Sasken Technol. Q1 FY27 Results (NSE: SASKEN)
Signal: Margin expansion
The read
Q1FY27 marks the 5th consecutive quarter of EBITDA margin expansion (now 12.3%, up 500bps YoY), driven by operating leverage as employee costs grew slower than revenue. However, consolidated PAT quality is diluted by other income (32.7% of PBT). Standalone performance was stronger, suggesting subsidiaries weighed on group margins.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹3.39 Cr | 24.0% | -69.5% |
| EBIT | ₹0.31 Cr | 137.2% | |
| Net profit | ₹0.25 Cr | 163.3% | |
| EPS | ₹16.37 | 162.3% | |
| EBIT margin | 9.1% |
P&L walk
Revenue grew 24% YoY to ₹339.24 Cr, with both segments contributing (Software Services +24.2%, Product Solutions +23.6%). EBITDA margin expanded 500bps YoY to 12.3% — employee cost grew only 17.6% vs revenue 24%, driving operating leverage. PAT surged 163% YoY to ₹24.86 Cr, boosted by higher EBIT (+137%) and other income (32.7% of PBT). EPS ₹16.37 vs ₹6.24 YoY.
Segments
Software Services segment drove consolidated performance — segment profit ₹67.29 Cr (+62.5% YoY) vs Product Solutions profit ₹7.08 Cr (‑18.9% YoY). Software Services accounts for 65% of revenue and 90% of segment profit.
Key positives
- EBITDA margin expanded 500bps YoY to 12.3% — 5th consecutive quarter of margin expansion, indicating structural improvement in cost efficiency.
- Employee cost/revenue ratio fell 270bps YoY to 51.6%, demonstrating strong operating leverage.
- Software Services segment profit grew 62.5% YoY, with revenue up 24.2% — margin expansion within the core segment.
- PAT up 163% YoY to ₹24.86 Cr, driven by EBIT growth (+137%) and other income.
Key concerns
- Other income formed 32.7% of consolidated PBT — earnings quality is dependent on non-operating income.
- Product Solutions segment profit declined 18.9% YoY despite revenue growth of 23.6%, indicating margin compression in that segment from 9.0% to 5.9%.
- Consolidated revenue declined 69.5% QoQ (though Q4FY26 included a large spike of ₹334 Cr — likely seasonal/invoice timing).
Earnings quality: includes non-operating other income
Research and educational content only. Not investment advice.