AI-Stock Under Rs 20: Kellton Tech to acquire 100% stake in Kumori Technologies Services Pvt Ltd worth Rs 52.50 crore!

Kellton Tech Solutions Ltd., a publicly listed global leader in AI and digital transformation headquartered in Hyderabad, has announced a strategic move to strengthen its capabilities. Pursuant to Regulation 30 of the SEBI Listing Regulations, the company’s Board approved the acquisition of Kumori Technologies Services Private Limited for an aggregate cash consideration of up to Rs 52.50 crore. Upon completion of the investment, Kellton Tech will hold 100 per cent of Kumori's paid-up share capital, making it a Wholly Owned Subsidiary (WOS). The acquisition is structured with an Up Front payment of approximately Rs 26.50 crore to be completed by Q3 of FY 2025–26 and subsequent Earn-Out Payments of Rs 26 crore based on Kumori's performance over the following three financial years. This transaction is classified as an arm's length deal and does not fall under the purview of a Related Party Transaction.

This strategic acquisition aims to significantly bolster Kellton Tech’s platform-led digital transformation services by integrating Kumori, a specialised ServiceNow-focused IT services firm established in 2018. Kumori, which operates from Bangalore and Jaipur and has executed complex European implementations, offers consulting, implementation and managed services across key areas like ITSM, ITOM, HR and Security Operations, with complementary skills in cloud and DevOps. The primary object and impact of this acquisition are to accelerate high-margin consulting and managed services, expand geographic reach and deepen enterprise accounts through advanced workflow automation and AI-driven integrations powered by ServiceNow. Kumori reported a consolidated turnover of Rs 18.56 crore in FY25 and this integration is expected to enhance Kellton Tech’s market position in the rapidly growing IT services and consulting industry.

About the Company

Kellton Tech Solutions Ltd. is a publicly listed global leader in AI and digital transformation, founded on the belief in Infinite Possibilities with Technologies. Headquartered in Hyderabad, India and supported by more than 1,800 employees across delivery centres and offices in the United States, Europe and the Asia-Pacific region, Kellton serves a diverse portfolio of clients across industries--including BFSI, manufacturing, hospitality, retail, healthcare, energy and the public sector. With deep expertise in Agentic AI, enterprise application modernisation, cloud engineering, data and analytics, IoT and process automation, Kellton delivers transformative solutions powered by innovation. Its proprietary platforms and services have earned recognition from leading analysts: Kellton has been named a Leader in Zinnov Zones for ER&D Digital Engineering and Experience Engineering and recognised by ISG and Avasant for its SAP services.

Kellton Tech Solutions Ltd. announced its financial results for the Second Quarter ended September 30, 2025 (Q2 FY26), reporting a substantial Year-over-Year revenue growth of 11.1 per cent. The total revenue for the quarter stood at Rs 300.90 crore, marking a 1.6 per cent sequential increase compared to the previous quarter's Rs 296.10 crore. The company's profitability metrics were strong, with an EBITDA of Rs 37.80 crore, translating to an EBITDA margin of 12.6 per cent. The net profit for the quarter was Rs 24.10 crore, achieving a PAT margin of 8 per cent and an EPS of Rs 0.42.

The company's promoters hold 38.70 per cent stake as of September 2025 and the stock trades at a PE of 14x whereas the industry PE is 33x. The company has a market cap of over Rs 1,000 crore. The stock is up 8 per cent from its 52-week low of Rs 19.01 per share and a whopping 70 per cent in 3 years.

Disclaimer: The article is for informational purposes only and not investment advice.