Company Overview

Expleo Solutions Limited, an India-based software service provider specializing in validation and verification services primarily for the banking, financial services and insurance industry, reported its financial results for FY 2025-26. The company operates through multiple wholly-owned subsidiaries in Singapore, USA, UK, UAE, and Saudi Arabia, with branch offices in Belgium, Philippines, Malaysia, Israel, and India.

Financial Performance Highlights

Consolidated Financials (FY 2025-26 vs FY 2024-25):

  • Revenue from Operations: ₹11,079.63M (vs ₹10,247.96M) - 8.12% increase
  • Profit Before Tax: ₹1,625.65M (vs ₹1,392.40M) - 16.7% increase
  • Profit After Tax: ₹1,239.82M (vs ₹1,032.43M) - 20.1% increase
  • Earnings Per Share (Diluted): ₹79.89 (vs ₹66.52)
  • Net Profit Ratio: 11.19% (vs 10.07% previous year)
  • Return on Equity: 17.56% (vs 16.56% previous year)

Standalone Financials (FY 2025-26 vs FY 2024-25):

  • Revenue from Operations: ₹9,390.58M (vs ₹10,247.96M) - 8.4% decline
  • Profit Before Tax: ₹1,328.32M (vs ₹1,278.76M)
  • Profit After Tax: ₹1,001.92M (vs ₹953.44M) - 5.1% increase

Exceptional Items and Labour Code Impact

The company recognized an exceptional item of ₹147.28 million due to the impact of new Labour Codes notified by the Government of India on November 21, 2025. This includes ₹111.43 million relating to gratuity obligations and ₹35.85 million relating to compensated absences, arising from the revised and uniform definition of "wages" necessitating reassessment of employee benefit obligations.

Business Operations and Segment Performance

  • Digital Services Contribution: 50.05% of total revenue
  • Employee Strength: 3,968 employees (35% women workforce representation)
  • Attrition Rate: 25% (vs 24% previous year)
  • New Clients Added: 43 new client logos during the year
  • Geographic Revenue Distribution: Europe 40%, India 16%, Middle East 12%, UK 14%, United States 14%, Asia 4%
  • Sector Performance: BFSI 81% of revenue with 12.8% growth, Aerospace 10% with 7.8% growth, Automotive 9% with 22% degrowth

Liquidity and Capital Position

  • Cash and Cash Equivalents: ₹3,757.49M consolidated (₹3,236.83M standalone)
  • Liquid Assets: ₹3,632.17M (vs ₹2,174.86M previous year)
  • No outstanding borrowings
  • Net Worth: ₹7,763.12M (vs ₹6,358.44M previous year)
  • Book Value per Share: ₹500.21

Dividend Declaration

  • Final Dividend Recommended: ₹110 per equity share (1100% on face value of ₹10)
  • Previous Dividend: Interim dividend of ₹50 per share paid in February 2025
  • Record Date: August 1, 2026
  • Payment Date: On or before September 25, 2026
  • Subject to approval at the 28th Annual General Meeting

Subsidiaries and Corporate Developments

Wholly Owned Subsidiaries:

1. Expleo Solutions Pte. Ltd., Singapore

2. Expleo Solutions UK Ltd., UK

3. Expleo Solutions Inc., USA

4. Expleo Solutions LLC, Dubai

5. Expleo Solutions Arabia Limited, Saudi Arabia

Recent Changes:

  • Expleo Solutions FZE, Dubai was liquidated on March 24, 2025
  • New subsidiary Expleo Solutions GIFT IFSC Limited incorporated in GIFT City, Gujarat on June 14, 2026
  • Coimbatore center closed and consolidated with Chennai MEPZ office for operational efficiency

Related Party Transactions

Significant transactions with related parties including:

  • Loan receivable from Expleo Services SASU, France: ₹974.63M (vs ₹1,151.14M previous year)
  • Interest receivable on loan: ₹19.96M (vs ₹0.44M previous year)
  • Investments in subsidiaries: ₹56.23M

All transactions were on arm's length basis with no materially significant transactions requiring shareholder approval.

Corporate Governance and AGM Details

  • Board Composition: 6 directors (1 Executive, 1 Non-Executive, 4 Independent)
  • 28th AGM Date: August 26, 2026 at 3:30 PM IST through Video Conferencing
  • Agenda Items: Adoption of financial statements, dividend declaration, re-appointment of Mr. Phani Tangirala as director
  • Remote e-voting period: August 22-25, 2026

Regulatory Compliance and Contingencies

  • Statutory Auditors: Deloitte Haskins & Sells (unmodified opinion)
  • Contingent Liabilities: Service Tax ₹785.17M, VAT ₹30.63M, GST ₹12.88M, Income Tax ₹486.84M
  • CSR Expenditure: ₹25.55M on education and skill development initiatives
  • All SEBI listing fees paid for FY 2025-26 with no material regulatory orders impacting going concern status