Saksoft Limited (NSE: SAKSOFT) Q1 2026 Earnings Call dated Aug. 11, 2025
Corporate Participants:
Unidentified Speaker
Avantika Krishna — Chief Sales Officer
Niraj Kumar Ganeriwal — Chief Operating Officer and Chief Financial Officer
Aditya Krishna — Chairman & Managing Director
Analysts:
Unidentified Participant
Vinay Menon — Analyst
Chirag — Analyst
Amit Agicha — Analyst
Sahil Sharma — Analyst
Vikas Srivastava — Analyst
Amit Jain — Analyst
Rohit — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Saksoft Limited Q1FY26 earnings conference call hosted by Monarch Net Worth Capital Limited. 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 and then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Vinay Menon. Thank you. And over to you, sir.
Vinay Menon — Analyst
Thank you. Good afternoon everyone. On behalf of Monarch Network Capital, it’s my pleasure to host the senior management of Hacksoft. We have with us Mr. Aditya Krishna, Promoter and CEO, Ms. Avantika Krishna, Chief Sales Officer and Mr. Neeraj Kumar, CFO and CEO of the company. Now I’ll hand over the call to Mr. Aditya Krishna for his opening remarks. Thank you, sir.
Aditya Krishna — Chairman & Managing Director
Thank you, Vinay. And good afternoon everyone. Welcome to our earnings call to discuss the performance of the first quarter of financial year 2026. Let me begin by briefing you on the key business highlights for the quarter, after which my colleague and our Chief operating officer and CFO, Mr. Neeraj Gunnwal will brief you on the financials. You’re all aware that the IT sector has been facing severe headwinds due to rising global geopolitical tensions resulting in demand disruptions across sectors. Despite these, I’m pleased to report that we’ve had a strong performance in the quarter under review on a year on year basis.
For anyone new to Saksoft, I’m reiterating that since the last financial year, we are repositioning ourselves as an AI led product engineering company as a response to the altered business reality in the world. This is a big change that has transpired in the previous year. Complementing to our repositioning, the acquisition of Our Salesforce and ServiceNow partners, Ceptis and Zeetechno respectively have started to deliver tangible results with increased conversations and traction across our million dollar plus accounts. Alongside this, our continued focus on operational efficiency has enabled us to manage costs more effectively, while improved foreign currency realization further supported profitability from an operational standpoint.
We are pleased to share that we added a new customer in the US$0.5 million bracket within our logistics vertical and successfully scaled an existing client from US$’s 0.5 million bracket to the US$1million bracket in our commerce vertical. These developments underscore both our ability to expand our customer base and our success in deepening relationships with existing customers. In addition, we are investing in AI frameworks across the various stages of the software development life cycle and will be coming up with a suite of frameworks which will not only enable faster and intelligent development and deployment of code, it will also facilitate a key challenge every industry is focusing on, which is modernization of the legacy code.
These frameworks not only enable conversations with prospective clients, they also are instrumental in a faster turnaround of a prospect to a client. Now I would request my colleague Neeraj to give you the financial highlights for the quarter under review.
Niraj Kumar Ganeriwal — Chief Operating Officer and Chief Financial Officer
Thank you Aditya and thank you everyone for taking the time and joining our earnings call today to discuss the results for the first quarter of the financial year 2026. We reported a revenue growth of around 24% year on year at around INR 249 crores. The EBITDA stood at INR 46 crores which grew by around 31% year on year and 26% quarter on quarter with the EBITDA margins being at 18.40 percentage. The net profit for the quarter was around INR 32 crores which grew year on year by nearly 26% and 8% quarter on quarter with the PAT margins being at 12.99%.
The Americas contributed around 44% of our total revenues, Europe contributed 21% while the remaining 35% came from Asia Pacific and other regions. The on site revenue was 44% and the offshore was at 56%. The BFS vertical contributes to about 31% of our revenues, the emerging verticals around 47%, the logistics 14% and the commerce vertical contributed 8% of the overall revenues. Coming to some of our customer metrics for the quarter, we have around 16 customers of the USD $1 million plus revenue. The total employee count at the end of the quarter stood at 2616 out of which 2,370 are technical, with the utilization level of our employees excluding trainees being at 86% for the first quarter of the current financial year.
With these brief remarks now I request to open the floor for Q and A.
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 touchstone telephone. If you wish to remove yourself from the question queue, you may press STAR and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question is from the line of Chirag from Ashika Institutional Equities. Please go ahead.
Chirag
Hello, Am I audible.
Niraj Kumar Ganeriwal
Yes Chiragya.
Chirag
Yeah, so I have a couple of questions. So in one of slide you mentioned the vision of around approaching $500 million revenue milestone by 2030. So if you can elaborate on the headcount strategy from current base. Okay. And second you also mentioned that we are transforming ourselves to AI led protocol, service offering kind of business model. So can you share some like what from near term to up to 2030 trajectory of the margin profile? Because what I have seen the companies which are into traditional IT offering and started offering AI related offering in their core offering, some facing some margin pressure or headwinds as client started asking for the pass on of the benefit of the margin which they have incurred due to the generative AI and all. So if you can elaborate more on that.
Aditya Krishna
Yeah, sure Chirag, the first question on 500 million by 2030 and the relationship with headcount. Yeah Tech services is a, you know, it’s a proportional model. I mean if revenues grow, headcount has to grow because at the end of it, what do we provide? We provide people, people at which are trained and skilled in the technologies that we are building our customers applications on. So revenue is proportional to headcount. So if revenue goes from where it is today to 500 million which is about four times, the headcount will also be four times. So currently we’re about 3,000.
So four times would be about 12,000. So that is, you know what will most probably happen by 2030. So that’s number one. Number two on the margin issue you mentioned that, you know you have come across companies that are facing margin issues when they’re involved in AI. I’d be very curious to know who’s buying AI because AI has become a hygiene factor. If you don’t have AI, you’re no longer relevant. But our customers really embracing AI, it’s a, for us it’s a question mark. If you’re not in AI, we’re not relevant. But are people or our customers really buying AI? As of now our experience is different.
They are using AI as an enabler but they’re not really buying AI services or AI platform. So in other words, if we don’t have an AI platform we are behind. But are customers expected to buy AI platforms? No. So what it’s really doing is it’s improving the productivity of our people. AI is really improving the productivity of our people which reflects directly in reduced effort and reduced headcount with customers. But then the customer is spending that budget somewhere else and that’s where our focus is. How can we do more for that customer and retain our wallet share and increase our wallet? So that’s the current landscape that we are experiencing.
Chirag
Okay, thank you. Just one follow up question if I can. So if I look at the QQ trajectory in terms of growth, it is around 3.8% between Q4 to Q1. So on secure basis, if I extrapolate, we may end somewhere around 14 to 15%. Okay. And the ask rate if I look at that is around 30 more than 30% kind of figure. So. So is there any cyclicality element involved in our business or in let’s say in H2 we going to recognize a much greater proportion of growth or revenue such.
Aditya Krishna
You know, I can make a lot of money on Excel. Okay. And I can show you a lot of numbers which can dance in Excel. But that’s not the reality. The reality is growing revenue and growing. How do we grow revenue? We grow revenue by increasing wallet share with existing customers and adding new logos. And that’s our focus. If we can increase the wallet share with existing customers and the appetite is there because we are still. The wallet share with most of our customers is small. So we have enough ban, I mean enough Runway to.
If not double the maybe four or five times grow our revenue to where it is today with existing customers. And that’s our focus. If we can do that right? 10, 15, 20%, 25%, 35% growth, those just become numbers. I think what matters is if you can get the strategy right of focusing on existing customers and adding a few logos every quarter.
Chirag
Okay, thank you so much. All the very best.
Aditya Krishna
Yeah.
operator
Thank you. The next question is from the line of Amit Agita from HG Hawa. Please go ahead. Yes, sir.
Amit Agicha
Yes, sir. What percentage of revenue.
operator
Sorry to interrupt, but your voice is breaking. Can you use your handsets while asking a question? So we are still not able to hear you.
Aditya Krishna
That you’re not.
Amit Agicha
Okay, Rejoin the queue.
operator
Thank you, sir. The next question is from the line of Sahil Sharma, an individual investor. Please go ahead.
Sahil Sharma
Hello. Hello.
operator
Yes, sir. Yes, sir.
Sahil Sharma
Am I audible?
operator
Yes sir, you are.
Sahil Sharma
Thank you for the opportunity. My first question is I think we’ve lost some ground on the retail segment. Any reasons for that?
Aditya Krishna
Repeat that question, Sahil.
Sahil Sharma
Yeah, I think we’ve lost some ground on the retail segment. The traction on the retail segment. Any particular reason for that or is it just this quarter?
Aditya Krishna
Yeah, it’s a focus on margin, Sahil. What we did was we had a. I think a $1.5 million license deal at no margin. We kept that up.
Sahil Sharma
Okay, okay, okay. Understand. And the second thing is that I think we’ve gained US$1 0.5 million client and converted US$1 0.5 million Client to 1 million. Now, can you elaborate on these two clients? What is our target with this US$1 million clients in FY26 27 also?
Aditya Krishna
Yes, it’s. The 1 million client is a large shipping agency in Singapore who, you know, we are seeing a lot of traction with and a lot of tech spend. And the other is a B2B commerce play in the U.S.
Sahil Sharma
Okay. Okay. And any kind of targets we have with this USDA 1 million clients in FY 2627. I mean, the traction you see on these fronts.
Aditya Krishna
Good traction, Sahil. Like I mentioned earlier, we are a very small part of their tech budget. So I would say we would be under 5% of that tech budget. And obviously the competition is severe, but that’s where we’re able to score points over the bigger tech companies because we are more flexible. We are more. We respond faster. And the constant answer I give to buyers is, look, you want to deal with a company which is 20 times your market cap, or you want to deal with a company which is smaller than you or your size because only those will give you the attention that you need.
And by and large, that resonates well, you know, so we’re trying that with this company, and I think we’ll. We’ll be successful.
Sahil Sharma
Sure. Sure. Thank you. Thank you. And all the best.
operator
Thank you. Before we take the next question, a reminder to the participants. Anyone who wishes to ask a question may press star and one on their Touchstone telephone. The next question is from the line of Amit Agita from HG Hawa. Please go ahead.
Amit Agicha
Yes.
Aditya Krishna
A little unclear, but try. Try again.
Amit Agicha
Competitively.
Aditya Krishna
Can’t hear you.
Amit Agicha
In the competitive analysis.
Aditya Krishna
Nidhi, can you help, please? Because I’m not able to understand the question.
operator
Amit. Sir, your voice is not clear. It’s big. Breaking.
Amit Agicha
So now, madam. How is it now?
operator
Yes, sir, it’s. It’s better. You can go ahead.
Amit Agicha
Yeah, so. So my question was connected to, like, how do you see industry evolving in the coming three to five years? Because, like, tariff and all this thing is like a disruption. Actually, the clarity is still left. But how do you plan to position Sexsoft as a company in the competitive analysis?
Aditya Krishna
Things are changing so rapidly, Ahmed, that, you know, I don’t think anything lasts in tech more than 24 months. 24 months ago, if I told you that we would be today positioning ourselves as an AI LED software or a product engineering company. I would not be telling you the truth. So this whole idea of AI led product engineering happened maybe a year, year and a half ago now. That’s where we are today, around intelligent products, intelligent platforms. That’s our focus 24 months from now. Will this still hold? I don’t know. What’s important is to read what’s in the market, to read what our customers are wanting, how the tech landscape is constantly changing, evolving and adapt to that so that we stay relevant to our customers.
That is the key and that is an ongoing exercise. You have to be close to your customer, you have to be close to the market. If you are in that position, you will understand what the customer wants and where the market is headed and you will adapt. So I can’t give you an answer as to what we will be 24 months from now. All I can say is today what we are and the fact that we have got our ears to the ground, feet on the ground, constantly looking for signals as to how to change, how to adapt for the future.
Amit Agicha
Follow up to this is like Trump might consider services of India also, like under tariff, like that will be a big disruption. So are you planning something like other markets other than like 44% business we are getting from America? So we must be looking for the mother continents?
Aditya Krishna
Yes, that’s a good question and the answer is very clear. We cannot be dependent only on the US geography. We, we have to grow in Europe and the UK and we are focusing on that. Because you know what’s happening in the us? I don’t think anybody knows.
Amit Agicha
May I ask one more question? Like that question? Is that for Avantika, Ma’, am, Like, Ma’, am, like I didn’t see company meet last time. Like we had spoken about hunters and farmers. Like can you give us a little more brief about like how many employees are there in hunter and how they’re performing?
Aditya Krishna
Yeah, you remember. So let me give you an update and you’ll find it very funny or interesting, I don’t know. So we had, last time I think we spoke, we had four hunters, so we now have only one hunter. Three hunters have been fired because of non performers, but they’ve been replaced by client partners. So we have put people on the ground and as we speak today, we have six people on the ground in the US focusing on existing accounts as client partners. And that is yielding us much better results. And what it’s telling us is that if we focus on existing customers, we will grow our business faster than if we focus on new logos.
All we need is one new logo or two new logos a quarter. We don’t need multiple logos as long as the quality of those logos is good and they have a tech budget which is sufficiently large for us to target. So this is what I also meant earlier about having your ears to the ground. Being flexible, being adaptable, changing strategy to suit what the market is, how the market is changing, how the industry is evolving. And at the end of it, see, as shareholders, as investors, you want growth. Growth in a particular manner which drives profitability, sustains or grows profitability.
And that’s our job. So how we do it, you know, will keep changing. It won’t change every quarter, but it will change definitely annually.
Amit Agicha
I appreciate your elaborate answer, sir. All the best for the future. Thank you.
Aditya Krishna
Thank you.
operator
Thank you. Thank you. The next question is from the line of Vikash Srivastava from RBC Financial Services. Please go ahead.
Vikas Srivastava
Thank you. Congratulations Team sacsoft on a great set of numbers and thank you so much. For the hard work you have got. In to get where we are. I have just two, three questions and I have gone through the investors presentation. So from what I hear is that the EBITDA jump is not, you know, last time when Neeraj was on the call and he said that 16.5% EBITDA is the new normal, which was a little disappointing from what I hear in terms of hunters being replaced by client partners and margin and your statements in the investors call, Can I safely therefore assume that these 18.5, 19% EBITDA and also the fact that three hunters have been sacked, which would mean about a $750,000 per annum savings and of course it’s been replaced by partners.
I’m sure they cost money too. So first one is on the EBITDA. Are we on course to remain at about 18.5, 19% per annum going forward? And I know it’s volatile, it’ll change year to year. But in the foreseeable future, can one safely assume that.
Aditya Krishna
No, Vikas, you can’t assume that for a simple reason that two things will hurt us in the coming quarter. Number one, we benefited by currency depreciation or sorry, rupee depreciation which will not sustain in quarter two number one. Number two, we have the annual increment cycle effect coming in quarter two. So 18.5 number one is not sustainable. Secondly, you will not see that in quarter two. But our job is to try and minimize the decline and that’s what I said earlier also about giving up businesses where margins are low or non existent. Like we gave up the one and a half million dollar license deal which had zero margin, you know, so we want top line growth, but we also want profitable top line growth.
So we want to focus on that. So bottom line 18.5 is not sustainable, Vikas. Unfortunately.
Vikas Srivastava
Okay, but where are we as well? How would you look at the full financial year in terms of normalization and salary hikes? What range are we looking at going forward for the whole year?
Aditya Krishna
I would say between 16 and a half to 17 and a half.
Vikas Srivastava
Okay, so that was my first question. The second question is I have to also see this growth in the turnover. If I strike off that $1.5 million license fee contract which you’ve given up, that is about $375,000 per quarter. So I, we should take the growth in turnover or business in that context where there is a voluntary attrition of a client to the tune of about 1 1/2 million. I’m assuming is annual figure correct. So that to that extent my understanding is right.
Aditya Krishna
Yes, absolutely.
Vikas Srivastava
Okay, that’s good to hear. Now in your statement you also said that you are investing and I’m assuming the investment cost, you want to take it into account. While you said 16.5 to 17.5% EBITDA and you also said that you’ll grow faster and as a previous participant mentioned that we are probably doing, you know, to get to 500 million and 500 million would be five times Aditya, not four times, you know, from here in 2030. Right. It’s in rupee, in absolute rupee terms we’re talking about, it’s too far away. But that’s 4,500 crores. So to get there, you know, we are still talking about 30% plus CAGR growth.
And you do mention with confidence in your investor statement that you are, you are, you are, you are well positioned to grow faster. So would you just throw some color to that, some more elaborate on that. In terms of general, I’m assuming that for the last three years, when you are sticking to this 500 million 2030 vision, as we get closure and closure and in spite of all the US problems and the volatility in technology, we are still, it is still within the realm of possibility and we are still headed towards that and especially in the context of the current year, what kind of growth do we expect in the subsequent.
We are four months into the year. Right. So how is it looking this year looking in terms of turnover.
Aditya Krishna
Sure. Rest assured, 500 million is our target for 2030. There is no going back on that now. Question is will be hit it. You know, and you know, that’s the big question. And as of today, everybody, my entire senior team, including myself, we are leaving no stone unturned to get to that target. Now having said that, what does that entail for this year? Okay. And I have mentioned this to you before also and to the larger group also that this year we are aiming for anything between 1000 to 1100 crores. We want to beat it, but that’s the guidance we are presently providing.
Now what are we doing to get there? Because at the end of it, these are numbers. Numbers will come if the offering that you have in the market and the way you’re taking it to market market is acceptable to customers. So what are we taking to market? We have two basic and I’m putting them in two big buckets. Two basic offerings. The first one is our AI platform which is targeted towards companies that are either building SaaS products or building applications. So in the product engineering space now that AI platform has gained a lot of traction.
We have invested a lot of money, but so is everybody else. Okay? And this is what I said earlier. If you don’t have that today, you’re not relevant. So it’s a hygiene factor. You have to be there, you have to showcase it. You have to give it to customers who want to use it. And every customer does want to use it, but they want to hear about it, they want to talk about it. So we have to be there and we are there. So we’re getting some business through that platform. The other place where we are putting a lot of focus is building accelerators around intelligent platforms.
So what do I mean by that? A platform is like Salesforce. Now we have four verticals. Logistics, digital commerce, emerging vertical and bfs. So we are building accelerators which are domain focused for a particular or, you know, a couple of verticals, you know, and build an accelerator on it. For example, for bfs, for the banking, financial services sector, we are building a platform. We’re building an accelerator which does dispute resolution using the same Salesforce platform. And we’re going to showcase this actually in the upcoming Dreamforce event of Salesforce in San Francisco in October. But why I mentioned this is that this is the sort of focus, the sort of single rifle sharpshooter focus we are providing to our business and taking it to market.
So now what this does is it tells me, although my focus is BFS within BFS who should I target? I have to target prospects and customers who are using Salesforce and the ones that have a problem with their dispute resolution. And believe me, dispute resolution is a big problem for every BFS customer. So that’s the approach to get new business as well as get get higher wallet share. Very focused, very sharp.
Vikas Srivastava
All right, so my next question was that you’re down to one hunter and what I can, what I take away from the conversation till now is that the traction is mostly through existing clients and growing existing clients and the focus is also there. So in terms of new logos and more hunters, are we this having one, just one or two hunters and sticking to one of the two logo, new logo target. Is this the new plan for the next year or two?
Aditya Krishna
We have to be prudent because you know what we had was, what we tried was pure hunters, you know, who didn’t have an existing account to farm. So now our client partners are not only their 80% or 85% of the job is to grow their existing account, but they are also given a few accounts to prospect. So it’s not that hunting is zero. They will do limited focus on hunting. But like I said, if you can get one logo or two logos a quarter, that’s enough for us to get to where we want to get to.
We don’t need dozens of new logos.
Vikas Srivastava
Yeah, I got that. And the last question again, I’m sorry, I’m going back to this. You know, we already done 250 crores, you know, in the first quarter and if I just extrapolate that into forex, I of course year on year we are growing. So are we, are we are we say are thousand to eleven hundred crores. Is it, is it a conservative kind of bad? Is there an upside risk to this thousand crores? And you know, considering that four months have passed. That was one question. B, one thing which I didn’t understand when you said is there a cause to worry when you said that nobody knows what will happen with technology under in 24 months, what exactly did you mean by that? Is that a cost to worry for the business or the shareholders? Those are the two last questions.
Aditya Krishna
Nothing to worry. You know, that response was in answer to a question about, you know, the gentleman asked me how do you see the industry and your positioning, you know, in the coming years? So it was more in the context that things are so rapidly changing because that, it’s difficult to say that today we are an AI led product engineering company. We will remain like that for the next five years, it’s not possible, you know, same way, 24 months ago, if somebody asked me, would you be a product engineering company? I would probably would have said no.
But EI happened now, 24 months from now, something else might happen, you know, so it’s really in response to the fact and that is where, you know, we spend a lot of our time on, you know, how being close to the market, being being close to the industry. What’s changing? What are customers looking for? Remember the days when SaaS was the best thing after sliced bread? Today SaaS companies are no more so highly regarded and no longer so much in demand as they were two, three years ago. Today Salesforce ServiceNow are more in demand because that’s how the industry is today.
Everything is AI. Look at OpenAI $200 billion market cap still running a loss. Who would have thought that this would have happened 24 months ago? So it’s more in the context of that things are constantly changing and with that change comes also opportunity. The fact agile happened, agile projects happened. The differentiation between a large tech company and a small tech company became less worrisome for a buyer because of the agile methodology. So a lot of things are happening which are leveling the playing field. And I think, you know, please see this only in a positive light, not in a negative light.
Vikas Srivastava
And the second question on, you know, is I would say 1000 to 1100 very conservative forecast or is there a substantial upside risk to that in the current year? I know, I know the business, nimble footedness, the business is distinct, but would you, could there be a wider range to this?
Aditya Krishna
Every morning when I read the Economic Times, I wonder what Trump is doing tomorrow. If he does something crazy for tech, what will happen to us? I don’t know. So yes, we are being conservative. You know, I rather give a conservative guidance and beat it than, you know, give a guidance which is out of whack.
Vikas Srivastava
Understood. Appreciate. Thank you. That’s all for me.
Aditya Krishna
Thanks Vika. Thank you for your support.
operator
Thank you. The next question is from the line of Bihan, an individual investor. Please go ahead.
Unidentified Participant
Yeah, hi. Thank you for the opportunity. I’m not sure if you may have already talked about it because I joined late. So just a couple of questions. One just wanted to understand from where have we seen the growth coming from in this quarter, which I mean region wise and has there been any, any tariff impact on our business until.
Aditya Krishna
You. Know, it’s difficult to judge the tariff impact. But one thing I have to say is that the introduction of tariffs has Resulted in a lot of uncertainty and decision making or delayed in decision making by buyers because nobody likes uncertainty. And tariffs especially see if tariffs were 10%, full stop, everybody would plan around it, work around it, you know, build their business around it. But if tariff is one day to 10%, next day, 25%, third day, 50%, you know, people are not going to make decisions because they’re going to be, you know, not sure what’s going to happen tomorrow.
And that is hurting our business and not only our business, it’s hurting every business, including US businesses, you know. So I think that’s the impact of tariffs. Whether that has resulted in growth being less, I cannot answer that question. And what was your first question?
Unidentified Participant
So where have we seen growth coming from? Region wise.
Aditya Krishna
Our focus is the US region and that’s where we have grown, that’s where we want to grow. And in fact we will also provide a restatement of these numbers by geography because there are a lot of some of the revenues that are shown as Asia Pacific are actually for US customers but serviced out of their GCCs in India. So you know, we changed that methodology a while ago. Now we will try and provide both sets of numbers where it’s actually by physical location as well as, you know, where the customer is tied. So for example, a US customer, we’re doing business for the them in the US as well as in India.
A lot of tech companies will report it as US geography. Now currently we report it as only the US portion in US geography and the balance in the APAC geography. We will provide both sets of numbers. So bottom line is US is where the market is for us and that’s where our focus is and that’s where our growth has come from.
Unidentified Participant
So is it fair to say the majority of our revenue currently is from the US market? Roughly 70% plus. Yes, understood. My last question is with respect to AI, just wanted to understand what work are we doing in AI and if there is until now, if there has any been, has any been wins in the deal in the AI segment?
Aditya Krishna
Yes, we have an AI platform. If you look at our website you will understand a little bit more about the platform. What the platform does is it provides a holistic AI approach to the software development lifecycle. So it’s got a coding agent, it’s got a testing agent, it’s got a data part and it’s got an infrastructure part. Now that holistically comes together as what we call SAC AI and we have demoed that to a lot of prospects, a lot of existing customers. There has been some traction in terms of revenue but it’s been disappointing. I have to admit vis a vis what we thought it would be.
And it’s not that we have given up. It’s just that I think prospects and customers are taking their time to make a decision on AI because it’s quite a challenging decision for them to take. So we’re going to stay the course. And you will. I’m pretty sure that you know AI is not only here to stay but will start yielding revenue.
Unidentified Participant
Understood, sir. Thank you for the insight. That’s all from my end.
Aditya Krishna
Thank you.
operator
Thank you. Before we take the next question, I would like to remind the participants if anyone wishes to ask a question, you may press star and one on your touch tone telephone. The next question is from the line of Amit Jain from Monarch Network Capital Ltd. Please go ahead.
Amit Jain
Hello, Aditya
Aditya Krishna
Ahmed.
Amit Jain
Yes, absolutely fine. Long time. So congratulations Aditya on a good set of number amid the challenging time. More on the understanding the business. And although one of my question was answered by you that what exactly are we doing to achieve this 2030 target? And in terms of service offerings, if I understand correctly that we are present, we are offering QAM testing, data analytics, cloud infrastructure, Digital engineering. Now how this mix has changed or evolved over the last two, three years. So are we getting more revenue share from the digital engineering side? And if I understand correctly, AI has impacted all these offerings.
So AI is present in all these offerings. That’s my first question.
Aditya Krishna
The mix has been the same. I don’t think the mix has changed too much. Digital engineering contributes the maximum percentage and I think we’ll continue to do that. And not just for us, it’s for, I think for every tech services company. Finally it’s, you know, it’s how you classify revenue. So some people call it digital engineering, some people call it application engineering, some people call it legacy modernization. It’s all the same basically writing code for new applications, legacy migration, existing code enhancements all comes under digital engineering. And that will continue to be the majority of the revenue earned up for every tech company.
Tech services company.
Amit Jain
Okay. And when we say digital engineering and product engineering, are these the same or this is synonymous? We use it Visa. Visa. So it’s both are the same or is it different?
Aditya Krishna
It’s who the prospect or the customer is. Product engineering would be targeted specifically to a SaaS company which is looking to build another SaaS product, enhance their SaaS product or support their SaaS products or an enterprise company building an application that would Be a product engineering. Digital engineering would be include legacy modernization. Digital engineering could mean a much wider range of software application writing than in other words, product engineering is a subset of digital engineering.
Amit Jain
Understood, Understood. And I think one thing on this AI, it is impacting and I’m just, just correct me if my understanding is wrong, that I’m just taking an example that your customer for whom, let’s say for any project, the manual required is 100 man hours are required. Now because of AI now the number of man hours has reduced to 80. Now in terms of billing, will it impact and are we doing something more to engage with that system? Because the same project is now taking the less man hours. So this impact on the billing just help me understand how we are coping with this.
Aditya Krishna
AI definitely results in improved productivity. So what you could do with 10 people now you can do with seven or eight people. So the numbers that you have will go down. Now the key there is if you have an AI platform and you say your people are trained in AI platform and productivity is improved because of an AI platform platform, you have the ability to increase your rate for those remaining seven, eight people. So rates will go up, number of people will go down. But, and that’s what I meant when I said earlier that you have to constantly change, you have to constantly evolve.
And today that’s the flavor of the month. If you’re not there, you’re no longer relevant to your customer. Your customer will go somewhere else. So, so I will go with my customer and say, look, I can reduce my existing team size from 10 to 8, but I will charge you a couple of dollars more per hour. Customer is better off, we are better off for those eight people. Now what happens to the remaining two people? And that’s the challenge and that’s the opportunity because now we can say, okay, these two people are available. Do you have any other work? Can I take some work from any other supplier of yours to who doesn’t have the AI platform? You know, can I take that work from you? And that’s what we are seeing.
We are seeing, you know, a fair amount of work coming to us from other suppliers who don’t have the, you know, the evolvement or the maturity of the AI platform that we have.
Amit Jain
If I read it understood correctly, what you mean to say that our billing is not changed from the same customer. Let’s say I’m talking about customer A. If I charging for that customer, assuming I’m just taking an example, let’s say I’m charging him $1 million now that my billing will remain unaffected. My man number of man deployed for this project has come down. But I’m charging it higher. The billing is per hour is higher. So that’s where the whole the my cross billing remains the same. Is that understanding correct?
Aditya Krishna
No, that’s not correct. So what 1 million will become 900,000. Okay. But the number of people will become less. So my, My. My efficiency or the realization per person will go up. So my profitability will go up provided I can deploy it balance people effectively in some other. In some other work.
Amit Jain
Understood. So from that customer maybe the billing may come down but that can be offset by using it in other projects. Thank you. Thank you Aditya. That’s for it. Because one of the questions I think you have substantially answer that in terms of strategy. That was my. Was my question that I think that was answered. Thank you so much and all the best.
Aditya Krishna
Thank you all.
operator
Thank you. The next question is from the line of Rohit from I pms. Please go ahead. Yes.
Rohit
Just a few questions. So in the earlier answer to a question that you were asked about the margins you said that probably this year margins will not be able to hold because of the reasons you mentioned. But in slightly longer term given that you are really trying to grow the business is that the margin band that you would want to sort of guide or is there some. I mean as you scale the margins can also expand. So I’m not asking about FY26 per se. I’m saying let’s say two years out, three years out. So just wanted to hear from you on that.
That was my first question.
Aditya Krishna
Neeraj, you want to answer?
Niraj Kumar Ganeriwal
Sure, sure. So I think if you are looking at what is our wish. The wish is obviously we would like to have better margin through it. But having said that you’re right that in the current year we are looking at anywhere between 16 and a half to 17 and a half percentage. That’s what we are looking at. The fact is also that two, three years down the line if the volumes increase, you know they do bring in some efficiency. So we could see some marginal improvement over there. But then we’ll also need to look at what are the kind of investments which we will need to simultaneously make.
But realistically if other things being the same and there is a good volume increase, the margin should slightly improve.
Rohit
Okay. And so just on your point of. For you, the last part of the growth will be from your existing customers by increasing their wallet share. So in terms of them like typically. So if you, if you look at their Vendor base of IT vendors, landscape, where would you be? And let’s say there are. I don’t know if it’s the right way to ask, but how many people do they typically work with and where will you be in the pecking order? The reason for this question is because as growth is becoming tougher and tougher for everybody, the bigger guys be willing to drop their prices and be more aggressive and hence that can be a challenge for you in terms of getting just so that’s why I wanted to understand.
So who do you typically compete with to get the wallet check from your existing customers? Yeah, that’s what. That is what I wanted to ask.
Aditya Krishna
It varies by account or by customer. In some customers, the big tech services companies are very much present and we have to fight them to get increased wallet share. By and large, it’s not so difficult to fight with the large companies because, you know, they are quite, you know, because of their size, they become quite unwieldy and slow to respond. We can respond much faster. We can do much, many things which they are not able to do because of our, of our size. And you know, unless it is, you know, a very large requirement, you know, multimillion dollar, where there is an element of security with going with a large tech services company and you see less and less of those today than you did a few years ago.
Today projects are smaller size, which puts us very competitively versus large tech companies. To really answer your question, I don’t think there is one answer to that question. It varies depending on customer and the size of the project. But by and large, where we win is our ability to react fast to what the customer wants, to deliver what the customer wants. And whenever there’s an escalation or a concern to react and fix it much faster than a larger company can. And that’s just a function of size. You know, small scale also should have some advantages and I think this is the one big advantage in this industry that we have.
Rohit
And how many active clients do you serve? Just a number.
Aditya Krishna
If you look at our reports, our top 20 customers, we’ve increased our share by 2 or 3% quarter on quarter. But in terms of total number of customers, we’ll have around 80 customers. We’ll have about 80 customers.
Rohit
Got it. Cool. Thank you very much. All the very best. Thank you.
Aditya Krishna
Thank you.
operator
Thank you. The next question is from the line of Arun, an individual investor. Please go ahead.
Unidentified Participant
Yeah, thank you for the opportunity. So wanted to understand why hasn’t there been any employee addition in this quarter and what could be the trend for this year. You know the tech services business is directly proportional to headcount. So if our headcount is grown by you know, 10 crores. No, I’ll get. I’ll let Neeraj answer this question. I’ll backtrack a bit. So.
Niraj Kumar Ganeriwal
If I hear you right, your question is our headcount has not grown much but our revenue has gone up. Is that your question?
Unidentified Participant
No, no. I was just wanted to understand the trend for the year and wanted to know the reason why hasn’t there been much increase in the headcount for the quarter?
Niraj Kumar Ganeriwal
Reason nothing being specific. It’s been a slow quarter. Our attrition has been at a good rate. We have been able to retain people and at the same time if you see our utilization has marginally gone up which means that we have been able to effectively utilize our existing resources to generate more revenues. Having said that, the trend obviously has to be better. As we move from 250 crores quarterly run rate to upwards, we would see headcount addition coming in because it would be a little bit proportionate if not completely in terms of increase in headcount versus the increase in revenues.
Unidentified Participant
Okay, got it.
Aditya Krishna
Sorry if I had missed earlier. So wanted to know what is the cash on the books for the quarter and do we have any acquisition plans for the FY26 year and if yes, what could be the size for the same.
Niraj Kumar Ganeriwal
Cash on the books? You know we’ve been having around almost 190 to 200 crores cash in the books. So that’s been around for some time. Obviously we have payments for our past acquisitions. If you’ve been following us, you will realize that we don’t make 100% payment upfront. We generally pay 50 to 60. 60% for an acquisition and the balance is paid over two to three years. So which is where the cash accumulates and it gets utilized. In terms of coming to your next part of the question, are we looking at any acquisition? I think we keep looking at the last year we have done three acquisitions and you know, if a good asset comes across we would be happy to look at it.
The general size is typically, you know, 8 to 10 million in revenues and profit making. That’s what we look at.
Aditya Krishna
Okay, thank you. Thank you.
operator
Thank you. A reminder to the participant. Anyone who wishes to ask a question may press star and one on their Touchstone telephone. The next question is from the line of Amit Agija from HG Hawa. Please go ahead. Yes.
Amit Agicha
Am I audible?
operator
Yes.
Aditya Krishna
Yes.
Amit Agicha
So My question was related to the attrition rate. Like what is the current attrition rate?
Niraj Kumar Ganeriwal
Current attrition? We are around 14%.
Aditya Krishna
Amit 141 4.
Niraj Kumar Ganeriwal
That’s right.
Amit Agicha
Yeah. Thank you. Thank you. That’s it for my sir. 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.
Aditya Krishna
We thank everyone for taking the time to participate in this call and for their interest in Saxoft. I hope you’ve been able to answer your queries. In case of any other queries, please reach out to us or our investor relations advisors, Valerim Advisors. Thank you everyone for joining us.
operator
Thank you. On behalf of Manarc Net Worth Capital Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.