Ksolves India Q2 FY27 results: net profit down 13.8% to ₹7.25 crore, revenue down 4.7%

How did Ksolves India perform in Q2 FY27?

Ksolves India reported consolidated revenue of ₹37.80 crore for Q2 FY27, down 4.7% from ₹39.67 crore in Q2 FY26 and 8.8% from ₹41.44 crore in Q1 FY27. EBITDA was ₹9.73 crore, with margin at 25.7%, compared with 30.4% and 30.3%, respectively.

Profit before tax fell to ₹9.08 crore from ₹11.26 crore in Q2 FY26 and ₹12.17 crore in Q1 FY27. Net profit was ₹7.25 crore, against ₹8.41 crore and ₹9.21 crore, while basic EPS was ₹3.05 against ₹3.55 and ₹3.88. On the standalone basis, revenue was ₹35.93 crore and net profit was ₹5.92 crore.

What changed in Ksolves India's costs and profit?

Total expenses rose to ₹29.09 crore in Q2 FY27 from ₹28.54 crore in Q2 FY26, an increase of ₹0.55 crore or 1.9%. Employee cost was ₹20.85 crore, up ₹1.74 crore or 9.1%, while other expenses fell to ₹7.22 crore from ₹8.48 crore, a reduction of ₹1.26 crore or 14.9%.

Other income increased to ₹0.37 crore from ₹0.14 crore, a difference of ₹0.23 crore, and tax expense fell to ₹1.83 crore from ₹2.86 crore, a difference of ₹1.03 crore. There was no exceptional item in either quarter. Management attributed the year-on-year margin moderation primarily to lower revenue, partly offset by cost optimisation and AI-led productivity improvements.

Against Q1 FY27, total expenses fell by ₹0.86 crore to ₹29.09 crore, employee cost fell by ₹0.69 crore to ₹20.85 crore and other expenses fell by ₹0.12 crore to ₹7.22 crore. Other income declined by ₹0.30 crore to ₹0.37 crore and tax fell by ₹1.13 crore to ₹1.83 crore. There was no exceptional item.

How did the first half of FY27 go?

In the first half of FY27, consolidated revenue was ₹79.24 crore, up 2.5% from ₹77.34 crore in H1 FY26. Total income rose 3.5% to ₹80.28 crore from ₹77.57 crore, while profit before tax increased 4.8% to ₹21.25 crore from ₹20.28 crore.

Net profit for H1 FY27 was ₹16.45 crore, up 10.9% from ₹14.83 crore, and basic EPS was ₹6.94 against ₹6.26. The company reported no investor complaints received or pending as on 30 September 2026.

What do the balance sheet and cash flow show?

Total assets were ₹58.37 crore on 30 September 2026, compared with ₹62.05 crore on 31 March 2026. Total equity was ₹40.68 crore against ₹29.38 crore, while cash rose to ₹17.62 crore from ₹6.92 crore and borrowings fell to no borrowings from ₹1.50 crore. Trade receivables were ₹25.46 crore against ₹31.04 crore, and trade payables were ₹0.59 crore against ₹0.62 crore.

Operating cash flow for H1 FY27 was ₹21.99 crore, compared with ₹16.39 crore in H1 FY26. Investing cash flow was negative ₹0.22 crore against negative ₹0.15 crore, financing cash flow was negative ₹11.07 crore against negative ₹9.01 crore, and capital expenditure was ₹0.28 crore against ₹0.50 crore.

How has Ksolves India done over the last 8 quarters?

Revenue reached ₹43.03 crore in Q4 FY26 before declining to ₹41.44 crore in Q1 FY27 and ₹37.80 crore in Q2 FY27. Profit after tax was highest in the reported period at ₹10.32 crore in Q3 FY25 and was ₹7.25 crore in Q2 FY27, showing a lower direction at the end of the series.

The EBITDA margin rose from 25.6% in Q4 FY25 to 32.4% in Q3 FY26, then eased to 29.3% in Q4 FY26 and 30.3% in Q1 FY27 before ending at 25.7% in Q2 FY27. The revenue and profit figures therefore show a decline in the latest quarter.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026. The statutory auditors carried out a limited review and expressed an unmodified opinion on the standalone results.

The board declared a second interim dividend of ₹1 per share for FY 2026-27 on fully paid-up equity share capital. The record date was fixed at 29 October 2026, and the company said the dividend would be paid within the statutory time limit. The trading window was to remain closed until 27 October 2026.

The same-day investor presentation said the company won eight new client engagements, including three banking wins, and highlighted its Select Partner status with Anthropic and OpenAI. The company operates in one segment, Information Technology Services.

What did Ksolves India's management say?

Management said FY27 revenue would remain soft and trail FY26 levels, citing cautious client spending amid macroeconomic and geopolitical uncertainty. It maintained EBITDA margin guidance of 25%-30% for FY27, with scope for improvement in Q4 as recent wins ramp, and said BFSI contribution should improve from H2 FY27 as late-September banking wins begin work.

Management said three Q2 wins were in banking and that the company was building a broader pipeline to offset client-specific ramp-downs. It said utilisation and revenue per employee could improve by deploying engineers across platforms and filling existing capacity before fresh hiring, while FY28 was expected to return to revenue growth, although the previously discussed ambition of 20% or more was not formally committed.

Management identified cautious discretionary spending, two large-client ramp-downs, insufficient pipeline depth, billing seasonality, scarce banking skills and execution as risks. Cybersecurity remained exploratory, with no scope or launch plan decided, and management said the FY28 outlook depended on no geopolitical disruption.

Ratan Srivastava said: “To sum up, we expect FY27 revenue will remain soft and to trail last year’s levels.” He also said: “Holding both certifications confirms one thing. Ksolves is putting agentic AI into production for paying clients, not just running pilots.” He added that one person could deliver at least 2x to 3x what they were doing earlier.

How did Ksolves India shares react?

The stock moved lower after the filing: it fell 3.9% within 5 minutes, 3.7% within 15 minutes and 4.7% within 30 minutes. On the reaction day, it fell 12.0% from the previous close, compared with a 2.0% median decline for other Computers - Software & Consulting stocks, a 10.0 percentage-point underperformance.

By the next day's close, the stock was down 16.3% from its pre-results close, against a 0.9% median decline for the industry, a 15.4 percentage-point underperformance. By the fifth session, it was down 18.2%, compared with a 0.9% industry median decline, a 17.3 percentage-point underperformance. The Nifty Microcap 250 fell 2.3% on the reaction day, 1.9% by the next close and 2.0% by the fifth session.

Earlier reaction-day moves were 8.0% on 15 July 2026, negative 8.5% on 30 April 2026, negative 1.5% on 20 January 2026 and 0.8% on 16 October 2025. The stock had also fallen 12.5% on 20 July 2025.

How did other Computers - Software & Consulting companies do?

Thirty-three other Computers - Software & Consulting companies had filed for the quarter by 4 November 2026. Their median revenue growth was 13.6%, and all 33 grew faster than Ksolves India, while none grew slower.

Of the 32 peers for which profit was compared, 21 reported higher profit. Ksolves India’s consolidated revenue growth was below the peer median, while its net profit declined from the year-ago quarter.