Sasken Technologies reported a 25.6% year-on-year revenue increase to Rs 321 crore in Q2 FY27. While software services surged, the product solutions segment faced a 42% sequential decline due to component supply constraints. The company ended the quarter with a strong cash position of Rs 399 crore and a 66% year-on-year jump in order book value, signaling confidence in maintaining growth momentum despite near-term volatility.
Sasken Technologies Q2 FY27 Financial Performance
Sasken Technologies reported Q2 revenue of Rs 321 crore with an EBITDA margin of 12.9%.
Reader Takeaway: Strong order book growth and margin expansion offset volatility in the product solutions business segment performance.
What just happened
Sasken Technologies delivered a strong second quarter, with consolidated revenue reaching Rs 321 crore, up 25.6% compared to the same period last year. A standout highlight was the expansion in profitability, as EBITDA margins improved by 700 basis points to 12.9%. This was driven by a favorable business mix, improved resource utilization, and operational efficiencies. Total contract value (TCV) for the quarter rose by 66% year-on-year to $47 million, providing strong revenue visibility for the coming half-year.
Why this matters
The company is navigating a split performance environment. Its software services arm is performing well, reporting 14.6% sequential revenue growth. However, the product solutions segment experienced a 42% sequential decline due to supply chain hurdles, specifically memory availability and pricing. Management has clarified that these challenges are logistical rather than structural, and they are working to stabilize the segment as they scale toward a target quarterly run rate of $12–14 million.
Operational Highlights
Operational efficiency improved as LTM attrition dropped to 9.3% and utilization rose to 86%. The company maintained a robust cash balance of Rs 399 crore. With 90% to 95% of projected second-half revenue already covered by signed orders, the company remains confident in its near-term outlook.
Risks to watch
Investors should note the high customer concentration, where the top 10 clients account for 63% of total revenue. Additionally, the strategic '60x4x3' growth plan is now expected to face a 12-month delay. The product segment also remains prone to lumpy quarterly results depending on shipment schedules.
What to track next
Watch for updates on the stabilization of memory supply chains for the product solutions segment and progress on the company's long-term strategic growth targets.