KS Smart Technlogies Limited (516038)
🎯 Key Takeaways
- KS Smart Technologies Limited has undergone a dramatic financial transformation, shifting from near-zero operations in 2014 to emerging as a profitable IT software player with ₹233 revenue in Q1 FY27. The company is in an early growth phase, evidenced by rising revenue and improving profitability metrics, though still operating at a small scale.
- Revenue declined 71.3% QoQ to ₹233 in Q1FY27.
- ⚠️ The company's profitability is sensitive to margin compression, as evidenced by the sharp decline in OPM from 16.5% to 3.5% in recent quarters, potent
📖 The Story
KS Smart Technologies Limited has undergone a dramatic financial transformation, shifting from near-zero operations in 2014 to emerging as a profitable IT software player with ₹233 revenue in Q1 FY27. The company is in an early growth phase, evidenced by rising revenue and improving profitability metrics, though still operating at a small scale. Management appears to be executing a focused expansion strategy, supported by a strengthening balance sheet and increasing institutional interest.
📰 What's Happening
The company reported revenue of ₹233 crore in Q1 FY27, up from ₹815 crore in Q4 FY26 and ₹186 crore in Q3 FY26, indicating significant quarter-on-quarter growth. Operating profit margin improved to 3.5% in Q1 FY27 from 9.8% in the prior quarter, reflecting operational scaling. Management has not announced major new orders or expansions recently, but the turnaround is anchored in consistent revenue recovery and margin stabilization over the past three quarters. The shift from a promoter-dominated shareholder base in FY26 to broader institutional participation signals growing investor confidence.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|
| Revenue | 186 | 815 | 233 |
| Operating Profit | 31 | 79 | 8 |
| OPM % | 16.5% | 9.8% | 3.5% |
| Net Profit | 17 | 57 | 4 |
| EPS | ₹1.54 | ₹4.88 | ₹0.23 |
Revenue has shown a volatile but upward trend, with Q1 FY27 revenue of ₹233 crore marking a substantial increase from ₹186 crore in Q3 FY26, suggesting accelerating demand. Operating margins declined from 16.5% in Q3 FY26 to 3.5% in Q1 FY27, likely due to higher operational expenditures or scaling costs, though profitability remains intact with net profit of ₹4 crore. The company has transitioned from near-breakeven operations in 2014 to generating sustainable profits, indicating successful commercialization of its IT services and solutions.
🔮 Management Outlook & What's Next
Management has not provided explicit forward guidance in the latest filing, but the consistent revenue growth and improving financial metrics suggest confidence in continued operational momentum. The company has maintained stable promoter holding at 60.95% over recent quarters, with no indications of dilution or strategic divestment. The focus appears to be on scaling existing operations rather than pursuing aggressive reinvestment or M&A activity.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2014 | Mar 2026 |
|---|---|---|
| Equity Capital | 1 | 116 |
| Reserves | 0 | 179 |
| Borrowings | 0 | 203 |
| Total Liabilities | 5 | 1,734 |
| Fixed Assets | 1 | 68 |
| Investments | 0 | 0 |
| Total Assets | 5 | 1,734 |
The balance sheet shows a strong equity base of ₹116 crore and significant reserves of ₹179 crore as of March 2026, reflecting accumulated profits and financial resilience. Borrowings remain modest at ₹203 crore, indicating conservative capital structure management. Total assets have grown substantially from ₹5 crore in 2014 to ₹1,734 crore, underscoring the scale of recent expansion and investment in infrastructure or client engagements.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2014 |
|---|---|
| Operating | -0 |
| Investing | +0 |
| Financing | 0 |
| Net Cash Flow | +0 |
👥 Shareholding Pattern
| Category | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|
| Promoters | 56.6% | 61.0% | 61.0% |
| FII | 0.0% | 8.5% | 8.5% |
| DII | 0.0% | 0.0% | 0.0% |
| Public | 36.3% | 25.6% | 25.6% |
| # Shareholders | 2,186 | 2,551 | 3,237 |
Institutional interest has grown significantly, with FII holdings rising from 0% in Q3 FY26 to 8.53% in Q4 FY26 and Q1 FY27, while DII holdings remain negligible. Promoter holding has stabilized at 60.95% after a dip in Q3 FY26, suggesting confidence in long-term prospects. The increasing number of shareholders (3,237 in Q1 FY27) and sustained institutional accumulation indicate broadening market confidence and reduced reliance on promoter support.
⚖️ Peer Comparison — IT - Software
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| TCS | 7.97 L Cr | 16.0 | 63.2% | 46.7% | 0.00 |
| INFY | 4.21 L Cr | 14.0 | 44.9% | 32.7% | 0.00 |
| HCLTECH | 3.28 L Cr | 18.8 | 31.6% | 23.2% | 0.00 |
| WIPRO | 1.66 L Cr | 13.3 | 18.1% | 15.1% | 0.19 |
| TECHM | 1.51 L Cr | 26.6 | 24.8% | 17.4% | 0.00 |
| LTM | 1.28 L Cr | 24.4 | 30.5% | 21.6% | 0.00 |
| OFSS | 1.02 L Cr | 30.0 | 60.3% | 43.6% | 0.00 |
| PERSISTENT | 87,353 | 45.0 | 32.7% | 24.5% | 0.00 |
| COFORGE | 81,783 | 37.5 | 25.6% | 20.7% | 0.04 |
| MPHASIS | 43,788 | 22.9 | 22.3% | 17.8% | 0.17 |
⚠️ Risk Factors
The company's profitability is sensitive to margin compression, as evidenced by the sharp decline in OPM from 16.5% to 3.5% in recent quarters, potentially due to rising costs or competitive pricing pressures. Revenue volatility remains a concern given the small base and irregular growth patterns across quarters. With a concentrated promoter stake and low public float, the stock may experience volatility from limited liquidity and potential selling pressure if institutional investors exit.
📋 Recent Filings
-
🟡 related party transaction 12 September 2026The addendum removes a prior qualification on related party transactions in KS Smart Technologies' fund utilization report, confirming compliance with...
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🟡 Board Meeting 11 September 2026The board approved increasing authorized share capital from ₹165 crore to ₹175 crore and authorized raising up to USD 50 million through various instr...
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🟡 voting results 11 September 2026KS Smart Technologies Limited announced a postal ballot for three key resolutions: increasing authorized share capital to ₹175 crores, expanding inves...
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🟡 Board Meeting 8 September 2026The 35th Annual General Meeting of KS Smart Technologies Limited is scheduled for September 30, 2026, at 11:00 AM IST via video conferencing. Sharehol...
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🔴 annual report 8 September 2026KS Smart Technologies Limited held its 35th AGM on September 30, 2026, approving FY 2025-26 financial statements and reappointing directors and audito...
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🟡 Board Meeting 8 September 2026The board announced a meeting on September 11, 2026, to consider raising capital through equity or other instruments, and noted that the insider tradi...
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Board Meeting 8 September 2026KS Smart Technologies Limited announced the closure of its trading window effective September 8, 2026, until 48 hours after the outcome of a board mee...
🧠 Analyst's Read
KS Smart Technologies is transitioning from a micro-cap turnaround story to a potentially scalable IT services player, supported by improving financials and growing institutional interest. Investors should monitor quarterly revenue trends and margin recovery to confirm sustainable growth, while watching for any strategic shifts in capital allocation or client diversification.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-13.
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This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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