Ace Software Exports Limited announced its unaudited financial results for the quarter ended December 31, 2025, alongside a significant acquisition that will strengthen its position in the education technology sector. The Board of Directors, meeting on February 13, 2026, approved both the quarterly results and the complete acquisition of Theia Education Private Limited under Regulation 33 of SEBI LODR Regulations.

Q3FY26 Financial Performance

The company delivered solid standalone financial performance for the quarter ended December 31, 2025. Key metrics demonstrate growth across revenue and profitability parameters compared to the previous year.

For the nine months ended December 31, 2025, the company reported revenue from operations of ₹1,100.98 lakhs compared to ₹811.67 lakhs in the corresponding period of the previous year, representing a growth of 35.6%. Net profit for the nine-month period stood at ₹225.59 lakhs against ₹168.44 lakhs in the previous year.

Consolidated Results Show Strong Performance

On a consolidated basis, Ace Software Exports demonstrated robust growth across all key metrics. The consolidated results include performance from subsidiaries and step-down subsidiaries across multiple geographies.

Strategic Acquisition of Theia Education

The Board approved a Share Purchase Agreement to acquire the remaining 1,56,000 equity shares of Theia Education Private Limited, making it a wholly owned subsidiary. This strategic move consolidates the company's shareholding to 100% from its existing stake.

Theia Education Private Limited, incorporated in 2023, operates as a futuristic education company utilizing artificial intelligence to enhance learning processes for students and educators. The company reported revenue from operations of ₹100.66 lakhs in financial year 2025 and ₹197.88 lakhs in financial year 2024. TEPL creates responsive and intuitive learning ecosystems where AI adapts in real-time to individual learner needs, offering programs from foundational skills development to advanced research tools for higher education.

Rights Issue and Capital Structure

The company successfully completed a rights issue during the quarter, allotting 54,71,101 partly paid-up rights equity shares on December 19, 2025. Each share has a face value of ₹10 with ₹4.50 paid-up, issued at ₹110 per share including a premium of ₹100. The paid-up equity share capital increased to ₹1,522.79 lakhs as of December 31, 2025, compared to ₹640.00 lakhs in the previous year.

Regulatory and Operational Updates

The company continues to monitor the implementation of four new Labour Codes notified by the Government of India, effective November 21, 2025, which consolidate 29 existing labour laws. Management is evaluating the potential impact and will recognize any effects in subsequent periods upon finalization of rules and clarifications. The company operates under a single segment of "Computer Software and Services Exports" and maintains its focus on technology-driven solutions across domestic and international markets.

Ace Software Exports Limited has secured a multi-phase product engineering engagement worth approximately USD 1.5 million (INR 13.49 Crore) in the AI-driven mortgage marketplace sector. This development comes as the company's financial position shows improvement over the past year.

Deal Highlights

• Contract Value: Approximately USD 1.5 million (INR 13.49 Crore)
• Initial Purchase Order: USD 48,000 (INR 43 Lakhs) for MVP phase
• Partner: US-based private equity firm
• Project Scope: Development of AI-driven mortgage marketplace platform
• Engagement Type: Multi-year global engagement
• Delivery Model: Dedicated Global Capability Centre (GCC)

Financial Performance Overview

Ace Software Exports has demonstrated growth in its financial position, as evidenced by the latest balance sheet data:

All figures in INR Crore

The company's financial position is evident from the increase in total assets and shareholders' capital, which have more than doubled over the past year. This financial position provides a foundation for Ace Software Exports to undertake and deliver on this new contract.

Strategic Implications

The execution of the Letter of Intent (LOI) and the receipt of the initial purchase order mark the beginning of what could be a significant engagement for Ace Software Exports. The project represents a revenue opportunity and positions the company in AI-driven solutions for the real estate and mortgage sectors.

The establishment of a dedicated Global Capability Centre (GCC) delivery model suggests a commitment to this partnership and potentially opens doors for similar engagements in the future. This move aligns with the trend of technology firms establishing specialized centers to cater to specific client needs and industry verticals.

As Ace Software Exports begins this project, investors and market watchers may observe the company's ability to deliver on this contract and its potential impact on future financial performance. The successful execution of this contract could potentially lead to further growth in the company's asset base and shareholder value, continuing the trend observed in the recent financial data.

With the initial phase of the MVP development underway, Ace Software Exports aims to demonstrate its capabilities in AI-driven product engineering, potentially setting the stage for expanded opportunities in the field of technology-enabled real estate solutions.