Kellton Tech Unveils Phoenix.ai and Structy.ai Tools to Automate Legacy Code Transformation

Synopsis: Kellton Tech Solutions walked analysts through six fresh deal wins skewed toward AI-enabled modernization, unveiled two proprietary AI tools  Phoenix.ai for legacy code conversion and Structy.ai for enterprise data readiness and confirmed an ICRA rating upgrade to A- (Stable).

A Hyderabad-based IT services and digital transformation company presented a growth blueprint anchored in agentic AI products, deepened platform partnerships, and acquisition-led capability expansion at its latest earnings call  even as near-term US execution faces friction from macro uncertainty.

With a market capitalisation of Rs. 865.60 crore, the shares of Kellton Tech Solutions Limited were last recorded at Rs. 16.40 per share, down 2.50 percent from its previous close of Rs.16.82. The stock trades at a P/E of 9.69.

Six Deal Wins

The company secured six notable client mandates during the period, reflecting its sharpening focus on AI-ready infrastructure and workflow automation. A travel technology platform engagement covers the implementation of a cloud-native travel integration layer for multi-airline connectivity and real-time fare intelligence. A global payments enterprise has brought in Kellton to modernise internal financial applications for AI-enabled operations. Closer to home, a major Indian private bank has commissioned Kellton to deploy AI-powered video KYC for automated identity verification and regulatory compliance.

The remaining three wins are all ServiceNow-led: modernising finance and IT operations for a global engineering firm using the ServiceNow Accounting Center, optimising CMDB for a major cybersecurity company, and deploying IT orchestration for a global technology enterprise. These wins reflect the commercial traction from the Kumori acquisition, which brought a dedicated ServiceNow practice into the group.

Phoenix.ai and Structy.ai

The concall’s most differentiated disclosures were around product IP. Kellton announced Phoenix.ai, an agentic AI tool purpose-built for large-scale legacy code modernisation. Management cited a live deployment where a four-million-line legacy ERP codebase written in a third-generation language was converted to .NET, a task that the tool can automate at 80 to 90 percent, compared to the 20 to 30 percent automation rate that characterises current market solutions. If the benchmark holds at scale, it would represent a meaningful competitive moat in an underserved segment, given that most large enterprises still run mission-critical workloads on ageing codebases.

The second product, Structy.ai, is a data workflow automation framework co-developed with a global management consulting firm. Its design objective is to build an AI-readiness data layer for enterprises, the foundational plumbing that makes downstream AI deployments viable. The consulting firm co-development gives it immediate market credibility and an implied route to distribution through that partner’s client base.

Kellton is close to launching Journey, an AI-first B2B travel platform targeting the modernisation of global travel distribution. What stands out is the development velocity: management stated that by leveraging agentic AI  specifically citing Claude  the Software Development Life Cycle was compressed from an estimated eighteen months down to completing 80 percent of the solution within a single quarter. The reduction in build time has direct implications for both capital efficiency and time-to-market competitiveness if the company pursues further platform launches.

Partnership Ecosystem: Microsoft, ServiceNow, Snowflake

The company is executing a partnership-led growth phase centred on three ecosystems. Its Microsoft practice is already generating revenue and is expected to scale further in FY27. The ServiceNow practice, anchored by the Kumori acquisition, is being expanded from India into the US geography, a move management described as beginning to yield meaningful contributions this year. For the Snowflake practice, the company has brought in Pavani Arora to lead data and AI expansion, signalling intent to build a credible data engineering offering alongside its application modernisation capabilities.

On acquisitions, management was explicit: targets are evaluated purely on their ability to add capabilities, customers, or geographic access. Top-line financial optics are not a factor in deal screening, a philosophy that reflects discipline but also limits transformative scale through M&A.

US Friction and Working Capital Caution

Management acknowledged that the US market has underperformed expectations, though for identifiable reasons rather than structural market share loss. Geopolitical uncertainties have caused enterprise clients to delay final deal signings and project initiations despite large AI pipeline discussions. Separately, accounts receivable collections have slowed as US clients hold cash more conservatively in an uncertain economic environment, a pattern consistent with broader IT sector commentary on client caution in the current macro environment.

Management also flagged that clients are increasing scrutiny of vendor delivery models, demanding visible AI-driven efficiency gains even within traditional Time and Material engagement structures.

This commentary is worth tracking in conjunction with the balance sheet: Kellton’s debtor days stood at 108 in FY25, working capital days had stretched to 156, and operating cash flow conversion was just 16 percent of operating profit  meaning the company converted only Rs. 6 crore of operating cash against Rs. 128 crore of EBITDA in FY25. If US collection timelines lengthen further, free cash generation  which was negative at -Rs. 18 crore in FY25  could deteriorate further before it improves.

Business Overview

Incorporated as a digital transformation and IT services provider, Kellton Tech Solutions Limited offers agile software development, platform modernisation, digital commerce, ERP services, technology consulting, and testing automation to clients across the US, Europe, India, and Asia-Pacific. The company employs approximately 1,800 people and operates delivery centres in India alongside business development presence in the US and Europe. 

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Kellton Tech Unveils Phoenix.ai and Structy.ai Tools to Automate Legacy Code Transformation appeared first on Trade Brains.