Orient Technologies Q3 FY26 results under pressure

Orient Technologies Ltd announced its financial performance for the third quarter and nine months ended December 31, 2025, reflecting supply-chain stress, margin compression and a strategic pivot toward managed services.

The quarter was marked by persistent global supply-chain disruptions, particularly affecting end-user computing and datacentre hardware availability. Semiconductor shortages, combined with AI-led demand for advanced datacentre infrastructure, resulted in extended lead times and higher input costs across servers, storage and enterprise devices.

These factors directly influenced Orient Technologies Q3 FY26 results.

Revenue and profitability snapshot

Q3 FY26 performance

• Revenue from operations stood at Rs 200.10 crore compared to Rs 206.85 crore in Q3 FY25.

• EBITDA was Rs 3.95 crore versus Rs 18.95 crore in the corresponding quarter last year.

• Profit before exceptional items and tax was at Rs (0.81) crore.

Temporary margin pressure was compounded by the loss of a large hyperscaler cloud services client. Associated OEM savings-plan costs further affected in-quarter profitability.

Despite these headwinds, the company continued executing contractual commitments to maintain customer continuity.

9M FY26 performance

• Revenue from operations rose to Rs 685.47 crore from Rs 578.85 crore in 9M FY25.

• EBITDA stood at Rs 43.24 crore compared to Rs 53.32 crore last year.

• Profit before exceptional items and tax was Rs 32.49 crore.

While quarterly performance reflected short-term pressure, nine-month revenue showed year-on-year growth.

Sectoral revenue distribution

For Q3 FY26, revenue contribution across verticals was as follows:

• Telecommunication: 2.47 percent

• BSFI: 27.39 percent

• Govt and PSU: 19.19 percent

• ITeS: 19.17 percent

• Mid-market and Others: 31.78 percent

The mid-market and others segment includes healthcare, manufacturing, infrastructure, real estate, logistics, education, e-commerce, conglomerates, energy and service industries.

Strategic wins during supply constraints

Despite hardware shortages, the company secured contracts across government, pharma, utilities and digital commerce.

Digital India Corporation mandate

Orient Technologies won a three-year managed services contract from Digital India Corporation, with average quarterly billing exceeding Rs 15 crore.

The engagement covers managed services for national digital platforms including UMANG and DigiLocker, spanning infrastructure, application support, security, scalability and modernisation.

This expands the company’s footprint in government digital infrastructure.

Hybrid cloud and datacentre expansion

The company secured a Rs 2.65 crore engagement to expand datacentre storage and implement disaster recovery capabilities for a power utility, aimed at enhancing business continuity and compliance readiness.

Quick commerce network modernisation

In the quick commerce segment:

• A leading player awarded a Rs 2.8 crore SD-WAN-as-a-Service contract to improve network visibility and dark-store uptime.

• Another company placed a Rs 6 crore order for a complete network stack, including firewall and Wi-Fi solutions for warehouse operations.

These wins reinforce the company’s services-led positioning even amid supply-side pressure.

Service Delivery Centre expansion

Orient Technologies inaugurated a Service Delivery Centre in Turbe, Navi Mumbai.

The facility is equipped with NOC and SOC capabilities, enabling 24/7 infrastructure monitoring, proactive threat detection, digital forensics and performance management.

Designed to support multi-vendor, cloud, cybersecurity and end-user environments, the centre operates on a high-availability, automation-driven architecture aligned with compliance standards.

Management view on headwinds and recovery

Ajay Sawant, Chairman and Managing Director, Orient Technologies Ltd, stated that Q3 was challenging due to semiconductor shortages and AI-driven datacentre investments globally, which absorbed advanced chip capacity and created pricing pressures.

He noted that non-availability of critical hardware components affected execution. Despite cost inflation, the company honoured committed orders to preserve long-standing customer relationships, even though it resulted in temporary margin compression.

He also confirmed that the loss of a hyperscaler cloud services client and absorption of OEM savings-plan costs had an immediate impact on revenue and margins.

Supply-side challenges are expected to continue into Q4. However, management indicated that strategic focus areas include managed services, subscription-led models such as DaaS, cybersecurity and unified infrastructure management.

Bonus issue and capital update

On January 06, 2026, the Board approved and allotted 41,64,174 bonus equity shares of Rs 10 each in a 1:10 ratio.

Following the allotment, paid-up equity share capital increased from Rs 41.64 crore to Rs 45.81 crore.

Outlook

Orient Technologies Q3 FY26 results reflect short-term pressure driven by external supply constraints and client transition.

At the same time, managed services contracts, government mandates and infrastructure modernisation projects indicate an ongoing shift in business mix. The coming quarters will determine how quickly margins stabilise as hardware supply conditions normalise and services-led revenue scales further.

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