Yes. Thanks for the opportunity. Just want to get some clarity about this right -shifting of the deal, which we observed. Whether it is broad-based or it is, let's say, some specific areas which are seeing some kind of delay in decision -making? And what would be the nature of it? Is it largely, let's say, macro or some client -specific situation, which is leading to delay in some of the decision-making? And second related question to first question is whether, let's say, because of some right-shifting, do you expect it to have revenue implication also compared to what you anticipated at the beginning of year because of right-shifting, any implication on full-year growth? Thanks.
Questions across 35 calls
Dipesh Mehta
Emkay Global
L&T Technology Services Limited
Just first on clarification side. Between this continued and overall combined business, I think margin gap seems to be 40 basis points in FY26. So, headwind from SWC used to be only 40 bps or there is any one-off in the numbers?
No, Rajeev, my question was FY26 combined business, you reported 14.1% margin and continuing operation, you reported 14.5% margin for the full year, which in a way the impression SWC dilution was around 40 bps. That is what I just want to understand?
Thanks for the opportunity. A couple of questions. First, about the $ 200 Mn deal intake, which we refer for five quarter on average basis, whether it is sufficient for us to meet our aspirational organic growth? Considering all the rationalization, what we are currently carrying out and optimal mix or let's say business mix chang e, which we envisage over the next couple of quarters? So, that is question one. Second question is about SWC and related to restructuring. First is whether you can q uantify impact of restructuring? Whatever we have carried out this quarter, you alluded 3-4 elements of restructuring. What would be the cumulative impact of that, if you can quantify? And last is about SWC business used to have a regular seasonality in Q4. Partly you indicated it is not only SWC, it is other part of business also where restructuring is heading out kind of thing. So, whether the usual seasonality, what we observe in the residual SWC, which we continue to execute, whether we will see in Q4. Thank you.
Let me ask it slightly different way. Considering whatever restructuring exercise, we are considering to make the organization future ready, do you think any impact on those extents on FY27 growth trajectory or we will end this exercise by year end?
Sonata Software Limited
Yes, thanks for the opportunity. A couple of questions. Just first want to get sense about the tweaking in the strategy planned in IIT S business. Can you help us understand what would be the focus area of investment , partly you covered in your prepared remark, but if you can elaborate further in terms of vertical and subvertical where you I think indicated some of the subvertical kind of strategy, so vertical and subvertical where we intend to make investment and how one should look at it from medium term perspective and if you can touch upon also M&A in that part, how M&A fit into overall growth strategy. Second question is about the overall IIT’s growth performance perspective, I think last four quarter largely remained flat is between 0% to 1% kind of growth rate. How one should look growth trajectory there? Earlier the growth was impacted for a couple of client specific issues as well as RMD vertical kind of challenges, can you provide some update on some of the challenges how we expect it to play out and last question is about the overall if I look let us say last four quarters there is a significant movement across vertical and GTM or service line so there is a sharp volatility kind of thing can you provide broad sense on near term demand trend and any specific headwind across this vertical and GTM which we report and which vertical likely to lead the growth? Thank you.
Thanks for the opportunity. Just want to understand the domestic business. Earlier we indicated about one client impact in last November and another client in H2O of FY2027 are we indicating that another client hit which was supposed to happen is unlikely to play out now and that gives us confidence about growth on sustainable basis from here on and second question on the margin, how one should look that business because when we indicated earlier about expansion to new client as well as new partnership usually it starts at either break even or loss, so which could have a ramification or margin trajectory. So if you can address both of these questions? Thank you.
No, international Sir, IITS.
Okay, so for international business we have not made any comment about growth trajectory?
Thanks for the opportunity. First question about the Quant. Can you give us the number cash payment paid for the earnout in this quarter? So, if you can give that number. Second thing is you said some revised cemented agreement for 3 years. Now we have made some provision for additional performance target for Quant. Those additional target has not been met. So, do we expect any reversal of those earnout or that reversal is unlikely to take place , because we have signed new agreements. If you can provide that clarity. That is on Quant. Second question is about the gross contribution weakness in domestic business. It is a bit surprised IT and ITES softness is there for now last many quarters. We are seeing sudden decline in gross contribution. So, if you can provide some more details , because it seems to be a bit unusual and that weakness is nothing specific for this quarter. If you can give some clarity. Third question is about TMT. We have signed $73 million deal in this quarter. If you can provide some sense about how that deal is likely to ramp up. And I presume it is separate than the April month, which the deal we signed. So, TMT might have some better benefit from this new deal ramp-up as well, entering into next 3 quarters. Thank you.
Can you give that number? Let's say in this quarter, what is the absolute number?
Firstsource Solutions Limited
Yes, thank you for the opportunity. A couple of questions. First, about just want to understand investment required to deliver on the strategy about intelligence that operate. How we intend to balance investment versus let's say our margin aspiration? And if you can give some sense about area of investment because you might require different kind of talent compared to let's say traditional hiring. So broad thought process around it? Second question is about the considering our portfolio and composition of revenue. What kind of additional deflation or headwind you expect because of AI-led productivity expectation in existing business? Third question is about the FY27 growth guidance. How you expect growth to play out because I think a couple of point you highlighted in your prepared remark about some of the deal which will take time to ramp up and all those things. Between H1, H2, how the growth trajectory play out? And last question is about FY26 versus FY27 organic growth if I look at it. You indicated about 1.5% M&A contribution in FY26, which in a way implies your 12% kind of organic growth in FY26, which is likely to moderate to around 9% kind of organic growth on midpoint considering 2.5% if I take as a number. So, seems to be slightly moderating where you have some advantage now in terms of some of the deal which were delayed likely to now start ramping up plus momentum is with you 1 billion plus pipeline. So if you can give thought process around it? Thank you.
H1 versus H2 in terms of the some of the deal will take time to ramp up kind of narrative.
Yes. Thanks for the opportunity. A couple of questions. Continuing with the prior question, just want to understand the impairment what we took for the asset which we acquired last year. So, if you can use some contour, whether it's the performance or synergy benefit what we anticipated is not playing out or how to understand that part? Second question is about the assumption. Now we maintain the guidance range , so if you can help us understand what the lower -end assumption versus upper -end assumption would be. And if you can provide some qualitative aspect, how we expect some of those assumptions to play out. Last question is about the UnBPOTM approach we are indicating. Is it possible to give some quantitative kind of thing? Let's say how many clients where we are seeing some kind of adoption of the approach? Or it is very wider approach and the way we sell is UnBPOTM approach and difficult to provide some number around it? But if you can provide some qualitative aspects around some of it, that would be helpful. Thank you, sir.
Ritesh, can you help us understand externally if we want to understand success and we want to monitor externally success on UnBPOTM approach, which 3 variables you would like us to focus on going forward with this?
A couple of questions. First about the margin guidance. If you can give us some sense about what are the puts and takes for lower end and upper end, the way we expect trajectory to play out, what are the variables which you consider to give the range? Second thing is about the PDC acquisition. Now that acquisit ion operated significantly higher margin than ours. Just want to understand, because we do have a sizable collection business, whether our margin profile will be less identical in the collection busin ess. And if let's say margins are different, what explain the margin difference and whether it is replicable into our business? So, we have that expansion in the margin. That is second question. Third question is about healthcare margin. Now your healthcare margin is maybe fairly low compared to let's say if I look your historical last 5-10 year average kind of thing. If you can provide some sense about the expected trajectory improvement, I understand because of some of the investment, or deal are likely to ramp up in the over period of time. But just to understand pace of exploration, because it may surprise us positively sometimes, sometimes negatively. So, how one should understand it? Thanks.
So, if I look at PDC, the proposed acquisition, their margin profile is almost 2x of where we operate. I am referring to their last year s’ performance. So, the question is two parts. First is whether our collection business operated similar margin profile. If the answer is no, whether we can replicate a superior margin of PDC?
MphasiS Limited
Yeah. Nitin, just to continue to some extent prior question, just want to get your sense on the diversification part. BFS is doing very well for us. Rest of the BFS, even pipeline growth is slower than BFS. I just want to understand to, let's say, get more diversified, more sustainable long -term growth. What kind of investment you envisage and plan in terms of leadership , capability, pipeline buildup in the remaining part of non -BFS business? That is question one. Second question is OCF to profit. We indicated 80%, but if I look your last 10 -year average, it's always above 100% kind of number. Now, it is obviously a step different than what we used to operate it. So, if you can provide broad thought process around it, whether the new way of working require relatively weaker cash conversion, so broad thought process on that part. And last question is ‘Everything - as-a-Platfor m’. Th at pipeline also grown significantly. Whether it is linked with the cannibalization of ERP kind of offerings? Thank you. And your overall thought process on it.
BIRLASOFT LIMITED
Congrats on strong execution, particularly on margin side. I just want to understand if you can provide some margin walk. Last quarter, in Quarter 2, we had some one-off of roughly around 150 bps. This time you indicated around 110 b ps. So, from Quarter 1 onwards, whether one should take almost 250-260 bps kind of one-off benefit, which is in there in the Quarter 3 margin trajectory? That is question one. So, broadly, margin walk and one-off related, some explanation, what is driving this one-off, and how long this could sustain? Second question is about our revenue growth side. Whether furloughs were similar to last year, or we have seen higher than usual furloughs this quarter? If you can provide some color around intensity of furloughs. And last question is about wage hike. Any decision we’ve made on wage hike?
In Quarter 3, whether we faced furlough in line with the last year or furloughs were higher than last year?
A couple of questions. If I go to Quarter 1 Earnings Call commentary, we made a couple of statements. First was about Q2 deal intake. If it is 160 -165 million, then Q3 will be growth quarter outside of furloughs. So, even though we sign sizably lower than that number and partly you indicated two deals slipped to Quarter 3, but whether including these two deal numbers will be closer to that number which you indicated for Q3 growth aspiration? That is question one. Second question is about our aspiration to clock 850 million deal kind of in FY’26. Considering H1 is already out, are we on track to deliver that kind of number which gives us confidence on FY’27 growth strategy? That was the, I think, management narrative last time. So, just want to get update on that part. Second question is on ETR. Can you help us understand what would be the ETR one should look in H2 and then FY '27, how one should look at it? Because last time we indicated Q1 level is a good level to take for the remaining quarters, but in Q2 there is further uptick. And last question is about Verticals commentary. Now, Manufacturing and E&U seem to be under pressure. While BFSI did better, but it is not, let's say, up to what in industry some of the players are delivering. So, if you can provide a broad color about the four verticals, how you expect H2 to play out?
Sorry to interrupt, Angan. So, let's say there is a gap of 60 million between what you expected at the end of Quarter 1 from deal signing perspective versus what you actually signed. Whether the two deal slippage which you indicated would be of that quantum?
Yes. Thanks for the opportunity. I just want to understand first about margin. I think you indicated about certain one -off in the margin. And if I look at employee benefit expenses, absolute term, it has declined sizably. So if you can provide what were the one -offs in Quarter 4? And do you expect it to continue in quarter 1 or it can provide a headwind to quarter 1 margin. That is question one. The second question is about the overall revenue growth trajectory. Let's say, if you look at FY '25, out of four, in three quarters we had sequential decline, and exit is also fairly weak for us. Now entering into FY '26, are we confident about, let's say, growth to resume from full year perspective , considering whatever pipeline we have seen built up, conversion, and overall client conve rsations what you have with the major clients ? If you can provide some sense about the growth trajectory? And last is about now we have sufficient cash; payout is still 35%. So we are generating good cash. How do you plan to use it, particularly from M&A perspective? And what is broad thought process around it? Thank you.
So two follow-up questions. First, on EBITDA margin. Now earlier, we always used to aspire to operate between 15% to 16% EBITDA margin trajectory. We are lower this year. Even let's say your commentary indicates we will be flattish. So roughly around 13% is what we aspire to deliver in '26. So by when do you expect, let's say, to revert back to our aspirational margin trajectory, which is above 15 percentage? And second question is about cas h accrual. Now investment is, obviously, there are two ways for investment to happen, one is organic, second is inorganic. Where you expect intensity to increase in terms of next 12 to 24 months, and the areas identified to make those investments? Thank you.
Cyient Limited
Yes. Thanks for the opportunity. Two questions. I think first question, you partly answered, but just want to get more detail . Outlook and growth driver across vertical and subsegment, if you can provide, particularly strategic unit, subsegment if you can give same in Transportation and Mobility. Aero you touched upon, but if you can touch upon Rail and other segments there. Second question is about the 15% EBIT margin which you indicated medium -term, I am not very clear whether we gave any timeline to achieve that part. Thank you.
Sir, just on the large deal intake, we have a healthy momentum and everything. Can you share some numbers? And if you can give context also, let’s say compared to prior period, 4 quarters, 3, 9 months, whichever way you can give some sense about how this deal closure is changing and how pipeline is changing.
Yes. So the question is about let's say, sequential revenue growth trajectory, considering the leadership augmentation as well as the investment which we are making in sales. Are we confident now going forward, our sequential revenue growth trajectory is on the upward curve? That is question one. Question two about the strategic unit. I think the comment which you made about two of the three business units grew. But when I look overall performance of the segment, it is sizably weak, decline kind of, when I look Y -o-Y, Q-o-Q. So if you can provide more detail around what constitute and how big is this segment -- subsegment rather? And if you can provide some detail around each subsegment growth trajectory or maybe demand kind of trend?
Yes. Sorry, my line got disconnected. And can you maybe, if possible can you repeat the answer?
LTM Limited
Yes, thanks for the opportunity. A couple of questions. First, I just want to get a sense about the demand outlook in three verticals if you can provide some sense any changes you witnessed, let’s say in last six months and the growth driver in BFSI, Consumer and High Tech. If you can provide some broad color on how you expect it to play out in calendar 2026 from growth perspective and maybe considering our some of the portfolio related things.. Second question is you indicated about project Lakshya and related things which you said you will share later which gives slightly medium term kind of perspective but is it possible to give some sense about, let’s say how we look overall AI portfolio and any plan to share some number around it. Thank you.
I understand. And maybe if I can squeeze last question about the sustainability of double-digit growth entering into next year because by exit, we intend to reach to closer to double digit. Considering overall market dynamics, I am not looking for specific guidance, just trying to understand overall thought process and whether it is possible to deliver. Considering overall progress what we made so far in terms of our deal funnel, deal closure and client conversation, do you think that it is likely to be sustained entering into next year?
Thanks for the opportunity. A couple of questions. So I think three questions. So first is about, let’s say we are indicating about double digit growth entering into H2. Considering the deal pipeline and overall strong momentum what we are observing, whether it would set the base for FY2027 kind of expectation? That is question one. Second question is about the net new portion in H1, whether it is different than the, let’s say, last four, six quarter what we observed in terms of net new in overall deal intake versus the past. Third question is about non-controlling interest. This quarter it seems to be much higher than usual pattern. If you can provide some sense what led to that jump. And last, if I can add more, is more medium term. If you can give some sense about AI adoption across our top client, and what kind of impact you have observed impact of AI on renewal. Thank you.
Non-controlling interest, if I look at P&L, it is around 20 odd Crores, which used to be a very small number only.
Infosys Limited
Yes. Thanks for the opportunity. Two questions. Firs t about the six areas of AI services pool, which you referred to. Can you provide some sense about the potential growth opportunities? And where, let us say, Infosys is currently and how you expect it to evolve in maybe next three to five years? Maybe if you can share some participation metric s, where we are and how you expect it to evolve? Second question is on the CY '26 budget. If you can provide some early indication on how you expect it to shape up? Thank you.
CY '26 budget.
Yes. Thanks for the opportunity. Two questions. Firs t about the six areas of AI services pool, which you referred to. Can you provide some sense about the potential growth opportunities? And where, let us say, Infosys is currently and how you expect it to evolve in maybe next three to five years? Maybe if you can share some participation metric s, where we are and how you expect it to evolve? Second question is on the CY '26 budget. If you can provide some early indication on how you expect it to shape up? Thank you.
CY '26 budget.
Coforge Limited
Yes thanks for the opportunity. Couple of questions. Just want to understand about utilization. I want to understand our optimal utilization range. Yes, so my question is about utilization. What is the optimal utilization range you are looking for? And in the context of it if I look at headcount addition, it is roughly a percent of this quarter, where we are expecting some of the large- deal ramp-up to play out in the next few quarters. So in that context, if you can provide some sense, that is question one. Second question is, if I look at your service mix, there is a sharp growth in engineering while IMS is SOAP . So I just want to get some sense because in geography also, America is very SOAP compared to the rest of the world. So there are some quarter specific nuances playing out if you can provide some colour around that. Thanks.
I understand. And last question about the Sabre deal ramp up, how one should look the ramp up, whether the linear equation is a good way to look at it the way it should contribute over a period of time?