Orient Technologies Ltd (NSE: ORIENTTECH) Q3 2026 Earnings Call dated Feb. 19, 2026
Corporate Participants:
Ajay Baliram Sawant — Chairman & Managing Director
Analysts:
Unidentified Participant
Mahesh Kumar — Analyst
Shashi Kant — Analyst
Akash Agarwal — Analyst
Presentation:
operator
Good afternoon ladies and gentlemen. I am Dhavin, Moderator for this conference. Welcome to the conference call of Orient Technologies Limited arranged by Concept Investor Relations to discuss its Q3 and 9 month FY26 results. We have with us today Mr. Ajay Sawant, Chairman and Managing Director. Mr. Srihari Bhatti, Chief Executive Officer and Mr. Gaurav Modi, Chief Financial Officer. At this moment all participants are in listen only mode. Later we will conduct a question and answer session. At that time. If you have a question please press star and one on your telephone keypad. Please note this conference is being recorded.
I would now like to hand over the floor to Mr. Ajay Sawant. Thank you. And over to you sir.
Ajay Baliram Sawant — Chairman & Managing Director
Thank you. Domin. Good evening ladies and gentlemen. Thank you for joining orient Technologies Limited’s Q3 and 9 month FY26 earning call. We truly appreciate your time and continued interest in our company. Firstly, I would like to give you some background about the company. Then move on to the highlight of the financial and operational aspect of Q3 and 9 months of FY26. Post which we shall proceed to the question and answer session wherein my colleagues shall do our best to answer your queries. Q3 was a challenging quarter due to global semiconductor shortages and supply chain disruptions which impacted hardware availability and led to pricing pressures.
Despite these headwinds, we executed committed orders to maintain strong customer relationships. Though this resulted in temporary margin pressure on the services side, the loss of a large telecom client impacted revenue and margins during the quarter. Looking ahead, while supply side challenges may continue in the year term our focus remains on managed Services, das, Cybersecurity and Unified Infrastructure management. We are confident this strategy will support recovery and long term sustainable growth. Now coming to the financials on a standalone basis. In Q3FY26, revenue from operations stood at Rs.210 crores compared to rupees 206.85 crore of Q3 2020.
With respect to Q3 of FY25 reflecting a 4.17% year on year decline. EBITDA for the quarter was rupees 3.02 crores. The company reported a loss before exceptional items and tax of rupees 1.41 crores and a net loss of 14.9.6crores during the quarter. For the nine months ended FY26 revenue grew by 18.10% year on year to Rs. 683.60 crores compared to 578.85 crores in nine months. FY25 EBITDA stood at rupees 42.31 crore with profit before exceptional items and tax of rupees 31.90 crores and profit after tax of rupees 9.24 crore translating to an EPS of rupees 2.02.
In terms of Q3 FY26 segment mix, telecommunication contributed 2.47%, BFSI 27.39% government and PSU 19.19% its 19.17% and mid market and others contributed to 31.78% which includes sectors such as healthcare, manufacturing, infrastructure, real estate, logistics and education. During the quarter Orient Technologies secured multiple new contracts across government, pharma, utilities and digital commerce, strengthening its services led growth. A key win was a three year managed services contract from Digital India Corporation worth around rupees 15 crores to manage platforms such as Umang and Digilocker, reinforcing its presence in mission critical government projects. The company also secured a rupees 2.65 crore order from a leading pharma client for data center storage and infrastructure upgrade and a similar size contract from a power utility for data center expansion and disaster recovery implementation in the quick commerce orient 1 rupees 2.8 crore rupees of a SD WAN contract along with an additional rupees 6 crore order for full network deployment including firewall and wi fi solution.
Additionally, the company inaugurated a new service delivery center in Navi Mumbai turbet to enhance 24×7 monitoring, cybersecurity, cloud and managed services capabilities. With this I come to the conclusion of my opening remarks and open the floor for question and answer session.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touch tone telephone. If you wish to remove yourself from the question queue you may press star and 2. Participants are requested to please use handsets while asking a question. Ladies and gentlemen, we will now wait for a moment while the question queue assembles. Our first question comes from the line of Mahesh Kumar from Mum Invest limited. Please go ahead.
Mahesh Kumar
Hello sir. Thank you for the opportunity given to me to ask the question. Am I audible properly?
Ajay Baliram Sawant
Yeah Maish, go ahead. I can hear you.
Mahesh Kumar
Yeah so just wanted to ask like Q3 saw a very sharp decline of EBITDA to 3.95 crores and you know, PBT turning negative. So could you help us understand like how much of this margin pressure was purely supply chain driven versus the impact of hyperscale client loss. And importantly when should we you know expect this margin to normalize?
Ajay Baliram Sawant
Okay. So Mahesh, there are two components to this. One of the component which is because of the supply chain, the rate contract which we have signed with the customers has the, you know we have to execute those contracts at the same price. Keeping in mind that our long term association with the customers, you know, though the OEM has increased the prices, we have to execute the contracts at the same price which we have signed up earlier. And this is there till 31st of March means even Q4 we have that obligation and we’ll be executing certain deals which are of that size.
Of course loss of a hyperscale customer which is there, which is from a telecom segment, we have, you know, loss but that’s a momentarily one time loss which we have incurred in Q3.
Mahesh Kumar
Okay. Okay. And so the Digital India corporation contract with 15 crores, you know 15 crores average quarterly billing appears meaningful. Could you elaborate on the margin profile of this engagement and whether this trends in the annuity and recurring revenue mix going forward?
Ajay Baliram Sawant
Fantastic. So Mahesh, of course it’s a annuity based contract. 15 crore repeated every quarter. This is happening so yearly this may contribute US or 60 crore rupees of revenue. This is ARR. And this contract is there for minimum three years extended further. So these are annuity base number one. And the margin currently is fairly good. And you know it’s basically on the hyperscaler. So there is no component dependency on this. Okay. So we’ll continue to get margins on this from our hyperscaler vendor.
Mahesh Kumar
Okay. Okay. Okay. And lastly sir, given the continued supply side headwinds in to Q4, how should we think about revenue growth and ebitda trajectory for FY27 and are we positioning this for recovery and margin expansion next year?
Ajay Baliram Sawant
Yeah, so I’m very hopeful about know this pressure of margin will not be there in the coming year. The reason being by that time most of the customer will start accepting the new prices and will get used to it. And my firm contract which I have signed which is till the year end will get over as well.
Mahesh Kumar
Okay, okay. Okay. Okay. Thank, that’s it for myself. Thank you so much for answering my question. Thank you.
operator
Thank you ladies and gentlemen. You are requested to please restrict yourselves to two questions only. You may rejoin the queue if you have follow up questions. Our next question comes from the line of Shashi Kant from BrighterMind Equity Advisor Private Limited. Please go ahead.
Shashi Kant
Hi sir. Good afternoon. Thank you for giving me the opportunity. My question is about this pipeline that we are having in terms of order book for the next year, FY27.
Ajay Baliram Sawant
Okay. So Shashikanth, thanks for asking this. The current order book for Q4 is of around 200 crore rupees which includes our infrastructure deployment projects as well as cloud and managed services contracts. While project revenue remains significant currently we expect annuity style managed services share to increase going forward as KNOCK and soc, you know revenue will scale.
Shashi Kant
Okay so I mean are we trying to, you know bid more of government projects in coming years or looking more on the private side?
Ajay Baliram Sawant
So we are not only dependent only on the government and PSUs but we are also working well with the enterprise and the mid market segment. Our actual sweet spot if you see in our segment mix is in the mid market segment which is contributing to more than 31.78% as I mentioned in my opening remarks.
Shashi Kant
Okay so currently how you are saying that there are lots of hyperscaler coming to India. So you know what is, you know our outlook on capturing new logos from these players
Ajay Baliram Sawant
From a GTM perspective we are working on the various front new hyperscalers or the people who are trying to build hyperscalers in India is one of the focus along with gcc. You know GIB cities, people coming into the gift cities and the GCC are the next focus for us to increase our, you know, business.
Shashi Kant
Okay so on hardware front, so what is the. I mean current status of the semiconductor sorted? Currently
Ajay Baliram Sawant
the semiconductor challenge will be throughout 2027.
Shashi Kant
Okay.
Ajay Baliram Sawant
Means the entire FY27 is there will be a challenge.
Shashi Kant
Okay. Okay. Okay. Thank you sir. That’s also my time.
operator
Thank you. Our next question comes from the line of Vikas Jain, an individual investor. Please go ahead.
Unidentified Participant
Hi sir, this is Vikas. So sir, my question is regarding the 14.96 crore loss which you mentioned. So in future are we expecting some recovery from this particular client?
Ajay Baliram Sawant
From the same customer probably will not able to recover anything because he has moved lock stock barrel from us to directly on the hyperscaler vendor. So very honestly let me tell you this loss, I’m not able to recover it from this customer. But we are trying to recover this loss from the hyperscaler itself. But today I will not able to promise you anything until Unless I have something in return from the hyperscaler vendor. And once we get it we can able to house for it.
Unidentified Participant
So the second question is regarding lasting last quarter call. You mentioned that you are working in the foreign bank and so could you please put some light on that foreign. Foreign bank.
Ajay Baliram Sawant
Yeah. So there is a. Already the work is in progress there. We already got certain orders from that bank. Okay. We are preparing lot of reporting for them in terms of digital transformation. So good amount of business we have started doing with this bank.
Unidentified Participant
Okay sir, thank you so much sir. Thank you.
operator
Thank you. The next question comes from the line of Prem an individual investor. Please go ahead.
Unidentified Participant
Hello. Am I audible?
Ajay Baliram Sawant
Yeah, yeah.
Unidentified Participant
Thank you for the opportunity. So my first question is what is the current net debt position and that you get to be ratio as of Q3FY26.
Ajay Baliram Sawant
Can you just repeat your question?
Unidentified Participant
Yeah. What is the current net debt position and debt to equity ratio as of this quarter?
Ajay Baliram Sawant
Bad debt position.
Unidentified Participant
Yeah.
Ajay Baliram Sawant
Okay.
Unidentified Participant
Yes.
Ajay Baliram Sawant
So currently our Debt is at 52.50 cr.
Unidentified Participant
Okay.
Ajay Baliram Sawant
Okay. What else you are. Yeah.
Unidentified Participant
And okay. And what is your debt to equity ratio?
Ajay Baliram Sawant
Hello.
Unidentified Participant
Yes. Yes.
Ajay Baliram Sawant
Yeah. You. You want debt to equity ratio, right?
Unidentified Participant
Yes. Yes.
Ajay Baliram Sawant
Yeah. So if you calculate my Debt is around 52.5 and if you calculate my equity currently you know is around 340cr.
Unidentified Participant
Okay. And and my second question is sir, how competitive is the mid market IT infrastructure space currently and are you witnessing any pricing pressure?
Ajay Baliram Sawant
So yes, so the pricing has gone up definitely for all the components and that’s why all the OEMs has increased the prices. So that’s very common in our industry as far as our margins are concerned just to keep a relationship with the customer. Somehow we are trying to get there budgets, you know in accordance with the new price structure which nobody has probably thought in while budgeting the year. The pressure is definitely there. Margin pressures are definitely there.
Unidentified Participant
And sir one last question. What is the current revenue share from cloud data center and managed services business?
Ajay Baliram Sawant
So you can take cloud is around 250 plus crores.
Unidentified Participant
Okay.
Ajay Baliram Sawant
Managed services including infrastructure. Managed services is around 100 plus.
Unidentified Participant
Okay. Okay. That’s it from my side. Thank you.
operator
Thank you. Our next question comes from the line of Akash Agarwal from PNB bank. Please go ahead.
Akash Agarwal
Hello.
Ajay Baliram Sawant
Hi Akash.
Akash Agarwal
Yeah, hi. Am I audible, sir?
Ajay Baliram Sawant
Yeah.
Akash Agarwal
Good. Yeah. I just wanted to ask that in the market currently there’s AI disruption going on. So how is the company will cope up with this AI disruption and will it affect the company in future?
Ajay Baliram Sawant
I Would prefer this is boon for all of us. I will not call it as a disruption as such. This is actually good for us. Well, that’s where the business opportunities will be there. You know, in terms of infrastructure, in terms of managed services, in terms of opportunities, in terms of cyber security. I see this as a big, big opportunity. And that is why we are all getting our skill skilled. For this is where we are trying to take this opportunity with both hands and grab this and take the organization to the next level. Because such disruptions actually helped Orient to grow for last three decades.
Just to tell you, when we started this organization way back in 1997, the first disruption we saw was a Y2K. Everybody, you know, was worried about Y2K, what will happen to all their applications. And you know, IT industry grew because of the Y2K. Then comes the doctor okay, disaster recovery. So, you know, all those buzzwords. Today I feel AI is another buzzword and that creates an opportunity for IT companies like Orient and we capitalize on in terms of, you know, infrastructure sale or a managed services sale, cyber security sale. And we are all prepared for it.
Akash Agarwal
Okay, so thank you, thank you,
operator
thank you. Our next question comes from the line of Chinmay Shah, an individual investor. Please go ahead.
Unidentified Participant
Thanks for the opportunity. Am I audible?
Ajay Baliram Sawant
Yeah, Kinmay, go ahead.
Unidentified Participant
Yeah. Can you give some color on what is your current SOC and NOx enter status? I mean in terms of revenue and what margin we are expecting.
Ajay Baliram Sawant
Okay, so let me share the good news today that our KNOCK and SOC operations at Turbay is working fully in operational. So in the last quarter we started our business from the soc. But from a revenue quantum of revenue perspective we expect utilization and ramp up over next 24 to 36 months as enterprise contracts and the managed services migrations complete and the new SOC deals come on board. The ramp up profiles aligns with our typical managed service contract cycle. So I, I expect that 100 utilization of that knock and sock should happen in next couple of years.
Unidentified Participant
Okay. Okay, answer. Can you just, you know, currently the government in recent budget have declared good amount for data center. Right. So what’s your view on that? How it is, you know, applicable or you know, in revenue generation or finding a good customer in that sense.
Ajay Baliram Sawant
Yeah. So government is actually, you know, doing lot of investment or allowing people to invest to build their data centers in India because India is considered to be IT hub. But that’s mainly because of the application development and a serviceman services perspective. We do not, we are not a manufacturing hub as such. So that is where India is going to invest in the data center business. And that’s where big guys are building a data center. And organization like us will be managing those data centers in terms of managed services, cybersecurity, NOC and soc.
Unidentified Participant
Okay, sir, one last question is somewhere around. Can we consider Dynaco System as our closest competitor?
Ajay Baliram Sawant
They are good friend of us. Naturally. I. I don’t consider them as a competitor as such. Okay. They are doing their business. Their business profile is slightly different than our business profile. Okay? So I will not like to say that they are a competitor to us.
Unidentified Participant
Okay, thanks. I will join that again.
operator
Thank you. Ladies and gentlemen, to ask a question, you may press star and 1. Our next question comes from the line of Kupa Kamdar for an individual investor. Please go ahead.
Unidentified Participant
Hello. Am I audible?
Ajay Baliram Sawant
Yes, ma’. Am.
Unidentified Participant
Good evening and thanks for the opportunity. So basically I just wanted to understand, you know, in terms of the semiconductor shortages. So. So I mean, do we expect this supply chain challenge to continue?
Ajay Baliram Sawant
Ma’, am, with a heavy heart, I’m saying this. This will continue throughout the year.
Unidentified Participant
All right? So I mean, can you please explain the impact it would have, you know, going forward in our operations?
Ajay Baliram Sawant
Okay, so I’ll tell you the real scenario. What has happened is there’s a big boom coming on and around AI. Everybody wants to do something in AI. Okay? Whether it’s a generative AR or whether it’s an agent AI, they want to do something in AI. Now, AI will be operated only on the GPUs. And that’s where the Nvidia plays a very important role. There’s so much of, you know, infrastructure pull on and around this Nvidia has happened. And those guys are taking lots of Rams, disk and other components where the semiconductor industry is facing the challenge.
If they consume so much as, you know, AI requires a huge infrastructure. And that’s where the shortage has come. And that has increased the prices. And this, you know, semiconductor industry, you can’t start, you know, overnight. You need to have a minimum 8 to 10 months of time to build your own manufacturing setup of this Rams or disk or anything. So if they have to ramp up their production, they need to give at least eight to ten months of window.
Unidentified Participant
All right? So basically it will at least take one year for things to normalize in terms of supply issues, right?
Ajay Baliram Sawant
Yeah.
Unidentified Participant
Okay, sir. So apart from that, also just wanted to understand, you know, our roadmap regarding the geographic expansion. So I mean, as of now, we are majorly focused on domestic market. So any plans on Expanding, you know, in US market as well.
Ajay Baliram Sawant
Absolutely no at present. Because from an infrastructure space, this is not the right time to go anywhere outside India. There’s a huge, huge opportunity in India. Okay. And first we need to capitalize here, then go to the developed countries.
Unidentified Participant
Okay. All right. That’s it. From my side. Sir, thank you so much.
Ajay Baliram Sawant
Thank you.
operator
Thank you. Our next question is a follow up from Chinmay Shah, an individual investor. Please go ahead.
Unidentified Participant
Thanks again for the opportunity. Sir, just one query regarding your client loss. Generally we don’t have any advances on something like that with our customer or it can happen again. Also
Ajay Baliram Sawant
Chinmay, this is a hyperscaler customer as you say, you know, so they are all paper use.
Unidentified Participant
Okay. Okay.
Ajay Baliram Sawant
So you can’t take advance on that.
Unidentified Participant
Oh, okay. Got it. So got it. Thanks. Yeah. Yeah. Okay. Got it. So as I see our last seven, eight quarters, we are maintaining operating margin of around between 8 to you know, 10. So should we consider from next photo onwards it would be the same.
Ajay Baliram Sawant
So we don’t predict any margin in the for a future business. So very honestly I’m not able to comment on that.
Unidentified Participant
All right, sir, but you know, this time only we have, you know, kept only operating margin of 1% due to that loss. And I think maybe 4 crore is due to labor laws. Right. But in future
Ajay Baliram Sawant
one of the factor was labor law. That was because of this customer.
Unidentified Participant
Okay, thanks.
Ajay Baliram Sawant
But that’s all exceptional.
operator
Thank you. As there are no further questions from participants I now hand the conference over to Mr. Ajay Sawant for closing comments. Over to you, sir.
Ajay Baliram Sawant
So thank you ladies and gentlemen for attending this Q3 and nine months of FY. And thank you for taking time from your busy schedule. We assure you of the company’s robust financial performance and fundamentals. Have a good day. Over to you, Darwin.
operator
Thank you on behalf of Orient Technologies Ltd. That concludes this conference. Thank you all for joining us. You may now disconnect your lines.