Excelsoft Technologies Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Excelsoft Technologies Ltd filed with BSE on 13 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Excelsoft reported Q1 FY27 revenue of INR802.63 million, up 44.05% year-on-year, driven by 177% growth in its education technology services business. EBITDA rose 29.78% to INR130.31 million while EBITDA margin declined to 16.24% from 18.02%, which management attributed to investments in nearshore delivery, global sales expansion, and one-time recruitment and AI training costs. Profit after tax grew 57.13% to INR92.28 million, and management discussed progress on the AQA examination authority engagement and ongoing acquisition evaluations in the US and India.
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Numbers mentioned
Revenue from operations: INR802.63 million (Q1 FY27)
p. 8
“Revenue from operations for Q1 FY27 stood at INR802.63million compared with INR557.18 million in the corresponding quarter last year, representing a 44.05% year-on-year growth.”
Poonacha P., page 8 of the filed PDF · View the filing
EBITDA: INR130.31 million (Q1 FY27)
p. 8
“EBITDA for the quarter stood at INR130.31 million compared to INR100.41 million in Q1 FY26, representing a healthy 29.78% increase year-on-year.”
Poonacha P., page 8 of the filed PDF · View the filing
EBITDA margin: 16.24% (Q1 FY27)
p. 8
“EBITDA margins for the quarter were at 16.24% compared with 18.02% in the corresponding period last year.”
Poonacha P., page 8 of the filed PDF · View the filing
Profit after tax: INR92.28 million (Q1 FY27)
p. 8
“Profit after tax for the quarter stood at INR92.28 million compared to INR58.73 million for Q1 FY26, representing a robust 57.13% year-on-year increase.”
Poonacha P., page 8 of the filed PDF · View the filing
PAT margin: 11.5% (Q1 FY27)
p. 8
“PAT margins improved to 11.5% compared to 10.54% in the corresponding period last year.”
Poonacha P., page 8 of the filed PDF · View the filing
ETS revenue contribution: approximately 63.4% (Q1 FY27)
p. 8
“Education technology services contributed approximately 63.4% of total revenue and remain our largest business segment.”
Poonacha P., page 8 of the filed PDF · View the filing
Assessment and proctoring revenue contribution: approximately 23.5% (Q1 FY27)
p. 9
“Assessment and proctoring solutions contributed approximately 23.5%, while learning and student success solutions and learning design services together accounted for the remaining revenue.”
Poonacha P., page 9 of the filed PDF · View the filing
Top 5 customer revenue concentration: approximately 70% (Q1 FY27)
p. 9
“During the quarter, our top 5 customers contributed approximately 70% of total revenue, while our top 10 customers contributed approximately 83%.”
Poonacha P., page 9 of the filed PDF · View the filing
Nearshore revenue: approximately INR10 crores (Q1 FY27)
p. 6
“During the quarter, our nearshore operations generated approximately INR10 crores of revenue while delivering a substantial improvement in gross margin, from single-digit levels at inception to approximately 26% during the quarter.”
Doreswamy Palaniswamy, page 6 of the filed PDF · View the filing
Nearshore secured revenue for FY27: nearly INR40 crores (FY27)
p. 6
“We have already secured nearly INR40 crores of revenue from these engagements for the current financial year, providing us with greater confidence in the sustainability of this growth trajectory.”
Doreswamy Palaniswamy, page 6 of the filed PDF · View the filing
Cash balance: INR400 crores (as of quarter end)
p. 13
“It's INR400 crores including FDs we are carrying the balance sheet.”
Poonacha P., page 13 of the filed PDF · View the filing
Fresh capitalization: About INR4 crores (Q1 FY27)
p. 14
“About INR4 crores.”
Prashanth H.M., page 14 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
EBITDA margin — 24%-25% · FY27
stated firmly by Doreswamy Palaniswamy
p. 10
“Sir, we would be, as we have kind of in the last quarter also we mentioned that we would be somewhere around like 24%, 25% on our margin, that's going to be the year end margin.”
Doreswamy Palaniswamy, page 10 of the filed PDF · View the filing
Revenue — INR350 crores to INR360 crore · FY27
stated firmly by Doreswamy Palaniswamy
p. 17
“Currently, we are expecting between INR350 crores to INR360 crore, as our Chairman mentioned, that's the number which we are looking at it for the current financial FY26-'27.”
Doreswamy Palaniswamy, page 17 of the filed PDF · View the filing
Revenue — 350 · FY27
stated as an aspiration by Dhananjay Sudhanva
p. 13
“We are looking confident for 350 given the pipeline that we have got.”
Dhananjay Sudhanva, page 13 of the filed PDF · View the filing
Nearshore gross margin — 35% to 40% range · over time
stated as an aspiration by Doreswamy Palaniswamy
p. 6
“As the business continues to scale, we expect gross margins from our nearshore operations to improve further, potentially reaching the 35% to 40% range over time.”
Doreswamy Palaniswamy, page 6 of the filed PDF · View the filing
Product line revenue growth — 25% to 30% growth · full year
stated conditionally by Doreswamy Palaniswamy
p. 17
“Anywhere between 25% to 30% growth in the product line also.”
Doreswamy Palaniswamy, page 17 of the filed PDF · View the filing
AQA revenue visibility — roughly USD17 million · 4 years
stated as an aspiration by Doreswamy Palaniswamy
p. 15
“AQA, at this point of time, the visibility what we have over a period of 4 years, it's roughly around USD17 million revenue.”
Doreswamy Palaniswamy, page 15 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management reiterated the year-end margin target of around 24-25% and expressed confidence in achieving it.
Answered by Doreswamy Palaniswamy
Asked by Urmish Shah: Given the one-time cost impact on margins, what is the margin outlook for the full year?
p. 10
“Sir, we would be, as we have kind of in the last quarter also we mentioned that we would be somewhere around like 24%, 25% on our margin, that's going to be the year end margin.”
Doreswamy Palaniswamy, page 10 of the filed PDF · View the filing
Management said they were cautious that further investments could still affect EBITDA and would not over-commit beyond a 25% target.
Answered by Prashanth H.M.
Asked by Disha: Will the investment impact on margins persist into next year?
p. 11
“So what we want to do is ensure that it would be a 25% for sure. That's where we are.”
Prashanth H.M., page 11 of the filed PDF · View the filing
Management said they were confident of a healthy number but declined to commit to INR400 crores, while the Chairman gave a figure closer to 350.
Answered by Doreswamy Palaniswamy
Asked by Disha: Can revenue be extrapolated to around INR370 crores for the year based on Q1 seasonality?
p. 13
“So, you have, we are confident of reaching a handsome number, but I don't want to commit a INR400 crores at this point of time at this call, but it looks positive, the market looks positive.”
Doreswamy Palaniswamy, page 13 of the filed PDF · View the filing
Management confirmed billing has started with about INR2.5 crores booked in Q1 and INR12-15 crores expected for the year.
Answered by Doreswamy Palaniswamy
Asked by Disha: Has AQA generated revenue this quarter and what is expected for the year?
p. 13
“Yes, it's roughly INR2.5 croreswe have booked it in the current quarter. It has started, the billing has started. And then we see INR12 crores to INR15 crores billing in the current year.”
Doreswamy Palaniswamy, page 13 of the filed PDF · View the filing
Management said they were pursuing three targets, two in India with non-binding offers issued and one in the US at an early stage.
Answered by Doreswamy Palaniswamy
Asked by Disha: What is the status of the acquisitions being pursued in the US and India?
p. 13
“Currently we are pursuing three targets. One in US and then two in India. Two are in the -- we have issued a non-binding offers, and then there's a negotiation going on.”
Doreswamy Palaniswamy, page 13 of the filed PDF · View the filing
Management confirmed the acquisition is still being pursued after delays due to the IPO and renegotiation, and said it is in the final stage of negotiation.
Answered by Doreswamy Palaniswamy
Asked by Keval Doshi: Is the previously discussed acquisition, which involved a cost write-off, still being pursued?
p. 15
“That acquisition we are pursuing it right now, sir. One option, you know, again why there is a delay, due to the IPO, we have to slow down, and then we have to take it up for later.”
Doreswamy Palaniswamy, page 15 of the filed PDF · View the filing
Management confirmed the National Testing Agency's CEO reached out and the company is now in touch with a government task force on the matter.
Answered by Dhananjaya Sudhanva
Asked by Keval Doshi: Is there an opportunity with the Indian government following recent competitive exam issues?
p. 15
“After the recent problems that we've seen, I'm glad to say the National Testing Agency's CEO got in touch with us.”
Dhananjaya Sudhanva, page 15 of the filed PDF · View the filing
Management said execution will be a mix of offshore and onshore resources and that a second client was added this quarter.
Answered by Doreswamy Palaniswamy
Asked by Karthi: Would the INR40 crores nearshore order be executed with only local resources, and with how many clients?
p. 17
“Sir, we have added 2 clients. First, we started with a 1, and then this quarter, we added 1 more.”
Doreswamy Palaniswamy, page 17 of the filed PDF · View the filing
Risks flagged
Ongoing investments in nearshore delivery, sales expansion, and AI capability building are creating short-term cost and margin pressure.
p. 6
“While these investments may create short-term cost pressures, they are designed to build a stronger, more scalable business capable of delivering sustainable and profitable long-term growth.”
Dhananjaya Sudhanva, page 6 of the filed PDF · View the filing
Failure to invest in AI capabilities could result in losing business to competitors.
p. 11
“If we don't do that, the risk on the other side is we may lose out to competition.”
Dhananjaya Sudhanva, page 11 of the filed PDF · View the filing
Visa processes for US business development travel have been difficult, prompting consideration of a Toronto office.
p. 14
“So, one of the options we are exploring is to set up an office in Toronto in Canada and move a few of our people who are currently anyway talking to our US customers, both for business development and support, so that it will be easier for them to go across, not only to support existing customers, but also to do more business development and get us more revenues.”
Dhananjay Sudhanva, page 14 of the filed PDF · View the filing
Continued investment spend will be required as AI technology has not yet stabilized, expected to take about two years.
p. 11
“Hence, until it stabilizes, which is anybody's guess, but my experienced guess would be it will take two years to stabilize.”
Dhananjaya Sudhanva, page 11 of the filed PDF · View the filing
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