Kellton Tech Q4 FY25 results: Can AI-powered growth sustain its momentum into FY26?

Kellton Tech Solutions Limited (NSE: KELLTONTEC, BSE: 519602), a rising player in the mid-cap IT and digital transformation services space, has released its audited financial results for the fourth quarter and full fiscal year ended March 31, 2025. With revenue growing by 15.5% year-on-year in Q4 and 11.7% for the full year, the company has demonstrated the strength of its AI-first transformation strategy amid macroeconomic headwinds facing traditional IT service vendors. Its emphasis on intelligent automation, domain-specific modernization, and AI-enabled systems has begun translating into financial resilience and client trust.

At a time when large system integrators are experiencing pressure on deal conversion timelines and service margins, Kellton Tech appears to be moving against the grain. Rather than chasing scale through labor-intensive delivery, the company is building niche differentiation through domain-led, AI-driven engagements across sectors like energy, utilities, fintech, gaming, media, and healthcare. This approach has started to deliver not only client retention but also scalable revenue streams that are margin accretive.

Why Did Kellton Tech’s Revenue Grow in Q4 FY25?

During the March quarter, Kellton Tech recorded consolidated revenue of ₹2,873 million. This represents a sequential increase of 2.9% and a year-on-year increase of 15.5%, underscoring the growing adoption of its intelligent transformation services. The EBITDA for the quarter came in at ₹302 million, reflecting an EBITDA margin of 10.5%. Net profit stood at ₹192 million, translating to a PAT margin of 6.7%. The earnings per share (EPS) for the quarter was reported at ₹1.9.

For the full fiscal year 2024–2025, Kellton’s revenue reached ₹10,999 million, a growth of 11.7% compared to the previous year. The company achieved an annual EBITDA of ₹1,298 million, with an EBITDA margin of 11.8%. Net profit for the year stood at ₹798 million, corresponding to a PAT margin of 7.3%, while diluted EPS came in at ₹8.2. These numbers suggest a stable financial performance anchored in strategic execution, technology alignment, and sustained digital demand.

Management has attributed this growth to its ability to integrate advanced technology into client operations at scale. The company’s expansion into high-impact sectors, along with successful completion of complex projects, has created momentum that goes beyond short-term delivery. It reflects a maturing service model built around value, not volume.

What Are Analysts Saying About Kellton Tech’s AI Strategy?

Market observers are beginning to view Kellton Tech’s approach as a rare example of an Indian mid-cap IT firm embracing a truly AI-native transformation model. Unlike legacy outsourcing vendors, which still depend on headcount-driven scale and ERP maintenance contracts, Kellton is building its growth engine around solutions like autonomous AI, conversational GenAI, multimodal analytics, and predictive automation. These are not just buzzwords in company brochures; they are being deployed in real-world projects across multiple industries.

Niranjan Chintam, Chairman and Whole-time Director of Kellton Tech, reiterated that the company is taking a bold leap toward AI-first service models by embedding intelligent automation into core operational workflows for clients. He noted that their teams are actively rolling out next-generation capabilities, enabling businesses to anticipate trends, reduce system dependencies, and align technology stacks with long-term adaptability.

Kellton’s successful SAP S/4HANA implementation for a multinational client spanning 21 global entities was cited during SAPinsider Las Vegas and showcased again at the ASUG Dallas Chapter. The case exemplifies how Kellton is targeting large-scale enterprise transformation mandates, especially where legacy ERP, siloed data, and fragmented digital infrastructure hinder performance.

How Did Institutional Investors React to Kellton Tech’s Performance?

As of the May 30, 2025 trading session, Kellton Tech’s stock price closed at ₹128.05, marking a daily decline of 2.31%. The company’s 52-week range lies between ₹85.00 and ₹184.30, placing its current valuation at a forward-looking price-to-earnings ratio of 14.85. The stock has a total market capitalization of ₹1,248.67 crore and a free float market cap of ₹730.85 crore. While the share price saw a minor correction, the delivery-to-traded volume ratio of 45.84% indicates that retail and institutional investors are showing sustained interest and conviction in the counter.

Trading volume for the day stood at 6.93 lakh shares, with a traded value of ₹8.97 crore. While institutional activity from FIIs and DIIs remains moderate due to its small-cap profile, Kellton is beginning to attract niche interest from technology-focused fund managers and ESG-aligned portfolios. Given its emphasis on automation, sustainability, and industry modernization, the company may qualify as a candidate for thematic digital disruption strategies.

Investor forums have expressed a mixed but cautiously optimistic view. While some remain concerned about the volatility that accompanies small and mid-cap stocks, others are tracking Kellton’s ability to differentiate in a crowded tech space through intelligent productization and complex multi-vertical deployments.

What Projects Drove Client Wins and Operational Milestones?

Kellton’s operational success in Q4 FY25 was built around a mix of strategic client wins and project rollouts that spanned diverse industries. A standout initiative was the $2.5 million deployment of a real-time AI-integrated monitoring system for Oil India Limited. This project introduced predictive maintenance and real-time performance management across 77 wellheads—highlighting Kellton’s capacity for industrial IoT implementation and process optimization at scale.

In the power sector, Kellton designed and launched a centralized, AI-powered fuel management system that automated coal logistics, procurement, and reconciliation for a major Indian utility. Following its successful deployment, plans are underway to expand the platform across seven additional plants. Client feedback on this project reportedly praised Kellton for delivering automation with both precision and agility.

Another high-profile engagement involved supporting a global OTT platform with over 33 million users. Kellton managed a full backend migration with zero downtime, ensuring that more than 11,000 queries per second were handled without disruption. The platform continued to serve over 52,000 hours of content during the transition, a feat that the client called “Seamless. Scalable. Game-Changing.”

Other successful implementations during the quarter included a cloud-native resource optimization engine for a global gaming company, which reduced hiring effort by 65%, as well as an intelligent warehouse and logistics training solution for a manufacturing client. These were supported by Kellton’s SAP consulting division, which is gradually expanding with a dedicated team of AI-enabled consultants focused on delivery excellence in core enterprise systems.

How Does This Compare to Prior Years?

Kellton Tech’s transformation journey over the past five years reflects a strategic shift from commoditized IT services to domain-specific consulting and digital engineering. The company had previously built a name for itself through its mobility and ERP services. However, its current performance suggests that it has outgrown the legacy outsourcing tag, embracing a more sophisticated service mix built on AI, analytics, and cloud modernization.

Its inclusion in the Deloitte Technology Fast50 India list on four separate occasions and Forbes Asia’s “Best Under a Billion” list underscores the company’s strong execution credentials and growth consistency. With the AI economy maturing post-2023, Kellton’s platform-led delivery and proactive engineering models appear to be finding resonance with global clients seeking rapid digital transformation without vendor lock-in.

What’s Next for Kellton Tech Solutions in FY26?

Looking ahead, Kellton Tech has signaled an aggressive expansion roadmap. The company is investing in building global delivery centers, scaling its AI capability footprint, and targeting client acquisition in sectors such as energy, healthcare, media, and enterprise software. The management has confirmed its intent to deepen relationships with existing clients through long-term managed services models and to expand its presence in North America, Europe, and the Asia-Pacific region.

In parallel, the company aims to develop intellectual property and automation modules around common enterprise pain points, especially in predictive analytics, document processing, resource management, and user interface modernization. Its AI-first architecture will be central to these offerings, ensuring that scalability, flexibility, and security are built into every engagement from the ground up.

With industry tailwinds favoring companies that can help clients de-risk their legacy systems and embrace modular AI, Kellton may well be positioned for sustained outperformance. However, like all mid-cap IT firms, its success will depend on execution stability, hiring efficiency in high-skill areas, and the ability to protect margins in a competitive pricing environment.