IT - Software Archives - ChartAlert®

AURIONPRO – Aurionpro Solutions – Q4 FY26 Earnings Call – 11-May-26

Aurionpro’s topline resilience hinges on MEA recovery and order book conversion; bottomline stability depends on capex productivity; margins face near-term pressure but structural uplift from full-stack ownership.

1–2 minutes

Also see: AURIONPRO – Aurionpro Solutions – Q4 FY26 Financial Results – 11-May-26

3-Scenario Framework

📊 Base Case (50% Probability)

Key Variables: MEA partial recovery (FY27), AI investments taper (H2 FY27), working capital managed at INR 200 crore.
Outcome: Revenue grows 18–22% (order book conversion 68–72%), EBITDA margin 19–20% (capex weighs but execution improves). Banking/TIG growth converges; margin stability via full-stack ownership.

COFORGE – Coforge Ltd – Q4 FY26 Earnings Call – 5-May-26

Coforge’s topline resilience (order book + framework deals) and margin expansion (AI + synergies) support double-digit EPS growth, but macro shocks or execution delays could pressure revenue conversion and FCF stability.

1–2 minutes

Also see: COFORGE – Coforge Ltd – Q4 FY26 Financial Results – 5-May-26

3-Scenario Framework

📊 Base Case (60% Probability)

FY27 delivers industry-leading revenue growth (~18–20% USD) driven by order book conversion (1.3–1.4x) and framework agreements (UK public sector). EBITDA 20.5–21%, EBIT 15.5–17% (consolidated) achieved via AI-led cost savings and G&A synergies. FCF-to-PAT ≥100% sustained. BFS recovers (+15% YoY), travel remains resilient.

AURIONPRO – Aurionpro Solutions – Q4 FY26 Financial Results – 11-May-26

Aurionpro’s FY26 delivered 20% revenue growth, stable EBITDA margins, and Equipment profitability inflection. Yet OCF collapsed to ₹5,589L vs ₹21,179L PAT (<30% conversion) from WC build and rising capex. At 16% ROE, compounding is intact, but FY27 hinges on WC discipline and FCF recovery.

1–2 minutes

🔍 Observations

Topline

Revenue from Operations grew 20.3% YoY (₹1,17,297L → ₹1,41,109L), driven by both segments; Software Services (+21.6%) and Equipment/Product Licenses (+17.8%) contributed proportionally.
Q4FY26 revenue of ₹34,557L was up 5.7% YoY vs Q4FY25 (₹32,695L) but declined 6.9% QoQ from Q3FY26 (₹37,103L) — a seasonal softness, not structural.
Software Services now comprises 66% of FY26 revenues vs 65% in FY25, confirming gradual mix shift toward higher-margin recurring business.

Bottomline

PAT from continuing operations grew 12.1% YoY (₹19,205L → ₹21,544L); including discontinued operations, total PAT was ₹21,179L vs ₹18,843L (+12.4%).
Q4FY26 PAT of ₹6,227L (continuing ops) is the strongest quarter of FY26, benefiting from a ₹199L exceptional gain and a significant deferred tax credit of ₹449L.
Discontinued operations continue to bleed at ₹365L/year — immaterial but persistent; resolution or divestiture is overdue.

Margins

EBITDA proxy (PBT before exceptional + D&A + Finance costs): FY26 = ₹26,223L + ₹3,928L + ₹1,017L = ₹31,168L on revenue of ₹1,41,109L → EBITDA margin ~22.1% vs FY25: ₹22,883L + ₹2,643L + ₹664L = ₹26,190L on ₹1,17,297L → 22.3%. Margins held flat despite significant employee cost expansion.
Employee costs surged 33.2% YoY (₹44,204L → ₹58,893L), rising from 37.7% to 41.7% of revenue — the single largest margin headwind; partially absorbed by operating leverage in segment results.
Net profit margin (PAT continuing / Revenue): FY26 = 15.3% vs FY25 = 16.4% — modest compression, attributable to wage inflation rather than pricing erosion.

Growth Trajectory

Revenue CAGR implied over FY25–26 is 20.3%; EPS (basic) grew 12.1% YoY (₹34.72 → ₹38.90), indicating earnings growth lagging revenue — a dilution and cost-absorption dynamic.
Equipment & Product License segment segment results surged 81.7% YoY (₹11,575L → ₹21,030L), suggesting either project mix improvement or one-time deliveries; sustainability warrants scrutiny.
ROE expanded from 14.8% to 16.0%, supported by retained earnings compounding on a growing equity base (₹1,50,838L → ₹1,74,467L).

COFORGE – Coforge Ltd – Q4 FY26 Financial Results – 5-May-26

Coforge’s FY26 delivered revenue scale, margin expansion, and stronger cash generation, with EBIT at 14.4% (16.6% Q4) validating leverage post‑Cigniti. Risks: receivables build, charges inflation, and Encora’s ₹2,21,935 Mn integration raising leverage/complexity. FY27 is prove‑it year; growth story credible, but re‑rating hinges on integration milestones.

1–2 minutes

🔍 Observations

Topline

Revenue surged 35.8% YoY (₹1,20,733 Mn → ₹1,64,027 Mn), driven by Cigniti amalgamation and organic wins across Americas and ROW; Q4 FY26 added 30.0% YoY and 5.2% QoQ, sustaining momentum into year-end.
Americas dominates at 56.9% of FY26 revenue (₹93,344 Mn, +41.0% YoY); ROW grew fastest at +67.8% YoY (₹13,863 Mn → ₹23,258 Mn), signalling geographic diversification.
Q4 FY26 revenue of ₹44,504 Mn is the highest quarterly print on record, confirming sequential acceleration.

Bottomline

PAT from continuing operations nearly doubled YoY: ₹9,635 Mn → ₹16,745 Mn (+73.8%), despite ₹2,260 Mn in exceptional charges dragging reported PBT.
Basic EPS (restated for 1:5 split) jumped from ₹24.60 → ₹46.44 (+88.8% YoY), reflecting both profit growth and operating leverage.
Q4 FY26 PAT of ₹6,662 Mn is 2.2× Q4 FY25 (₹3,059 Mn); deferred tax credit of ₹1,533 Mn in the quarter amplified reported PAT — underlying earnings strength is still robust but the tax line needs monitoring.

Margins

EBIT margin expanded 370 bps YoY: 10.7% (FY25) → 14.4% (FY26); Q4 FY26 reached 16.6%, the strongest quarterly margin, suggesting operating leverage is taking hold.
Employee costs as % of revenue: ₹92,161 Mn ÷ ₹1,64,027 Mn = 56.2% (FY26) vs. ₹72,241 Mn ÷ ₹1,20,733 Mn = 59.8% (FY25) — 360 bps improvement, the primary margin lever.
Professional charges nearly doubled YoY (₹13,902 Mn → ₹21,918 Mn, +57.7%), growing faster than revenue; signals integration costs or subcontracting intensity from acquired entities.

Growth Trajectory

Two-year revenue CAGR (FY24 base not provided, but FY25→FY26 alone at +35.8%) combined with EBIT CAGR of ~83% (₹12,942 Mn → ₹23,645 Mn) points to operating-leverage-driven scaling, not just top-line inflation.
ROW segment EBIT swung from –₹642 Mn (FY25) to +₹508 Mn (FY26), a full-year turnaround of ₹1,150 Mn — loss-making geographies are reaching breakeven, widening the group margin runway.
Encora acquisition (post-balance-sheet, April 23, 2026; ₹2,21,935 Mn consideration) will materially reset scale in FY27 but introduces significant integration and leverage risk.

LTM (formerly LTIMindtree) – Q4 FY26 Earnings Call – 23-Apr-26

Findings imply sustained double-digit revenue growth potential (AI, diversification) with margin stability (15–16%) contingent on execution of Lakshya’31 and cost optimization, while BFSI recovery and macro resilience remain key swing factors.

1–2 minutes

Also see: LTM (formerly LTIMindtree) – Q4 FY26 Financial Results – 23-Apr-26

3-Scenario Framework

📊 Base Case (60% Probability)

AI adoption accelerates in FY2027 as BlueVerse™ scales and large deals ramp up, offsetting BFSI top client’s gradual recovery. Revenue grows 7–9% YoY (broad-based across verticals/geographies), EBIT margins stabilize at 15–16% (wage hikes offset by productivity). Cash flow remains strong (FCF/PAT >75%).

PERSISTENT – Persistent Systems – Q4 FY26 Earnings Call – 21-Apr-26

Topline resilience hinges on AI scaling in BFSI/Healthcare and tech spend stability; margins depend on operational efficiencies offsetting cost pressures, while cash flow normalization is likely but contingent on unbilled revenue conversion.

1–2 minutes

Also see: PERSISTENT – Persistent Systems – Q4 FY26 Financial Results – 21-Apr-26

3-Scenario Framework

📊 Base Case (60% Probability)

AI adoption scales in BFSI/Healthcare (20%+ YoY growth), tech spend stabilizes, and macro headwinds (oil, Europe) moderate. Revenue grows 15–17% YoY in FY27, EBIT margins expand to 16% via AI efficiency. OCF/PAT normalizes to 90%+ as unbilled revenue clears.

INFY – Infosys Ltd – Q4 FY26 Earnings Call – 23-Apr-26

Topline growth hinges on AI services scaling to double-digit revenue share to offset structural deflation, while margins face asymmetric risks from acquisition dilution and productivity pass-throughs—prioritize scenarios where AI revenue % and client spend recovery are cross-validated.

1–2 minutes

Also see: INFY – Infosys Ltd – Q4 FY26 Financial Results – 23-Apr-26

3-Scenario Framework

📊 Base Case (50% Probability)

Geopolitical tensions stabilize, and AI services revenue reaches 8–10% of total (from 5.5%+ in Q3), offsetting 1–1.5% legacy compression. European Manufacturing impact contained at 75bps; Stratus contributes 25bps revenue, while Optimum closes in H1 FY27. Wage hikes limited to 50bps; Project Maximus delivers 40bps margin tailwind. Outcome: Revenue grows 2–3% YoY; margins hold at 20–21%.

TECHM – Tech Mahindra – Q4 FY26 Earnings Call – 22-Apr-26

Topline hinges on telecom resilience and BFSI/Manufacturing deal conversion, with 4–6% CC growth most probable; bottomline leverages fixed-price margin expansion (14.5–15% EBIT) but faces execution risk in AI scalability; margins benefit from pyramid optimization but require pricing discipline to sustain gains.

1–2 minutes

Also see: TECHM – Tech Mahindra – Q4 FY26 Financial Results – 22-Apr-26

3-Scenario Framework

📊 Base Case (50% Probability)

Key Variables: Telecom stabilizes (no major client losses) + AI productivity scales to 10–12% + BFSI/Manufacturing deals ramp.
Outcome: Revenue grows 4–6% CC (peer+1–2%); EBIT margin 14.5–15% (fixed-price gains). PAT grows 8–12%. ROCE hits 28–30%. Valuation rerates to 16–18x P/E on margin durability.

TATAELXSI – Tata Elxsi – Q4 FY26 Earnings Call – 21-Apr-26

Tata Elxsi’s FY27 hinges on 8–9% growth from Transportation and Healthcare, with Media volatility. PBT margin expansion to 27% depends on utilization, fixed‑price delivery, and AI productivity; 100–150 bps risk from currency/salary cycles. Offshore leverage supports 24–26% EBITDA, but GenAI scalability remains unproven.

1–2 minutes

Also see: TATAELXSI – Tata Elxsi – Q4 FY26 Financial Results – 21-Apr-26

3-Scenario Framework

📊 Base Case (50% Probability)

Key Variables: Healthcare deals close in Q1; Transportation grows high single-digit; Media & Comms stabilizes.
Outcome: Revenue grows 8–9%, led by Transportation (10–12%) and Healthcare recovery (5–7%). EBITDA margins expand to 25–26% on utilization gains and AI efficiencies. New verticals contribute <5% of revenue. Implication: In-line with guidance; margin trajectory supports valuation rerating.

HCLTECH – HCL Technologies – Q4 FY26 Earnings Call – 21-Apr-26

Topline growth hinges on AI-native service scaling and client spend recovery, while margins face structural pressure from AI deflation and cyclical headwinds; capital discipline and acquisitions remain key levers for offsetting organic softness.

1–2 minutes

Also see: HCLTECH – HCL Technologies – Q4 FY26 Financial Results – 21-Apr-26

3-Scenario Framework

📊 Base Case (50% Probability)

AI deflation stabilizes at 3–5%, and discretionary spend recovers modestly in H2 FY27. Client-specific headwinds persist but do not worsen. AI-native services grow 25% YoY, offsetting legacy declines. Acquisitions close in H2, contributing incrementally. Revenue growth: 2–3%; EBIT margins: 17.5–18.0%.