Orient Technologies Ltd (NSE: ORIENTTECH) Q4 2025 Earnings Call dated May. 19, 2025
Corporate Participants:
Unidentified Speaker
Ajay Baliram Sawant — Chairman & Managing Director
Analysts:
Unidentified Participant
Presentation:
operator
Good afternoon ladies and gentlemen. I am Manav Makhija, Moderator for this conference. Welcome to the conference call of Orient Technologies Limited arranged by Concept Investor Relations to discuss its Q4 and FY25 results. We have with us today Mr. Ajay Sawad, Chairman and Managing Director. Mr. Sri Hari Bhatt, Chief Executive Officer and Mr. Gaurav Modi, Chief Financial Officer. At this moment all participant lines are in listen only mode. Later we will conduct the 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 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, Manav. Good evening ladies and gentlemen. Thank you for joining Orient Technology Limited’s Q4 and FY25 earning call. We sincerely appreciate your time and interest in our company. Firstly I would like to give you some background about our company Then move on to highlight how we have fared since our listing back in August 2024. These are our first full fiscal year results which we have reported post next season. Firstly, a brief background of our company. We are an IT Asset Lifecycle Management partner since 1997. We help our customers in Digital transformation. We have Pan India presence with 1500 plus employees.
From this year onwards we are going to segment our business in two line of businesses. Number one is IT Infrastructure Solutions and number two is Application and IT Infrastructure services including Cloud Digital Transformation and Infrastructure Managed Services. So these are the two lobs that we are going to go ahead with rather than three as of last year. Now we are moving towards the financial performance summary. Let’s look at the entire year FY25 highlights. The company’s total income grew by 39.45% year on year. And now it’s totaling to 846.29 cross. Revenue from operations has rose by whopping 39.25% to Rs.
839.53 crore. EBITDA stood at 74.35 crore reflecting a 22.71% increase with an EBITDA margin of 8.79%. Profit before tax has increased to Rs. 58.01 crore translating to PVT margin of 8.10% Profit after tax increased by 21.69% to Rs. 50.44 crore with a packed margin of 6.33%. Earning per share for the year rose to Rs. 12.85 up from rupees 11.80 in FY24. As far as Q4 of 25, highlights are In Q4 25 total income rose to 25.33%. Quarter on quarter jumped to rupees 262.47 crore. Revenue from operation increased by 26.02% to rupees 260.68 crore and this is the highest revenue in any of the quarters so far in the history of Orient.
EBITDA for the quarter stood at rupees 19.81 crore with an improved EBITDA margin of 9.86%. Profit before tax grew by 11.28% quarter on quarter to rupees 19.02 crore with a PVT margin of 7.25%. Profit after tax is at rupees 13.44 crore making a 6.17% sequential growth and a packed margin of 5.12%. EPS for the quarter stood at rupees 3.42. Coming back to the operational highlights of FY25 we have collaborated with AWS India to offer advanced GPU and AI services by leveraging AWS cutting edge GPU chips, AI services and expansive ecosystem. In line with our commitment to accelerate AI development and enabling India to create world class technology, we have also been awarded two contract for Managed Service Provider for AWS workload by Digital India Corporation, a Section 8 company under the Ministry of Electronics and Information Technology which is MITI Government of India.
Under this agreement we shall manage, optimize and secure critical AWS cloud workload supporting key national digital initiatives. This is where our digital transformation helps the Entire Nation. For FY25 our revenue distribution reflected a strong and balanced industry presence. The Mid market and other segments remain the largest contributor accounting to 48.41% of our total revenue driven by demand across sectors such as healthcare, manufacturing, logistics, infrastructure, real estate and education. The BFSI vertical delivered a solid performance with a 21.63% supported by increased digitization and cloud adoption. The government and PhD segment contributed to 11.21% benefiting from key IT infrastructure and digital public sector projects.
Communication represented 10.25% of the revenue while the ITS vertical contributed to 8.50% highlighting stable growth in managed services and outsourcing engagements our partnerships we have tied up with Tableau as Tableau is a leading data visualization software company. To enhance our capabilities in creating interactive dashboards and visualization, we also partnered with TechRed, which is a cybersecurity firm specializing in threat intelligence and detection. This collaboration will provide our clients with comprehensive solutions for threat intelligence, vulnerability assessments and incident response, enhancing their protection against cyber threats. We have won various orders Few of the orders that we have won are two major projects in the BFHI and public sector segments.
The first project involves a comprehensive data center reference for a large financial institution focusing on modernizing both primary and disaster recovery data filters. Secondly, VDI deployment for a public sector organization. This initiative will streamline end user computing through a virtualized desktop environment, offering a centralized management, heightened security and increased flexibility for users. With this, I come to the conclusion of my opening remarks and open the floor for question and answers. Thank you.
Questions and Answers:
operator
Thank you very much sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touch tone telephone. If you wish to withdraw yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. A reminder to all participants. If you wish to ask a question, you may press star and 1. We have a first question from the line of Kunal Sharma from SP Capital.
Please go ahead.
Unidentified Participant
Hi sir. Good evening. Hi sir. So my question on the during the quarter our top lines have grown very well but that hasn’t reflected into our bottom line. So if you could throw some more light on it in detail.
Ajay Baliram Sawant
Okay. So Kunal, you must have seen that the top line has really grown to somewhat near 40% in this quarter. We have strategically chosen to reinvest in talent service delivery and OEM alignment to build a future ready business. These are all short term margin trade offs with a long term value creation mindset. As our annuity contracts mature and deliver and delivery stabilizes, we expect improved operational leverages in next 2, 3 quarters. So yes, we accept that our EBITDA hasn’t grown to the in the tune of total revenue. But these are short term trade offs that we have taken.
Unidentified Participant
Okay. Okay. Notice. So these are like we can see some good picture in the coming years.
Ajay Baliram Sawant
Yeah. So from third quarter onwards you will see a definitely a good picture.
Unidentified Participant
Okay. So my second question on the stock purchase that actually has gone up sharply, I mean rightly said that we might have some talent acquisition that we did during the quarter. But as a result the margin have also been corrected sharply during the quarter as well as well as full year. So you highlighted earlier that that is. Because of the billable employee leads to. These leads to the team, if I’m not wrong. Right. So I believe that with going forward that will remain the same. So how will we, you know able to achieve a double digit margin going forward that you have guided a couple of quarters back.
Ajay Baliram Sawant
Okay.
Unidentified Participant
And that we have a longer term horizon for sure.
Ajay Baliram Sawant
If you see, you know drsp we mentioned about, you know the deployment of the money from the IPO will be for the SOCK as well as DASH business. Now our sock premises unfortunately slightly getting delayed till July 2025 and the you know, our SOC will be ready by September 2025 and the business will start flowing from October onwards. And that’s where we see that you know, the good amount of margins will get generated because these are all services revenue. Okay. That’s number one. Number two, the majority of DAS deployment is now happening in the Q1, Q2 time, time frame.
And you will see the revenue coming from our dash also from Q3 onwards. And that’s why we are very sure that our EBITDA margin percentage will be far better in Q3 onwards.
Unidentified Participant
Okay. Okay. And if you could throw some light on the dash as a whole as a category that how it has grown so far. And.
Ajay Baliram Sawant
So we have taken a shareholders poll by March 31st because when we put it into the DRHP that is for a particular model, okay. That we can able to do that. But as you know that the technology keep on evolving, those models has become outdated model and we have to utilize people’s money for the right cause. And that’s why we have taken a shareholders approval and we got the approval now with that business to do for any kind of a customer and any kind of a models now. So that’s a change. With that change now the marketing team has started going out in the market and now we are getting a good response from the customers for the new set of models.
Okay. In the market and we’ll be start deploying it, you know right now currently we are doing it mainly SD WAN as a service. We are doing notebook as a service, you know. So all this dash is happening on various devices where and that is where the IT infrastructure business, this is a capex driven business. We are trying to move towards the office business. As a dash.
Unidentified Participant
Noted, okay. In the IPO fund that I think 83 crore is yet to be utilized. So and any comment on that so.
Ajay Baliram Sawant
We couldn’t able to utilize this primarily for two reasons. The property which was. We have taken it. One, unfortunately not ready. And it will be ready by July. Where the OC will come in July and the entire infrastructure for SoC. Okay. Will start deploying it after July onwards. So hopefully by September the SOC will be ready. And that’s where the majority of the application of the money will happen from Q1 and Q2 perspective. Other is from the dash perspective. Then now we got the shareholders approval. So now that money will start getting deployed in the buying of those equipments and deploying it at the customer.
Unidentified Participant
And eventually we get the result during quarter three. FY26.
Ajay Baliram Sawant
Absolutely.
Unidentified Participant
Okay. Okay. And one more question on sir, that during the FY25 we have grown tremendously. Well 40% FY25 also. So are we, are we proposing the same growth rate for FY26 and in terms of margin too?
Ajay Baliram Sawant
So Kunal. Okay. So ideally, ideally yes. But very honestly I’ll not be able to predict or commit any numbers. But yes, I think the India growth path is there. India is growing and. And so are we.
Unidentified Participant
And on a conservative side, if you could throw some line. It’s not possible.
Ajay Baliram Sawant
I’m not supposed to.
Unidentified Participant
Okay, no worries. And last if I may. So lastly on the product mix, we intend to take up our enabled and cloud business to 55%. Right. But this actually came down to 45%. So I’m assuming that that is because of the billing that we recognized during the quarter four. Is that correct?
Ajay Baliram Sawant
That’s right. So what happens is, you know, these are all recurring revenue, Kunal. So you know, the order size or the order book is mainly consist of IT infrastructure, services, perspective. Okay. But that’s a large book size that we have, you know, which is booked for a year or so.
Unidentified Participant
Okay. Okay. So we will be like.
Ajay Baliram Sawant
But I think in the interest of time I think we should also ask questions.
Unidentified Participant
Sure, I’ll join in.
Ajay Baliram Sawant
We answered a lot of questions from you.
operator
Thank you. We have our next question from the line of we need Mishra from SBI securities. Please go ahead.
Unidentified Participant
Yeah, thank you. And congrats on great sets of numbers. So I have one question. Has the cloud and data management business witnessing some margin accretion post the improvement in scale and how you are guiding in the future. And the second question is what’s the demand outlook given the tough environment? So those are my two questions. Thank you.
Ajay Baliram Sawant
Okay. So thank you for your good wishes and asking this question. So cloud and data management is always a bottom Line driven business for all of us. And yes, our margin has grown from 22% to 29% this Q4. Okay. So we are focusing more on cloud and data management because of the margin that we earn in this. Okay, replying to your second question on the how the business looks like. Yes, we are very positive and gungo about this cloud business. We feel that we have just scratched the surface and there are many more things that we can do along with AWS and Tableau and other cloud and data management OEMs and we can build lot many services on top of it. So we’ll continue to do that and we are very positive about this even in the coming quarters.
Unidentified Participant
Okay, got it sir. Thank you. And all the best for the future.
Ajay Baliram Sawant
Thank you.
operator
Thank you. We have our next question from the line of herein Trivedi, an individual investor. Please go ahead.
Unidentified Participant
Thank you for the opportunity. Sir, I have two questions. Firstly your security operations center and the network operating center facility. Just you know, would like to know whether they are operational. I think you mentioned in earlier question it will get operational by July I suppose and when will it start contributing to the revenues? And also you mentioned about two orders that you won and you know, one with Tableau. So can you just, you know, expand more on these orders and how they will, you know, contribute how and when they will contribute to the revenue going forward.
Ajay Baliram Sawant
Okay, so coming back to first question on integrated sock and NOC. So the builder will give us the OC by July 2025 so we get in complete totality the premises in our custody in July and then we build the SoC. So by September we’ll be able to build the SOC infrastructure perspective all ready. The business will start flowing after that. So Q3 and Q4 is where the we start getting the business. Okay, so this is the answer to your question number one. Question number two, on the orders that we spoke about, Tableau was a partnership that we had, okay.
In Q4 the orders that we have received is from the Digital India Corporation which I said, okay, which is a part of Omithy Government of India. Okay. Where we got a contract from them as a MSP contract that’s a managed services provider on the AWS workload. So we are getting a lot of workloads posted on the aws, which is a hyperscaler, okay. And there we are getting a home that is a Orient hosted managed services. So we build our services on top of that workloads. And this business is a quarterly revenue business. We have already started building that business and is A long term, three year contract that we have.
So that’s number one. Number two is the VDI contract. That’s a virtual desktop interface where we have worked with one of the pseudo. Okay. Which is a more of an infrastructure solution contract plus the, you know, ims which is a services contract on top of it to manage that infrastructure. So these are the two orders that we have won last quarter
Unidentified Participant
and revenues. Are built in partly or that will be coming in.
Ajay Baliram Sawant
It’s a quarterly, quarterly billing. Because being the services is a quarterly billing.
Unidentified Participant
Okay. Thank you for your answer. Thank you.
Ajay Baliram Sawant
Thanks again.
operator
Thank you. We have our next question from the line of Nikhil Thakur, an individual investor. Please go ahead.
Unidentified Participant
Hello.
Ajay Baliram Sawant
Good evening Nikhil sir.
Unidentified Participant
I’m asking a question. My first question is what is Orient’s estimated market share in cloud and data center services in India?
Ajay Baliram Sawant
Okay. Yeah. The cloud business is really a multi billion dollar revenue in India.
Unidentified Participant
Okay. And what will be your estimated market share compared to the players?
Ajay Baliram Sawant
So currently I’ll not be able to understand the market share perspective because you know there are lot many hyperscalers are not declaring their, you know, total revenue in the market. So very honestly we are not able to be a judgmental on what the revenue happening. But you know we are too small compared to most of these hyperscalers who are doing business of, you know, cloud in India.
Unidentified Participant
Okay.
Ajay Baliram Sawant
That’s why I always say that we have just crashed the surface. There are many more things to do.
Unidentified Participant
Thank you sir. So my second question is you have secured 3.9 crore project for cyber security. So are we planning to expand more in cyber security or can you give an idea about cyber security?
Ajay Baliram Sawant
So stock is our first step. Okay. So 9.3 crore is what we are going to deploy from the IPO money which we are going to get it. Okay. And that’s the initial investment that we do. Okay. And as, and when this business keeps on scaling, you know a lot of investment will keep on pouring in once we start getting the revenue as well.
Unidentified Participant
Sure. Thank you.
Ajay Baliram Sawant
Thanks.
operator
Thank you. We have our next question from the line of Amar Maurya from Lakay Investment. Please go ahead.
Unidentified Participant
Yeah. Hi. Hello. Am I audible to you?
Ajay Baliram Sawant
Yeah.
Unidentified Participant
Yeah. So sir, in terms of this AI. India mission in Q1 we will book some revenue from AI India mission.
Ajay Baliram Sawant
So very honestly Q1 will not be able to India mission because still there are a lot of clarity is required from government of India.
Unidentified Participant
Okay.
Ajay Baliram Sawant
That’s where you know I, I feel Q1 will be difficult to build it.
Unidentified Participant
Okay. And, and the Projected number, which Roman talks about a very big number. So do you see that kind of demand actually generated by now requirements coming from the various government entities for that kind of GPUs which government was targeting.
Ajay Baliram Sawant
So this is not necessarily only from government entities. You know, this is a platform provided by government of India for any even startups for that matter.
Unidentified Participant
Correct.
Ajay Baliram Sawant
I, I see there is a huge potential. But you know, how this will get consumed is what we need to see because the entire ecosystem has to be ready. Currently the number of use cases which are getting deployed, you know, are too less compared to as a service requirement goals. So government of India meaty has provided them the platform, but the ecosystem is not yet ready.
Unidentified Participant
Okay. Okay. So. So do you feel that like you know what gives us the confidence that you know what kind of pickup we will see in this particular business, let’s say in this year as a whole, because government speaks about a very large number of deployments and all those things. So what is the ground reality about this whole subject?
Ajay Baliram Sawant
Honestly, India has a potential, whatever the government is talking about, the number of GPUs they want to deploy it, whether it’s, you know, on premise or on cloud. Okay. There is a potential. The ecosystem is developing slightly slow. Okay. And that’s where the delay is happening in terms of revenue.
Unidentified Participant
Okay. Okay. So meaningful revenue we can see in third quarter for in your business from. India
Ajay Baliram Sawant
India AI mission perspective is, you know, how the use cases get developed totally based on the use cases getting developed.
Unidentified Participant
What I understand is there are two, two policies, right? One, that government is giving the, you know, budget for developing their own sovereign cloud. That is one and then the rest. I think the 10,000 crore is earmarked for basically the GPU deployment. And what I, what I understand is that these initial GPU deployment will happen in let’s say IITs, the ideal labs and other things. So where they were having already the requirement, right. So I’m not understanding when you say the ecosystem has to be developed because already the requirement was there. That is the reason government has allocated this much of budget.
Ajay Baliram Sawant
No? So the ecosystem means, you know, how do you reach the government portal? Now please understand the integration between the India nation portal, visa vis with the AWS portal or even some cases who are the private, you know, data center provider who has built in their own data center. Their portal has to speak to the India AI mission portal and that’s how it gets connected to the organizations like IITs and other research organizations that you are talking about. Okay.
Unidentified Participant
Okay.
Ajay Baliram Sawant
So all this Integration is taking time. And you know, we can always say it’s a API. You just call for an API and you can get this. Technically it looks simple but there has to be security has to be in place in the commercial transaction which are happening on that a lot. Many things needs to get, you know, bridge between the two and that is what is taking time.
Unidentified Participant
Okay.
Ajay Baliram Sawant
But very honestly, Amara, we are concentrating on government other AWS workload other than gpu. Where I think that Digital India Corporation, which is a business which is already flowing in.
Unidentified Participant
Okay.
Ajay Baliram Sawant
And that’s a quarterly good amount of revenue which is for next three to five years is already with us. So we are more waiting there.
Unidentified Participant
Okay. Okay. Okay. So this is what cloud, this is gtube business, this is a CQ business.
Ajay Baliram Sawant
This is a normal intel based business. But it’s not only the CPU only, it’s more of a storage, it’s more of other ecosystem on the cloud.
Unidentified Participant
And normally sir, what kind of revenue share agreement we have with AWS business, whatever business we bag, how does the revenue get shared between you and aws?
Ajay Baliram Sawant
So number one, it’s more of a MSP that we work at. So we work more from a, you know, service provider.
Unidentified Participant
Okay.
Ajay Baliram Sawant
Okay. And the revenue which was the AWS revenue which is going to AWS and we just take the sales margin on top of it.
Unidentified Participant
Okay. So this is, I mean the sales margin would be like in the range.
Ajay Baliram Sawant
Of I’ll not be able to share the exact same percentage of the sales margin because that will become the negotiation factor for my customers.
Unidentified Participant
Okay. Okay, got it. And, and, and the private cloud business, how do you see the demand in private cloud enterprise business? I mean, and what I understand here is that there’s, I mean four companies dominate the large market share into this how that piece of the business would be growing in the overall India India. Business for them
Ajay Baliram Sawant
today it’s a hybrid world.
Unidentified Participant
Okay.
Ajay Baliram Sawant
So there is enough business for public cloud providers like hyperscalers like aws, Azure, Google and okay, most of the people who went on those cloud, they realize that cloud is no more cheap. Some of the customer has come back and trying to set up their private cloud.
Unidentified Participant
Okay.
Ajay Baliram Sawant
And they are building their own private cloud as well. So there is a hybrid. Way I look at it, this business is going to be there and most of the customer is build the hybrid environment.
Unidentified Participant
Got it. And as, as people go for the hybrid, we have the business because we. Are ultimately
Ajay Baliram Sawant
whether it’s a public or private, we are in both the businesses.
Unidentified Participant
Correct? Correct. Correct. Perfect sir. Thanks a lot sir. I’ll come back in queue.
Ajay Baliram Sawant
Thanks so much. Thanks.
operator
Thank you. A reminder to all participants, if you wish to ask a question, you may press star and one. Anyone who wishes to ask a question, you may press star and one on your touch. Don’t telephone. Anyone who wishes to ask a question, you may press star and 1. We have our next question from the line of Rahel s from Crown Capital. Please go ahead.
Unidentified Participant
Hi sir, good evening, can you hear me?
Ajay Baliram Sawant
Yeah, I’ll go ahead.
Unidentified Participant
The first question was if you can give your order books and split between the articles.
Ajay Baliram Sawant
Yeah. So Rahil, our current order book is to the tune of around 135.32 crore.
Unidentified Participant
Okay. And if you can also highlight, you know your key growth areas going ahead for FY26, which particular areas of business are you targeting the most?
Ajay Baliram Sawant
Okay. So in FY26 we are concentrating on application and IT infrastructure services. So that’s the lob we are all focusing on. Okay. And we have already started doing a strategic investment in terms of getting this business growth. Okay. The services line including cloud and IT enabled services is expected to deliver strong growth in this financial year. Meanwhile the infrastructure solution business will continue to support technology refresh initiatives and complementary projects that we will be able to conduct. But solutions will give me always a top line and services will give me the bottom line. 3 line of business which we used to talk about in.
Fourth we are trying to do it with the two line of businesses. So IT infrastructure solutions and second is application and IT infrastructure services.
Unidentified Participant
Okay. And you mentioned earlier that you’re in a like you investing your investing your profits into talent and all which is impacting EBITDA how long that will go on for for another two quarters as.
Ajay Baliram Sawant
We are building a SoC. As I said that we are building our SOC in New Navy Mumbai. Okay. Where we’ll be doing a lot of investment in terms of the infrastructure plus the skill and thereby we’ll be deploying a good number of resources, skilled resources because that’s you know our integrated NOC and SOC center which will have a skilled resources and it will be operational 24 by 7.
Unidentified Participant
And although we refer to giving a certain number guidance, but is it fair to assume that on an Overall General FY26 will be much better than FY25. Is that the visibility you have?
Ajay Baliram Sawant
Okay. So year on year from last year to this year we grew by around 40%. Okay. And you know I feel India growth is definitely the main feature of our growth as well. We are, you know, 99% domestic partner. So we’ll be growing as the India grows.
Unidentified Participant
Okay sir. Thank you.
operator
Thank you. We have our next question from the line of Kunal Sharma from SP Capital. Please go ahead. The next question is from the line of Kunal. Kunal Sharma, please go ahead.
Unidentified Participant
I’m audible.
operator
Yes.
Ajay Baliram Sawant
Yeah, yeah, yeah, yeah.
Unidentified Participant
Thanks for the follow up. Receivables have gone up sharply. That leads to a negative working capital and the result we have shown a negative cash flow. So when can we like expect positive cash cash flow?
Ajay Baliram Sawant
Kunal, thanks for asking this question. If you see that this is a short term capital, I mean negative capital. So I hope in this year we should be very much cash positive. You know just by Q2 you can see positive cash coming in.
Unidentified Participant
Okay. So there’s no like payment getting stuck by the government since we are also dealing with the governments too.
Ajay Baliram Sawant
No, no, no. That’s not the right way of reading negative capital. Okay.
Unidentified Participant
Okay. No, no. On a receiver.
Ajay Baliram Sawant
Yeah. The receivables are. But most of the billing has happened in Q4 especially in March end. You know. So my, you know, to be honest, let me tell you out of 260 crore rupees of a billing, you know 140 crore happened only in the month of March. Okay. Now on the 31st of March all this billing will come as outstanding. And that’s why it is showing this is a negative cash flow.
Unidentified Participant
Okay. And the last on the export since we have a negligible exposure in the APEC and uae. How is that doing? And you could throw some light. Thanks.
Ajay Baliram Sawant
See I believe rather than US and Europe, there is a lot of uncertainty there. Right. And we don’t want to play in uncertain areas of the business because we have invested just in this year. We got lifted this year and we want to grow. We want to give return back to our investors. And we are very clear that you know it’s a company which is growing for last so many years and we want to continue to grow. So we want to you know bet only in the certain areas where we are confident that whatever investment will do we’ll get the good return.
And India is the best bet and lot many things we can do in India itself. That’s why currently we are not focusing internationally. But it’s a matter of time. We will come back to you on our international plans as well.
Unidentified Participant
Okay. Okay. So we don’t have any exposure in the EPIC and uae.
Ajay Baliram Sawant
I can’t currently. Zero. Okay.
Unidentified Participant
Okay sir, thank you so much and best of luck.
Ajay Baliram Sawant
Thank you.
operator
Thank you. We have our next question from the line of Nikhil Thakur, an individual investor. Please go ahead.
Unidentified Participant
I have two more questions. My first question is what is the business strategy from the company to have sustained delivery and margin and strategies? What can be included in the strategies in the coming quarters?
Ajay Baliram Sawant
Okay, so our strategic priorities for FY26 include strengthening our services portfolio especially in cloud, managed services, cybersecurity and networking. The new NOC and Shock center which I have talked about is a key milestone targeted to go live in Q3FY26. We have already successfully launched our DaaS which is a device as a service offering which is gaining traction. And we Plan to launch TAS which is a total outsourcing business in Q2 or Q3 of FY26. Our market coverage spans over the BFSI, government communications, hospitality, pharma and mid markets. Something about TAS I would like to mention here.
TAS is a comprehensive technology outsourcing strategy aimed at enhancing operational efficiency and fostering innovation. By leveraging external expertise, businesses can streamline IT enabled services, application support and infrastructure solutions. This approach supports optimal sourcing strategies, improves vendor management and ensures sustainable win win partnerships. Task helps enterprises, reduces their cost, accelerate time to market and gain access to specialized capabilities. Key drivers for maintaining competitiveness in a fast evolving landscape. So DAS and TAS are the key differentiator in this financial year for us to grow together.
Unidentified Participant
So my second question is as you are set to receive your of property in July or June so your cost of operation will go up. So what is the strategy for mitigating the cost of operations?
Ajay Baliram Sawant
But we’ll be getting the revenue as well. The integrated knock and sock is just a service and it’s a profit. It’s a one time investment. And operational cost is only the salaries of the employees.
Unidentified Participant
Thank you.
Ajay Baliram Sawant
Thank you.
operator
Thank you. As there are no further questions, I would now like to hand the conference over to the management for closing comments. Over to you sir.
Ajay Baliram Sawant
Thank you everyone and specially thanks to Gaurav from Concept. Now we truly appreciate all the participants for taking time to join us today. If you have any further queries, please feel free to reach out to us or consult. We will be happy to address them all. Thank you once again for your continued support and interest in our company. Thank you.
operator
Thank you on behalf of Orient Technologies Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines.