Ace Software Exports reported consolidated revenue from operations of ₹5,681.22 lakh for FY26, marking an approximate 80% year-on-year increase from ₹3,154.65 lakh in FY25. Despite the significant top-line growth, consolidated net profit for the period declined 18% to ₹445.25 lakh, down from ₹559.49 lakh in the previous fiscal year.

The company's standalone revenue grew 26% to ₹1,455.59 lakh, while standalone profit before tax remained relatively flat at ₹300.13 lakh compared to ₹303.25 lakh in FY25. The divergence between robust revenue growth and contracting profitability highlights increased operational expenditures during the period.

Financial Performance

Consolidated total income rose to ₹5,939.91 lakh from ₹3,342.99 lakh in FY25. However, total expenses surged to ₹5,341.53 lakh from ₹2,694.75 lakh, driven largely by a sharp rise in employee benefit expenses and other operating costs.

Employee benefit expenses at the consolidated level more than doubled to ₹3,061.20 lakh from ₹1,642.26 lakh. Other expenses also nearly doubled, rising to ₹2,112.19 lakh from ₹1,188.24 lakh. Finance costs increased to ₹106.30 lakh from ₹58.19 lakh, reflecting higher interest payments on overdrafts and borrowings.

What the Numbers Show

The financial data reveals a significant margin compression despite aggressive revenue expansion. While revenue grew by approximately 80%, operating expenses expanded at a faster rate, causing the consolidated net profit margin to contract sharply from 17.74% in FY25 to 7.84% in FY26. This indicates that the scale-up in operations, likely driven by acquisitions and global expansion initiatives mentioned in the report, has not yet translated into proportional bottom-line gains.

Strategic Developments and Capital Raise

During FY26, the company completed a rights issue aggregating ₹60.18 crore, receiving ₹27.08 crore through application money. The proceeds were utilized for strategic investments, including the acquisition of QeLearn Private Limited (formerly Theia Education Private Limited) for ₹17.94 crore, making it a wholly owned subsidiary.

The company also incorporated QeDigital Gulf Software Services - FZCO in Dubai to expand its presence in the GCC region. Additionally, it invested ₹7 crore in its subsidiary QeMFG Private Limited to support manufacturing technology solutions.

Corporate Governance and Related Party Transactions

The Board recommended no dividend for FY26. The company seeks shareholder approval at its upcoming Annual General Meeting on September 28, 2026, to alter the objects of the rights issue. A key proposal involves reallocating unutilized funds towards the acquisition of QeApps Private Limited for ₹12 crore from promoter group members.

Material related party transactions with QeDigital Australia Pty Ltd are expected to exceed 10% of annual consolidated turnover, requiring shareholder approval under SEBI regulations. These transactions involve the sale and purchase of goods and services valued up to ₹7 crore for FY27.

Ace Software Exports has approved the acquisition of 100% stake in QeApps Private Limited for ₹120 crore. The Board of Directors also altered the utilization of net proceeds from its ongoing rights issue to fund this transaction.

The decision was taken during a meeting held on September 3, 2026. The company will reallocate ₹1,200 lakh from its rights issue proceeds specifically for this new object. The acquisition is subject to shareholder approval at the ensuing Annual General Meeting (AGM).

Rights Issue Variation

The Board approved changes to the Objects of the Issue as stated in the Letter of Offer dated November 14, 2025. This variation does not increase the total size of the rights issue, which remains at ₹6,018.21 lakh. Instead, funds are being shifted between existing categories and allocated to the new acquisition.

Key adjustments include:

• QeApps Acquisition: A new object introduced with ₹1,200 lakh allocation.
• Global Market Expansion: Reduced from ₹1,000 lakh to ₹340 lakh, with ₹660 lakh reallocated.
• QeMatic Brand: The entire unutilized amount of ₹400 lakh is reallocated; it is no longer a separate object.
• Organizational Transformation: Reduced from ₹340 lakh to ₹100 lakh, with ₹240 lakh reallocated.
• QeLearn Investment: An additional ₹100 lakh is allocated for further investment in QeLearn Private Limited.

QeApps Acquisition Details

QeApps Private Limited is a technology solutions provider specializing in Shopify applications. It offers over 20 apps for e-commerce merchants, including product bundling and checkout optimization. The target entity reported revenue from operations of ₹95 lakh in FY26 and ₹65 lakh in FY25.

The acquisition involves purchasing 10,000 equity shares at ₹12,000 per share. The transaction is classified as a related-party transaction, as certain promoters and promoter group members hold shares in QeApps. The deal is structured at arm’s length based on a valuation report by Chartered Accountant Jigar P. Shah.

Upon completion, QeApps will become a wholly owned subsidiary of Ace Software Exports. The acquisition aims to expand the company’s business operations and enhance capabilities within its existing IT and software services line of business.

Call Money Timeline Modification

The Board also modified the terms regarding the timeline for making outstanding calls on partly paid-up equity shares. Previously, the company was required to complete all calls within 12 months from allotment (by December 19, 2026).

Due to the appointment of a Monitoring Agency under Regulation 82 of the SEBI ICDR Regulations, the strict 12-month deadline no longer applies. The First Call on partly paid-up equity shares is payable from September 2, 2026, to September 16, 2026.

AGM Schedule

The 32nd Annual General Meeting is scheduled for Monday, September 28, 2026, at 1:00 pm. The meeting will be held at Solitaire Connect, Ahmedabad. Shareholders can vote electronically via remote e-voting from September 25 to September 27, 2026. The cut-off date for e-voting entitlement is September 21, 2026.