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Small-cap IT stock Kellton Tech Solutions share price rallied over 19% in intra-day deals on Tuesday, February 17 on strong results posted for the quarter ended December 2025 (Q3FY26).

The small-cap stock jumped as much as 19.3% to its day's high of ₹20.37. It is still over 605 away from its 52-week high of ₹20.37, hit in July 2025. Meanwhile, it touched its 52-week low of ₹14.57 in January 2026.

The IT stock has lost 19% in last 1 year and 27% in past 6 months, however, it has jumped almost 20% in past 1 month.

Kellton Tech Solutions reported a steady improvement in profitability for the third quarter ended December 31, 2025 (Q3FY26), driven by margin expansion and deeper engagement in strategic digital transformation programmes, even as it continued to invest in AI-led capabilities.

Net profit for the quarter rose 22% year on year to ₹255 million in the quarter under review, supported by operating leverage and improved execution. Meanwhile, the IT services company posted total revenue of ₹3,088 million in Q3FY26, marking a 10.6% year-on-year increase compared with ₹2,793 million in the same period last year.

On the operational front, earnings before interest, tax, depreciation and amortisation (EBITDA) stood at ₹397 million in the December 2025 quarter, translating into an EBITDA margin of 12.9%.

Commenting on the performance, Chairman and Whole-time Director Niranjan Chintam said, “In Q3 FY26, we sustained double-digit year-on-year revenue growth to ₹3,088 million and delivered a 22% YoY increase in profit after tax, reflecting disciplined execution, improving operating leverage, and deeper engagement in strategic client programs.”

During the quarter, the company strengthened its positioning in AI-driven digital transformation, securing several high-value engagements across banking, telecom, manufacturing, and global enterprises. Key wins included AI-orchestrated payment transformation for global banks, agentic AI-based fraud prevention solutions for telecom players, and Generative AI applications for a United Nations agency.

The company also received Microsoft Solutions Partner recognition across Data & AI, Digital & App Innovation, and Azure Infrastructure, reinforcing its enterprise cloud and AI credentials.

Chintam added, “As enterprises move from GenAI experiments to outcome-led adoption, Kellton is positioning itself for scale, strengthening our proprietary KAI agentic platform, expanding reusable accelerators, and upskilling teams to deliver governed automation across the digital core.”

Looking ahead, the management expressed confidence in sustaining profitable growth, supported by a stronger deal pipeline, increasing AI-led engagements, and a continued focus on automation, modernisation, and measurable business outcomes for clients.

Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.

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