Risk Intelligence
Margin pressure from scaling lower-margin geographies
View Risks →Fidel Softech delivered a breakout Q4 FY26 with revenue of 37.27 cr (+155% YoY) and PAT of 5.37 cr (+32% QoQ), driven by strong organic growth and recent acquisitions in Japan and US.
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Fidel Softech delivered a breakout Q4 FY26 with revenue of 37.27 cr (+155% YoY) and PAT of 5.37 cr (+32% QoQ), driven by strong organic growth and recent acquisitions in Japan and US. Full-year revenue reached 102.35 cr (+85% YoY), with EBITDA of 19.29 cr (+52% YoY). The company maintained a balanced revenue mix (APAC 55%, US 27%, EMIA 18%) and generated positive cash flow, increasing cash reserves to 32.5 cr. Management reiterated a medium-term vision of 300 cr revenue in 3-3.5 years and a 5x growth target over five years, while aiming to sustain double-digit PAT margins. AI is seen as a demand multiplier, especially in Japan where pilot projects are expanding. Key risk: margin pressure from scaling lower-margin US/Japan business and integration of acquisitions.
Margin pressure from scaling lower-margin geographies
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Read Transcript →Q4 revenue grew 155% year-on-year, marking the 16th consecutive quarter of growth.
FY26 revenue crossed 100 cr milestone, up from 55 cr in FY25.
Cash reserves increased despite ~6 cr payout for acquisitions, indicating strong cash generation.
Earnings per share grew 47% year-on-year, reflecting improved profitability.
Management aims to sustain at least Q4 FY26 revenue level of 37.27 cr per quarter, implying annualized revenue of ~149 cr.
53% of revenue from US and Japan currently generates single-digit margins, which could compress overall profitability if not offset by scale.
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