Excelsoft Technologies Delivers Strong Q3 Profitability Amid Strategic Expansion

Excelsoft Technologies Limited has unveiled its unaudited consolidated financial results for the third quarter (Q3) and nine months (9M) ended December 31, 2025 (FY26), showcasing significant top-line growth and a substantial surge in net profitability. The company's performance underscores broad-based business momentum and successful execution of strategic initiatives.

📉 The Financial Deep Dive

The Numbers: For Q3 FY26, total income reached ₹75.68 crore, marking an impressive 29% increase year-on-year (YoY) and a 10% rise quarter-on-quarter (QoQ). EBITDA for the quarter stood at ₹19.67 crore, up 9% YoY. However, the EBITDA margin saw a slight compression, declining to 28% from 33% in the prior year's comparable quarter. Net Profit (before exceptional items) demonstrated robust growth, escalating 40% YoY to ₹13.34 crore, and increased 26% QoQ. Earnings Per Share (EPS) for Q3 FY26 was ₹0.98, up from ₹0.89 in Q3 FY25.

The nine-month period (9M FY26) results were even more striking. Total income grew 18% YoY to ₹204.44 crore, while EBITDA rose 7% YoY to ₹47.22 crore. Profit Before Tax (PBT) increased by 22% YoY to ₹39.35 crore. The most significant improvement was in Net Profit (before exceptional items), which more than doubled, surging 110% YoY to ₹29.83 crore from ₹14.22 crore in 9M FY25. Consequently, the 9M FY26 EPS stood at ₹2.62, a substantial jump from ₹1.36 in the same period last fiscal.

The Quality: The improved profitability, particularly the dramatic increase in 9M Net Profit, was attributed to scale benefits, a stronger performance from high-margin segments, and disciplined cost management. While EBITDA growth was more moderate, the substantial Net Profit jump suggests factors like lower exceptional items or tax benefits in the current period compared to the previous year, or improved operational efficiency translating to the bottom line.

Risks & Outlook

The slight contraction in EBITDA margins warrants monitoring, though it appears to be offset by revenue growth and operational efficiencies in other areas. Management, led by MD Mr. Dhananjaya Sudhanva, expressed strong optimism about the accelerating adoption of digital learning, high-stakes testing, and enterprise skilling. North America and the UK are identified as core export markets, with Asia emerging as a key growth region. The company is positioning itself for sustainable growth, leveraging its digital learning and assessment solutions.

Strategic Wins Drive Future Growth

Operationally, Q3 FY26 revenue was dominated by Educational Technology Services (65.68%), followed by Assessment & Proctoring Solutions (21.06%). North America remained the primary revenue generator (72.16%), with Europe & UK contributing 18.31%. The company maintains strong client relationships, with an average tenure of 10.9 years among its top 10 clients.

Key strategic developments are set to bolster future performance. A Joint AI Taskforce with AQA (UK) aims to enhance AI models for e-marking handwritten scripts. Furthermore, a significant multi-year engagement with VTCT Skills (UK) will see Excelsoft deliver its Saras™ e-Testing platform, projected to facilitate over 300,000 exams annually. A notable partnership with the Civil Service Commission of the Philippines for the CSC DeX examination platform, commencing in 2026, also highlights global expansion and diversification.