01 — At a Glance
The Scrappy Tech Company Playing Chess in a Chess-Hating Market
- 52-Week High / Low₹498 / ₹250
- Q3 FY26 Revenue₹42.3 Cr
- Q3 FY26 PAT₹9.8 Cr
- Q3 FY26 EPS₹4.13
- Annualised EPS (Q3×4)₹16.52
- Book Value₹14.0
- Price to Book20.5x
- Dividend Yield5.39%
- Debt / Equity0.08x
- FY26 Div Per Share₹11 (YTD)
Auditor’s Speed Round: Q3 FY26 hit a record ₹42.3 Cr revenue (+12.2% YoY) with ₹9.8 Cr PAT. Management guided 20% revenue growth for full FY26—confidence level: very high, “if nothing happens in the world.” EBITDA margins at 32.4% in Q3 (vs. 26.4% in Q2), driven by “operating leverage and execution efficiency.” Year-to-date FY26 shows 9M revenue at ₹119.6 Cr (+14.9% YoY), but margins compressed intentionally—management calls it “strategic investment in events, marketing, senior hires, and ESOPs.” Translation: We’re spending now to own the future. P/B of 20.5x is spicy. ROCE of 157% begs the question: Are we a software company or a cash printer?
02 — Introduction
The Niche Software Outfit Nobody’s Heard of But Everybody Should Know
Ksolves India is not your Infosys. It’s not your TCS. It’s not even your Persistent Systems, though it’s starting to operate in the same league now — just much, much smaller. Founded in 2014, this ₹684 Cr market cap company is a CMMI Level 3 software development firm that specializes in the kind of work that makes CFOs lose sleep: data engineering, AI/ML, enterprise transformation, and the increasingly fashionable “Agentic AI.”
The company has 200+ active clients globally, ~60% of revenue from the US and Australia, and an ecosystem of wholly owned subsidiaries in New York, Dubai, and soon Australia. It’s neither a startup living on hype, nor a legacy enterprise drowning in process. It’s somewhere in between — hungry, smart, and occasionally delusional about what a small team can build.
Q3 FY26 Results: ₹42.3 Cr revenue (highest quarterly ever). Margins intentionally squeezed via growth investments. EBITDA margins recovering QoQ. And management casually announced a Data Flow Manager (DFM) product with “Agentic AI capabilities nobody has seen before.” The stock has fallen 27% in the past year, dropped 4% in the past 3 months. Now they’re telling you to watch out. Let’s see if they’re right.
Concall Gold: “If anything doesn’t happen with the world, we will beat the target 20%.” — Ksolves CMD (Jan 2026). Confidence is free. Execution is expensive. Let’s see which one they deliver.
03 — Business Model: The Consulting Playbook Met AI
Small Team. Big Clients. Bigger Ambitions.
Ksolves makes its living doing three things: (1) software development services for large enterprises using cutting-edge tech stacks, (2) ERP implementations via Odoo (which is somehow 20%+ of revenue), and (3) building products nobody asked for yet but they think you’ll need in 3–5 years.
Revenue breakdown: ~78% from overseas (US, UAE, Australia taking the lion’s share), ~22% from India. Client concentration is brutal — top 5 clients = 40%, top 10 = 54%, but there’s no customer moat. It’s a land-and-expand play repeated 200+ times over. Each engagement is typically $50K–$600K. The $600K deal (announced FY25) was the largest in company history. This is not the kind of business that scales via mega-deals. It scales via account stickiness and average deal expansion.
Core offerings: AI/ML, GenAI, Big Data, Salesforce, DevOps, Odoo ERP, digital transformation, cybersecurity, and a homegrown big data product called Data Flow Manager (DFM) that management insists is a “Cassandra-to-DataStax moment.” We shall see.
US Revenue %59%9M FY26: ~78%
Top 5 Client Mix40%Concentration
Repeat Revenue82%FY25: Sticky Base
Active Clients200+Global Portfolio
Product Strategy Roast: Management is betting big on DFM — a “commercial wrapper over open-source Apache NiFi” with claimed 70–80% cost reduction for enterprise data pipelines. Two customers onboarded, three trialing, three in NDA. Call it ambitious. Call it necessary. Call it what happens when a services company realizes the margin on products is better than the margin on billable hours.
💬 Have you worked with Ksolves on a project? Or encountered their DFM product? Drop a comment on your experience!
04 — Financials Overview
Q3 FY26: The Numbers That Matter
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