Sasken Technologies Q2 FY27 results: net profit up 24.8% to ₹25.59 crore, revenue down 39.3%

How did Sasken Technologies perform in Q2 FY27?

Sasken Technologies reported consolidated revenue of ₹320.95 crore for Q2 FY27, down 39.3% from ₹529.02 crore in Q2 FY26 and 5.4% from ₹339.24 crore in Q1 FY27. Total income was ₹330.24 crore, down 39.6% year on year and 5.4% sequentially.

EBITDA was ₹41.27 crore, up 39.2% from ₹29.64 crore a year earlier and 28.5% from ₹32.12 crore in the previous quarter. EBITDA margin rose to 12.9% from 5.6% year on year and 9.5% in Q1 FY27, a rise of 7.3 percentage points and 3.4 percentage points, respectively.

Profit before tax was ₹35.45 crore, up 33.9% year on year and 19.9% sequentially. Net profit was ₹25.59 crore, up 24.8% from ₹20.50 crore in Q2 FY26 and 8.8% from ₹23.52 crore in Q1 FY27. Basic EPS was ₹16.14, compared with ₹12.68 a year ago and ₹16.37 in the previous quarter. On a standalone basis, revenue was ₹186.46 crore and profit after tax was ₹28.93 crore.

What changed in Sasken Technologies' costs and profit?

Total expenses fell to ₹294.79 crore from ₹519.86 crore in Q2 FY26, a decline of ₹225.07 crore, or 43.3%. Cost of materials consumed declined by ₹72.09 crore to ₹51.32 crore, while employee benefits expense fell by ₹111.36 crore to ₹191.63 crore. Other expenses declined by ₹35.45 crore to ₹38.29 crore and depreciation fell by ₹5.62 crore to ₹12.78 crore.

Finance costs increased by ₹0.24 crore to ₹2.32 crore, while other income fell by ₹8.03 crore to ₹9.29 crore. Tax expense increased by ₹3.89 crore to ₹9.86 crore. The company reported no exceptional item in Q2 FY27. Against Q1 FY27, total expenses were lower by ₹24.55 crore, including a ₹38.51 crore reduction in cost of materials, while employee costs rose by ₹16.65 crore.

What do the balance sheet and cash flow show?

Total assets rose to ₹1323.75 crore at 30 September 2026 from ₹1166.1 crore at 31 March 2026. Total equity was ₹903.19 crore, compared with ₹875.22 crore, while cash increased to ₹94.46 crore from ₹57.21 crore. Borrowings stood at ₹108.05 crore against no borrowings in the previous balance sheet date.

Inventories increased to ₹94.48 crore from ₹35.31 crore, trade receivables to ₹204.16 crore from ₹174.73 crore, and trade payables to ₹60.82 crore from ₹34.08 crore. For the first half of FY27, operating cash flow was negative ₹0.23 crore, compared with negative ₹20.39 crore in the first half of FY26. Investing cash flow was negative ₹16.47 crore against positive ₹50.52 crore, while financing cash flow was positive ₹53.34 crore against negative ₹20.78 crore. Capital expenditure was ₹10.06 crore, compared with ₹11.04 crore.

How has Sasken Technologies done over the last 8 quarters?

Revenue reached a high of ₹529.02 crore in Q2 FY26 before falling to ₹250.13 crore in Q3 FY26, then rising through ₹334.02 crore in Q4 FY26 and ₹339.24 crore in Q1 FY27. It eased to ₹320.95 crore in Q2 FY27. The lowest quarterly revenue in the series was ₹144.52 crore in Q3 FY25.

Profit after tax bottomed at ₹9.03 crore in Q3 FY25 and rose year on year in each of the last five quarters. It was ₹25.59 crore in Q2 FY27, below the ₹29.00 crore recorded in Q4 FY26. EBITDA margin climbed from a low of 4.2% in Q3 FY25 to a peak of 12.9% in Q2 FY27, after easing to 9.5% in Q1 FY27.

Which businesses drove the quarter?

Software services reported revenue of ₹251.58 crore, down 31.0% from ₹364.45 crore in Q2 FY26. Segment EBIT was ₹81.0 crore, compared with ₹94.07 crore, and EBIT margin was 32.2%. Management said software-services growth is expected to moderate from Q2's 15% sequential growth to sustained single-digit growth for the foreseeable future.

Product solutions reported revenue of ₹69.37 crore, down 57.8% from ₹164.57 crore a year earlier. Segment EBIT was ₹4.86 crore, compared with ₹8.21 crore, and EBIT margin was 7.0%. Management said the segment has a healthy outlook for the next two quarters after securing 90–95% of FY2027 memory requirements.

What else did the company announce?

The board declared an interim dividend of Rs.12 (120%) per equity share of Rs.10 each for FY27. The record date was fixed at 3 November 2026, and the dividend was to be paid on or before 26 November 2026. The company filed the audited standalone and consolidated financial results for the quarter and half year ended 30 September 2026. The same-day filings did not announce a fund raise or appointments.

What did Sasken Technologies' management say?

Management said Q2 TCV reached $47 million, up 66% YoY, including $25 million of new bookings. It said 90–95% of H2 FY27 service revenue is already tied to signed orders and that FY27 memory needs are 90–95% secured. The company expects a healthy product-solutions outlook for two quarters, but did not provide consolidated quantitative guidance.

Management said product solutions should deliver about 10–12% EBITDA margin once quarterly revenue reaches $12–14 million, compared with the current run rate of $7–8 million per quarter. It expects software-services growth to moderate from Q2's 15% sequential growth to sustained single digits. The $240 million 60×4×3 revenue objective may be delayed by about 12 months and will be pursued through organic and inorganic growth.

Rajiv Mody said, “Our task is to convert these wins into steady program ramp-ups, disciplined delivery, and stronger returns.” He also said, “But these are all backed by firm customer orders. So there is zero risk on us holding on to the inventory.” Management identified memory availability, component pricing, customer decision timing, programme ramp-ups and overhead absorption as risks.

How did Sasken Technologies shares react?

The filing was released after market hours. From the price when the filing appeared, the stock was up 0.7% after five minutes, 1.9% after 15 minutes and 0.9% after 30 minutes. It closed the reaction day 1.4% above its pre-results close, while the IT Enabled Services industry median rose 0.3%. By the next day's close, the stock was down 7.1% from its pre-results close; the industry median was down 1.4%.

On the reaction day, the stock outperformed the industry median by 1.1 percentage points. By the next day's close, it underperformed the industry by 5.7 percentage points. Earlier reaction-day moves were 4.4% on 31 July 2026, 20.1% on 8 May 2026, 0.6% on 6 February 2026, negative 0.3% on 7 November 2025 and 1.6% on 14 August 2025.

How did other IT Enabled Services companies do?

Among 27 IT Enabled Services peers that had filed for the quarter, the median revenue growth was 22.5%. All 27 peers grew revenue faster than Sasken Technologies, while none grew slower. The company’s own revenue declined 39.3% year on year.

Of the 24 peers for which profit was compared, 18 reported higher profit. Sasken Technologies’ consolidated net profit of ₹25.59 crore was up 24.8% from Q2 FY26, even as revenue declined 39.3%.