Orient Technologies reported a profitable first quarter of fiscal 2027, driven by a strategic shift towards higher-margin services, increased recurring revenue, and recent acquisitions, despite industry constraints.
Orient Technologies said its first-quarter fiscal 2027 performance marked a return to profit, helped by a sharper focus on higher-margin services and the growing contribution of recent acquisitions. The company posted net profit of Rs 5.17 crore, reversing a loss of Rs 4.99 crore in the previous quarter, while earnings per share turned positive at Rs 1.13. EBITDA rose to Rs 15.42 crore from Rs 5.91 crore in the prior quarter, and management said the improvement reflected a deliberate shift away from lower-margin, project-heavy work.
Chairman and managing director Ajay Sawant told analysts the company is trying to build a more stable revenue base by expanding recurring business in managed services, cybersecurity and cloud. Recurring income made up 23% of quarterly revenue, and the company wants that to reach 51% within three years. Sawant said the business is being selective on orders and is not chasing revenue at the expense of margins, with the current EBITDA level expected to hold as the revenue mix changes.
Recent acquisitions are already feeding through to the accounts. Orient said Red Hut Innovation Technology added Rs 2.88 crore to revenue and Rs 50 lakh to profit before tax in the quarter, while Athena IT & Telecom Solutions and AIT Internet Services contributed Rs 37 lakh and Rs 30 lakh of profit before tax respectively. Industry reports earlier said Orient had bought Red Hut for Rs 5.75 crore and taken 46% stakes in Athena and AIT for a combined Rs 77.1 lakh, a move aimed at strengthening its cloud, connectivity and cybersecurity offerings.
The company is also betting on its newly commissioned network operations centre and security operations centre in Navi Mumbai, which uses Securonix technology and is meant to support future annual recurring revenue. Sawant said the customer response to its outcome-based services has been encouraging, particularly among digital-native businesses. But the company still faces constraints, including semiconductor shortages, tough pricing, a relatively thin EBITDA margin of 7.57% and a slower-than-planned rollout of its device-as-a-service programme. Management declined to give revenue or EBITDA guidance, saying uncertainty remains high, and said it was focusing on India rather than overseas expansion for now.
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