Excelsoft Technologies disclosed a change in its promoter group shareholding following an open market acquisition of equity shares. The transaction, executed on August 14, 2026, resulted in a marginal increase in the promoter group's stake in the Mysuru-based IT services firm.

Mysore Sudhindratheertha Adarsh, a member of the promoter group and Chief Innovations Officer at the company, acquired 30,000 shares carrying voting rights. The purchase was valued at ₹22,46,700. This acquisition represents an increase in his individual holding from 9,15,000 shares (0.80%) to 9,45,000 shares (0.82%). The disclosure notes that Mr. Adarsh's shareholding is inclusive of the holdings of his spouse and immediate relative, Mrs. Shruthi Sudhanva, who holds 4,57,500 equity shares.

Shareholding Details

The acquisition was made through the Bombay Stock Exchange (BSE). Following the transaction, the promoter group's total holding stands at 6,80,30,637 shares, representing 59.11% of the total voting capital. Prior to this acquisition, the holding was 6,80,00,637 shares, or 59.09%.

Other significant members of the promoter group include Dhananjaya Sudhanva, who holds 3,88,43,702 shares (33.75%), and Lajwanti Sudhanva, who holds 1,17,56,225 shares (10.22%). Pedanta Technologies Private Limited holds 1,64,85,710 shares (14.32%). No other members of the promoter group reported changes in their shareholdings during this period.

Regulatory Disclosure

The disclosure was filed with the Listing Departments of BSE Limited and National Stock Exchange of India Limited on August 18, 2026. The company received the intimation from Mr. Adarsh on August 17, 2026. It was submitted under Regulation 29(2) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, and Regulation 7(2) of the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015.

S M Adithya Jain, Company Secretary and Chief Compliance Officer of Excelsoft Technologies, signed the disclosure letter from Mysuru. The information is also available on the company's investor relations website.

Excelsoft Technologies reported a robust start to FY27, with net profit after tax (PAT) surging 57.13% year-on-year to ₹92.28 million for the quarter ended June 30, 2026. The bottom-line growth was underpinned by a 44.05% increase in revenue from operations, which reached ₹802.63 million, reflecting sustained demand across its Education Technology Services segment. Despite the strong top-line performance, EBITDA margins moderated to 16.24% from 18.02% in the prior year period, as the company absorbed significant one-time costs related to artificial intelligence (AI) capability building and nearshore delivery expansion.

The financial results were submitted to the BSE and NSE on August 07, 2026, under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The unaudited consolidated results were certified by S M Adithya Jain, Company Secretary and Chief Compliance Officer. The filing also included an investor presentation detailing the company’s strategic focus on AI integration and global footprint expansion.

Financial Performance Highlights

While revenue growth was robust, operating profitability faced pressure from strategic investments. EBITDA increased by 29.78% to ₹130.31 million, lagging behind revenue growth. This divergence was attributed to specific one-time expenditures: ₹84 lakh for recruitment costs to build a scalable leadership organization and ₹62 lakh for AI capability building. Additionally, ongoing investments in nearshore expansion and global sales hiring contributed to higher operating expenses. Nevertheless, the PAT margin improved to 11.50% from 10.54% in Q1FY26, resulting in a basic EPS of ₹0.80 per share.

Strategic Investments and Operational Updates

Excelsoft’s management highlighted that the moderation in EBITDA margins is a deliberate trade-off for long-term value creation. Key investment areas include nearshore expansion, which targets a 35–40% gross margin through improved client proximity and higher-value deals, and AI capability building aimed at delivering AI-led products and productivity gains. The company’s workforce expanded to 1,114 employees, supporting its global delivery model. Nearshore operations generated approximately ₹10 crore in revenue during the quarter, with management noting significant improvements in gross margins for this segment.

The revenue mix remained balanced, with Educational Technology Services contributing 63.4% and Educational Technology Products accounting for 36.6%. Client retention remains strong, with the top five clients contributing 73% of revenue and the top ten clients contributing 82.6%. The average client relationship tenure among the top ten clients is 11 years, indicating high stickiness in its core assessment and learning solutions business. A key operational highlight is the continued progress of the engagement with AQA, reinforcing Excelsoft’s position as a trusted partner for large-scale digital assessment solutions.

What the Numbers Show

The divergence between revenue growth (44%) and EBITDA growth (29.78%) signals a deliberate trade-off between immediate profitability and long-term capacity building. The moderation in EBITDA margin to 16.24% is directly linked to investments in nearshore operations and AI integration, including specific one-time costs of ₹1.46 crore for recruitment and AI capabilities. However, the improvement in PAT margin to 11.50% suggests that cost efficiencies elsewhere or favorable other income items helped offset the operating margin pressure. This indicates that while the company is spending heavily on future-oriented capabilities like AI and nearshore delivery, it is maintaining control over bottom-line profitability through disciplined expense management in other areas.