ACE Software Exports FY26 Results: Revenue Soars, Profit Shrinks

Consolidated revenue for ACE Software Exports Ltd reached ₹56.81 crore for the year ended March 31, 2026, a significant 83% increase from ₹31.55 crore in FY25. Despite the robust top-line growth, the consolidated net profit declined by approximately 20% to ₹4.45 crore, down from ₹5.59 crore in the previous fiscal year.

Reader Takeaway: Strong revenue growth overshadowed by rising costs affecting net profit margins.

What just happened

ACE Software Exports Ltd announced its financial results for the fiscal year 2026. The company posted consolidated revenue of ₹56.81 crore, a substantial rise from ₹31.55 crore in FY2025. Concurrently, its consolidated net profit for FY2026 stood at ₹4.45 crore, a decrease from ₹5.59 crore reported in FY2025.

Standalone revenue also saw an increase, reaching ₹14.56 crore in FY26 compared to ₹11.56 crore in FY25. However, the standalone net profit remained relatively stable, at ₹2.26 crore for FY26, slightly down from ₹2.33 crore in FY25.

The company received an unmodified audit opinion from J.A. Sheth & Associates for its FY26 financial results.

Why this matters

The divergence between strong revenue growth and declining profit highlights potential margin pressures or increased operating expenses as the company expands. Investors will be keen to understand the factors contributing to this profit contraction. The completion of a rights issue and recent acquisitions also add layers to the company's financial structure and future growth prospects.

The backstory

ACE Software Exports operates in the 'Computer Software and Services Exports' sector. The company recently completed a rights issue in December 2025, allotting 54,71,101 partly paid-up equity shares at ₹110 each. Additionally, it has been involved in corporate restructuring, converting two LLPs into private limited companies and acquiring QeLearn Pvt Ltd (formerly Theia Education) effective January 1, 2026.

What changes now

With the FY26 results, investors can assess the impact of the rights issue on the company's capital structure and earnings per share. The integration of the newly acquired QeLearn Pvt Ltd will be a key focus for future performance. Management has confirmed no deviation from the stated use of proceeds from the rights issue.

Risks to watch

The primary risk for shareholders is the declining profitability despite revenue growth, suggesting challenges in cost management or competitive pricing. Future performance will depend on successful integration of acquisitions and effective management of operational expenses.

Peer comparison

(No verified peer comparison data available from the filing.)

Context metrics (time-bound)

• Rights Issue Allotment: December 19, 2025.
• Acquisition Effective Date: January 1, 2026.
• Financial Year Reported: Year ended March 31, 2026.

What to track next

Investors should monitor the company's cost management strategies, the performance of newly acquired entities, and how the expanded equity base from the rights issue impacts future earnings per share.