Excelsoft Q2 revenue rises 25% while profit falls 22%

Excelsoft Technologies Limited reported consolidated revenue from operations of Rs 80.899 crore for the quarter ended September 30, 2026, up 25% from Rs 64.607 crore a year earlier, while profit after tax fell 22% to Rs 8.275 crore as total expenses increased faster than total income. Basic earnings per share fell to Rs 0.72 from Rs 1.05.

Why did Excelsoft's Q2 profit fall despite higher revenue?

Excelsoft's September 2026-quarter profit after tax declined because expense growth exceeded income growth. Revenue from operations rose by Rs 16.292 crore year-on-year, while total income increased by Rs 18.003 crore to Rs 86.628 crore; total expenses, however, increased by Rs 22.431 crore to Rs 75.454 crore. As a result, profit before tax fell to Rs 11.174 crore from Rs 15.602 crore.

Employee benefits expense rose by Rs 9.774 crore to Rs 43.512 crore in the quarter ended September 30, 2026. Other expenses increased by Rs 12.110 crore to Rs 24.159 crore, while depreciation and amortisation rose by Rs 1.134 crore to Rs 7.178 crore. Finance costs declined to Rs 0.605 crore from Rs 1.192 crore, but that reduction did not offset the wider cost increases.

Excelsoft's tax expense was Rs 2.899 crore in Q2 FY27, compared with Rs 4.990 crore a year earlier. The prior-year quarter included a Rs 1.310 crore write-off of an earlier-year income-tax refund, while the September 2026 quarter reported deferred-tax income of Rs 0.542 crore. Despite the lower tax expense, profit after tax declined by Rs 2.337 crore because pre-tax profit was lower.

How did Excelsoft perform versus the previous quarter?

Excelsoft's revenue was broadly stable sequentially, rising to Rs 80.899 crore in the September 2026 quarter from Rs 80.263 crore in the June 2026 quarter. Profit after tax declined by Rs 0.953 crore from Rs 9.228 crore, while basic and diluted earnings per share both decreased to Rs 0.72 from Rs 0.80. The company states that quarterly earnings per share is not annualised.

Total income rose by Rs 0.531 crore sequentially to Rs 86.628 crore, whereas total expenses increased by Rs 1.188 crore to Rs 75.454 crore. Employee benefits expense increased by Rs 1.803 crore and depreciation and amortisation by Rs 0.649 crore. Other expenses declined by Rs 1.364 crore to Rs 24.159 crore, but profit before tax still fell from Rs 11.831 crore to Rs 11.174 crore.

For the half year ended September 30, 2026, the comparison was different: revenue from operations rose to Rs 161.162 crore from Rs 120.325 crore in the corresponding prior-year period, and profit after tax increased to Rs 17.503 crore from Rs 16.485 crore. Half-year employee benefits expense rose to Rs 85.221 crore from Rs 67.667 crore, while other expenses increased to Rs 49.682 crore from Rs 23.797 crore.

Which Excelsoft segments drove September-quarter revenue?

Excelsoft's educational technology services segment was the largest contributor to September-quarter revenue, reporting Rs 49.144 crore, up from Rs 34.638 crore a year earlier. The segment accounted for more than half of consolidated revenue of Rs 80.899 crore and delivered Rs 25.660 crore of segment result, compared with Rs 19.452 crore in Q2 FY26.

Assessment and proctoring solutions reported revenue of Rs 18.186 crore, slightly below Rs 18.379 crore a year earlier, and its segment result fell to Rs 5.859 crore from Rs 10.474 crore. Learning and student success solutions increased revenue to Rs 9.218 crore from Rs 8.098 crore, while learning design and content solutions increased to Rs 4.351 crore from Rs 3.492 crore.

The four segments together reported Rs 36.576 crore of segment results in Q2 FY27, compared with Rs 31.391 crore a year earlier. This improvement was more than offset by Rs 28.112 crore of other unallocable expenses, up from Rs 18.037 crore, alongside unallocable depreciation of Rs 2.369 crore and tax expense of Rs 2.899 crore.

What do Excelsoft's balance sheet and cash flows show?

Excelsoft reported total assets of Rs 694.452 crore at September 30, 2026, compared with Rs 678.221 crore at March 31, 2026. Total equity increased to Rs 595.250 crore from Rs 578.326 crore, while total liabilities decreased to Rs 99.202 crore from Rs 99.895 crore. Trade receivables fell to Rs 31.249 crore from Rs 46.409 crore over the same period.

Cash and cash equivalents were Rs 112.307 crore at September 30, 2026, compared with Rs 64.871 crore at March 31, 2026. Net cash from operating activities for the half year was Rs 34.657 crore, compared with Rs 6.129 crore in the year-earlier half. Cash generated from operations before income tax paid was supported by a Rs 15.530 crore reduction in trade receivables.

The cash comparison includes a classification change. Excelsoft began including fixed deposits with original maturities of three months or less in cash and cash equivalents, consistent with their balance-sheet classification; opening cash for the current period includes Rs 32.175 crore of such deposits. Net cash from investing activities was Rs 15.111 crore in the six months ended September 2026, against net cash used of Rs 9.957 crore in the prior-year period.

How is Excelsoft deploying IPO proceeds?

Excelsoft had used Rs 65.666 crore of net initial public offering proceeds by September 30, 2026, leaving Rs 99.226 crore unutilised from Rs 164.892 crore available under the prospectus. The company said the unutilised funds were temporarily deposited or invested in the monitoring account and fixed deposits.

The largest unutilised allocation was Rs 36.947 crore for information-technology infrastructure, from a planned Rs 54.635 crore. Rs 32.336 crore remained for upgrades, including external electrical systems, at the existing Mysore facility, while Rs 28.754 crore remained for land purchase and construction of a new building at the Mysore property. General corporate purposes had Rs 1.189 crore unutilised.

Excelsoft incorporated wholly owned subsidiary Excelsoft Technologies Canada Ltd on August 27, 2026. At September 30, 2026, Excelsoft had not invested in the subsidiary's share capital and the entity had not commenced operations. The company said its incorporation had no impact on consolidated results for the quarter or half year.

Conclusion

Excelsoft's Q2 FY27 results show that a Rs 16.292 crore increase in quarterly revenue, led chiefly by educational technology services, did not translate into higher earnings. The Rs 22.431 crore increase in total expenses exceeded the Rs 18.003 crore increase in total income, reducing profit after tax by Rs 2.337 crore and earnings per share by Rs 0.33 year-on-year.

The next disclosed milestones are the use of Rs 99.226 crore of unutilised IPO proceeds for the Mysore building project, existing-facility upgrades and information-technology infrastructure. Excelsoft Technologies Canada Ltd had not begun operations or received share-capital investment as of September 30, 2026, leaving its future operating contribution unresolved.