Financial Performance Summary

Exato Technologies reported strong financial performance for Q1 FY27:

  • Revenue: ₹44 crore, representing 50% year-on-year growth
  • EBITDA: 82% year-on-year growth
  • EBITDA Margin: Significant improvement (specific percentage not quantified)
  • Profit Before Tax (PBT): 102% year-on-year growth
  • Profit After Tax (PAT): 104% year-on-year growth, reaching ₹6.2 crore
  • Annual Recurring Revenue (ARR): Increased to approximately ₹140 crore

Order Book and Execution

  • Order book increased from ₹600 crore (as of Q4 presentation) to ₹660 crore
  • ₹30 crore executed in Q1 FY27 from the order book
  • Total executed to date: ₹251 crore (₹221 crore up to Q4 plus ₹30 crore in Q1)
  • Unexecuted order book balance: ₹410 crore
  • New order addition of ₹60 crore primarily from international customers, including iQor BPO

Business Segments and Revenue Mix

  • Export contribution: 27.2% of revenue
  • Vertical contribution: BPO and IT/ITES (>70%), Banking and Financial Services (second largest), Healthcare (third largest)
  • Geographic contribution: UK, US, Singapore
  • Solution mix: Licenses (majority), Maintenance/Implementation/Consulting (30%)

Strategic Developments and Partnerships

Leadership Additions:

  • Dr. Milind Raman Godbole joined as non-executive, non-independent director
  • Mr. Muralidharan (ex-TCS CTO) joined as Chief AI Officer
  • Mr. Kailash Sethuraman joined to lead AI infrastructure vertical
  • Mr. Alok Bohra joined from NiCE to strengthen APAC market presence
  • Mr. Paresh Sheth joined as advisor for infrastructure vertical

Partnership Updates:

  • Mitel: Upgraded to Platinum Partner status (highest category in APAC)
  • Acumatica: Upgraded from Premier to Gold Partner
  • New partnerships with HPE, AWS, Fortinet, and amplifAI

Business Verticals Expansion:

1. CX and Analytics (core growth engine)

2. Unified Communications

3. AI Infrastructure (new vertical)

4. ExatoIQ (proprietary integration solutions)

5. Cloud ERP

International Expansion

  • Significant focus on US market expansion
  • Chief Revenue Officer Naveen stationed in US for business development
  • Targeting BPO sector with hybrid model (US sales, India delivery)
  • Exploring opportunities in Malaysia, Singapore, Bahrain, and Dubai

AI Infrastructure Vertical

  • Newly formed business vertical focusing on full-stack AI solutions
  • Includes private AI, LLM in a Box, future network as a service, full-stack observability, and secure AI-ready infrastructure
  • Expected to contribute 25-30% of FY27 business
  • Initial margins expected at 10-12%, with potential for expansion

Proprietary IP Development

  • Platform development accelerated, expected readiness by March 2027
  • Expecting to sign first IP-based deals in August/September 2026
  • Projected margins of 40-50% on IP revenue
  • Targeting new customers rather than existing client base

Marketing and Business Development

  • Participated in NiCE World 2026 as Quantum sponsor with 412 unique visitors across 196 accounts
  • Engaged with 30+ customers for CX assessments and Agentic AI roadmap discussions
  • Conducted NiCE AI CX Masterclass in Indonesia
  • Running LinkedIn and account-based marketing campaigns

Guidance and Outlook

  • FY27 Revenue growth guidance: 60-70% year-on-year
  • FY27 Profitability growth guidance: 70-80% year-on-year
  • ARR target: ₹180-200 crore by FY27 end
  • Customer base expansion target: 300-500 customers in 2-3 years (current: 150+)
  • Industry growth expectations: CX/AI-as-a-service (35-40% CAGR), Cloud ERP (20% CAGR)

Operational Metrics

  • Team strength: 140+ employees
  • Engineers: 100+
  • Clients: 150+
  • Countries served: 10+
  • Agents enabled: 150,000+
  • Client retention rate: 97-98%

Capital Structure and M&A

  • Exploring inorganic growth opportunities
  • Potential acquisition to strengthen existing verticals and geographical presence
  • Considering mix of cash and equity for acquisition funding
  • Previously approached by Accenture for acquisition (not pursued)

Risk Factors and Mitigation

  • Top 5 clients contribute 60% of revenue, but contracts are non-cancellable (3-5 year terms)
  • Diversification through new verticals and international expansion
  • Focus on managed services and land-and-expand strategy to increase customer stickiness