Sasken Revenue Soars 89.8% on Acquisition; Q4 Profit ₹29 Cr

Sasken Technologies announced strong financial results for the fiscal year ending March 31, 2026, driven by its recent acquisition.

Key Financial Highlights

The company reported a consolidated annual revenue of ₹1,151.87 crore for FY26, an impressive increase of 89.84%. This surge was primarily fueled by the acquisition of Borqs International Holding Corp.

For the fourth quarter of FY26 (Q4 FY26), consolidated revenue reached ₹349.36 crore, up 121.23% year-over-year. Quarterly profit after tax (PAT) stood at ₹29.00 crore.

Consolidated PAT for the full fiscal year FY26 was ₹58.65 crore, marking a 16.11% rise compared to the previous year. However, this profit growth trailed the rapid revenue expansion.

Impact of Acquisition

The acquisition of Borqs International Holding Corp, completed in August 2023, has significantly expanded Sasken's revenue base. This strategic move was aimed at bolstering digital engineering capabilities, particularly in IoT and automotive sectors, and extending the company's global reach.

While the acquisition has nearly doubled the company's top line, the lower profit growth relative to revenue highlights the ongoing integration process. Optimizing the acquired entity's contribution to the bottom line is a key focus.

Financial Health and Shareholder Returns

Sasken recommended a final dividend of ₹13 per share for FY26. Combined with interim dividends, the total payout for the year amounts to ₹25 per share, reinforcing its commitment to shareholder returns.

Consolidated total equity increased to ₹875.22 crore from ₹803.33 crore in the prior year, indicating a strengthening balance sheet.

Investor Watchlist

Investors will be closely monitoring the integration progress of Borqs International and the realization of expected synergies. Key concerns include potential margin pressures or integration costs from the acquired entity, as indicated by profit growth lagging revenue growth.

An exceptional item of ₹8.31 crore was recorded due to the estimated impact of new Indian Labour Codes, which affected the consolidated bottom line for FY26.

Company Background

Sasken Technologies provides digital engineering and application development services. It specializes in product engineering and digital transformation solutions across automotive, industrial, communications, and healthcare sectors. The acquisition of Borqs International was intended to enhance its offerings in connected devices and digital transformation.

Competitive Landscape

Sasken operates within the competitive IT services sector, focusing on digital and product engineering. Key peers include KPIT Technologies (automotive software), Tata Elxsi (automotive, media, product design), and L&T Technology Services (broad R&D across sectors). These companies also show strong revenue growth in high-growth tech segments.

Looking Ahead

Key focus areas for Sasken in the coming periods include:

• Management commentary on the integration of Borqs and synergy realization.
• Future guidance on revenue and profit growth, with an emphasis on margin expansion.
• Metrics showing the operational efficiency and profitability from the Borqs business.
• Strategies for leveraging its expanded service portfolio in core verticals.
• The consistency of future dividend payouts.