Orient hit by supply strains, wins new digital deals

Orient Technologies reported weaker third-quarter operating performance as supply-chain disruption and the loss of a large client weighed on margins, even as it pointed to new managed services contracts and a new service delivery centre.

Revenue from operations slipped to Rs. 200.10 crore in Q3 FY26 from Rs. 206.85 crore a year earlier. EBITDA fell to Rs. 3.95 crore from Rs. 18.95 crore. Profit before exceptional items and tax came in at Rs. (0.81) crore.

The quarter was shaped by shortages in end-user computing and data-centre hardware, driven by limited semiconductor chipset availability and strong demand linked to artificial intelligence investment in data-centre infrastructure. These conditions extended lead times and raised input costs across servers, storage, and enterprise devices.

Orient also disclosed the loss of a large hyperscaler cloud services client during the quarter. It said the associated economics included OEM savings-plan costs that reduced in-quarter revenue and profitability.

For the first nine months of FY26, revenue from operations rose to Rs. 685.47 crore from Rs. 578.85 crore in the prior-year period. EBITDA decreased to Rs. 43.24 crore from Rs. 53.32 crore. Profit before exceptional items and tax was Rs. 32.49 crore.

Revenue mix

In Q3 FY26, the largest share of revenue from operations came from Mid-Market & Others at 31.78%. Banking, financial services and insurance contributed 27.39%. Government and PSU accounted for 19.19%, followed closely by ITeS at 19.17%. Telecommunication made up 2.47%.

Mid-Market & Others includes healthcare, manufacturing, infrastructure, real estate, logistics, education, eCommerce, conglomerates, energy, and service industries.

Contract wins

Orient secured a three-year managed services contract from Digital India Corporation, with average quarterly billing of INR 15+ crore. The work covers managed services for national digital platforms, including UMANG and DigiLocker.

The engagement includes infrastructure and application support, security, scalability, and modernisation. The company said the win expands its role in government digital infrastructure work.

In the utilities sector, Orient won an INR 2.65 crore engagement to expand data-centre storage and implement disaster recovery for a power utility. The work is linked to business continuity and compliance readiness.

In quick commerce, a customer awarded an INR 2.8 crore SD-WAN-as-a-Service contract focused on network visibility and dark-store uptime. Separately, another quick commerce company placed an INR 6 crore order for a network stack, including firewall and Wi‑Fi solutions for warehouse operations.

The press material also referenced a hybrid cloud infrastructure project with a leading pharmaceutical company, but did not disclose contract value or further commercial details.

Service centre

Orient inaugurated a service delivery centre in Turbe, Navi Mumbai. The facility includes network operations centre and security operations centre functions, providing 24/7 infrastructure monitoring and threat detection. It also offers digital forensics and performance management, with an emphasis on multi-vendor and cloud environments.

Management view

Ajay Sawant, Chairman & Managing Director, said the quarter reflected broader pressure on hardware supply and pricing.

"Q3 was a challenging quarter for the industry, driven primarily by global semiconductor shortages and supply-chain disruptions affecting end-user computing and data-centre hardware. AI-led data-centre investments globally have absorbed a disproportionate share of advanced chip capacity, resulting in extended lead times and pricing pressures across mainstream enterprise infrastructure," said Sawant.

He also said they encountered a crucial hardware component non-availability during the quarter. In order to honour long-standing customer relationships, they fulfilled several contractually promised orders despite cost inflation. Sawant noted that, though there was short-term pressure on the margin, this improved their confidence and reaffirmed their reputation as a trustworthy partner.

"On the services side, the loss of a large hyperscaler cloud services client had an immediate impact on revenue and margins. Additionally, we absorbed OEM savings-plan costs associated with this client without corresponding revenue," he added.

The managing director also said it expects supply-side challenges to persist into the fourth quarter but added that its focus on managed services, subscription-led models such as device-as-a-service, cybersecurity and unified infrastructure management leaves it well positioned for recovery and margin normalisation.

"We remain committed to disciplined execution, strengthening OEM partnerships, and building long-term enterprise relationships. We thank our customers, employees, and shareholders for their continued trust as we navigate short-term headwinds while staying firmly focused on sustainable value creation," said Sawant.

Bonus shares

Separately, the board approved and allotted 41,64,174 bonus equity shares of ₹10 each in a 1:10 ratio to eligible shareholders. Following the allotment, paid-up equity share capital increased from ₹41.64 crore, representing 4,16,41,742 shares, to ₹45.81 crore, representing 4,58,05,916 shares.