All E Technologies Ltd Q2 FY26 – From Dynamics to Dramatics: Cloud Profits Rising While Stock Keeps Falling!
1. At a Glance
Ladies and gentlemen, welcome to the circus of cloud, code, and confusion — All E Technologies Ltd (AET), the company that helps others go digital while its own share price goes vintage. Trading at ₹242, the stock has dropped ~56% in the last one year, as if it mistook gravity for innovation. With a market cap of ₹488 crore, P/E of 16.1, and a ROE of 22.4%, this Microsoft partner has all the makings of a high-tech prodigy stuck in a mid-life identity crisis.
In Q2 FY26, AET reported revenue of ₹33.35 crore (down 7.1% QoQ) but managed to increase PAT to ₹7.38 crore (up 10.5% QoQ) — a classic IT move: lesser work, more profit. Operating margins stood at a healthy 20.1%, proving that even though sales slowed, efficiency partied harder.
Debt? Just ₹0.55 crore — the equivalent of a misplaced pen in Infosys’s budget. Promoters hold 50.06%, and there’s 0% pledge, so at least no one is mortgaging the dream. In short: cloud’s rising, profits are shining, but investors are still whining.
2. Introduction
All E Technologies — or as clients call them, “the Microsoft people who don’t sleep” — was incorporated in 2000, back when floppy disks were cool. Fast-forward 25 years, and they’ve become a full-fledged digital transformation enabler, offering everything from ERP & CRM to AI, Data Engineering, and Intelligent Cloud.
Their specialization? Helping enterprises move from Excel sheet nightmares to AI dashboards that pretend to know the future. They’ve completed 900+ project engagements across 30+ countries, which means somewhere in Switzerland, a CEO is watching his ERP crash at 2 a.m., and an engineer in Noida is fixing it with Maggi in hand.
But here’s the fun part — while AET helps businesses “go cloud,” its own stock price has gone underground. From ₹633 highs to ₹242, the stock has lost 60% of its charm. Yet, the company keeps delivering profits like an obedient coder with good Wi-Fi.
So what’s going on? Is the market missing something, or is the “All E” secretly short for “All Earnings, No Excitement”?
3. Business Model – WTF Do They Even Do?
In simple terms, AET is your IT plumber. They fix leaks in your business systems using Microsoft tools. Whether it’s ERP (Enterprise Resource Planning), CRM (Customer Relationship Management), or just CRY (when the system crashes on quarter-end), they have a solution.
Their offerings include:
Digital Core Modernization – They make old IT systems feel young again, like a Botox session for your backend.
Enterprise Applications – ERP, CRM, HCM, and Commerce platforms tuned to client needs.
Data & AI – Helping clients make sense of data that’s usually nonsense.
Process Optimization & Change Management – Basically telling employees, “Please stop using Excel for everything.”
System Integration – Making sure different software talk to each other without fighting.
They’re powered by Microsoft Dynamics 365 and Power Platform tools — like Power BI, Power Automate, and Power Apps — which help corporates feel they’ve entered the future, even if the only automation they get is automatic coffee breaks.
Their IP-led solutions include fancy names like EdTech365, Travel365, and Green Power, each designed to make niche sectors digital. So whether it’s a college, a travel company, or a renewable firm — AET finds a way to sprinkle Microsoft dust over it.
4. Financials Overview
Let’s crunch the latest quarterly numbers (₹ crore):
Metric
Q2 FY26 (Sep’25)
Q2 FY25 (Sep’24)
Q1 FY26 (Jun’25)
YoY %
QoQ %
Revenue
33.35
35.91
34.07
-7.1%
-2.1%
EBITDA
6.70
7.02
6.53
-4.5%
+2.6%
PAT
7.38
6.69
6.32
+10.3%
+10.5%
EPS (₹)
3.65
3.31
3.13
+10.3%
+16.6%
Commentary: Revenue dipped slightly, but profits grew — the IT version of “doing less, earning more.” Margins improved, tax was well-behaved, and expenses were controlled like a budget under a strict CFO. The company also continues to earn good other income, which some may call “interest,” others may call “divine intervention.”
If we annualize the EPS of ₹3.65, we get ₹14.6, giving a P/E of ~16x, which is cheaper than your average chai at a Mumbai airport lounge (if chai had margins).
5. Valuation Discussion – Fair Value Range
Let’s check AET’s fair value through three lenses:
(a) P/E Method: Industry median P/E = 25.3 AET current P/E = 16.1 Annualized EPS = ₹14.6
(c) DCF (Discounted Cash Flow) Method: Assume PAT CAGR 20% for 5 years, discount rate 12%, terminal growth 3%. Fair Value = ₹300 – ₹360 range
Fair Value Range (Educational Only): ₹290 – ₹360 per share Disclaimer: This fair value range is for educational purposes only and is not investment advice.
6. What’s Cooking – News, Triggers, Drama
Q2 FY26 Results: Revenue ₹33.35 crore, PAT ₹7.38 crore. Management proudly announced this like it’s a new iPhone launch.
Subsidiary Expansion: Incorporated a wholly owned subsidiary in UAE Free Zone (Jan 2025) — because every Indian IT firm dreams of a Dubai address.
Deviation Report: In Nov 2025, they reported a ₹4,377.6 lakh deviation in IPO fund utilization, later approved by shareholders. Basically, they reallocated funds — corporate yoga for capital.
New Contracts: Built BI and Analytics System for Zambia Electronic Clearing House — when Indian software meets African fintech.
Canadian Subsidiary: Strengthened ties with Maple Lodge Farms in 2023. Yes, chicken farms meet cloud farms.
Triggers ahead include expansion of AI-driven tools, global subsidiaries ramp-up, and recurring revenue from managed services. But investors seem to be saying: “First make your stock price digital too.”
