Excelsoft Q1 FY27 results: Revenue +44%, PAT +57% YoY

Strong start to FY27, with margins under pressure

Excelsoft Technologies Limited reported a sharp year-on-year improvement in profit for the quarter ended June 30, 2026 (Q1 FY27), backed by strong growth in revenue from operations. Revenue from operations rose 44.05% year-on-year to INR 802.63 million, compared with INR 557.18 million in Q1 FY26. The top line was broadly stable sequentially, with a 1.11% decline from INR 811.62 million in Q4 FY26. Profit after tax (PAT) increased 57.13% year-on-year to INR 92.28 million. The PAT margin improved to 11.50% from 10.54% in the year-ago quarter.

How the quarter unfolded operationally

The company’s revenue mix tilted further towards Education Technology Services, which accounted for 63.4% of revenue in Q1 FY27, up from 51.6% in Q1 FY26. Education Technology Products contributed 36.6% of revenue in Q1 FY27, as per the disclosures. Excelsoft also disclosed that its nearshore delivery operations generated around INR 100 million of revenue in the quarter, alongside significant improvement in gross margin. The company highlighted ongoing global expansion across the US, UK, and Dubai. Workforce strength stood at 1,114 employees during the quarter.

EBITDA rises year-on-year, but drops sharply from Q4

On operating profitability, EBITDA (excluding other income) came in at INR 130.31 million in Q1 FY27, up 29.78% year-on-year from INR 100.41 million in Q1 FY26. However, it fell sharply from INR 245.68 million in Q4 FY26, which the company described as unusually strong. Correspondingly, EBITDA margin moderated to 16.24% in Q1 FY27 versus 18.02% in Q1 FY26 and 30.27% in Q4 FY26.

Excelsoft indicated that margins reflected higher investments and one-time costs related to artificial intelligence (AI) capability building and nearshore delivery expansion. After adjusting for one-time costs listed in the presentation, adjusted EBITDA was shown as INR 145.0 million with an 18.0% margin.

Bottom line improves, even as operating margin softens

PAT increased to INR 92.28 million in Q1 FY27 versus INR 58.73 million in Q1 FY26, and was lower than INR 165.99 million in Q4 FY26. PAT margin improved to 11.50% in Q1 FY27, compared with 10.54% in Q1 FY26 and 20.45% in Q4 FY26. Basic EPS was INR 0.80 per share in Q1 FY27 compared with INR 0.60 in Q1 FY26 (and INR 1.50 in Q4 FY26).

The company also reported total income of INR 860.97 million for Q1 FY27. Other income was reported at INR 58.34 million in Q1 FY27 compared with INR 44.22 million in Q1 FY26.

Cost line items disclosed for the quarter

Excelsoft’s expenditure disclosures showed employee benefit expenses of INR 417.09 million in Q1 FY27, compared with INR 339.29 million in Q1 FY26. Other expenses rose to INR 255.23 million from INR 117.48 million a year ago. Total expenditure for Q1 FY27 was INR 672.32 million. Depreciation was INR 65.29 million and interest or finance cost was INR 5.05 million.

Client concentration and relationship tenure

The company disclosed high client concentration among large accounts, with the top five clients contributing 73% of revenue and the top 10 contributing 82.6%. It also reported that the average client relationship tenure among the top 10 clients is 11 years. These metrics were presented alongside the quarter’s growth narrative and expansion initiatives.

Filing timeline and upcoming earnings call

The financial results were submitted to BSE and NSE on August 07, 2026, under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Excelsoft also scheduled its Q1 FY27 earnings conference call for August 10, 2026 at 12:00 noon IST. The call is set to be held over the phone, with the location noted as Mysuru.

Monitoring agency note on IPO proceeds utilisation

Separately, Excelsoft’s monitoring agency report indicated delays in utilising IPO proceeds during Q1 FY27. As per the disclosure, INR 1,134.0 million from the INR 1,800.0 million IPO remained unutilised. The report also warned of potential impacts on project viability linked to the delays.

Key numbers table: Q1 FY27 vs Q1 FY26 and Q4 FY26

Conference call details table

Market impact: what changed this quarter

The quarter combined strong revenue growth with visible margin compression versus the prior quarter’s elevated base. While EBITDA and PAT rose year-on-year, both were lower sequentially, reflecting the Q4 FY26 performance levels referenced in the disclosures. The shift in revenue mix towards Education Technology Services was notable, with the segment rising to 63.4% of revenue. Disclosed spending lines, including higher employee benefit expenses and other expenses, also aligned with the company’s commentary around AI capability building and nearshore expansion.

Why the Q1 FY27 print matters

Excelsoft’s Q1 FY27 result shows that top-line momentum remained intact, with revenue from operations expanding 44.05% year-on-year. At the same time, profitability tracked a more mixed pattern: PAT margin improved year-on-year, but EBITDA margin declined, and both EBITDA and PAT reduced sequentially from Q4 FY26. The disclosures also bring attention to execution priorities beyond quarterly earnings, including nearshore delivery scale-up and the pace of IPO proceeds deployment.

Conclusion

Excelsoft opened FY27 with strong year-on-year growth in revenue and net profit, alongside a lower EBITDA margin versus both Q1 FY26 and Q4 FY26. The company’s next formal update is its Q1 FY27 earnings conference call scheduled for August 10, 2026 at 12:00 noon IST.