Excelsoft Q2 revenue rises 25% as EBITDA margin contracts

Excelsoft Technologies Limited reported Q2 FY27 revenue from operations of Rs 80.899 crore, up 25.22% year on year, but earnings before interest, tax, depreciation and amortisation (EBITDA) margin declined to 16.35% from 29.13% as employee, consultant, sales and leadership investments affected profitability.

What were Excelsoft's Q2 FY27 revenue and earnings?

Excelsoft recorded Rs 80.899 crore of revenue from operations in Q2 FY27, compared with Rs 64.607 crore in Q2 FY26, while total income rose 26.24% to Rs 86.628 crore from Rs 68.625 crore. The unaudited results cover the quarter ended September 30, 2026, and were announced on November 5, 2026.

Profitability moved in the opposite direction to revenue during the quarter. EBITDA fell to Rs 13.228 crore from Rs 18.820 crore, and profit after tax (PAT) declined to Rs 8.275 crore from Rs 10.612 crore. EBITDA margin contracted by 12.78 percentage points to 16.35% from 29.13%.

Why did Excelsoft's Q2 EBITDA margin contract?

Excelsoft said Q2 FY27 profitability was affected by higher employee costs, external consultants engaged for programme delivery, and investment in global sales and leadership capabilities. These costs coincided with EBITDA declining by Rs 5.592 crore year on year, despite the Rs 16.292 crore increase in revenue from operations.

Management described the spending as strategic investment intended to support long-term capabilities. It said overseas sales-team strengthening is designed to broaden international coverage, deepen customer engagement and improve customer acquisition across key geographies, with the stated objective of building a stronger sales funnel.

The disclosed quarterly outcome, however, was lower operating profit and a 16.35% margin. Management also said it is focused on executing existing programmes and improving operational efficiency, but the release did not disclose a cost target, margin target or timetable for benefits from the sales and leadership investments.

Which Excelsoft business activity drove Q2 FY27 growth?

Excelsoft's Education Technology Services contributed Rs 49.144 crore, or 60.75%, of Q2 FY27 revenue and grew 41.90% year on year. The business therefore accounted for more than three-fifths of the Rs 80.899 crore revenue from operations reported for the September 2026 quarter.

Revenue from services increased 53.90% year on year, faster than overall revenue growth of 25.22%. Excelsoft attributed the services growth to continued traction in its technology and platform services, while it continued product development across the learning and assessment lifecycle.

The company listed artificial intelligence (AI)-enabled item generation and validation, handwriting digitisation, AI-assisted marking, proctoring and analytics among its development areas. Its disclosed offerings include the AI-levate App Suite, Saras SchoolAI and Saras Assessments in-a-Box, and it is implementing a next-generation digital assessment platform for a leading UK awarding body.

How did Excelsoft perform in H1 FY27?

Excelsoft reported H1 FY27 revenue from operations of Rs 161.162 crore, up 33.94% from Rs 120.325 crore in H1 FY26, while EBITDA fell to Rs 26.259 crore from Rs 28.861 crore. H1, or the first half, covered the six months ended September 30, 2026.

Total income rose 34.14% to Rs 172.725 crore from Rs 128.765 crore. EBITDA margin was 16.29% in H1 FY27, close to the 16.35% reported for Q2 FY27, showing that the lower quarterly margin was broadly consistent with the first-half result.

PAT provided a different comparison from EBITDA: it rose 6.18% to Rs 17.503 crore in H1 FY27 from Rs 16.485 crore a year earlier. Management attributed first-half revenue momentum to Education Technology Services, demand for digital learning and assessment solutions, customer relationships and programme execution.

What do Excelsoft's customer concentration and cash figures show?

Excelsoft's top five customers generated 74.94% of Q2 FY27 revenue, while its top 10 customers generated 84.76%. The average relationship tenure among the top 10 customers was approximately 11 years, according to the company.

Excelsoft reported a debt-free balance sheet and cash and bank balances of Rs 407.064 crore as of September 30, 2026. The release did not state how much of that balance is allocated to technology development, talent recruitment or overseas sales expansion.

The company linked its expansion plans to international market coverage and customer acquisition, while delivery work includes the UK awarding-body platform implementation. The concentration figures mean progress on key customer programmes remains relevant to a revenue base in which five customers supplied nearly three-quarters of Q2 FY27 revenue.

Conclusion

Excelsoft delivered revenue growth of 25.22% in Q2 FY27 and 33.94% in H1 FY27, led by Education Technology Services and faster services revenue growth. Yet operating profitability declined across both comparisons, with Q2 EBITDA falling to Rs 13.228 crore and margin declining to 16.35% as the company incurred higher delivery, employee, consultant, sales and leadership costs.

Next, investors can watch execution of existing programmes, operational-efficiency efforts and the expansion of overseas sales capabilities. Management said Excelsoft remains on track to deliver its committed FY27 topline growth, but the November 5, 2026 release did not state the numerical revenue commitment or the expected timing of returns from its investments.