Nucleus Software reported a consolidated net profit of ₹23.87 crore for the quarter ended June 30, 2026 (Q1FY27), marking a 32% decline year-on-year from ₹35.20 crore in Q1FY26. Consolidated revenue from operations fell 3.3% to ₹210.43 crore, down from ₹217.72 crore in the corresponding prior period. The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at ₹7.59 crore. The dip in profitability was primarily driven by exceptional items amounting to ₹98.2 lakh, arising from revisions in gratuity and compensated absences liabilities under the new Labour Codes.

The Board of Directors, at its meeting held on July 30, 2026, approved the audited standalone financial results and unaudited consolidated financial results for the quarter. The results were reviewed by the Audit Committee and audited by ASA & Associates LLP. The company also confirmed that the final dividend of ₹12.50 per share for FY26 was approved by shareholders at the annual general meeting on July 27, 2026, and paid on July 28, 2026.

Consolidated Financial Performance

Consolidated total income stood at ₹2,282.6 lakh, compared to ₹2,356.8 lakh in Q1FY26. Employee benefits expense rose 8% YoY to ₹1,571.8 lakh, while operating and other expenses increased to ₹452.9 lakh from ₹381.9 lakh. Other income remained relatively stable at ₹178.3 lakh. Profit before tax decreased to ₹301.0 lakh from ₹483.0 lakh in the prior year quarter. Tax expense was ₹62.3 lakh. The table below summarises key consolidated financial metrics:

Standalone Financials

On a standalone basis, Nucleus Software reported a net profit of ₹22.95 crore for Q1FY27, down 42% YoY from ₹39.59 crore. Standalone revenue from operations declined 3.6% to ₹193.69 crore from ₹200.80 crore. Standalone total income was ₹2,114.3 lakh against ₹2,250.8 lakh in Q1FY26. Employee benefits expense increased to ₹1,379.1 lakh from ₹1,276.8 lakh. Standalone EPS was ₹8.72, compared to ₹15.04 in Q1FY26.

Strategic Developments and Leadership Changes

During the quarter, Nucleus Software continued to execute against its long-term priorities of product innovation, customer success, delivery excellence, and international market development. The company strengthened its customer success leadership through the appointment of Bhavit Godiwala as Chief Customer Success Officer. In this role, he will focus on deepening customer relationships, strengthening governance and delivery excellence, and accelerating value realization for financial institutions globally.

The company also continued to develop its regional partner and customer ecosystem. During the quarter, Nucleus Software entered into a strategic partnership in Indonesia and marked five years of collaboration with Hatton National Bank, underscoring its continued focus on long-term relationships and market-aligned transformation.

Segment-wise Performance

India remained the largest revenue contributor, generating ₹1,180.6 lakh in consolidated revenue, down from ₹1,267.0 lakh in Q1FY26. The segment-wise breakdown is presented below:

Globally, the company's total assets increased to ₹13,243.5 lakh from ₹12,315.6 lakh in Q1FY26.

What the Numbers Show

The significant decline in net profit despite a modest drop in revenue highlights the impact of non-operational adjustments. The ₹98.2 lakh exceptional item, representing a reduction in liability due to remuneration structure revisions under the Labour Codes, directly reduced pre-tax profits. While employee costs rose by 8%, they constituted a larger share of revenue, indicating margin pressure. The stable other income suggests that investment returns or ancillary revenues did not offset these pressures. Management emphasized disciplined execution and investment in responsible AI and intelligent automation as key drivers for future growth.

Nucleus Software shareholders overwhelmingly approved a final dividend of ₹12.50 per equity share and the re-appointment of key board members during its 37th Annual General Meeting (AGM) held on July 27, 2026. The resolutions passed with support exceeding 99.9% of votes polled, reflecting strong investor confidence in the company’s financial distribution and leadership continuity for the upcoming fiscal year.

The meeting, conducted via Video Conferencing (VC) and Other Audio-Visual Means (OAVM) in compliance with Ministry of Corporate Affairs (MCA) circulars, saw a total of 1,56,33,380 votes polled out of 2,63,25,306 shares held by eligible members. The quorum was established under Section 103 of the Companies Act, 2013, allowing the Board to proceed with the agenda items chaired by Mrs. Yasmin Javeri Krishan.

Key Resolutions and Voting Outcomes

Shareholders voted on four primary resolutions. The adoption of standalone and consolidated financial statements for FY26 received 99.9994% assent. The final dividend declaration garnered 99.9998% support, with only 24 votes cast against it.

The re-appointment of Mr. Parag Bhise (DIN: 08719754) as a director retiring by rotation passed with 99.9862% approval. Notably, this resolution saw slightly higher dissent compared to others, with 2,158 votes against, primarily from non-institutional public shareholders. Meanwhile, the special resolution to re-appoint Mr. Vishnu R Dusad (DIN: 00008412) as Managing Director secured 99.9994% support.

Shareholder Participation

The voting process was scrutinized by Mr. Pravesh Kumar of M/s Pravesh Kumar & Associates, appointed as the independent Scrutinizer under Section 108 of the Companies Act, 2013. Remote e-voting was facilitated by KFin Technologies Limited from July 22 to July 26, 2026.

Out of 40,919 shareholders on the record date, participation was driven largely by institutional investors and promoter groups. Promoter and Promoter Group entities voted 1,44,25,914 shares via remote e-voting, representing 74.45% of their holding. Public institutions voted 9,78,777 shares (82.22% of holdings), while non-institutional public shareholders polled 2,28,689 votes, accounting for approximately 3.97% of their total shares. No shareholders attended the physical VC session in person; all voting occurred electronically.

Procedural Compliance

The Company Secretary, Poonam Bhasin, confirmed that all notices were dispatched via email to 39,400 registered members on July 2, 2026, following advertisements in Financial Express and Jansatta. The cut-off date for determining voting eligibility was July 20, 2026. The Scrutinizer’s report, countersigned by the Company Secretary, was submitted to the National Stock Exchange of India Ltd. and BSE Limited on July 28, 2026, pursuant to Regulation 44(3) of SEBI’s Listing Obligations and Disclosure Requirements Regulations, 2015.