Sasken Technol. Q2 FY27 Earnings Call — Analysis (NSE: SASKEN)
Sasken reported Q2FY27 consolidated revenue of ₹321 Cr (+25.6% YoY) with sharp EBITDA margin expansion to 12.9% (+700 bps YoY), driven by Software Services strength despite supply-chain headwinds in Product Solutions.
Result quality: strong — Margin expansion. Management sentiment: optimistic.
The take
Q2FY27 Consolidated Revenue ₹321 Cr ( +25.6% YoY ) . New guidance — 60x4x3 revenue target timeline delayed by 12 months . New story: Chip-to-Cognition Integration .
Results
Revenue stood at ₹321 Cr (+25.6% YoY, -5.4% QoQ) with EBITDA margin expanding 330 bps QoQ to 12.9% and PAT rising to ₹26 Cr (+143.8% YoY).
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Consolidated Revenue | ₹321 Cr | +25.6% | yoy · Q2FY27 |
| Consolidated Revenue | ₹321 Cr | -5.4% | qoq · Q2FY27 |
| H1 Consolidated Revenue | ₹660 Cr | +24.8% | yoy · H1FY27 |
| Software Services Revenue | ₹252 Cr | +34.0% | yoy · Q2FY27 |
| Software Services Revenue | ₹252 Cr | +14.6% | qoq · Q2FY27 |
| Product Solutions Revenue | ₹69 Cr | +2.4% | yoy · Q2FY27 |
| Product Solutions Revenue | ₹69 Cr | -42.0% | qoq · Q2FY27 |
| Gross Margin | 26.8% | +490bps | qoq · Q2FY27 |
| EBITDA | ₹41 Cr | +700bps | yoy · Q2FY27 · margin at 12.9% |
| EBIT | ₹29 Cr | +250bps | qoq · Q2FY27 · margin at 8.9% |
| PAT | ₹26 Cr | +143.8% | yoy · Q2FY27 · margin at 8.0% |
| Signed Order Inflow (TCV) | ₹395 Cr | +66.0% | yoy · Q2FY27 · $47 million TCV |
| Cash & Investments | ₹399 Cr | point_in_time · Q2FY27 · Sep-26 |
Guidance
Management stated 90-95% of H2FY27 revenue is secured by signed backlog and indicated the $240M revenue target (60x4x3 plan) faces an approximate 12-month delay.
What management committed to
- [Sasken Technologies] has secured almost 90% to 95% of memory required for FY2027 through supplier agreements, customer assistance, open market purchases, and moving configurations from DDR5 to DDR4. — 90% to 95%, FY27
- [Software Services segment] should be delivering single digit [QoQ] growth on a sustained basis for the foreseeable future. — single digit, H2FY27
- When [Sasken Technologies] scales the [Product Solutions] business up to approximately $12 million to $14 million per quarter ($60 million yearly), it will deliver about 10% to 12% EBITDA margins. — 10% to 12%, when scaled to $12M to $14M per quarter
- [Sasken Technologies] carries about 90% to 95% of revenues tied up for the second half of FY27 in signed-up backlog. — 90% to 95%, H2FY27
- The [60x4x3 strategic revenue plan to reach $240M] is on task but may be delayed by approximately 12 months. — delayed by 12 months, delayed by 12 months
Key themes
Margin expansion and ER&D momentum
How the narrative shifted
- Chip-to-Cognition Integration: Management positions its unified semiconductor design, embedded software, and ODM hardware capabilities as a key differentiator for winning integrated customer programs.
- Component Shortage Mitigation: Memory and component pricing pressures impacted Q2 Product Solutions shipments, but redesigns from DDR5 to DDR4 and proactive sourcing have de-risked H2 supply.
- Automotive Architecture Transition: Despite global OEM macro uncertainty, investments in High-Performance Compute (HPC), ADAS, software-defined vehicles, and EV architectures are sustaining demand for Sasken.
- Client Concentration De-risking: Management is deliberately broad-basing accounts under the 60x4x3 strategy to reduce reliance on top-5 clients and expand the $1M-$4M account tier.
- IP Licensing and Silicon Expansion: Sasken Silicon is leveraging custom silicon demand from hyperscalers to drive consulting services and build future royalty-yielding IP pipelines.
Operational commentary
- Won a 3-4 year multiyear telematics engineering program with a leading European automotive group, providing an entry point for broader OEM account expansion.
- Secured automotive cockpit and ADAS engineering engagements with a European OEM, and full-stack software/HMI work for an Indian EV company.
- Launched Juniper Alta, an end-to-end device developed and brought to shipment within 18 months via ODM capabilities.
- Secured 90-95% of required FY27 memory components by reconfiguring devices from DDR5 to DDR4 and sourcing through partner/open-market channels.
- Added 4 new logos in Q2FY27, expanding total active customer base to 101, and won back Best Buy as a client in the Borqs business.
- Utilization improved to 86%, while LTM attrition reduced to 9.3% and headcount grew by 7%.
Analyst Q&A
Q. What drove the sharp 14.6% QoQ increase in Software Services revenue, and is this growth rate sustainable?
Growth was driven by simultaneous ramp-ups across large deals won in prior quarters and rapid bench deployment. Management guided that forward growth will moderate to sustainable single-digit QoQ rates.
Q. Why has absolute revenue contribution from top 5 and top 10 clients declined over the past two quarters?
The decline is primarily due to lower Product Solutions shipment mix in total revenue; on the Software Services side, all top clients continued growing, aligned with a deliberate customer broad-basing strategy.
Q. What steady-state margins can be expected from the Product Solutions business as it matures?
At an annualized scale of approximately $60 million ($12M to $14M per quarter), Product Solutions should deliver 10% to 12% EBITDA margins.
Q. Can management provide a vertical-wise revenue or order book split, particularly for automotive?
Management declined to provide vertical-level splits, citing potential quarter-on-quarter volatility at their current revenue scale, though they noted all major verticals have healthy order books.
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