Ksolves India’s revenue falls 4.7% to 37.80 crore rupees in second quarter
Key Facts
Ksolves India reported revenue from operations of 37.80 crore rupees in the second quarter of fiscal 2027, ended September 30, 2026, down 4.7% year on year and 8.8% from the previous quarter, according to the company’s investor presentation. EBITDA margin fell to 25.7% from 30.4% in the year-earlier quarter. The margin was within the company’s annual guidance range of 25% to 30%. Net profit after tax declined to 7.25 crore rupees from 8.41 crore a year earlier. Earnings per share fell to 3.05 rupees from 3.55 rupees, making the quarter a combination of lower revenue, profitability and margins.
The company said weaker revenue was linked to some clients reducing the scope of their work and caution in technology spending. It said one large account had begun increasing activity again, but it did not expect an immediate recovery in revenue. On the results call, the chairman said, "Fiscal 2027 revenue will remain weak and fall below last year’s levels." He attributed this to client caution amid global economic and geopolitical uncertainty. He added that the sales pipeline was not deep enough to offset the slowdown at some accounts during the quarter, limiting the ability of new business to quickly close the gap.
The first-half picture was stronger than the standalone quarter, with revenue rising 2.5% year on year to 79.24 crore rupees. Net profit after tax increased 10.9% to 16.45 crore rupees over the same period. Net profit margin rose to 20.8% from 19.2%, an increase of 158 basis points. By contrast, EBITDA margin declined to 28.1% from 28.5%, down 35 basis points. The comparison shows that first-half revenue and profit growth coincided with a modest decline in operating margin, despite a larger contraction in second-quarter margin compared with the year-earlier period.
The company declared a second interim dividend of 1 rupee per share, taking total interim dividends for fiscal 2027 to 5 rupees per share. The top 10 clients’ share of revenue also fell to 54% in the first half, compared with 57% in the year-earlier period. The company had 495 employees, versus 553 a year earlier. These figures point to changes in the client base and workforce alongside a slowdown at some large accounts. The company did not link these changes in its disclosure to any single cause of weaker revenue.
Ksolves shares closed at 215.66 rupees on October 23, down 11.98% from the previous close, according to published trading data. The decline followed the results announcement, based on the closing data dates, though the available information did not specify how much of the move reflected the results alone. Across the Indian economy, preliminary data on October 23 showed the services purchasing managers’ index rising to 56.2 points in October from 55.2 in September. In contrast, the manufacturing index fell to 54.9 from 55.1, as slower hiring dragged the factory gauge lower despite an increase in output. The flash composite index rose to 56.7 points from 55.9 in September, exceeding the Reuters poll average of 56.1 points.
The company expects a recovery to begin in the fourth quarter of fiscal 2027, as one large account resumes expansion. This timing makes a second-half improvement contingent on broader activity at existing accounts and sales opportunities converting into revenue. At the same time, management maintained its outlook that fiscal-year revenue would remain weaker than the previous year because of client caution. Second-quarter EBITDA margin remained within the company’s annual guidance range. Markets will watch in the fourth quarter to see whether the large account’s expansion translates into the recovery the company indicated.