and deliver automated and scalable workflows that will again help with regulatory compliance and risk management.
So this solution kind of enables real time vulnerability detection, accelerates the incident response and strengthens the overall cyber security defenses. So these are two in that area. The third one is we’ve partnered with a premier Indian travel technology provider and we are helping them with basically the back end engineering and this is pretty complex and high end engineering and this would also be back end engineering on the agentic AI and AI driven automation and workflows as well as sort of streamlining their integration with meds and a couple of other integrations that they have. So these were the three significant wins for this quarter.
Next I’ll just touch upon a little bit on the operational highlights. So the first one over there that I’d like to sort of mention is that we basically seamlessly migrated mission critical application for one of the world’s largest agriculture and food production enterprises. So we moved them over, cut them over to a modern enterprise platform and the key highlight here is that we did this while achieving zero downtime. So of course we worked very closely with the clients global teams. So this kind of really helps showcases our expertise in executing complex high risk migrations and uninterrupted operations through all of it all.
The second one that I just wanted to mention was we were amongst a select group of organizations that were invited to NATO led conference in Finland where we have a key project that we run for them. So where we presented this key project outcomes and also addressed the complex client challenges that we addressed under tight timelines and this earned a lot of praise from the NATO representative for the clarity with which we did it and the professionalism. We’ve had a long standing relationship with them. And of course there is a roadmap. We’re working on the future roadmap as well.
The third one is where we actually partnered with a big four firm. So this firm for its ultimate client was working on advanced agentic workflows and decision logic. And at the back end it is Kelton that sort of helped with developing and enhancing enhancements to a climate AI control tool. And the last one is something that Kelton has done on its own, which is about launching kai. KAI is our enterprise grade agentic AI platform. This platform is something that we’ve built and it helps with autonomously managing workflows, approvals, actions across finance or operations or HR and support.
So very typical of any agentic AI kind of a platform. And the good thing is that this platform can seamlessly integrate with enterprise systems and, you know, delivers intelligent and context aware automation at scale that helps with accelerating client decisions, workflows and of course boosting their efficiency. So yeah, these were the things around the clients and operational highlights. Back to you, Niranjan.
Niranjan Chintam — Chairman and Whole time Director
Okay, thank you. Karanjit Palaz, can you open up for questions please?
Questions and Answers:
operator
Yes, sir. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may please press Star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Ladies and gentlemen, to ask a question, please press Star and one now. Participants who wish to ask questions may please press star and one at this time.
Participants who wish to ask questions may please press star and one at this time. The first question is from the line of Gaurav Shah from Harshad Gandhi Securities. Please go ahead.
Gaurav Shah
Thanks for the opportunity, sir. So can you provide some color on the current business environment in the US because of Trump and tariff issue and all that?
Niranjan Chintam
Sure, Gaurav, I’ll give a very high level and then ask Srinivas Patrori, who’s based out of us, to give you more color to that. So Gaurav, think you know currently, right, the tariffs that is happening is more on the, on the good side and not the services side. There is no impact directly to us. There is always going to be an indirect impact. The indirect impact is that every customer is being Careful in how they spend the dollars. But what is helping us, Gaurav, is unlike before for the digital transformation, typically the digital transformation initiatives were either done by the IT people or some, let’s say the digital officers kind of initiatives.
Whereas the AI part is now driven from the C suite. So that’s the reason why we are seeing a lot of traction where the CEOs or the CxOs are asking questions, what is our AI strategy? How can we save money in our retained customers? How can I increase my profitability? All those things that the CEOs are initiating. So we are in a good place where we are engaging directly with the C suite. So that is helping us with our revenue that we are seeing and we are hoping that this is going to continue on with that. I want to ask Srini Srivas Potluri, who is based out of us, to give you a little bit more color than what I just stated. Srini, can you take that please?
Srinivas Potluri
Yeah. Thank you. Niranjan, good morning. Good evening everyone. Like Niranjan mentioned, there is no direct impact of paraffin on the site. But due to some of the uncertainty as well as there is some amount of collateral uncertainty that has risen due to these tariff situation and companies are holding back on their spend waiting to see how this pans out. But like Niranjan said, right, it’s a two way street because of AI and because of some of the layoffs that have been happening here in the U.S. due to the uncertainty, AI has taken a forefront role in trying to understand how to build it.
So we are engaging on, on the AI side with the CPU and trying to build business on the AI, AI side of side of the enterprise and how it can be utilized for building efficiencies and growth in this uncertain environment. So that’s the key takeaway. Yes, there is a, there are pros and cons to this tariff. But I think looking at it from a, from a perspective of revenue growth in business, I think a lot of this has got to do with initiatives that are being driven on the AI.
Niranjan Chintam
Thank you, Srini.
Gaurav Shah
Okay, thanks a lot for those and all the best.
Niranjan Chintam
Thank you.
Srinivas Potluri
Thank you.
Niranjan Chintam
Thank you.
operator
Thank you, sir. The next question is from the line of Pratik Deria, an individual investor. Please go ahead.
Prateek Dedhia
Hi. Thanks for the opportunity. I’m audible, right?
Niranjan Chintam
Yes, you are.
Prateek Dedhia
Okay. Yeah. So I wanted to check how are you classifying the AI revenue in terms of the segment? So I see the revenue mix, revenue revenue segment in terms of consulting, enterprise and digital transformation. That is one and Two in terms of how are you look, how are you looking at the incremental margins with implementation of agentic AI? And based on that, if I have any follow ups, I’ll check.
Niranjan Chintam
Okay, thank you for question. Kritik Pratik at this point, right. We have not, I guess segmented out AI yet. Okay. Probably in the next quarter or so we will start looking at to reclassify our grouping and come up with an AI only kind of revenue segment. We’ll look at that and get back if there’s a realistic way of doing it. That is one coming to your margin questions. Right. Agentic AI initiatives are typically the way we are approaching is use case by use case basis. So we are solving use cases one at a time for the customers or multiple use cases in certain scenarios where they are saying okay, hey, can you completely operationalize this particular the whole multiple use case scenario and we are also engaging with the customer on that. So I cannot give you a clear cut answer to what is the margin in that particular segment, if you want to call it, because we are not tracking that at this point.
Prateek Dedhia
Okay, got it. Fair enough. But from what I understand in terms of whatever you shared in the from the investor presentation, these are more transformational in nature that you’re getting client wins in terms of implementing agentic AI. So I understand it would be difficult to put a number to it, but given the nature of the. The project that you’re doing would be helping you generate a lot more profit, is that correct?
Niranjan Chintam
So there is an increase in profitability when we, when we go with AI or AI based solutions in. Yes, there is an increase in profitability for sure. Yes.
Prateek Dedhia
Okay, got it. And how can you give some color in terms of project pipelines is there in terms of near term how things are looking and what kind of long term perspective? Probably one year, two year down the line. How do you see things?
Niranjan Chintam
See, at this point we can only talk about our order book. I just want to make sure that we clearly distinguish our order book is looking around 10 months is what the order book is looking at. So we are to be in segment wise. The question might be enough. We will continue to improve upon the segmentation just as and when we can. But our hope is that we’re going to get that going sooner than later but before the end of the financial year is something that we should be able to get that go. Okay.
operator
Thank you sir. Ladies and gentlemen, to ask a question please press star and one now. Participants who wish to ask questions may please press star and one at this time, ladies and gentlemen, to ask a question, Please press star and 1. Now. Participants who wish to ask questions may please press star and one at this time. Participants who wish to ask questions may Please press star and 1. At this time, ladies and gentlemen, to ask a question, Please press star and 1. Now.
Niranjan Chintam
Follow. If there’s nobody else, let’s just close the call.
operator
Okay, sir. As there are no further questions from the participants, I now hand the conference over to Mr. Niranjan sir for closing comments.
Niranjan Chintam
Thank you everyone for joining the call and your continued trust. One, I forgot to mention one thing. The earnings that we reported is on a 5 rupee face value and not the 1 rupee face value that is the post split one. So any numbers that we quoted is on the 5 rupees face value. Again, thank you for joining the call and appreciate you joining. Looking forward to talking to you soon, either in the next earnings call or sooner if your paths come our way. Absolutely would love to meet and talk. Thank you. And thank you, Paula.
operator
Thank you sir. On behalf of Kelton Tech Solutions limited. That concludes this conference call. Thank you for joining us and you may now disconnect your lines.