Excelsoft Technologies Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Excelsoft Technologies Ltd filed with BSE on 28 May 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 Q4 FY26 revenue of 812 million rupees, up 16% year-on-year, while EBITDA margins declined to 30.3% from 40.5% due to additional consultant hiring costs for a new US nearshore team. For the full year FY26, revenue grew 17% to 2,725 million rupees while EBITDA grew marginally by 1% to 731 million rupees. Management discussed a new CEO appointment, a large UK examination body engagement, an order book of over INR300 crores, and ongoing evaluation of inorganic acquisition opportunities.
Numbers mentioned
Revenue: 812 million (Q4 FY26)
p. 7
“The revenue from the operations for Q4 FY26 stood at 812 million compared to 699 million in Q4 FY25, registering a robust growth of 16%.”
Subramaniam Ravi, page 7 of the filed PDF · View the filing
EBITDA: 246 million (Q4 FY26)
p. 7
“The EBITDA for Q4 FY26 stood at 246 million compared to 283 million in Q4 FY25, marking a de growth of 13%.”
Subramaniam Ravi, page 7 of the filed PDF · View the filing
EBITDA margin: 30.3% (Q4 FY26)
p. 7
“EBITDA margins were 30.3% compared to 40.5% in the prior year.”
Subramaniam Ravi, page 7 of the filed PDF · View the filing
Profit after Tax: 166 million (Q4 FY26)
p. 8
“Profit after Tax for Q4 FY26 was 166 million compared to 205 million in Q4 FY25.”
Subramaniam Ravi, page 8 of the filed PDF · View the filing
PAT margin: 20.5% (Q4 FY26)
p. 8
“PAT margins were 20.5% compared to 29.3 % in the prior year.”
Subramaniam Ravi, page 8 of the filed PDF · View the filing
Revenue: 2,725 million (FY26)
p. 8
“For FY26, the revenue from the operations stood at 2,725 million compared to 3,333 million in FY25, representing a year-on-year growth of 17%.”
Subramaniam Ravi, page 8 of the filed PDF · View the filing
EBITDA: 731 million (FY26)
p. 8
“EBITDA for FY26 stood at 731 million compared to 725 million in FY25, growing marginally by 1%.”
Subramaniam Ravi, page 8 of the filed PDF · View the filing
EBITDA margin: 27% (FY26)
p. 8
“EBITDA margins stood at 27% compared to 31% in the previous year.”
Subramaniam Ravi, page 8 of the filed PDF · View the filing
PAT: 434 million (FY26)
p. 8
“PAT for FY26 was 434 million compared to 347 million in FY25, showing a significant growth of 25% due to large reductions in the tax.”
Subramaniam Ravi, page 8 of the filed PDF · View the filing
PAT margin: 16% (FY26)
p. 8
“The PAT margins for the period was at 16% with a growth of 105 basis points.”
Subramaniam Ravi, page 8 of the filed PDF · View the filing
Education technology services segment growth: 117 million, 37% year-on-year (Q4 FY26)
p. 7
“This growth was driven by strong contributions from the educational technology services segment, which increased by 117 million, representing 37% year-on-year growth.”
Subramaniam Ravi, page 7 of the filed PDF · View the filing
North America revenue contribution: 64.9% (FY26)
p. 8
“North America remains our largest geography, continuing to 62.7% of Q4 revenue and 64.9% of FY26 revenue.”
Subramaniam Ravi, page 8 of the filed PDF · View the filing
Nearshore team expense: 85 million (Q4 FY26)
p. 6
“This significant move means that a directly attributable expense of 85 million in Q4 towards establishing this team is part of other expenses because they were hired as consultants.”
Prashanth H.M., page 6 of the filed PDF · View the filing
Revenue in April: 23 crores (April)
p. 6
“Just to give an illustration, we have clocked 23 crores in April, the month of April, against 15 crores last year.”
Prashanth H.M., page 6 of the filed PDF · View the filing
Top 5 client revenue contribution: approximately 68% (FY26)
p. 6
“In terms of client concentration, our top five clients contributed approximately 68% of full-year revenue, while the top 10 contributed approximately 78%.”
Prashanth H.M., page 6 of the filed PDF · View the filing
New clients added: 14 (FY26)
p. 6
“We added 14 new clients during the year and continue to strengthen our sales pipeline across education, certification, publishing, and public sector markets.”
Prashanth H.M., page 6 of the filed PDF · View the filing
AI-driven concepts and prototypes: 38 concepts, 16 prototypes, 9 pilots, 4 deployed products
p. 7
“To date, we have developed 38 AI-driven concepts, 16 working prototypes, nine active customer pilots, and four commercially deployed AI products.”
Adarsh M.S., page 7 of the filed PDF · View the filing
Intangible assets capitalized: INR12.2 crores (last financial year)
p. 11
“Sir, this is intangible assets for INR12.2 crores in the last financial year.”
Prashanth H.M., page 11 of the filed PDF · View the filing
Book value of intangibles: 100 crores
p. 11
“Cumulative is [inaudible 0:35:30] Book value is 100 crores”
Prashanth H.M., page 11 of the filed PDF · View the filing
Amortization/depreciation: INR18 crores (current year)
p. 11
“It is INR18 crores already. Currently it is INR18 crores and it will continue maybe around that.”
Prashanth H.M., page 11 of the filed PDF · View the filing
Order book: over INR300 crores (FY27)
p. 13
“Our order book plus confirmed and expected, it may be around just over INR300 crores.”
Subramaniam Ravi, page 13 of the filed PDF · View the filing
Technology services order book: INR175 crores
p. 13
“Out of it, the technology services alone, it will be INR175 crores.”
Subramaniam Ravi, page 13 of the filed PDF · View the filing
Gross margin of nearshore team: 30%
p. 12
“The gross margin from that team at this point in time is about 15% to 20%. One second, it's currently 30%, whereas our gross margin from typical technology services is about 56.0%.”
Prashanth H.M., page 12 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 — 30% to 31%
stated conditionally by Prashanth H.M.
p. 10
“Sir, I think it will come back to our normal ranges. This was pretty much one-off where the margin was shrunk because of this expense. And going forward, we will be in the similar range of what we were earlier.”
Prashanth H.M., page 10 of the filed PDF · View the filing
Overall growth — 20% to 25% · this year
stated conditionally by Prashanth H.M.
p. 12
“About the growth, sir, that included, that work included, we are confident that we will come back to our earlier growth of about 20% to 25% overall.”
Prashanth H.M., page 12 of the filed PDF · View the filing
AQA engagement announcement — one or two days
stated firmly by Prashanth H.M.
p. 12
“In the matter of one or two days, we will be announcing about our larger engagement with AQA.”
Prashanth H.M., page 12 of the filed PDF · View the filing
Intangible investment to revenue ratio — over a period of time
stated as an aspiration by Prashanth H.M.
p. 11
“So what we want to do is we want to reduce over a period of time, we want to reduce the investment into product development to be once which whatever can be expensed, we'll expense it so that we carry a smaller net value in our books.”
Prashanth H.M., page 11 of the filed PDF · View the filing
Nearshore team gross margin — same range of about 54% gross margin
stated as an aspiration by Prashanth H.M.
p. 16
“At this point in time, we already have a 30% margin from this team. So like what we explained, it will grow beyond the 30% and will be in the range, the same range of about 54% gross margin when we are able to scale other businesses beyond what we have already been doing with this team.”
Prashanth H.M., page 16 of the filed PDF · View the filing
Acquisition strategy — soon
stated conditionally by Prashanth H.M.
p. 17
“So the due diligence that we had done earlier, so we are just rehashing that due diligence for the remainder period and we will soon see some progress there.”
Prashanth H.M., page 17 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 explained the expense related to setting up a nearshore team in the US and said the model of a small local team combined with offshore delivery would continue where useful.
Answered by Prashanth H.M.
Asked by Raman KV: Whether the INR8.4 crores additional expense for hiring AI-led digital learning team is one-off and whether the model of nearshore plus offshore will continue.
p. 9
“So the model of having a small team in the customer location is always helpful. So we anyway wanted to do that and this came as an opportunity and we grabbed it.”
Prashanth H.M., page 9 of the filed PDF · View the filing
Management confirmed the expense would recur each quarter since the team was hired as consultants rather than employees, but expects margins to normalize as revenues grow.
Answered by Deepak Poddar
Asked by Deepak Poddar: Whether the INR8.4-8.5 crore expense will recur every quarter and why it was booked under other expenses rather than employee cost.
p. 10
“But this INR8 crores per quarter – INR8.5 crores per quarter will keep coming every quarter, right? Because it's your hiring cost?”
Deepak Poddar, page 10 of the filed PDF · View the filing
Management clarified the team was hired as consultants for legal reasons, not on company rolls.
Answered by Prashanth H.M.
Asked by Deepak Poddar: Reason for booking nearshore team costs under other expenses instead of employee benefit expenses.
p. 10
“Because we haven't taken them on our rolls; they are not part of the employee benefit expenses. They are taken in as consultants, with proper backing and all of that. We have hired them as consultants for legal reasons.”
Prashanth H.M., page 10 of the filed PDF · View the filing
Management gave the total order book figure and the technology services component.
Answered by Subramaniam Ravi
Asked by Karthi Keyan: What is the current confirmed order backlog and can it be split by segment.
p. 13
“Our order book plus confirmed and expected, it may be around just over INR300 crores. It is executable. Out of it, the technology services alone, it will be INR175 crores.”
Subramaniam Ravi, page 13 of the filed PDF · View the filing
Doreswamy described his career path from finance roles to operations and acquisitions leadership across multiple companies.
Answered by Doreswamy Palaniswamy
Asked by NGN Puranik: Background and experience of the new CEO Doreswamy Palaniswamy.
p. 14
“I'm full-time into operations role. That's my background. I lived almost my majority of my career was based out of Mumbai and then recently I shifted back to South and then I'm here now with Excelsoft.”
Doreswamy Palaniswamy, page 14 of the filed PDF · View the filing
Management said the acquisition strategy remained in progress but was paused pending the new CEO's review before resuming due diligence.
Answered by Prashanth H.M.
Asked by Akshat: Status of the previously discussed acquisition and why it has not yet been confirmed.
p. 17
“So rightfully so, we said we will pause whatever we have done till then until such time that Doreswamy takes a look at what we have done and then progress it further.”
Prashanth H.M., page 17 of the filed PDF · View the filing
Management outlined organic growth from existing order book and customers, new product investments, expanded sales teams, and inorganic acquisition opportunities as the three strategic pillars.
Answered by Prashanth H.M.
Asked by Krishna Rao: What is management's three-year roadmap for growing the company.
p. 18
“So in the next three-year roadmap, three-year strategic plan that we have, all these are strands. We want to grow customers, we want to grow products, we want to look at acquisitions, and we want to build a team that could service all these and integrate the acquisition that we would have done.”
Prashanth H.M., page 18 of the filed PDF · View the filing
Risks flagged
Q4 margin decline due to increased other expenses from new consultant hiring
p. 7
“The reductions in the margin is primarily attributable to a 76% increase in other expenses, which rose from 118 million to 209 million, driven by new hiring of the consultant that was explained by Prashanth earlier.”
Subramaniam Ravi, page 7 of the filed PDF · View the filing
FY26 margin decline due to higher legal, professional fees and new US hiring
p. 8
“The decline in margin is attributable to increase in other expenses, primarily due to higher legal and professional fees, as well as hiring of new employees in the U.S. mentioned earlier.”
Subramaniam Ravi, page 8 of the filed PDF · View the filing
Difficulty sending India-based staff to the US due to visa complications
p. 9
“So we wanted to set up a team in the US by sending people from India, which as you are aware, the visa complications and all of that, that is not easy.”
Prashanth H.M., page 9 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.