Ace Software Exports Limited reported a consolidated net profit of ₹1.18 crore for the quarter ended June 30, 2026, while its standalone net profit surged 42.7% year-on-year to ₹0.84 crore. The Ahmedabad-based technology firm posted consolidated revenue from operations of ₹14.29 crore, up 7.9% from ₹13.25 crore in Q1FY26, reflecting steady demand in its software exports segment. Standalone revenue rose 8.6% to ₹3.54 crore, aided by disciplined cost management and strategic investments in artificial intelligence and digital platforms.

The Board of Directors, chaired by Managing Director & CEO Amit M. Mehta, approved the unaudited financial results on July 31, 2026. The results were reviewed by the Audit Committee and subjected to a limited review by the statutory auditor, J. A. Sheth & Associates, in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The financial statements were prepared in accordance with Indian Accounting Standard 34 (Ind AS 34).

Consolidated Financial Performance

Consolidated revenue from operations stood at ₹14.29 crore for Q1FY27, compared to ₹13.25 crore in Q1FY26. Total income reached ₹14.91 crore, supported by other income of ₹0.61 crore. Total expenses were contained at ₹13.73 crore, down from ₹12.34 crore in the prior year quarter, primarily due to lower inventory changes offsetting higher employee benefit expenses.

The company reported no current tax expense for the quarter, whereas it had incurred ₹1.60 crore in current tax during Q1FY26. Deferred tax assets were utilized to the extent of ₹0.00 crore. The improvement in bottom-line profitability despite a slight dip in pre-tax profit highlights effective tax management and non-operational gains.

Standalone Financials

On a standalone basis, Ace Software Exports generated ₹3.54 crore in revenue, up from ₹3.26 crore in Q1FY26. Employee benefit expenses decreased to ₹1.44 crore from ₹1.60 crore in the previous year, contributing to margin expansion. Other income declined significantly to ₹0.36 crore from ₹0.77 crore, impacting total income which fell slightly to ₹3.90 crore from ₹4.03 crore.

Standalone profit before tax rose to ₹0.84 crore from ₹0.59 crore. With no tax provision made for the current quarter, the net profit mirrored the pre-tax figure. Basic earnings per share (EPS) remained flat at ₹0.46 per share compared to the same period last year.

What the Numbers Show

The divergence between consolidated and standalone performance underscores the contribution of subsidiaries to the group’s overall health. While standalone operations saw a decline in other income, the consolidated entity benefited from stable revenue growth across its wider network, including wholly-owned subsidiaries like Ace Infoway Private Limited and QEMFG Private Limited. The absence of tax outflow in Q1FY27, contrasted with significant tax payments in Q1FY26, suggests a shift in taxable income timing or utilization of earlier losses, enhancing cash flow retention for the group. Management emphasized continued investments in AI-enabled solutions and proprietary intellectual property as key drivers for long-term value creation.

Ace Software Exports Limited reported an 80.09% year-on-year surge in consolidated revenue from operations to ₹5,681.22 lakhs for FY 2025-26. The company announced its audited financial results for the quarter and year ended March 31, 2026, on May 30, 2026. Profit for the period stood at ₹445.25 lakhs, while EBITDA for the fiscal year was ₹871.69 lakhs, a 5.78% increase compared to the previous year, reflecting improved operational efficiency amidst significant business expansion.

The Board of Directors approved the financial results at a meeting held on May 30, 2026, under Regulation 33 read with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company continued to invest in business expansion, technology capabilities, and product development initiatives during the year. A trading window closure, effective from April 1, 2026, remains in place for designated persons until 48 hours after the result dissemination.

Key Financial Highlights FY 2025-26

Capital Strengthening and Acquisitions

Ace Software Exports successfully completed a Rights Issue of 54,71,101 partly paid-up equity shares, receiving ₹27.08 crores as application money. The balance amount of ₹33.10 crores remains receivable as call money to support business operations. The company also completed the acquisition of QeLearn Private Limited, formerly Theia Education Private Limited, to expand its presence in the education technology segment.

Additionally, the company signed a definitive Term Sheet to acquire a 40% equity stake each in MyUtilityGenius Limited and MyUtilityGenius Commercial Limited, a UK-based energy technology and consultancy group. This acquisition is subject to the execution of definitive agreements and regulatory requirements. To support its Middle East operations, the company established QeDigital Gulf Software Services FZCO in Dubai, UAE.