Efficiency gains on outcome-based projects
20-30%
N/A
AI tools improve developer productivity by 20-30% on new projects.
KELLTONTECHSOLUTIONS
Information Technology
10 Feb 2026
Kellton Tech Solutions Limited — Q3 FY26
Kellton Tech reported Q3 FY26 revenue of ₹308 crore, up 2.7% QoQ, with EBITDA of ₹39.7 crore (12.9% margin) and PAT of ₹25.5 crore (8.3% margin).
✓ Verified against BSE filing
2-Min Summary
✦ AI-Generated from Full Transcript
Kellton Tech reported Q3 FY26 revenue of ₹308 crore, up 2.7% QoQ, with EBITDA of ₹39.7 crore (12.9% margin) and PAT of ₹25.5 crore (8.3% margin). Growth was driven by AI-led legacy modernization and ServiceNow deals, including a 4-million-line code conversion project. Management highlighted 20-30% efficiency gains on outcome-based projects via AI tools, but noted most clients restrict AI use in T&M contracts, limiting margin expansion. Guidance remains vague; no specific revenue or margin targets were provided. A key risk is that AI efficiency benefits may be passed to clients rather than retained, capping margin upside. The SAS sell-off was dismissed as a market overreaction, with management confident in enterprise demand.
Key Numbers
Lines of code in legacy modernization project
4 million
N/A
A 4-million-line 4GL to .NET migration project enabled by AI.
Microsoft solution partner designations
3
N/A
Achieved highest partnership level in Data & AI, Digital & App Innovation, and Infrastructure.
New client wins in Q3
11
N/A
Won 11 new clients including a global tech giant and a US telecom provider.
Key Risks
AI efficiency benefits may not accrue to margins
Management stated that most clients restrict AI use in T&M contracts and demand pricing concessions, limiting margin expansion from productivity gains.
medium · management_commentarySAS disruption could reduce addressable market
Analyst raised concern about SAS stock declines and AI replacing services; management dismissed as temporary but acknowledged potential impact on per-seat revenue.
low · analyst_questionData center opportunity still early stage
Management noted they are only at RFP stage for data center projects, with no revenue visibility yet.
low · management_commentaryNotable Quotes
We are seeing between 20% to 30% efficiency gains on new projects.
Majority of our customers are telling us we cannot use AI.
The SAS fiasco was just a market reaction to something that Anthropic Claude released. It really is nothing but about 11 or 12 widgets or plugins.
Frequently Asked Questions
What was Kellton Tech Solutions's revenue in Q3 FY26?
Kellton Tech Solutions reported revenue of ₹308 Cr in Q3 FY26, representing a — change compared to the same quarter last year.
What guidance did Kellton Tech Solutions management give for FY27?
Kellton Tech Solutions's management guidance will be added as new verified call summaries are processed.
What are the key risks for Kellton Tech Solutions in FY27?
Key risks include AI efficiency benefits may not accrue to margins — Management stated that most clients restrict AI use in T&M contracts and demand pricing concessions, limiting margin expansion from productivity gains.; SAS disruption could reduce addressable market — Analyst raised concern about SAS stock declines and AI replacing services; management dismissed as temporary but acknowledged potential impact on per-seat revenue.; Data center opportunity still early stage — Management noted they are only at RFP stage for data center projects, with no revenue visibility yet..
Did Kellton Tech Solutions meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Kellton Tech Solutions Q3 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary verified against official BSE/NSE filings.