Exato Technologies Limited delivered strong financial performance in the first quarter of FY27, with net profit more than doubling year-on-year. The Noida-headquartered digital transformation firm reported a profit after tax (PAT) of ₹564.43 lakh for the quarter ended June 30, 2026, compared to ₹276.05 lakh in Q1FY26. This represents a 104.47% year-on-year increase, driven by robust top-line growth and margin expansion.

Revenue from operations climbed 50.17% to ₹4,368.34 lakh, up from ₹2,908.95 lakh in the corresponding period of the previous fiscal year. The company’s EBITDA grew at a faster pace than revenue, rising 81.44% to ₹814.88 lakh. This divergence between revenue and EBITDA growth highlights significant operating leverage, with the EBITDA margin expanding by 321 basis points to 18.65% from 15.44% in Q1FY26.

Financial Performance Overview

The company’s profitability metrics across all levels showed substantial improvement. Profit before tax (PBT) surged 102.26% to ₹778.31 lakh, aided by a sharp decline in finance costs. Finance costs dropped 53.95% to ₹21.81 lakh from ₹47.36 lakh in Q1FY26. Depreciation and amortization expenses also decreased slightly by 12.92% to ₹14.76 lakh.

Total income for the quarter stood at ₹4,395.70 lakh, including other income of ₹27.36 lakh, which grew 20.58% from ₹22.69 lakh in Q1FY26. Total expenses rose 44.24% to ₹3,580.82 lakh, remaining well below the growth rate of total income.

What the Numbers Show

A key analytical observation from the Q1FY27 results is the disproportionate decline in finance costs relative to the revenue growth. While revenue increased by over 50%, finance costs fell by nearly half (53.95%). This suggests either a reduction in debt burden or favorable interest rate environments, contributing significantly to the bottom-line expansion. The PAT margin widened by 343 basis points to 12.92%, indicating that the cost savings and operational efficiency gains were not just covering higher expenses but actively boosting shareholder value.

Business Segments and Strategy

Exato Technologies continues to focus on AI, Cloud, and Automation-led customer experience solutions. In Q1FY27, domestic markets contributed 72.8% of revenue, while exports accounted for 27.2%. The management has targeted export revenue to reach 60% of total revenue over the next two to three years, up from 23.50% in FY26.

Sector-wise, the BPO/ITES segment remained the largest contributor at 54.91%, followed by BFSI at 18.71% and BPO/KPO at 16.56%. Geographically, within the export basket, England accounted for 68.93% and Singapore for 29.70% of the global reach revenue.

The company recently appointed new leadership roles, including a Chief Revenue Officer and Chief AI Officer, to support its international expansion strategy. Exato Technologies also highlighted its partnership with HPE for enterprise AI infrastructure and its Mitel Platinum Partner status, reinforcing its position in the unified communications and AI infrastructure space.

Exato Technologies Limited has strengthened its technology ecosystem by enrolling as a Hewlett Packard Enterprise (HPE) Partner under the HPE Partner Ready Program. This strategic move, disclosed on July 21, 2026, enables the company to market and promote eligible HPE solutions while collaborating with the technology giant. The partnership is designed to enhance exato technologies 's capability to deliver artificial intelligence (AI) and enterprise infrastructure solutions to its customers, thereby supporting its business development initiatives and expanding its market reach.

Partnership Details

The enrollment under the HPE Partner Ready Program authorizes Exato Technologies Limited to engage in the promotion and sale of specific HPE solutions. The collaboration is governed by the terms and conditions of the HPE Partner Program, which outlines the framework for joint operations. By leveraging this partnership, the company aims to bolster its service offerings in the enterprise infrastructure domain.

Commercial Terms

It is important to note that the partnership agreement does not provide for any assured business, minimum revenue commitment, or exclusive rights. Any future commercial engagements arising from this partnership will be governed by the applicable program terms and specific customer transactions. This structure ensures that the business relationship remains flexible and performance-based.

The disclosure was submitted to the BSE Limited in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The information was provided for the benefit of stakeholders to keep them informed about the company's strategic developments.