Excelsoft services account for 62% of H1 FY27 revenue mix

In H1 FY27, Excelsoft’s Education Technology Services accounted for 62.07% of revenue from operations, overtaking Education Technology Products at 37.93%, while the services segment reported Q2 FY27 revenue of Rs 49.14 crore, up 41.9% year on year.

How did Excelsoft's H1 FY27 revenue mix change?

Excelsoft’s H1 FY27 mix shifted 9.37 percentage points towards Education Technology Services, whose share rose to 62.07% from 52.70% in H1 FY26. Education Technology Products moved in the opposite direction, declining to 37.93% of H1 FY27 revenue from 47.30% a year earlier. The shift means services supplied nearly two-thirds of revenue from operations during the six-month period.

The Q2 comparison shows the same direction of change. Education Technology Services represented 60.75% of Q2 FY27 revenue, compared with 53.61% in Q2 FY26, an increase of 7.14 percentage points. Education Technology Products fell to 39.25% from 46.39% over the same quarters. The H1 FY27 services share of 62.07% was also 1.32 percentage points above its Q2 FY27 share.

What drove Excelsoft's Education Technology Services revenue?

Excelsoft reported Rs 49.14 crore of Education Technology Services revenue in Q2 FY27, a year-on-year increase of 41.9%, and said the segment represented 60.75% of quarterly revenue. The segment covers end-to-end product engineering and customised technology solutions rather than the company’s AI-enabled product suite. This made services the larger of Excelsoft’s two business offerings in both Q2 FY27 and H1 FY27.

The services work described by Excelsoft includes product engineering and development, platform implementation, cloud enablement and migration, technology customisation, security and business continuity, and lifecycle support. Those activities are linked to customer-specific learning, assessment and information-management platforms. Excelsoft identifies a Q2 FY27 segment result margin of 52.2% for Education Technology Services, but does not provide the corresponding prior-year segment margin in the presentation.

Excelsoft says its learning and assessment experience extends beyond 26 years and lists 23 countries served and more than 200 customers worldwide. Its presentation cites long-standing relationships with customers including Pearson in describing the domain knowledge and consultative partnerships supporting customised delivery. These service capabilities differ from the products portfolio, which includes Saras eAssessments, easyProctor, OpenPage, enablED and COLLEGE SPARC.

How did Excelsoft's overall H1 FY27 financial performance compare?

Excelsoft’s revenue from operations rose 33.94% to Rs 161.162 crore in H1 FY27 from Rs 120.325 crore in H1 FY26, while EBITDA declined 9.02% to Rs 26.259 crore. EBITDA, calculated excluding other income, therefore had a margin of 16.29% in H1 FY27, down from 23.99% a year earlier. Profit after tax rose 6.18% to Rs 17.503 crore from Rs 16.485 crore.

The second quarter recorded revenue from operations of Rs 80.899 crore, up 25.22% from Rs 64.607 crore in Q2 FY26. Q2 FY27 EBITDA was Rs 13.228 crore, compared with Rs 18.82 crore a year earlier, and the EBITDA margin was 16.35% versus 29.13%. Profit after tax was Rs 8.275 crore in Q2 FY27, down from Rs 10.612 crore, while basic earnings per share were Rs 0.72 versus Rs 1.05.

Excelsoft’s H1 FY27 employee benefit expenses were Rs 85.221 crore, compared with Rs 67.667 crore in H1 FY26, while other expenses were Rs 49.682 crore against Rs 23.797 crore. Total expenditure increased to Rs 134.903 crore from Rs 91.464 crore. The presentation records these reported cost and profit movements but does not quantify how much of the expenditure change arose from either Education Technology Services or Education Technology Products.

What capabilities support Excelsoft's services business?

Excelsoft supports its services business through customised engineering, cloud migration, platform integration and security work for learning and assessment customers. Its assessment offering includes test creation, delivery, evaluation and result publishing through Saras eAssessments, while easyProctor provides live, automated and record-and-review remote proctoring. These platforms provide the technology base alongside which Excelsoft offers customer-specific implementation and support.

Excelsoft is also integrating artificial intelligence into its offerings through AI-levate, a set of modular micro-apps intended to connect with existing learning, assessment and proctoring systems. The company says the architecture can use open-source and commercial large language models, including Mistral and GPT-4o, and can be deployed on-premise or in air-gapped environments. Its stated use cases include question generation, intelligent proctoring, personalised learning and automated assessment analysis.

By the presentation date, Excelsoft reported 38 AI-first ideas, 16 prototypes, nine customer pilots and four products launched. The four named launches are AI-levate App Suite, Saras SchoolAI, Saras Assessments in-a-Box and CareerSPARC. Excelsoft says customer data can be isolated by deployment and that customer-specific models are not reused for other customers, mechanisms relevant to enterprise and high-stakes assessment requirements.

What is Excelsoft investing in during FY27?

Excelsoft has identified Rs 20.30 crore of FY27 strategic investments in sales capacity, leadership, incentives, recruitment and product development. The largest item is Rs 9.70 crore for an overseas sales team, followed by Rs 4.50 crore of new product development expensed during the period and Rs 2.84 crore for leadership positions. Management says these investments are intended to expand international coverage, strengthen the sales funnel and build execution capacity.

The remaining disclosed FY27 items are Rs 1.80 crore of variable pay for key managerial personnel and Rs 1.46 crore for recruitment and training. Excelsoft characterises the programme as investment ahead of growth, rather than as a reported revenue target. The company’s 2026 updates also include a joint AI taskforce with a UK awarding body on ethical e-marking of handwritten scripts, alongside four AI-native product launches from 38 ideas.

Conclusion

Excelsoft’s reported revenue mix has moved toward customised Education Technology Services: its H1 FY27 share increased to 62.07% as the products share declined to 37.93%. The services segment’s Q2 FY27 revenue growth of 41.9% exceeded the company’s overall Q2 revenue-from-operations growth of 25.22%, while consolidated H1 revenue rose 33.94% and EBITDA declined 9.02%.

The next point to watch is execution of Excelsoft’s Rs 20.30 crore FY27 capability programme, especially the Rs 9.70 crore allocated to overseas sales and Rs 4.50 crore for expensed product development. Investors can also track whether the nine AI customer pilots and four launched AI products translate into disclosed revenue or further change the balance between services and products.