Expleo Solutions Reports Strong Q2 FY26 Results with 10.8% Revenue Growth

Expleo Solutions Limited , a global technology, engineering, and consulting service provider, has announced its financial results for the second quarter and half-year ended September 30, 2025, showcasing robust growth and improved profitability.

Key Financial Highlights for Q2 FY26

Total income grew by 10.8% quarter-on-quarter to Rs 2,954.00 million
Operating revenue increased by 8.9% quarter-on-quarter to Rs 2,827.00 million
Adjusted EBITDA margin improved to 17.1%, up from 12.8% in Q1 FY26
Profit after tax (PAT) including Other Comprehensive Income (OCI) rose by 74.3% quarter-on-quarter to Rs 431.00 million
Basic earnings per share (EPS) stood at Rs 25.62, up 94.7% from Q1 FY26

Year-on-Year Performance

Compared to the same quarter last year (Q2 FY25), Expleo Solutions demonstrated steady growth:

Total income increased by 8.6% year-on-year
Operating revenue grew by 9.0% year-on-year
Adjusted EBITDA margin improved by 77 basis points to 17.1%
PAT including OCI rose by 20.7% year-on-year

Half-Year Performance (H1 FY26)

For the first half of FY26, Expleo Solutions reported:

Total income of Rs 5,610.00 million, up 6.8% year-on-year
Operating revenue of Rs 5,423.00 million, a 6.0% increase year-on-year
PAT including OCI of Rs 678.00 million, growing 14.1% compared to H1 FY25

Operational Highlights

Expleo Solutions has shown improvement across several key operational metrics:

Digital revenue increased to 53% of total revenue in Q2 FY26, up from 48% in Q1 FY26 and 47% in Q2 FY25
The company maintained a strong balance sheet with a net cash position of Rs 3,030.00 million as of September 30, 2025

Management Commentary

Mr. Phani Tangirala, Managing Director & CEO of Expleo Solutions Limited, commented on the results: "We delivered a strong quarter, recording year-on-year growth of 8.6% and quarter-on-quarter growth of 10.8%, despite challenging market conditions—particularly in Europe, where we have a significant presence. We had growth across all our key markets, however, the growth in Europe and North America markets outpaced the growth in the Middle East and APAC markets."

He further added, "Operationally, it was an outstanding quarter, with continuous improvement across nearly all key metrics. We achieved record-high utilization levels as our delivery operations became more agile and responsive to evolving business needs."

Future Outlook

The company remains optimistic about growth opportunities, particularly in North America and Middle East markets. Expleo Solutions is focusing on Artificial Intelligence and Digital Transformation initiatives, which are beginning to generate revenue and create new business opportunities. The company has launched an organization-wide AI training initiative aimed at driving measurable improvements in operational efficiency.

Expleo Solutions' strategic priorities include driving growth through focused initiatives, pursuing operational excellence, and leveraging emerging opportunities to deliver sustained value to all stakeholders.

As the company continues to navigate the evolving technological landscape, its investments in AI capabilities and digital transformation are expected to serve as long-term differentiators, strengthening its value proposition and competitive edge in the global market.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.40%	-1.60%	-1.77%	+10.65%	-19.34%	+108.25%

Expleo Solutions Limited , a prominent player in the IT services sector, has announced a strategic move to consolidate its operations. The company's Board of Directors has approved the closure of its Competence Centre in Coimbatore, Tamil Nadu, with plans to merge it with the MEPZ branch office in Chennai.

Key Details of the Closure

Aspect	Details
Location of Closure	Coimbatore, Tamil Nadu
Consolidation With	MEPZ branch office, Chennai
Revenue Contribution (FY 2024-25)	INR 5.43 million
Percentage of Total Turnover	0.05%
Net Worth of Centre	INR 29.11 million
Exact Closure Date	To be communicated later

Rationale Behind the Decision

The primary reasons cited for this consolidation are:

Improved Delivery Efficiency: By centralizing operations in Chennai, Expleo Solutions aims to streamline its delivery processes.
Enhanced Administrative Oversight: The consolidation is expected to lead to better management and control of operations.
Operational Optimization: The move is part of the company's efforts to optimize its operational structure.

Impact and Outlook

Given the relatively small contribution of the Coimbatore centre to Expleo's overall revenue (0.05% of total turnover), the financial impact of this closure is expected to be minimal. However, this strategic decision reflects the company's focus on operational efficiency and resource optimization.

The company has stated that the exact date of closure will be announced in due course. This phased approach suggests a planned transition to ensure minimal disruption to ongoing projects and client commitments.

Regulatory Compliance

In line with regulatory requirements, Expleo Solutions has made this disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has also committed to updating this information on its official investor relations website.

As the IT services landscape continues to evolve, such consolidation moves are not uncommon. Companies often reassess their operational footprint to align with changing market dynamics and internal efficiency goals. Stakeholders will be keenly watching how this consolidation impacts Expleo's overall performance and delivery capabilities in the coming quarters.