Xelpmoc Design & Tech , an AI and data science consulting company, has announced its financial results for the second quarter of fiscal year 2026, revealing a decline in revenue but a strategic focus on profitability through proprietary products and innovative projects.

Key Financial Highlights

• Consolidated operating revenue stood at Rs 7.6 million for Q2FY26, down from Rs 16.3 million in Q2FY25.
• Adjusted operating EBITDA loss widened to Rs 16.1 million in Q2FY26.
• The company's investment portfolio fair value reached Rs 703.4 million as of September 30, 2025.

Revenue and Profitability

Xelpmoc experienced a significant year-on-year decline in its consolidated operating revenue for Q2FY26. The company reported:

The decrease in revenue and the wider EBITDA loss reflect the company's current focus on developing proprietary products and services, which may impact short-term financial performance but aim to drive long-term profitability.

Strategic Initiatives

Sandipan Chattopadhyay, MD & CEO of Xelpmoc Design & Tech Limited, commented on the company's strategy: "Our focus is on maximizing profitability through the development and enhancement of our proprietary products and services, while also optimizing our expenses. In alignment with this strategy, we have successfully conducted pilot projects in Agetech and expect monetisation by Q3FY26 end."

The company is leveraging its expertise in Artificial Intelligence, Data Science, and Machine Learning to address current market challenges and create long-term value.

Investment Portfolio

Xelpmoc's investment portfolio showed strength, with its fair value standing at Rs 703.4 million as of September 30, 2025. This diverse portfolio may provide additional value and potential future revenue streams for the company.

Outlook

While the current financial results show a decline in revenue, Xelpmoc's strategic focus on proprietary products and Agetech pilot projects indicates a forward-looking approach. The company expects these initiatives to contribute to monetization by the end of Q3FY26, potentially improving its financial performance in the coming quarters.

Xelpmoc continues to position itself in the high-growth areas of AI and data science, banking on its expertise to navigate the evolving tech landscape and create sustainable value for its stakeholders.

Investors and stakeholders will be watching closely to see how Xelpmoc's strategic initiatives translate into financial performance in the upcoming quarters, particularly as the company aims to balance innovation with profitability.

Xelpmoc Design & Tech , a professional and technical consulting services company, has announced its financial results for the first quarter. The company reported a mixed performance with revenue growth but a wider net loss.

Revenue Growth

Xelpmoc Design & Tech saw its revenue from operations increase to Rs 7.85 crore, up 11.2% quarter-on-quarter from Rs 7.06 crore in the previous quarter. This growth indicates a positive trend in the company's core business activities.

Total Income and Profitability

The company's total income for the quarter reached Rs 9.26 crore, compared to Rs 8.19 crore in the previous quarter, marking a 13% increase. However, Xelpmoc reported a net loss of Rs 18.82 crore, which is significantly higher than the previous quarter's loss.

Operational Highlights

During the quarter, Xelpmoc made several operational moves:

1. The company issued 39,500 equity shares upon conversion of stock options.
2. It granted 181,531 new options to employees under its stock option scheme.
3. Xelpmoc sold part of its equity investment on May 30, resulting in a reversal of cumulative fair value gain of Rs 99.99 crore.
4. The company's UK subsidiary was dissolved on May 13.

Investment Portfolio

As of June 30, the fair value of Xelpmoc's investments in portfolio companies stands at approximately Rs 531.80 crore. This represents a significant asset for the company, although it's important to note that this value can fluctuate based on market conditions and the performance of the invested companies.

Management Commentary

Mr. Sandipan Chattopadhyay, MD & CEO of Xelpmoc Design & Tech Limited, commented on the company's performance: "As guided earlier, we have now transitioned our business to serve the corporate sector. Our strategy emphasizes maximizing profitability by concentrating on the development and enhancement of our proprietary products and services, while also streamlining our expenses."

He added, "We are confident in our position to leverage the transformative wave of Artificial Intelligence, backed by our extensive knowledge in the field. Our proficiency in Data Science and Machine Learning equips us to overcome immediate obstacles and achieve sustained value over the long term."

Financial Analysis

A closer look at the financial data reveals:

1. Operating EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was Rs -16.40 crore, compared to Rs -15.30 crore in the previous quarter.
2. The company's expenses for the quarter were Rs 26.99 crore, slightly higher than the previous quarter's Rs 26.63 crore.
3. Employee benefits expense stood at Rs 16.05 crore, up from Rs 15.96 crore in the previous quarter.

Future Outlook

Xelpmoc is focusing on revenue generation from the corporate sector and aims to achieve profitability by leveraging its own products and services. The company has conducted pilot projects in automation of revenue reconciliation and compliance and is in the process of rolling out these products.

While the increased revenue is a positive sign, the widened net loss indicates that Xelpmoc is still in a growth and investment phase. The company's strategy of focusing on proprietary products and services, along with its expertise in AI, Data Science, and Machine Learning, positions it to potentially capitalize on the growing demand for advanced technology solutions in the corporate sector.

Investors and stakeholders will be watching closely to see how Xelpmoc's transition to serving the corporate sector and its focus on AI-driven solutions will impact its financial performance in the coming quarters.