Excelsoft Withdraws ₹300 Cr Corporate Guarantee, Reduces Contingent Liability

Excelsoft Technologies Limited has successfully withdrawn its corporate guarantee of ₹300.00 crores, marking a significant reduction in the company's contingent liabilities. The withdrawal was formalized following the complete repayment of secured non-convertible debentures by promoter company Pedanta Technologies Private Limited.

Corporate Guarantee Withdrawal Details

Excelsoft Technologies had provided an unconditional and irrevocable corporate guarantee amounting to ₹300.00 crores in favour of Vistra ITCL (India) Limited on behalf of Pedanta Technologies Private Limited. This guarantee was originally established to secure unlisted, redeemable, non-convertible debentures issued by the promoter company.

Parameter	Details
Guarantee Amount	₹300.00 crores
Beneficiary	Vistra ITCL (India) Limited
On Behalf Of	Pedanta Technologies Private Limited

Fixed Deposit Release and Fund Availability

Alongside the guarantee withdrawal, the lenders of the non-convertible debentures have released the lien on Excelsoft Technologies' fixed deposit of ₹165.00 crores. This development makes these substantial funds available for the company's operational use, providing enhanced financial flexibility.

The release of both the corporate guarantee and the fixed deposit lien follows the full repayment of the NCDs by Pedanta Technologies Private Limited, completing the security arrangements that were previously in place.

Impact on Contingent Liability

The withdrawal has resulted in a significant reduction of Excelsoft Technologies' contingent liability position. The company's contingent liability has decreased to ₹3.43 crores, representing a substantial reduction from the ₹300.00 crores guarantee obligation.

Liability Status	Amount
Previous Contingent Liability	₹300.00 crores
Current Contingent Liability	₹3.43 crores
Reduction	₹296.57 crores

Related Party Transaction Details

The transaction involves related parties, as Pedanta Technologies Private Limited serves as the promoter company of Excelsoft Technologies Limited. The companies share common directors Mr. Dhananjay Sudhanva and Mrs. Lajwanti Sudhanva, and both entities are promoted by the same promoters. The company has confirmed that the transaction was conducted on an arm's length basis.

The withdrawal of the corporate guarantee represents a positive development for Excelsoft Technologies, eliminating a substantial contingent liability while simultaneously releasing significant funds for potential business operations and growth initiatives.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+1.89%	-8.95%	-28.83%	-28.83%	-28.83%	-28.83%

Excelsoft Technologies Limited has filed the transcript of its Q2H1 FY26 earnings conference call held on December 15, 2025, under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company reported exceptional financial results for Q2 and H1 FY26, with net profit surging 254% year-on-year to ₹164.85 million, driven by strong operational performance across its business segments.

Financial Performance Highlights

The company delivered robust financial performance for the quarter and half-year ended September 30, 2025, with significant growth in revenue and profitability metrics.

Metric:	Q2 FY26	Q1 FY26	Q2 FY25	H1 FY26	H1 FY25	YoY Change (H1):
Total Income:	₹686.25 million	₹601.40 million	₹573.67 million	₹1,287.65 million	₹1,149.73 million	+12%
Revenue from Operations:	₹646.07 million	₹557.18 million	₹538.13 million	₹1,203.25 million	₹1,084.99 million	+11%
EBITDA:	₹175.10 million	₹100.45 million	₹101.80 million	₹275.55 million	₹259.95 million	+6%
Profit Before Tax:	₹142.92 million	₹76.50 million	₹106.90 million	₹219.42 million	₹174.08 million	+26%
Net Profit:	₹106.12 million	₹58.73 million	₹89.44 million	₹164.85 million	₹46.55 million	+254%
EPS:	₹1.05	₹0.59	₹0.89	₹1.65	₹0.47	+251%

The EBITDA margin improved to 27.10% in Q2 FY26 compared to 18% in Q1 FY26 and 25.90% in Q2 FY25.

Business Segment Performance

The company operates across four key business segments with balanced revenue contribution and strong growth momentum.

Business Segment:	Q2 FY26 Revenue	Q2 Contribution	H1 FY26 Revenue	H1 Contribution
Educational Technology Services:	₹346.38 million	53.61%	₹634.12 million	52.70%
Assessment and Proctoring Solutions:	₹183.79 million	28.45%	₹356.27 million	29.61%
Learning and Student Success Solutions:	₹80.98 million	12.53%	₹136.89 million	11.38%
Learning Design and Content Solutions:	₹34.92 million	5.40%	₹75.97 million	6.31%

Strategic AI Initiatives and Market Position

Excelsoft has developed AI-Levate as a comprehensive suite of AI-powered solutions, integrating artificial intelligence across its learning and assessment platforms. The company formed a dedicated AI task force with AQA (UK) to advance AI models for e-marking of handwritten scripts in high-stakes assessments.

Key Development:	Details
AI Task Force Partnership:	Collaboration with AQA (UK) for AI-driven e-marking
Multi-year Engagement:	VTCT Skills (UK) for next-generation SaaS e-Testing platform
Annual Exam Capacity:	Over 300,000 exams through new platform
Average Client Relationship:	10.90 years among top 10 clients
New Clients Added:	8 new clients during H1 FY26

Management Commentary and Business Outlook

During the earnings call, Mr. Dhananjaya Sudhanva, Managing Director, emphasized the company's 25-year journey in digital learning and assessment technologies. He highlighted that Excelsoft serves over 200 organizations across 19 countries, with many customers maintaining relationships for over a decade. The company operates through two broad segments - products and services - focusing on assessment and learning domains using technology and internet platforms.

Business Focus Area:	Description
Assessment Solutions:	Saras platform for high-stakes digital assessments
Learning Platforms:	Personalized learning pathways and competency mapping
Technology Services:	Implementation, customization, and system integration
Content Solutions:	Interactive digital learning modules and simulations

Geographical Diversification

North America led revenue contribution at 63.05% in Q2 and 61.96% in H1, followed by Europe UK at 22.52% and 23.45% respectively. India contributed 5.19% in Q2 and 6.87% in H1, while Asia ex-India and Australia contributed 8.18% and 1.05% respectively in Q2.

Financial Position and IPO Utilization

The company maintains a robust financial position with improved balance sheet metrics and strong operational efficiency.

Financial Metric:	September 30, 2025	March 31, 2025
Total Assets:	₹4,899.17 million	₹4,704.85 million
Net Worth:	₹387.69 million	-
Net Debt:	₹25.21 million	-
Net Debt-to-Equity Ratio:	0.07x	-
Workforce:	1,119 employees	-

Excelsoft successfully raised ₹500 crores through its IPO, including a fresh issue of ₹180 crores and an offer for sale of ₹320 crores. The company was listed on both NSE and BSE on November 26, 2025. The IPO proceeds are being utilized for land acquisition and construction of a new development center in Mysore (₹62 crores), upgrading existing Mysore facility infrastructure (₹39.5 crores), and general corporate purposes (₹9 crores).

The earnings call transcript is available on the company's website at https://www.excelsoftcorp.com/investors/ and will be used for meetings with analysts and institutional investors until the end of the next quarter.