Ksolves India Ltd

- Ksolves India Limited is not currently looking at any acquisitions or inorganic growth in the coming quarters. - As a result, the company does not intend to raise funds through debt or equity for acquisitions. - The company plans to continue with its current dividend payout policy (40% to 60% of profits) and focus on business growth without external funding. - No mention of any new fundraising through debt or equity was made for FY27 during the earnings call.

- No current or planned acquisitions or inorganic growth initiatives in the near term. - Focus is on organic growth, particularly enhancing IT services and embedding AI across operations. - No further significant investment planned in the DFM product; development is considered complete. - Strategic investments made in FY26 for capability building, senior leadership, ESOPs, branding, and events are largely non-recurring. - The company is investing heavily in AI for development and operations but treats these as operational expenses rather than capital expenditure. - Dividend payout will continue in the range of 40% to 60% of profits due to lack of acquisition plans. - Overall, the company aims to maintain margin discipline while investing internally for scale and AI-led efficiency rather than through capital investments or acquisitions.

- For FY27, Ksolves expects annual revenue growth of approximately 18% to 20%. - This is a moderation from previous higher growth rates due to a larger revenue base (current revenue approx. INR 162.7 crores). - The company is focusing solely on IT services for growth, moving away from product-related ventures like DFM. - Revenue growth is expected despite geopolitical uncertainties and some order delays, particularly related to the ongoing war affecting regions like UAE. - Continued investments in AI and talent are aimed at supporting scalable growth and improving efficiency. - The company anticipates maintaining a margin band of 25% to 30% with aspirations toward the higher side of this range. - Demand remains strong and execution momentum steady, with a focus on deepening client relationships and AI-led productivity gains.

- **Revenue Growth:** Ksolves expects annual revenue growth of around 18% to 20% in FY27, reflecting a moderated but solid growth due to a larger revenue base. - **EBITDA Margins:** Guidance for FY27 margins is a broad range of 25% to 30%, reflecting conservative estimates due to ongoing investments in AI, security, and potential geopolitical risks. - **PAT Growth:** While the margin guidance is wide, the company aspires to be on the higher side of the margin band; this implies potential PAT growth at least higher than revenue growth, but with some uncertainty due to investments and external factors. - **EPS:** Q4 FY26 EPS was INR 4.09; with expected revenue and margin growth, EPS is anticipated to improve in line with profit growth. - **Focus:** Emphasis on AI-driven efficiency to scale delivery and operational cost reduction suggests medium to long-term margin and profit growth potential. - **Dividend Policy:** Continuation of 40% to 60% profit payout indicates stable shareholder returns aligned with earnings growth.

- The company has acknowledged some delays in order releases, especially from the UAE market, caused by ongoing geopolitical conflicts (war). - These delays impacted Q4 growth, which was 1.7% quarter-on-quarter, lower than it could have been. - However, the situation is improving with orders and POs now being released again, leading to optimism about future growth. - For FY27, the company expects revenue growth guidance of around 18% to 20%, indicating a healthy order pipeline and deal wins aligned with this forecast. - Specific numerical details on orderbook or pending orders were not disclosed during the call, but management referred to the given revenue and margin guidance as reflective of expected deal conversions. - The company aims to deepen client relationships and leverage AI-led productivity to secure and scale deal wins in FY27.