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Orient Technologies sees profitability improve as managed services drive margins

Orient Technologies Limited has reported improved profitability for the quarter ended September 30, 2026, supported by a higher contribution from its managed services business and an improved revenue mix. The company’s board has also approved an interim dividend of Rs 2 per equity share for FY27.

On a consolidated basis, EBITDA increased 45.6 per cent quarter-on-quarter to Rs 22.45 crore in Q2 FY27, compared with Rs 15.42 crore in Q1 FY27. EBITDA margin expanded to 10.20 per cent from 7.57 per cent, marking an improvement of 263 basis points. Total income increased 7.99 per cent sequentially to Rs 220.06 crore.

Profit before tax rose 124.14 per cent quarter-on-quarter to Rs 14.74 crore, while profit after tax increased 126.66 per cent to Rs 11.72 crore. Earnings per share stood at Rs 2.56 for the quarter.

For H1 FY27, the company reported consolidated total income of Rs 423.83 crore, EBITDA of Rs 37.87 crore and profit after tax of Rs 16.90 crore. Its EBITDA margin for the half year stood at 8.94 per cent.

On a standalone basis, total income increased 8.09 per cent sequentially to Rs 217.64 crore. EBITDA grew 43.39 per cent to Rs 21.02 crore, with the margin expanding to 9.66 per cent from 7.28 per cent in the previous quarter. Profit before tax stood at Rs 13.65 crore, while profit after tax reached Rs 10.18 crore.

A higher contribution from the services business supported the improvement in the company’s revenue mix. Revenue from services increased to Rs 130.99 crore in Q2 FY27 from Rs 104.83 crore in Q1 FY27, registering sequential growth of approximately 24.95 per cent. Services accounted for around 59.60 per cent of revenue during the quarter, compared with 51.92 per cent in the previous quarter. Meanwhile, product revenue stood at Rs 88.78 crore, compared with Rs 97.09 crore in Q1 FY27.

The company continues to strengthen its services portfolio across infrastructure management, cloud operations, cybersecurity and technology lifecycle management, with a focus on long-term customer relationships and recurring revenue opportunities.

Orient Technologies is also investing in cloud architecture, modernisation and emerging technology capabilities. Ravindra Malpute, Head of Cloud Solutions at the company, leads its cloud transformation and innovation initiatives. An AWS Brand Ambassador, he has over a decade of experience in cloud architecture and digital transformation, with a focus on secure, scalable and cost-optimised AWS solutions. His areas of focus include cloud adoption and modernisation, security, operational excellence, Generative AI, Agentic AI, cloud automation and FinOps.

The company’s recognition as an Amazon Web Services (AWS) Managed Service Provider marks another development in its cloud services portfolio. The recognition supports its capabilities across managed cloud operations, infrastructure modernisation, security, optimisation and ongoing technology management for enterprise customers.

Orient Technologies is also advancing its OHMS 2.0 (Orient Hosted Managed Services) framework, which is structured around four pillars: Operate, Hedge, Modernise and Scale. The framework focuses on proactive infrastructure and technology management, cyber resilience and business continuity, cloud transformation and automation, and scalable managed technology services.

The company continues to expand its capabilities across cybersecurity, cloud infrastructure, end-user computing and digital transformation, focusing on enterprise requirements around infrastructure modernisation, cyber resilience, operational efficiency and secure digital adoption.

Commenting on the performance, Ajay Sawant, Chairman and Managing Director, Orient Technologies Limited, said, “Q2 FY27 marks an encouraging improvement in our operating performance, with consolidated EBITDA growing by 45.6% sequentially and EBITDA margins expanding by 263 basis points to 10.20%.

“A key driver of this performance has been the increased contribution from our managed services business, which continues to strengthen the quality of our revenue mix and support improved profitability. This reflects our strategic focus on building long-term customer relationships and expanding our services-led portfolio.

“Our AWS Managed Service Provider recognition and continued investments in OHMS 2.0, cybersecurity and digital transformation further strengthen our capabilities to address evolving enterprise technology requirements.

“As we move into the second half of FY27, our priorities remain focused on profitable growth, operational efficiency, working capital discipline and expanding our managed services business. We remain committed to creating sustainable long-term value for our customers, employees and shareholders.”

As of September 30, 2026, Orient Technologies’ order book stood at Rs 331.61 crore, representing business expected to be billed up to March 31, 2027. The company said its priorities for the second half of FY27 include strengthening its managed services portfolio, deepening enterprise customer relationships, expanding opportunities across cloud and cybersecurity, improving revenue quality and enhancing working capital efficiency.

The board has approved an interim dividend of Rs 2 per equity share for FY27, reflecting the company’s focus on shareholder returns alongside investments in strategic growth opportunities.

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