Orient Technologies Ltd (NSE: ORIENTTECH) Q1 2026 Earnings Call dated Aug. 14, 2025
Corporate Participants:
Unidentified Speaker
Ajay Baliram Sawant — Chairman & Managing Director
Shrihari Bhat — Chief Executive Officer
Gourav Modi — Chief Finance Officer
Analysts:
Unidentified Participant
Darshil Jhaveri — Analyst
Keshav Sureka — Analyst
Presentation:
operator
Ladies and gentlemen, you are connected to Orient Technologies Limited Q1 FY26 earnings conference call. Please stay connected. The call will begin shortly. I repeat, ladies and gentlemen, you are connected to Orion Technologies Limited Q1FY26 earnings conference call. Please stay connected. The call will begin shortly. Thank you ladies and gentlemen. Good day and welcome to The Orient Technologies Limited Q1FY26 earnings conference call hosted by Concept Investor Relations. We have with us today Mr. Ajay Sawan, Chairman and Managing Director. Mr. Sri Hari Bhatt, Chief Executive Officer and Mr. V. Gaurav Modi, Chief Financial Officer. 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 the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference has been recorded. I now hand the conference over to Mr. Ajay Sawant. Thank you. And over to you sir.
Ajay Baliram Sawant — Chairman & Managing Director
Good evening everyone. I hope I am audible. First of all wishing you a happy Independence Day in advance. Thank you for joining Orient Technologies Limited Q1 FY26 earning call. We sincerely appreciate your time and interest in our company. I’m happy to announce that your company has completed one year of getting listed on the BoCES. Last year August we took a big leap and achieved a milestone in our company’s journey by getting listed on both the stock exchanges. I assure you that the management strives very hard every day to enhance shareholder value. It is our constant endeavor to become operationally and financially efficient.
Now I shall give some background of the company followed by financial and operational highlights of Q1 FY26 and the move ahead to question and answer session. Orient Technologies Limited is an IT asset lifecycle management partner since 1997. We help our customers in digital transformation by reducing upfront investments. Optimize cost and scale rapidly to meet evolving business needs. By offering our services on a subscription model, we offer tailored solutions that boost scalability, operational efficiency and digital readiness. We have Pan India presence with more than 1500 plus employees. From this year onwards, we are going to segment our business in two line of businesses.
Number one IT Infrastructure solutions and number two Application and IT infrastructure services including Cloud Digital transformation and infrastructure managed services. Moving to financial performance summary for Q1FY26 visa vis with Q1 of FY25, our total income stood at rupees 214.48 crore in Q1FY26 up from rupees 149.31 crore in Q1FY25. In turn it shows a growth of 43.65% year on year. Revenue from operations rose to around 212.56 crore, registering a massive growth of 42.81 over the last year. EBITDA reached 17.33 crore up by 26.91% year on year fueled by strong project delivery and operational efficiency. Profit before tax grew to rupees 14.28 crore, an increase of 14.39% from Q1 of FY25.
Profit after tax climbed to rupees 10.03 crore reflecting an 8% rise over last year’s Q1. Earning per share for Q1 FY26 came in at rupees 2.41 reinforcing the company’s sustained profitability and growth trajectory. The segmental revenue contribution stands as below. Telecommission segment contributes to around 17.59%. Government and PSU contributes to around 15.88%. BFSI stands at around 11.08% and its stands at around 10.45%. Balance 45% contributes by mid Market and others When I say Mid market and others which includes revenue from sectors such as healthcare, manufacturing, infrastructure, real estate, logistics, education, E commerce, conglomerate, energy and service industries etc.
Now coming to the operational highlights for Q1FY26. Your company has secured multiple contracts across diverse sectors with a total order value of approximately 104.66 crore. Marqueans include a 16 crore order in the Device as a Service segment. Rupees 28.66 crore contract to deliver cloud based email and office collaboration solutions for the public sector. Another 18 crore order for implementing a VAT automation system for government departments. Rupees 34.5 crore engagement to provide AI based server infrastructure and 3415 enterprise endpoints for a leading technology firm. Rupees 3.5 crore contract for networking and security solution for a global enterprise and rupees four crore order for network security and endpoint protection solution for the healthcare sector.
These wins further strengthen the company’s position across government, enterprise technology and healthcare markets. This brings the total order book to an amount of Rupees 414 executed over FY26. Let’s open for more question and answer over to Gaurav Girzar.
Questions and Answers:
operator
Thank you sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star n1 on their touchtone telephone. If you wish to remove yourself from the question queue you may press. Participants are requested to use 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 Hiren, an individual investor. Please proceed.
Unidentified Speaker
Hello.
Ajay Baliram Sawant
Yeah, go ahead.
Unidentified Speaker
Hello. Hello. Yeah, yeah, yeah, yeah. So yeah, now, now. Yeah so just so just wanted to know more about device as a service and what part of you know your how. How are you classifying it in industry wise or does it form a part of your mid market and others and what do you see the scope for device as a service? So can you just dwell more on that part? And since you won a 16 crore order, what do you see the scope going forward?
Ajay Baliram Sawant
Hiren, thank you for asking this question. Device as a service is our focus. Innovative service which we want to provide in the market. And this model has been provided solely by Orient to start with and now many more people will be coming out with this. This is more not only the financial re engineering but it is more to attach bundled services on top of it and that’s where customers rather than spending money in capex moves onto the opex and they use it as a pay per use model. So the way the cloud business is, you know we are trying to do the end user computing or a server computing or network computing all as a pay per use model and in a services format.
So this is cut across all the verticals. We can sell it in bfsi, we can sell it in healthcare, we can sell it in the mid market so we can sell it anywhere. Okay. Only thing is it will be considered as more of a managed services piece. So it is more from a infrastructure managed services perspective. I hope I answered your question.
Unidentified Speaker
Yeah, and you know what is the, I mean is there any number you can put on the you know growth or it’s just you know because it is the beginning. I mean then you, as time goes by you will have more clarity on that.
Ajay Baliram Sawant
So generally we do not provide any forward looking guidance. Okay. But there is a huge focus that we have it on this particular business line since we have got listed and if you would have read our drhp, the maximum money that we want we are going to take it from our IPO proceed will be utilized in the device as a service and this will be in complete rotation. So we will be completely utilizing that fund which we have assigned for device as a service and that’s how it’s going to keep on rolling it and hopefully this will be more and more business which you will see quarter on quarter.
Unidentified Speaker
Thank you sir. Thank you for your.
operator
Thank you. We take the next question from the line of SHA from SBI securities. Please proceed.
Unidentified Speaker
Thank you for the opportunity. The Device and services secured 15cr contact in this quarter. What is the pipeline and good target for the rest of FY26? And I have a few questions. The BHSI and the telecom sector are together contributing around 29% of the revenue. So what are the plans to diversify further into high growth verticals? And the last question is how do you see the competitive landscape in evolving in the DAS and remote infrastructure management space over the next two to three years?
Ajay Baliram Sawant
Thanks Shatap for asking this question. First of all, let me first answer the DAs part of it and then I move to your telecommunication piece. DAS business is very innovative and very new in the market segment. We feel huge business coming because the funnel size is huge. But as I said that we do not provide any forward looking numbers as per the guidance from the sevy. So there is a huge funnel which is there in the line pipeline. And I see quarter on quarter bigger numbers than what you heard in Q1. So my first and foremost, my idea here is to use the complete ipo.
Proceed. And you know that’s our first target that we have kept for ourselves and we would like to utilize the entire money before Q3. So that’s my first target and then it will keep on revolving. So I see a huge pipeline and that gives us a good confidence to utilize the entire sum in Q3. Your next question was on the telecommission front. We have said that our Telecommunication percentage is 17% and I don’t think that’s a huge challenge because I don’t think we need to diversify much. Right. Because 17% in telecommunication across the telecommunication sector, where the telecommunication is growing really well.
Next in the line is government and PSU which is 15.88 and then comes the BFSI which is 11%. So I don’t see that we need to be so much worried that 17% coming from telecommunication. But Shweta will definitely keep it in mind that not a single segment will get more than 20% share from our revenue. So that’s our goal and that will keep it in mind. I hope that answers your question.
Unidentified Speaker
Yes sir. Thank you so much.
operator
Thank you. The next question is from the land of Nmesh Gupta from njc. Please proceed.
Unidentified Participant
Hello.
Ajay Baliram Sawant
Hello. Yes.
Unidentified Speaker
Am I audible, sir?
Ajay Baliram Sawant
Yeah, you are.
Unidentified Speaker
Okay. So my caution is like from last three quarters we are seeing a compression in Margins. So in the earlier con calls you like have like guided that these margins, I mean some kind of investment I think in employees you are making due to this, these margins are getting affected and these will again restore from quarter three on on purse. So I just want in detail like what kind of these investments we are making which is directly affecting our P and L account and not the balance sheet. So if you can just throw some, I mean more guidance on this.
Ajay Baliram Sawant
First of all let me say that thank you for tracking all our communication. Okay. You rightly mentioned that in our last con call also we said that till Q2 will be very much under pressure in terms of increasing our EBITDA margin or that margin. Primarily because our investment which is happening in terms of security operating center as you all know from our DRHP that we are building a huge global standard integrated knock and SOC which is network operating center and security operating center. Now that’s a huge property which we have taken and we are investing a lot of skills.
And that’s where the employee cost if we observed in our P and L is growing. And that’s where we are hitting our balance sheet. Profitability rather and not our balance sheet. And if you see the other piece of it that the moment we start getting operational which we are hoping to do it in 30 to 45 days which is end of the quarter two and from Q3 onwards the business will start flowing whereby I feel the investment, whatever we have done in Q1 and Q2 it will start giving us the returns in Q3 onwards. And that’s where I said in the last couple of time that yes till Q2 we will be under pressure, margins will be under pressure.
But the Q3 onwards you will see the improvement in the margin. So thank you for tracking it. And yes we are still saying same thing. We are not changing even a word. I’m still confident that till Q2 will be having a pressure on margins. But Q3 onwards you will see the margins will keep on improving. Cybersecurity is a big play. Okay. And every customer needs security. And that’s where we want to play our next game. Along with the Das Cloud digital transformation. These are all other buzzwords which are already there. And we are already there established ourselves.
The cyber security is the other thing that we want to work with. So that is where the investment is happening and that’s where the slightly margins are under pressure.
Unidentified Speaker
Okay sir, I mean. You are building. I hope sir you are comfortable in Hindi also.
Ajay Baliram Sawant
Marathi, Hindi, English.
Unidentified Speaker
Okay. Network security center, established career. So I mean can you give us some some ideas like Kitra, like total operating expense, like employee cost. Kitna with a total investor. Could you be revenue generate when I start new
Ajay Baliram Sawant
sock is not operational yet. Okay. We got position now we are building the sock. Okay. And now by Q2 end it will become operational. Means by 30th September it should be completely operation. Okay. But we need to deploy people, we need to train them, we need to do lot of activity there. And that’s where the cost is building. Okay. And these are all different skill sets. So please understand every skill set cost a bomb. And once we build this and start getting operational in Q3, I’m sure we’ll start getting good results.
And it’s a huge bottom line because it’s all service. It’s a security, cyber based security which is managed through our SOC center. Okay. Running out of Mahapin Navi Mumbai. And that will fetch us a better margin.
Unidentified Speaker
Amount.
Ajay Baliram Sawant
Because the cost stock center, that property itself is costing more than 10 crore. Okay.
Unidentified Speaker
Okay.
Ajay Baliram Sawant
Plus the setting up a sock, the infrastructure for the socks to the tune of around 6 to 7 crores. And then comes the operational cost which is a skill cost. Okay. So that constitutes to around another couple of crores. Okay. So you can calculate over this thing. I’m not able to tell you how many people, how each person will be costing and all those things. But this is a muta, muta cost.
Unidentified Speaker
They are like 10 crore or 7 crore.
Ajay Baliram Sawant
All the operational cost, the skill cost, the employee salary 14. Around 2 cr plus.
Unidentified Speaker
Around 2 crore plus. Okay sir. Okay fine sir. Fine. I’m fine with it. Thank you sir. Thank you.
Ajay Baliram Sawant
Okay. Okay. Thanks for tracking. But keep on tracking because that’s you know what whatever we say, we want to deliver it. And I want people like you who should keep on reminding us. This is what you said in the last meeting.
Unidentified Speaker
Thank you sir. Thank you. And keep on investing also.
Unidentified Speaker
Thank you.
operator
Thank you. We take the next question from the line of Darshul Javeri from Crown Capital. Please proceed.
Darshil Jhaveri
Good evening. So hopefully I’m audible.
Ajay Baliram Sawant
Yeah.
Darshil Jhaveri
Yes sir. So like regarding the previous participants question also my questions are on the same line. So now are saying Q3 one was these centers will start, you know, giving us revenue. So any idea like what kind of revenue are we expecting in the first year? Like because you already investing a couple of crores in terms of employee salary. Right sir. So how do we look at it sir?
Ajay Baliram Sawant
Okay, so as I said earlier, forward looking numbers. I’m not supposed to talk but I can Promise you one thing, this center will be profitable within 18 to 20 months time. Okay. We will be generating revenue from Q3 onwards. But independent unit of the cyber security. Okay. Will take some time to be exact profitable. Whatever investment we are doing is for a long term. Okay.
Darshil Jhaveri
Okay. So that in terms of profitable you made like overall the business like the 17 crores you had acquired like the land and building and plus overall basis.
Ajay Baliram Sawant
Right? Yeah. I’m saying okay. From an overall view perspective Cyber security as a BU perspective.
Darshil Jhaveri
Okay. Okay. Okay. Yeah.
Ajay Baliram Sawant
It will take some time to recover that cost whatever we have invested.
Darshil Jhaveri
Okay. Okay. Okay. Okay. Sir, in general like what are the margins then we can expect in this business? So like, and also like in going forward, I understand we can’t get forward looking but in terms of our two segments that we’re talking about in infrastructure solutions and services. So on those what is the split that you know we want to you know operate on? And like how are the margins in each segment? Sir. So just wanted to know, okay. How will our margin trajectory flow going forward? Sir.
Ajay Baliram Sawant
Okay, so what we have done that now. From April onwards the entire business is divided into two line of business. First is infrastructure solutions which consists of end user computing as a BU and a data center solution as a BU. Second line of business is application and IT infrastructure services. This lov consists of cloud digital transformation IMS I.e. infrastructure managed services which has further divided into managed services plus security services. The cyber security comes under IMF which is part of a application and IT infrastructure services lov. I’m saying as a separate view it will take time but it will start generating huge margin.
Being a services it should give us more than 20% margin. Infrastructure products and solutions gives us around 8 to 10% margin. Second lob gives us around 15 to 20 margin. Okay.
Darshil Jhaveri
Okay, fair enough sir. And sir, what is the split between the two? Like we are we want 50, 50 split or how do we want the split going forward Sir.
Ajay Baliram Sawant
So Currently it is 65% into the infrastructure and solutions perspective. That is the LOB number one and 35 is application and IT infrastructure services perspective over a period of time we want both to come 50 50.
Darshil Jhaveri
Okay, okay, okay, fair enough sir. And with regards to like our orders like I think we mentioned in the PPT around like you know 414 crores orders we have for 20, 26 sir. Any other orders that you know we are seeing what is our pipeline? If you know you could you know help that sir. Okay, how is the pipeline looking for us? Any big contract that we are bidding for or you know we are expecting to win sir, so there are a.
Ajay Baliram Sawant
Number of big contracts that we are bidding for and you know as we don’t disclose any forward looking transactions or numbers in such calls. But as and when we click we get the po, we announce it either with the permission of the customer or we just mention a segment. But we keep on announcing to our investors and public that yes, these are the orders we have won and there are many more you will see in your time.
Darshil Jhaveri
Okay, fair enough. Sir just like last question for buy elsewhere like as a company like what is our three year vision original goal? Like what do we want to you know be as a company where you envisage that this company will be.
Ajay Baliram Sawant
Sir, so very honestly we are you know it lifecycle management partner and we will be the focus partner and trying to become in you know, SI space as in top five system integrator partner in India within three years time. Hopefully we’ll be not only serving India but even nearby APAC countries or Middle east is our next target. But within three years we’ll be definitely there.
Darshil Jhaveri
Okay. Okay, fair enough sir, thank you so much. That’s it for my side. So all the best.
Ajay Baliram Sawant
Thank you.
operator
Thank you. We take the next question from the line of Nikhil Thakur, an individual investor. Please proceed.
Unidentified Participant
Hello. So I hope I am audible. Yes Nikhil, go ahead. So my first question is our revenue from first quarter grew approximately 43% and could you break down the key drivers of this growth? And my second question would be as profit as revenue has grown around 43% but why is our pad profit after tax is growing at 8%. What factors are impacting the net profitability? Can you please help me with this?
Ajay Baliram Sawant
Okay, so coming back to your first question Nikhil, our key drivers for this 43% growth is primarily cloud. There’s a huge cloud infrastructure that’s happening. Okay. And more and more customers are adopting cloud infrastructure. Second is of course digital transformation. Okay. Which is happening at various customer place right from government and PSU in the healthcare and there are a lot of mid market segment. Third driver is of course our device as a service. So DAS has taken place now. So people are more and more asking us for more DAS solutions. So that’s something which is coming up.
We must be hearing lot of things on the agentic AI gen AI and all those things but actually that is not materializing in terms of revenue perspective. People are definitely trying talking, asking for a demo, a lot of things they are asking but it’s not able to materialize in terms of a revenue perspective. But yes, we are preparing on that. But cloud is definitely there and there is a huge growth I see in many more quarters. Digital transformation is again there. That will keep on growing. And now from Q3 onwards I see even cybersecurity. So these are the areas where I see the key drivers for us to grow.
And of course our team is expanding. We are doing lot of investment in the team. Of course that has increased our expenses which has taken the pat down okay a bit and of course DAS will definitely come under ebitda. So Dash will give us a better EBITDA and slightly lower pat. But that’s a call that we have taken. We want to get into this ARR driven revenue which is annual recurring revenue we say which gives us stability, consistency and predictability in the business and that’s what we are focusing on currently. And that’s where we get more and more predictable growth.
So if you see last financial we grew by 39% even after growing 39% in last financial year. Q1 the growth is you know, 43% which is a stellar growth and it’s a great beginning for the year. Yes, now you may say 43%, you know, top line growth but bottom line it’s not grown that way. So somewhere we need to be happy with. Okay, somewhere we need to have some investment. We are doing it in a long term. People have to understand the business that if you are trying to do something in the new arenas, an investment first and the returns will be followed very soon.
And that’s where the pat is slightly going down. But I think it has improved. If you see the, you know, PAT over last year and this quarter, our this quarter pat is around 8% and it will keep on increasing after Q3 I hope. Nikhil, I am answering your question. Yes sir. Thank you for the opportunity. Thanks.
operator
Thank you.
Ajay Baliram Sawant
Any last question Anishka?
operator
Yes, the next question is from the line of Keshav from Nivasche. Please proceed.
Keshav Sureka
Yeah, thanks. Thank you so much for the opportunity. So sir, as we provide solutions in the cloud space, so may I know like which software service do you provide? Like is it Red Hat or any other player? And also if you are any, if you’re developing any platform from India, like sovereign platform that that are being offered by these Indian players so it could give some color on this area.
Ajay Baliram Sawant
So very honestly we do lot of services on cloud so of course aws, Azure are our primary infrastructure perspective players. But besides that Red Hat, OpenShift, Nutanix, Kubernetes platforms are the one which we use to serve our customers who are into the development piece and we give lot of Orient hosted managed services on cloud. So what we provide is more of a SecOps synops kind of a solutions along with the DevOps. So whenever the customer needs a security on cloud we are there whenever customer wants to optimize their cloud because you know cloud is no more cheap.
Please understand people go on cloud because it’s agile, the agility perspective and flexibility perspective. But the moment you go on cloud your billing starts increasing exponentially. Exponentially your billing increases and then you need of somebody to come and consult you. How do I optimize my billing? That is where our phenops operations come into play. Same thing about security and that’s where we provide on the cloud.
Keshav Sureka
Got it sir. So sir, do you see these Indian sovereign platforms are being adopted by the customers of yours.
Ajay Baliram Sawant
Still I don’t see so much of adoption happening. Still there is a time.
Keshav Sureka
So do you see that the growth can come in this area? Like what? What’s your view on this.
Ajay Baliram Sawant
Cloud growth? Which area it will come is a unpredictable thing.
Keshav Sureka
No, no, I’m talking about the sovereign platforms that have been offered by Tata and other players.
Ajay Baliram Sawant
I don’t see, you know they will be able to give the entire value which probably AWS or Azure is able to give you.
Keshav Sureka
Thank you so much sir.
operator
Thank you ladies and gentlemen. We take that as the last question and would now like to hand the conference over to Mr. Ajay Sawant for the closing comments. Over to you sir.
Ajay Baliram Sawant
So thank you everybody. Special thanks to Gaurav Girdhar from Concept IR for organizing this call. We truly appreciate all the participants for taking the time to join us today. If you have any further queries, please feel free to reach out to us. We’ll be happy to address them all. Thank you once again for your continued support and interest in our company. And once again wishing everyone happy Independence Day tomorrow. Thank you.
operator
Thank you on behalf of Orient Technologies limited and Concept Investor Relations. That concludes this conference. Thank you for joining us and you may now disconnect your lines.