Sasken Technologies Reports Strong FY26 Growth, Recommends Dividend

Sasken Technologies announced its audited financial results for the fiscal year ended March 31, 2026, revealing a significant surge in revenue. Consolidated revenues reached ₹1,113.17 crores for FY26, marking a 102.1% increase year-on-year. Profit After Tax (PAT) for the fiscal year stood at ₹58.65 crores. The company also reported consolidated revenues of ₹334.02 crores and PAT of ₹29.00 crores for the fourth quarter of FY26.

The Board recommended a final dividend of ₹13 per equity share, subject to shareholder approval. This brings the total dividend payout for FY26 to ₹25 per share, including the interim dividend. In a move underscoring financial oversight continuity, the Board also proposed the re-appointment of M/s. MSKA & Associates LLP as Statutory Auditors for a second term, spanning up to five years.

New Reporting Segments Reflect Strategic Focus

Sasken has adopted new segment reporting, distinguishing performance between 'Software Services' and 'Product Solutions'. This shift reflects strategic realignments following recent acquisitions and an intensified focus on integrating Artificial Intelligence (AI) across its offerings.

Acquisitions Fuel Significant Revenue Growth

The impressive 102.1% year-on-year revenue growth highlights the successful integration of recent acquisitions, notably Borqs Technologies, and strong market demand for its digital engineering services. The total order book for FY26 was valued at $35.4 million, with $21.6 million secured from new business wins.

Exceptional Item Impacts Profitability

An exceptional item, amounting to an estimated ₹830.80 lakhs, impacted PAT in FY26. This provision relates to employee benefits arising from new labour codes. Potential for further implications based on future government notifications is noted.

Company Background and Acquisition Impact

Sasken Technologies is a digital engineering and transformation services company serving telecom, automotive, industrial, and consumer electronics sectors. Its acquisition of Borqs Technologies in November 2022 significantly bolstered its capabilities in IoT software, Android-based devices, and 5G solutions, acting as a key driver for recent revenue performance.

Peer Performance Snapshot

In the competitive digital engineering sector, Sasken operates alongside larger peers. Tata Elxsi reported FY26 revenue of ₹3,572 Cr and PAT of ₹772 Cr. Persistent Systems posted FY26 revenue of ₹8,537 Cr and PAT of ₹1,435 Cr. KPIT Technologies achieved FY26 revenue of ₹3,725 Cr and PAT of ₹732 Cr. Sasken's rapid growth is from a smaller base compared to these established players.

What to Watch Next

Key areas for investors and the company to monitor include shareholder approval for the final dividend, the continued realization of synergies from the Borqs Technologies integration, and the execution of its strategy to embed AI across client deliveries. Any further implications from the new labour code provisions will also be watched closely. The performance of the new 'Software Services' and 'Product Solutions' reporting segments, alongside new business wins, will be critical indicators.