Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Ksolves India Limited (NSE: KSOLVES) Q2 2026 Earnings Call dated Jan. 20, 2026
Corporate Participants:
Ratan Srivastava — Chairman & Managing Director
Umang Soni — Chief Financial Officer
Manish Gurnani — Chief Technology Officer
Analysts:
Pratik Chuckstar — Analyst
Raghav Maheswari — Analyst
Ankur Kumar — Analyst
Kaustav Bubna — Analyst
Rakesh Jain — Analyst
Presentation:
Operator
Ladies and Gentlemen, good day and welcome to The KSolves India Limited Q3FY26 earnings conference call. As a reminder, all participant lines will remain 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 the conference call, please signal the operator by pressing Star then zero on your touchstone telephone. Please note that this conference is being recorded. I will now hand the conference over to Mr.
Pratik Chuckstar from Ernest and Young Investor Relations for opening remarks. Thank you and over to you Pratik.
Pratik Chuckstar — Analyst
Thank you Ryan. Welcome everyone and thanks for joining KSOL’s India Limited Q3 FY26 earnings call. The results have been mailed to you along with the investor presentation and it is also available@www.ksolves.com. In case anyone does not have the copy of investor presentation, please do write to us and we will be happy to share it with you. Joining us today from the management team we have Nathan Srivastava, Chairman and Managing Director, Umang Soni, Chief Financial Officer Manish Gurnani, Chief Technical Officer Darpan Audicha, Head Business Transformation and Consulting.
We will begin with Management’s remarks covering the business update and quarterly performance highlights and then move on to the Q and A session. Before we start, I would like to remind you that anything that is said on this call that reflects any outlook for the future or which can be construed as a forward looking statement must be viewed in conjunction with the risks and uncertainties that we face. These risks and uncertainties are included, but not limited to what we have mentioned in the prospectus filed with the SEBI and subsequent annual report that you can find on our website.
Having said that, I will now hand over the call to Ratan. Sir, over to you Sir.
Ratan Srivastava — Chairman & Managing Director
Thank you Pratik. Welcome and thank you everyone for joining our Q3 financial year 26 earning call. Wish you all a happy New Year as we close the third quarter of FY26. I’m happy pleased to say that we continue to build on the momentum stabilized in the first half of the year. We reported 6.6% Q on Q revenue growth and 12.2% year on year growth with EBITDA margin in line as guided at 32.4% growth. This quarter was primarily driven by stable execution across our core services portfolio, ramp up of previous large deal wins and continued traction in overseas market.
Notably, a large portion of this growth came from existing clients through wallet expansion which reflects strong client confidence and stickiness over the last few quarters we have been very clear about our priorities scalable growth, long term capability building and disciplined capital allocation. Q3 reflects the execution of that strategy. I am pleased to share that our organization has been certified as a great place to work effectively January 2026 to January 2027. This reflects the trust of our employees and the strong culture we continue to build.
We support our growth and long term. Success. From a business standpoint. Demand across our core services offering remains healthy, particularly in erp, cloud, data engineering, AI, Salesforce and enterprise transformation programs. Our pipeline remains healthy and strong demand visibility especially in the us, UAE and Australia. Our continued expansion in overseas market remains a key long term growth lever given the higher deal sizes, longer tenures and better valid expansion opportunities these markets offer.
The active pipeline give us good visibility for the next two quarters. Supported by both new deal wins and deeper engagement with existing accounts. We remain confident of achieving 20% year on year revenue growth in FY26 particularly AgentIQ, AI and Genai is increasingly becoming embedded within larger transformation mandates rather than being pursued as a standalone initiative. Our strategy is clear embed AI across erp, analytics and business workflows thereby expanding deal scope and increasing engagement depth.
Internally, we are leveraging AI for productivity gains and improved delivery efficiency while we continue to optimize its uses. We have not seen pricing pressure from clients. Instead clients are focused on improving output and accelerating erp, cloud, data engineering and transformation programs with AI rather than negotiating lower rates. While this improved efficiency may slightly impact on time and material engagements, it aligns with our strategy shift toward fixed cost are structured TNM engagements where we control resources and benefit directly from productivity gains.
As seen during the Q4FY25 transition from TNM to fixed cost project. We will continue to prioritize these models as they support pricing discipline and long term client value. For nine month FY26 we reported revenue of 119.6 crore reflecting a strong growth of 14.9% year on year. EBITDA margin however declined to 29.9% from 37.8% in nine month FY25 and PAT margin dropped to 20.6% from 27.3% in the same period. This was primarily due to our international investment in strengthening leadership depth, enhancing brand visibility and building differentiated product and platform capabilities.
As highlighted in our earlier calls, these investments were planned to strengthen the foundation for KSOL’s next phase growth. While they created temporary margin softness, they are not structural cost additions and positions us well for the medium term. We did experience margin comparison due to strategic investment in events and marketing and some of these initiatives did not yield the expected outcome. However, we do not expect similar level of spending at the same intensity going forward. As revenue skills utilization remains healthy and overseas initiatives start to contribute more meaningful, we expect margins to move back toward normalized levels.
We continue to maintain a medium term EBITDA margin outlook of around 30%. The benefit of our strategic investment, particularly in expanding our overseas presence and strengthening the capabilities of are expected to translate into improved deals flow and better revenue transition over the coming quarters and into FY27. As we move into the fourth quarter of the year, our focus remains on first deepening client relationship, second expanding wallet share, third improving execution efficiency and fourth building a strong pipeline for FY27.
There is no fundamental change in our strategy direction for the next 23 years. Our priorities remain consistent and well defined. We will continue to scale our core services business, deepen relationship with global clients and increase the share of large long tenure engagements. At the same time, we will selectively scale our product in a calibrated manner. Thank you. With this I now hand over the floor to Umang to share financial highlights.
Umang Soni — Chief Financial Officer
Okay, thank you Ratan and good evening everyone. I will briefly take you through the financial performance for the quarter ended 31st December 2025. So in Q3FY26 we reported revenue of Rupees 42.3 crore representing a growth of 6.6% QoQ and 12.2% YoY. The top line growth was driven by consistent execution across ongoing client engagement and incremental ramp up of projects during the quarter. Our EBITDA margin for the quarter stood at 32.4% expanding by 194 basis points sequentially. This improvement was driven by operating leverage from revenue growth, better execution efficiency and the benefits of investments made in earlier quarters.
Profit after tax for Q3 stood at 9.8 crores translating into flat margin of 23.2%. Earnings per share for the quarter was rupees 4.13 compared to rupees 3.5 per share in Q3FY25. Additionally, pursuant to the implementation of new labor code, gratuity expense is expected to increase. The impact is not material and will be recognized in Q4 without any changes to our EBITDA margin guidance. Cash generation remains strong and our balance sheet continues to be healthy with cash in cash equivalents of rupees 13 crores.
We still remain a net debt free company and in terms of cash utilization our priority remains unchanged. We will continue to deploy capital in A disciplined manner towards growth initiatives such as selective hiring, capability enhancement, product improvement and strengthening our overseas footprint. At the same time, we remain committed to shareholder returns. During the quarter, both declared a third interim dividend of Rupees 5 per share taking the total dividend for the financial year 2026 to Rupees 11 per share.
Further, considering the growth potential we see in Australia, the Board has approved the initiation of a wholly owned subsidiary to support growth and scalar in that region. Now from a client concentration perspective, our top 5 clients and top 10 clients contributed 40% and 54% of our revenues respectively in 9 month FY26. Approximately 78% of our revenues were derived from overseas customers underscoring the increasing contribution of global market. We continue to remain a diversified industry mix with telecom remaining our largest segment while also serving a broad range of industries including services, technology, bfsi, edutech, Retail, healthcare and manufacturing.
In terms of revenue by business, our IT services segment contributed 97.4% to our revenue in the nine month FYI 26 while our product segment contributed 2.6% to our revenue for the same period. As highlighted in our IT services continue to be the backbone of our revenue and profitability. The product segment, though currently a small contributor, remains strategically important and being scaled in a disciplined manner. As we enter into the fourth quarter of FY26, we remain cautiously optimistic.
Our focus continues to be on quality growth, margin discipline and strong cash generation. We are confident in our ability to sustain momentum while staying aligned with our long term financial and strategic goals. With this, I will now hand over the floor to the operator to open the session for questions. Thank you.
Questions and Answers:
Operator
Thank you. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press STAR and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We take the first question from the line of Raghav from Kamayakya Wealth Management. Please go ahead.
Raghav Maheswari
Hi sir. Good afternoon. Yeah, so my first question will be on the EBITDA margin like you said it was. You know, we saw approximately 496bps of you know, downtrend in the EBITDA margin. I just wanted to understand what was the driver of this particular thing.
Umang Soni
Sure. So Raghav, if you see on QQ basis the EBITA has grown by 194 basis points but year on year there is a dip and for 9 month FX the dip was because from Q1 starting we have invested lot in attending events as a speaker. We have our booths there. So and as compared to 9 month FY25 where we attended a couple of events, this time during the nine months we attended more than 10 events. So that was a major chunk and other chunk comes to ESOPs and hirings, senior hirings which we have done and digital marketing and branding presence.
So this all were the contributors for the low EBITDA margin as compared to 9 month FY25
Raghav Maheswari
Right now. So my next question is on the data flow manager. First of all, sir, I just wanted to understand going forward what will be the company’s outlook between the product and service part of the business as in for the next year, what percentage of product business are we targeting? First question and then follow up is I wanted to understand more on the DFM parts. What, what does it exactly do? What are its substitutes? What is the, you know, cam of it? What are the peers and like? Is it also compatible in, let’s say Python along with this Apache agency?
Ratan Srivastava
Okay, so first of all our focus will be again on services only, okay? Not product. Second, the technical answer, Manish, our CTO is online. Over to you Manish. Try to cover it in two, three minutes.
Manish Gurnani
Okay? Sure. Thank you. All right, so to answer that, right, see, DFM is a product which is built on top of open source Apache nifi. Right? If you talk about peers, the only peer that we have is you can say Cloudera which is, you know, a very different, very bigger company. A very different company, right? What we have brought with dfms, we have brought in capabilities which are not in Cloudera or in any other product. So that is why we are looking at DFM as a game changer for Apache Natal operations.
Okay? It works with, you know, Python, it works with Java, it can work with what you call as other technologies also. Okay, then we, we have, you know, we already have onboarded customers also onto DFM and these are like big players. Some of them are telecom, some of them are into retail and they have been using DFM for quite a good amount of time. And that feedback is also coming to us which is going into product and making it even better. Okay, does that answer your question?
Raghav Maheswari
Yes, I have some follow ups. I’ll join back in the queue.
Operator
Thank you. We take the next question from the line of Apoorva who is an individual investor. Please go ahead.
Raghav Maheswari
Hi sir, thanks for the opportunity. I have couple of questions I will go one by one. So my first question is on the. There are few examples which are put on the presentation such as motor car manufacturing, we have done some automation similarly for pump manufacturing company and telecom operator. So my question is on the payment side like do we get payment from these sort of automations or the work we have done, it’s for one time or the. We get the recurring revenue. Also if it. If it is the recurring revenue then then that revenue is based on the transaction based on its fixed amount of payment is received every year.
Ratan Srivastava
So. Okay, so first of all it is a one time payment and it is a fixed cost project based on the amount of the work we quote and then we charge them.
Raghav Maheswari
Got it? Got it. And sir, if I’m not wrong, like. Like our 85% of revenue is recurring, right?
Operator
Yes.
Raghav Maheswari
Okay. Okay. Then my second question is on the DSM side. Like I remember that we got the. We got our first DSM customer I think Q4 last year. Just want to know that how many clients do we have currently for dfm?
Ratan Srivastava
We have two customer onboarded, third is taking the trial. Okay. And three customers are in process to sign the NDA. All these customers are multi million or billion company.
Raghav Maheswari
Got it sir. Got it. Sir, I just want to know how big can this DSM can go. Like in terms of our revenue contribution maybe a couple of years later down the line.
Ratan Srivastava
If we will be successful. However I was not. I was planning that I will avoid this answer. But if we will be successful, if our luck will be with us, it will be big.
Raghav Maheswari
Okay, still like us like mention some numbers maybe like in terms of percentage like of our revenue. Like maybe 5, 10% of revenue would be coming from DFM.
Ratan Srivastava
More, more than that. But everything depend on the luck. Product side product is something that many people develop product and many times good product. Excellent idea. Okay, but building a product is 10%. 90% is your luck and sales. Okay, so if things will work then it will be big. If it will not. That’s why I did not mention anything about DFM in the ppt. Because we are not. We are still talking to the customers and customer cycle is very long conversal cycle. Because they are the decision makers of multi billion or multi million company.
Okay. Anyway,
Raghav Maheswari
Sure. Sir, if you can mention the DFM revenue contribution in this quarter in Q3.
Ratan Srivastava
This quarter is very small. That’s why I’m saying you said that what is your plan for next few years. So that’s why I answered. Otherwise if you will ask what is the Current state of current number or the next quarter number then definitely I would like to avoid this question. Next few years it will be good if our luck will be with us.
Operator
Thank you. We take the next question from the line of Ankur Kumar from Alpha Capital. Please go ahead.
Ankur Kumar
Hello sir. Thank you for taking my question. And comrades, for a good set of numbers in terms of recovery QAQ. So given you are saying 20% growth for this FY26 that would mean another similar QQ growth in Q4. Are we bullish on that? And can you as in based on demand side. Can you talk about something on FY27 side? Can we expect similar to or similar or better growth in terms of 25. To 30% growth in FY27, sir.
Ratan Srivastava
Okay. So for next quarter we have pipeline and if anything will not happen with the world. Okay. We will hit the target 20% right. And for the next year among you can answer this.
Umang Soni
Sure. For next year we’ll provide the the guidance later on. But we are still having a good five and good visibility for next couple of quarters. But yeah, definitely the we are having a good growth.
Ankur Kumar
Okay. Okay. Sure sir. And sir, on margin side can you talk as in in PPD we return 25 to 30%. But you talked about 30% coming in. And since there are no more event plans so can you event
Ratan Srivastava
That 25%. Right? Last time I said that 25% and I did 32 plus. Right. So same thing will happen. I would like to be conservative but I don’t want to give anything which may be risky. Okay. So 25 to 30% is key. We have given the guideline. We would like to do better than this. But yes, between 25 to 30 we are confident.
Ankur Kumar
But there is no big any planned event coming which will restrict us, right?
Ratan Srivastava
No no plan event, nothing. This is very small. Now even in future you will not see for next 2, 3 years you will not see those kind of events which we have attended in last two three quarters. Okay. And which has impacted on ebitda. Okay. So we will attend the events but very selected events. And we will go with the small booth and all. Okay. Not we will. We will not spend huge money for the events.
Ankur Kumar
Got it. So that’s nice. We
Ratan Srivastava
Should go event. We will go event. But as a visitor or as is attendees. Okay. We will spend very small amount of the money for the events. Actually it was a learning. Okay.
Ankur Kumar
Sure sir. And next question would be a couple of IT companies and even banking companies have taken this labor law impact in in their in their quarter this time we haven’t taken any impact. So any anything that that doesn’t impact us on labor line pick.
Umang Soni
Yeah. So as I stated, the impact is not material and we are working on restructuring. So will it will not impact our EBITDA margin guidance for FY26.
Ankur Kumar
Got it. Nice to know that. And last question and then I’ll fall back in the queue. I wanted to ask on any dividend policies again this quarter we have declared a nice dividend. Our dividend payout is also quite good compared to net profit. So do we expect those similar trends to continue? How should we think about on those terms?
Umang Soni
Yeah, see we have, we have a strong cash position and we have a good profitability. Okay. So we can reward the shareholders and at the same time we are also investing in leadership, hiring, global expansion and branding initiatives. So we are, you can say we are maintaining a balance between both growth and shareholder returns here.
Ankur Kumar
Got it. So actually last question. Given our stock price has fallen quite bit from the top, so any plans to consider buyback or even a promoter buying that will insist some confidence in the market?
Ratan Srivastava
No plan. I think we have given good numbers for the confidence. If it is not giving the confidence, then what I can do.
Ankur Kumar
Got it. So thank you and all the rest.
Operator
Thank you ladies and gentlemen. If you wish to ask a question, please press star and one, we take the next question from the line of Kostav Bhavna from BMSPL Capital. Please go ahead.
Kaustav Bubna
Yeah, hi. Thanks for taking my question again. It’s more on the product side of the business. I understand you’ve got a lot of questions on this, but he wanted to understand, you know, when it comes to building a solution on top of an open source platform, like a partial IFI for the dataflow product that we are building on top of Apache nifi, I mean what are the threats that could come up, risks that could come up in the way in terms of competition that could derail this growth opportunity for us?
That’s the first question. And the second question is what really is the aim of the company in terms of growing this product business? I mean is it only going to be a product business which is basically solutions on top of open source platforms? And if that’s the, if that’s the case, then why. So why is the company, what opportunity is the company seeing to build on top of open source platforms? What other open source platforms are there? I mean can you sort of give us some sort of like a five year roadmap in terms of what this division can really build up into.
Thanks.
Ratan Srivastava
Okay, so let me answer first question. Okay. There was one threat only which I was feeling that AI, Agentic AI, okay. It was missing in our project. We have done a very good job in our product. But I was thinking that if anyone will come up with the Agent Ki solution for this problem, then it can be a problem. But today we have launched the Agentic AI solution for DFM 2.0. Okay? If you will go on our website kiso.com you will see there’s a banner and which is inviting everyone for a webinar which we are going to organize on the 2nd of Feb.
Manish will speak there. Okay? And Manish will give the demo of PFF 2.0 updated with Agent API. First ever means first ever. No one has this solution with Agentic AI. Okay? And then I hope that if you will be amazed, so request you that join that webinar then you will get the idea that what we have developed and what is the future you would be able to get it on your own. Can you repeat your second question again?
Kaustav Bubna
I wanted to kind of understand a five year roadmap on how this product business of yours which is adding solutions on top of open source platforms will look like. So what other open source platforms are you targeting? What other solutions are you targeting on the Apache and IFI platform? And then also. And then also like. Yeah, so basically that first.
Ratan Srivastava
Okay, so Apache LIFI is a product of Apache foundation, okay? Apache foundation has multiple product. Apache Nifi, Apache Spark, Apache Kafka, Apache Cassandra. Okay, so what? All these things are the open source technology, okay? And if you want to use for your business to use these technologies as a open source, you will have to do multiple things on your own. You will have to hire a big or large DevOps team, okay? Very expensive. So I will start from the Cassandra. Cassandra is a NoSQL database, okay?
And there’s a company Data Stacks. They have created a rapper, you can created a product on the top of Cassandra and they have solved all the problems majorly. All the problems, okay? And many business has started using services by data estates who were using open source Cassandra because everything was customized based on their requirement. Same happened with the Kafka Confluent company came into the picture. They customized the solution, they customized the Kafka open source and they have provided.
They have developed an enterprise solution, okay? And then businesses started using enterprise solution provided by Confluent rather than open source Kafka,
Kaustav Bubna
Okay?
Ratan Srivastava
So same thing happened with the Apache 9, 5, okay? We have developed a solution which has solved so many problems of NIFI solutions. And we have told to our leads or customers that it will decrease your cost up to 70%. 60%, 80%. Okay? In another word you can say increase the efficiency. Okay? We have given approximately 20 to 30, 30 demos. Everyone has appreciated. Okay? But problem is that most of the time we are not approach. We are not able to approach a decision makers, okay? Many times we engineers are coming.
Our people who. People who are not decision makers. Sometimes the engineers are also decision makers. But most of the time decision makers are not. We are not able to approach them. So that’s why I’m very conservative about dsm. It will take time. Word of mouth will work. Okay? Product is amazing, okay? And once people will start knowing about this product, okay? Definitely people will. The right people, the decision makers will approach us or we would be able to find them. But it will take time, okay?
Another thing is that do we have any threat? There is always threat if someone can build a solution better than this or something like this. But the most important thing is that building a solution is not a big thing. When people use it, when test it. That is the actual testing that is in software industry, we call it a beta testing, okay? And we have done it for two customers and it took more than six months. We have. When we started beta testing, we found multiple issues. Then this product got stable.
Okay? So building product is only 10%. As I said, marketing, sales and testing is very important. And the last and most important thing is your luck means our luck. If luck will not be with us, we will not be successful. Okay? So I cannot give any number. We are working hard. We worked hard and we are very optimistic. But our major focus is at this moment because services are. Is our bread button. So services is a major focus. Major focus. Okay.
Kaustav Bubna
Thank you so much for that detail answer. Just one last clarification on your reply. Is this agentic AI solution you’ve come up with? Have you outsourced the agentic AI or have you developed it in house?
Ratan Srivastava
We have developed in house, but detailed answer. Mahesh, you can give me. You can give them, right? Maurice, over to you.
Manish Gurnani
Okay, thanks. So yes, short answer is it is all in house developed. But we like Rafael said, right? This arctic AI, as you know, the it needs experience on the product itself. So you need to know about NIFI before you can actually build some AI or any agent decay on top of that, right? So we have that knowledge. That is why we were able to build it. Sometimes it can be Just copied and someone else can build it easily. You get my point, right? Because we have been working with nifi and open source technologies for long.
We have that knowledge. We are the only company in India of our size to contribute the source code of watching if I. Nobody else does that. We have that level of capability. That is why we have been able to build the solution also. That’s why we are doing good also.
Kaustav Bubna
So it’s not been this AI, you’ve not outsourced, in a sense, this agent AI from these global companies like Google or Microsoft etc. You haven’t,
Manish Gurnani
You have it. You haven’t outsourced
Kaustav Bubna
It from them. Right? It’s all in house.
Manish Gurnani
Two parts of this. The LLM is always coming out from one of these giants only. Sorry, could you repeat that? Could
Kaustav Bubna
You repeat that?
Manish Gurnani
Am I audible?
Kaustav Bubna
Yeah,
Manish Gurnani
Am I audible?
Kaustav Bubna
Yes.
Manish Gurnani
That is coming from one of these giants only. We see, we cannot build our own LLMs. That is out of fiction. But using that LLM, the agent that runs, which you know, which understands the commands and then sends those commands and execute those commands, that is the agent part. That part has been done by us.
Kaustav Bubna
Okay.
Manish Gurnani
So we will still use, let’s say gemini or know OpenAI. But the agent that has been trained, that is developed by us.
Kaustav Bubna
Understood? That’s what, that’s exactly what I wanted to understand. Okay, great.
Ratan Srivastava
Solutions. All the solutions. All the solutions. Whoever is developing, whoever is developing top MNCs, they are using LLMs provided by this top giants. Okay? They don’t. No one has their own LLM. Okay. Yeah,
Kaustav Bubna
Yeah, yeah, fair enough.
Ratan Srivastava
Exactly
Kaustav Bubna
What I thought. Exactly what I thought. So I just wanted to clarify that. Great, great. Thank you so much for the detailed responses and look forward to talking to you again. Best of luck.
Operator
Thank you. We take the next question from the line of Rajesh Jain from RK Capital. Please go ahead.
Rakesh Jain
Hi sir, good afternoon. Thanks for the opportunity. I started tracking a company recently and I have a few questions on your business model and especially on your Odoo practice. So how much of the revenue from Odoo comes from India? And what is the profile of your customers in Odoo? Like what kind of turnover and all they are having and what do you feel the long term prospects of Odoo in India and globally and, and if you can share, you know, the recurring revenue potential from Odoo for the AMC part.
Ratan Srivastava
Okay, so first part of this question you answered in this type of COVID. How much percentage,
Umang Soni
More than 80% of our revenue is coming from global clients in Odoo and overall it’s 78%. But more than 80%. 85% is from the Odoo division that comes from overseas markets.
Rakesh Jain
Sorry, more than 85% of overall revenue or the Odoo revenue comes from overseas market. Okay. No, no, I was asking that how much of the Odoo is coming from India?
Raghav Maheswari
Can you tell me the answer?
Umang Soni
Okay, so let me again clarify it. Out of the total Odoo revenue, 80, 85% comes from out of India. Remaining 10, 15% comes from India for Odoo.
Rakesh Jain
Okay. Okay. And
Umang Soni
We are not taking it technology wise. If you ask that how much revenue we have done in Odoo. So it’s more than 20% of our total revenue. But our services are mixed with more other technologies as well. So we are not tracking individually technology wise revenues. But yeah, Odoo is something which is more than 20 per million.
Rakesh Jain
And what kind of customer profile in India are opting for Odoo?
Ratan Srivastava
Most of the time these are the small companies. But the good thing is that this is most of the time referring. Okay.
Rakesh Jain
Sorry sir, it was not clear. Can you repeat one?
Ratan Srivastava
Okay, so answer is that most of the time these are the small companies from the India. But good part is that they are the small. But revenue is many times recurring.
Rakesh Jain
Okay. So their turnover will be typically like 50cr, 100cr or in what range of turnover those customers will be there?
Ratan Srivastava
There are many, many customers. Most of the customers are above 50cr. I will not say that less than 50, but 50 and most many of them are even good brands. Also. 5000Cr company. Also they’re using.
Rakesh Jain
Okay, and. And what percentage of revenue can be recurring from Odoo? Like so I. So I believe the customers will be highly sticky. Right? So if you earn 100 rupees in the first year, like can you expect to earn 15, 20 every year? Like what kind of recurrence can we. Expect
Ratan Srivastava
10 to 15% approximately. Many times what with the licenses or next module implementation or support or whatever. 10 to 15%.
Rakesh Jain
Okay. Okay. And so apart from Udo and overall in your business. So how are the business inquiries on the ground? And. And how many of the inquiries are moving to third stage, fourth stage and fifth stage? Like how are they advancing.
Ratan Srivastava
Exact data? I do not have. But for Odoo we are getting lots of inquiries. Okay. Many times we leave the opportunity because of the budget issue. Because sometimes they are very small, so we leave them. Okay, but right percentage I do not have that I can find out. And if you will drop the Email. I will. I will send it to you.
Rakesh Jain
Okay. So apart from Odoo, how are the other inquiries for your other services and products on the ground? And. And so many of those enquiries like.
Ratan Srivastava
Out of 10, six to seven we. We convert. Okay. For Salesforce the same ratio. For AI, the same ratio. The ratio is less for Udo because many times very small customer comes in and they don’t have right and of us budget so we need them.
Rakesh Jain
Okay sir, understood. And so talking about your product which you were very bullish on the the one of its kind product that you mentioned. So what will be the revenue model from the product? Will it be SaaS based or it will be one time license or it will be like pay per use. So. And will it have a compulsory maintenance fee every year? So. So how are you planning the revenue model? And will there be customization opportunities in the product?
Ratan Srivastava
Okay, so first of all I’m not bullish for next quarter next year. Please do not get confused. It is a long term product. Two years, three years. My vision is with that product. Okay. First thing second thing is that the revenue model is recurring. For first customer we have charged $50,000 and that is the recurring. For second customers we have charged approximately 10 to 20. Okay. Between I do not remember the exact number. It will be recurring. Right now we are in early stage so we are not charging anything for customization.
But after getting enough number of customers definitely we will charge for the customization also. And that is our plan.
Operator
Thank you.
Ratan Srivastava
We will generate revenue by selling the product. And at the same time we will charge them for customization to increase the revenue or services.
Operator
Thank you. We take the next question from the line of Raghav from Kamayaka Wealth Management. Please go ahead.
Raghav Maheswari
Hi sir. Thanks for the opportunity. Again this is a follow up question. Sir, I just wanted to understand. You pretty much answered it. But just wanted to confirm what is the average ticket size like our average bill value for this DSN like you said 50,000. Is it average on an average?
Ratan Srivastava
As I said that at this moment it is very means we are in an early state. We are giving a huge discount to customers. So that we can onboard as many as customers. Okay. Because there will be word of mouth only and only when customers will start using. Okay. So we have as I said that’s 50,000 then 16 or 18,000 maybe next 6,000 or maybe 60,000. So we don’t know because all type of customers are coming small to medium to large. Okay. Problem is that conversion cycle and this product is Something that which can affect their business largely if it will not work as per their expectation.
So they are very cautious about taking decision. Okay. So that’s why I’m telling again and again that everything will depend on love. Sorry, most of the things will depend on luck. Okay.
Raghav Maheswari
Right. Fair enough, sir. So my next question would be around the margins. So I’m assuming we will have better margins in product as compared to the service. Is it a fair assumption?
Ratan Srivastava
Yeah. I would request you that for product we can discuss next after two, three quarters. Okay. Then I would be able to talk more about the revenue from the product side. Okay. I am very confident at this moment only about the services.
Raghav Maheswari
Right, Right. And so just one last thing. Just wanted to understand the cost difference like you said. I know it’s a bit too early to, you know, give it a standard pricing like 50,000, 12,000, 16,000. You’re giving discounts because you know you are in the early stage. That’s completely understandable. Just wanted to understand the pricing difference that you have among your peer who is offering the same service to the clients. Is it at par, Is it bit at a cheaper cost or is it, you know, much at a premium side?
Manish Gurnani
If I say seven to eight times, they are costly and they have very less feature as compared to us. So is this the current statement? You know, easily seven
Raghav Maheswari
To eight times they are costly. They have
Manish Gurnani
A very less feature. Very less feature.
Raghav Maheswari
Right. There was some unclarity, sir. Seven to eight times our peers are more costly. Right.
Manish Gurnani
More. They are more expensive than us.
Raghav Maheswari
Okay.
Ratan Srivastava
No one has this solution. If anyone has this solution, just 10 to 15% solution. And second thing, that no one has agent AI.
Raghav Maheswari
Right. Okay, sir. Lastly, when I asked,
Ratan Srivastava
Give me one second because I talk too much about this product. I don’t want to create any confusion for product revenue. I do not have any idea for next few quarters. Okay. I would be able to speak more about the revenue and future of this DFM after two, three quarters.
Raghav Maheswari
Understood, sir. All right, sir. That’s all from my side. All the best, sir.
Ratan Srivastava
Thank you.
Operator
Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and 1. We take the next question from the line of Uncle Kumar from Alpha Capital. Please go ahead.
Ankur Kumar
Thank you for the follow up. Sir, on the product side you said you don’t want to talk about revenue framework. So can we talk about how much cost are we incurring on it right now? And on basis of quarterly run rate or yearly run rate, how much do. We expect cost to come in
Manish Gurnani
The product development.
Ankur Kumar
Yep. Product development as well as marketing.
Manish Gurnani
Very less as compared to ourselves. It is very less. Very less. It is not going to affect CB10.
Ankur Kumar
So basically this expense or losses. Currently losses will. Will not impact the software side of the business, right?
Kaustav Bubna
Yes.
Ankur Kumar
Got it. And maybe last question would be on the service side. You can. Can you talk about demand environment. Given there are some geographically things are bit volatile in terms of U.S. Tariff and oil demand side issues. Can you talk about that please?
Ratan Srivastava
See I am listening to this question. I think over the last seven to eight quarters. Okay. And again I will repeat. We are working on the niche technology. Okay. So demand is not problem for us. Problem is supply. Okay. Good resources. Finding a good resources. But again that problem we can solve in next few quarters by using AI. We are using AI. Okay. Internally also. So it is helping us to increasing efficiency by not having too much resources. I hope that I have given the answer US problem or whatever.
Okay. This is not affecting the business.
Ankur Kumar
Sure sir. That’s it. From my side. Thank you. And all the way
Ratan Srivastava
Have if we would have been in US Okay. Our engineers suppose if we could have been engineers in the U.S. Okay. Definitely. But not sure. Fortunately or unfortunately we are. We have offshore business only.
Ankur Kumar
Sure sir. Thank you. And all the best.
Operator
Thank you. We take the next question from the line of Rajesh Jain from RK Capital. Please go ahead.
Rakesh Jain
Yeah. Thanks for the follow up. So I just wanted to understand. So to what percentage of our customers are we able to cross sell our services and products? Like. Like selling Salesforce solution to an Odoo customer or. Or vice versa or any other service. Like are we mining our customers for cross selling and how successful we are at it.
Ratan Srivastava
Okay, first attend. Exactly. Maybe Monk can tell you. But it is. It is huge. Okay. Many times customer came for Udo. They have given us opportunity for AI. Many times customer came for Salesforce and they have given us opportunity for big. So cross sell and upsell is very huge. Okay. But exact number of month if you haven’t then you can give. Otherwise can answer later on.
Umang Soni
No. As I told that earlier in my earlier answer that it’s a blend of services most customers are taking. Suppose if someone is coming for product then they are exploring services in services. They are coming for Salesforce then they are merging sometimes big data Odo or maybe other technologies as well open source. So it’s a blend of
Ratan Srivastava
Many times customers start from the small. I still remember one customer who is in our top five right now. That customer started from three years before with three four resources, right? Or maybe five resources. Right. Now the annual number is approximately between 25 to 28cr with that customer. This is one example. So a company like us, they start from the small amount of the work with a good customer. Okay. And then when they see that this. This answer I have given multiple times. In every corner, they.
When they see that we are able to deliver this, they increase the work. They increase the work. Okay, so
Rakesh Jain
Okay, that’s the last question. Like total, what is your client base? Like how many customers you are serving? From the smallest to the largest. What would be the number of clients India and versus combined
Umang Soni
On services side? Our clients would be around more than 200.
Rakesh Jain
Okay,
Ratan Srivastava
Answer. I could not understand what is the answer?
Umang Soni
More than 200 active clients on services size.
Ratan Srivastava
No, I think he has used large and small. Total. Okay,
Umang Soni
Total. Yes, total.
Rakesh Jain
Yeah. I’m asking total including very small customers. Yeah.
Ratan Srivastava
Okay.
Rakesh Jain
Yeah. 200 is the total number, right? Or you, you are cross checking plus.
Umang Soni
200 plus
Ratan Srivastava
200 is the number. But if you, if, if I refine your question then answers should be. Question should be that 60% revenue is contributing by how many customers? Okay, then can you answer on this? 60%, 70% or 50%
Umang Soni
Revenue. This mostly, mostly are 10 to. I would say 15, 20 customers which contribute around over 60% of our revenue. And these customers are mostly large enterprise clients only.
Operator
Okay, thank you. Thank you ladies and gentlemen. As there are no further questions from the participants, I now hand the conference over to the management for their closing comments.
Ratan Srivastava
So thank you everyone for joining the call and thank you Pratik and ran for organizing this first call. Okay. This was my first experience but it went well. I was nervous because before that, before this I have always given a video call. Okay. So anyway, thank you. And today have we have received a best place to work award also which I have already covered in the my statement speech. Okay. And this is something which, which shows that we are not generating only the revenue also we have a good working environment.
We have a happy employees also. So today I’m very happy. It is something that. Which is rewarding me that I’m doing good for my employees and in my operations. Thank you. And thank you to everyone for believing on us. And. I hope that we will do better than. Better than this time. In future we will try our best. Okay, thank you everyone. Thank you.
Operator
Thank you on behalf of KSolves India Limited that concludes this conference call. Thank you for joining us. And you may now disconnect your lines.