Financial Performance Summary

Ace Software Exports Limited reported strong consolidated financial results for FY2025-26 with revenue from operations increasing 80% to ₹568.12 crore from ₹315.47 crore in the previous year. Net profit for the year stood at ₹46.73 crore, with basic EPS of ₹3.33. The company reported significant growth across both standalone and consolidated operations, with standalone revenue growing 26% to ₹14.56 crore and consolidated revenue reaching ₹568.12 crore.

Capital Structure & Rights Issue

The company completed a significant rights issue during the year, issuing 5,471,101 equity shares of face value ₹10 each at ₹49.50 per share (including ₹45 premium), raising ₹270.82 crore. An additional ₹331.00 crore remains unpaid on partly paid-up shares. The company now seeks shareholder approval to alter the utilization of ₹3,865.27 lakhs unspent Rights Issue proceeds, including reallocating ₹1,300 lakhs and introducing a new ₹1,200 lakh investment in QeApps Private Limited.

Strategic Business Developments

The company expanded through several strategic acquisitions and investments, including the 100% acquisition of QeLearn Private Limited (formerly Theia Education) for ₹17.94 crore, incorporation of QeDigital Gulf Software Services in UAE, and continued investments in AI and manufacturing technology through QeMFG. The company proposes acquiring 100% of QeApps Private Limited for ₹12 crore from existing shareholders.

Corporate Governance & AGM Details

The Annual General Meeting is scheduled for September 28, 2026, featuring seven special resolutions including alteration of Rights Issue objects, modification of call payment terms, approval of material related party transactions with QeDigital Australia aggregating ₹7 crore, and acquisition of QeApps Private Limited. The board composition includes Managing Director & CEO Amit M. Mehta, Chairman Emeritus Vikram B. Sanghani, and Whole Time Directors Sanjay H. Dhamsania and Rahul J. Kalaria.

Subsidiary Structure & Consolidation

The consolidated entity includes multiple subsidiaries: wholly-owned Ace Infoway, QeMFG, QeCAD Studio, QeNomy Digital, and QeDigital Gulf; majority-owned Ace Infoworld (98.62%) and QeLearn (100%); and step-down subsidiaries QeDigital Australia (65%), QeRadol Inc (50%), and CameraReadyArt.com INC (100%). The parent company contributes 84.48% of consolidated net assets.

Cash Flow & Financial Position

Cash flow from financing activities was ₹286.41 crore, primarily from equity issuance, while operating cash flow was negative ₹(385.63) crore. Investing activities used ₹363.60 crore for property, plant, intangible assets, and subsidiary investments. The balance sheet shows cash equivalents of ₹213.99 crore, property plant and equipment of ₹102.46 crore, and intangible assets of ₹464.48 crore including goodwill of ₹462.38 crore.

Shareholding & Related Party Transactions

Major shareholders include Amit Mansukhlal Mehta (10.84%), Sanjay Harilal Dhamsania (10.94%), Vikram Bhupatbhai Sanghani (8.53%), and Rahul Jayantibhai Kalaria (5.70%). Material related party transactions requiring approval include those with QeDigital Australia and between QeCAD Studio and QeDigital Australia aggregating ₹7 crore each, plus the QeApps acquisition from promoters for ₹12 crore.

Regulatory Compliance & Risk Factors

The company maintains compliance with SEBI regulations, Indian Accounting Standards, and Companies Act requirements. Disclosed risks include integration challenges with QeApps acquisition, underperformance of QeLearn investment, limited achievement of global expansion objectives, and technology obsolescence pressures. The company reported no material orders from regulators or instances of fraud.