Expleo Solutions Limited digital share falls to 47.7% in Q2 FY27

Expleo Solutions Limited reported digital revenue of Rs 139.7 crore, equal to 47.7% of net revenue, in Q2 FY27 ended September 30, 2026, versus 52.6% a year earlier. Over the same period, Asia’s reported revenue contribution rose to 34.5% from 13.1%, changing Expleo’s quarterly regional sales composition.

Why did Expleo's digital revenue share fall below 48%?

Expleo’s digital revenue share fell below 48% as digital revenue declined in both reported comparison periods while net revenue increased. Digital revenue was Rs 139.7 crore in Q2 FY27, down from Rs 144.5 crore in Q1 FY27 and Rs 148.8 crore in Q2 FY26. Its share of net revenue consequently decreased to 47.7%, from 49.6% in the preceding quarter and 52.6% a year earlier.

The share reduction was 1.9 percentage points quarter on quarter and 4.9 percentage points year on year. Net revenue was Rs 292.64 crore in Q2 FY27, 0.4% above Q1 FY27 and 3.5% above Q2 FY26, while total revenue was Rs 302.6 crore, up 1.4% quarter on quarter and 2.4% year on year. The presentation provides digital revenue and share data but no product-level explanation for the decline.

How did Expleo's regional revenue mix change?

Expleo’s reported regional revenue mix shifted as Asia’s contribution reached 34.5% in Q2 FY27. Asia rose 1.6 percentage points from 32.9% in Q1 FY27 and 21.4 percentage points from 13.1% in Q2 FY26. Europe remained the largest reported region at 57.8%, compared with 57.2% in the preceding quarter and 55.9% a year earlier.

Europe and Asia together represented 92.3% of Q2 FY27 revenue. North America declined to 7.7% from 9.9% in Q1 FY27 and 12.9% in Q2 FY26. Quarter on quarter, Europe added 0.6 percentage points and Asia added 1.6 points, while North America declined 2.2 points; Expleo reports regional shares rather than regional rupee revenue on this page.

Which industries accounted for Expleo's Q2 FY27 revenue?

Expleo remained primarily exposed to banking, financial services and insurance, or BFSI, which contributed 81.1% of Q2 FY27 revenue. BFSI was 82.0% in Q1 FY27 and 81.0% in Q2 FY26, representing a 0.9-percentage-point sequential reduction and a 0.1-point year-on-year increase. Aerospace, labelled Aero in the presentation, was the second-largest industry at 9.6%, followed by automotive at 9.0%.

The industry mix changed modestly between Q1 FY27 and Q2 FY27. Automotive increased by 1.0 percentage point from 8.0%, while aerospace decreased by 0.1 point from 9.7% and transportation was unchanged at 0.3%. Against Q2 FY26, aerospace increased from 9.2% to 9.6%, automotive decreased from 9.4% to 9.0%, and transportation decreased from 0.4% to 0.3%; BFSI, aerospace and automotive together accounted for 99.7% of Q2 FY27 revenue.

What do customer concentration and operating data show?

Expleo’s top 10 clients contributed 51% of Q2 FY27 revenue, unchanged from Q1 FY27 but lower than 53% in Q2 FY26. The top five clients accounted for 36%, compared with 34% in the previous quarter and 35% a year earlier. The top-10 group’s contribution was therefore 2 percentage points lower year on year, while the top-five share was 1 point higher.

Active clients rose to 217 in Q2 FY27 from 213 in Q1 FY27 and 200 in Q2 FY26, while delivery employees increased to 3,756 from 3,683 and 3,541, respectively. Debtor days declined to 93 from 108 in the preceding quarter and 95 a year earlier. Among customers measured on a 12-month rolling basis, 31 generated revenue above $1 million, compared with 33 in Q1 FY27 and 29 in Q2 FY26.

How did Expleo's mix shift compare with quarterly earnings?

Expleo’s mix changes coincided with lower Q2 FY27 profitability than a year earlier. Adjusted earnings before interest, tax, depreciation and amortisation, or adjusted EBITDA, were Rs 40.44 crore, down 16.2% from Rs 48.27 crore in Q2 FY26, while adjusted EBITDA margin declined to 13.8% from 17.1%. Sequentially, adjusted EBITDA decreased 4.5% from Rs 42.35 crore in Q1 FY27, when the margin was 14.5%.

Profit after tax, or PAT, before other comprehensive income was Rs 36.40 crore in Q2 FY27, up 6.5% from Rs 34.18 crore in Q1 FY27 but down 8.5% from Rs 39.76 crore in Q2 FY26. For H1 FY27, net revenue rose 7.7% year on year to Rs 584.19 crore and adjusted EBITDA increased 1.6% to Rs 82.8 crore. The H1 FY27 adjusted EBITDA margin was 14.2%, compared with 15.0% in H1 FY26.

Conclusion

Expleo’s Q2 FY27 data show two material mix movements: digital revenue declined to Rs 139.7 crore and represented 47.7% of net revenue, while Asia’s revenue share reached 34.5%. Europe remained the largest region at 57.8%, BFSI represented 81.1% of revenue, and North America’s contribution fell to 7.7% as net revenue grew 3.5% year on year and adjusted EBITDA margin declined 3.3 percentage points.

The presentation discloses no digital-revenue or regional-share target and no scheduled event related to either measure. The next quarterly disclosure will show whether digital revenue moves from Rs 139.7 crore, whether Asia remains near 34.5% of sales, and how top-10 client contribution, which was 51%, and debtor days, which were 93, develop.