Tech Resurgence: Celebrating a Landmark Moment for One of South Africa’s Pioneering Firms

Altron Group, listed on the Johannesburg Stock Exchange, has announced its most significant interim revenue growth in three years, with earnings rising to R5.1 billion for its continuing operations during the six months that ended on 31 August 2026.

Headline earnings moved up to 108 cents per share, a 24% increase from 87 cents per share during the same period in 2026, reflecting improved profitability for the company.

The overall revenue grew by 5%, and net profit after tax rose by 17% to R385 million, compared to R330 million from the previous year’s interim results.

Werner Kapp, CEO of Altron Group, attributed the firm’s strong cash flow and robust balance sheet as the reasons behind the board’s decision to raise the interim dividend by 15%, increasing it from 48 cents to 55 cents per share.

The Platforms division, encompassing core software services along with specialized segments like Netstar, which focuses on vehicle tracking and telematics, emerged as the main contributor to revenue growth.

Revenue from Platforms’ annuity sources grew by 11% to R2.2 billion, making up 92% of the total revenue for the segment, which itself accounted for 95% of the group’s operating profit during this half-year period.

An annuity denotes the reliable, recurring income a business unit earns on a regular schedule, typically through contracts or subscriptions, instead of from one-off sales.

“This reflects the benefits of the group’s disciplined capital allocation towards higher-quality, more predictable platform businesses and the quality of the Group’s earnings base,” Altron noted.

Netstar achieved a similar 11% increase in annuity revenue, totaling R1.2 billion, with the total number of subscribers climbing by 8% to 2.3 million during the reporting period.

In South Africa, the subscriber increase was 11%, while Altron indicated that its presence in Australia has stabilized and remains profitable, accounting for under 5% of total subscribers.

Altron FinTech surfaced as the primary contributor to the segment’s operating profits at R300 million, benefitting from a 61% rise in point-of-sale device rentals, which expanded to 30,000 units.

Altron HealthTech, the smallest segment of Platforms, also reported growth, with EBITDA rising by 13% to R76 million due to a 98% annuity base.

The company reported significant recovery in its IT Services sector, which had faced declines recently. This division recorded its first revenue growth in two years following a restructuring process.

In the previous year ending 28 February 2026, IT Services had suffered a substantial 54% drop in operating profit. This latest report shows a 62% increase in operating profit to R99 million from R61 million in the prior period, marking a notable recovery.

Management also highlighted that the adoption of AI tools within the AI Factory has surpassed expectations.

Over 100 AI-enabled use cases have been implemented across the organization, with more than 500 employees actively utilizing AI tools.

A prominent example resides within the Netstar division, which employs AI to streamline routine operations and gain deeper insights from mobility data.

Additionally, there are over 100 developers working on solutions in the company’s AI Factory, generating around two billion tokens daily across the factory’s offerings.

“Our focus remains on deploying proven AI capabilities across our operating companies to improve productivity, optimise costs and derive greater value from the platforms,” Kapp stated.

“While AI adoption in South Africa remains at an early stage and regulatory frameworks continue to develop, Altron’s approach remains disciplined,” the company added.