Excelsoft Q2 Revenue Up 25% YoY to ₹80.9 Crores

Q2 FY27 Performance:

Revenue from operations: ₹80.9 crores, representing 25.2% year-on-year growth (Q2 FY26: ₹64.6 crores)
EBITDA: ₹13.2 crores with margin of 16.35% (Q2 FY26: ₹18.8 crores at 29.3% margin)
Profit After Tax: ₹8.3 crores (Q2 FY26: ₹10.6 crores)

H1 FY27 Performance:

Revenue: ₹161.2 crores, representing 33.9% year-on-year growth (H1 FY26: ₹120.3 crores)
EBITDA: ₹26.3 crores (H1 FY26: ₹28.9 crores)
Profit After Tax: ₹17.5 crores, representing 6.2% growth (H1 FY26: ₹16.5 crores)

Education Technology Services contributed 60.75% of Q2 revenue with 41.9% year-on-year growth
Product business contributed the remaining 39.25% of Q2 revenue

Made strategic investments of approximately ₹20.3 crores in sales expansion, leadership, talent development, and product development
Employee costs increased due to investment in international sales teams, leadership, specialized talent, and annual salary increments
Expenses increased due to higher consultant costs supporting project delivery and expansion in US and UK markets
Some provisions made for expected credit losses

Strengthened presence in United States and United Kingdom with local sales, account management, and customer engagement capabilities
Set up teams in UK, US, Middle East, and Singapore
In process of setting up subsidiary in Canada to address Canadian and US markets
Objective to compete for larger, more strategic, and longer duration engagements

Order pipeline grew from ₹900 crores to ₹1,200 crores over past six months
No significant customer losses reported; focus on increasing wallet share with existing customers
Customer concentration risk acknowledged (top 5 customers contribute ~75% of revenue), with target to reduce to 25-30% over 5-year period
Won contract with University of Memphis for proctoring business in US market
Pursuing integration with large university LMS players (D2L, Blackboard, Canvas)

Strategic e-marking program with AQA progressing through phased implementation
Modules delivered received encouraging customer feedback
Experienced delays in customer-side user acceptance testing and security clearances
Revenue recognition deferred in some cases due to customer-side delays
Program represents opportunity in large-scale, high-stake digital assessment infrastructure

Developed AI capabilities including own AI hardware infrastructure and LLMs
Shipped palm-held assessment servers (Assessment in a Box) for POC with prospective customers
Devices can host entire assessment stack, connect to 200 devices concurrently
Working on AI-enabled assessment, item banking, content generation, and learning solutions
Expect meaningful AI revenue contribution in coming quarters

VTCT skills engagement went live in September 2026 with 500 tests per month
October 2026 conducted approximately 25,000 tests, targeting 30,000 tests per month
Saras e-testing platform devices delivered to customers for POC testing in Africa, UK, Scotland

Maintain healthy balance sheet with cash and bank balances of approximately ₹407 crores
Zero borrowings/debt
H1 FY27 operating cash flow: ₹34.7 crores
Financial flexibility to support growth strategy

Expect EBITDA margins to recover to 22-25% range once investments start yielding
Maintain FY27 revenue guidance of ₹350 crores
Focus on improving utilization, controlling costs, and progressively strengthening margins

1. Accelerate conversion of qualified pipeline into signed orders

2. Deepen relationships with strategic customers and increase wallet share

3. Strengthen presence in US and UK markets

4. Scale assessment and proctoring solutions through larger institutional engagements

5. Convert AI pilots into commercial deployable solutions

6. Improve implementation readiness and customer sign-off processes