Nucleus software Exports Limited has announced the incorporation of a wholly owned subsidiary company in Vietnam, marking its expansion into the Southeast Asian market. The company informed stock exchanges about this strategic development through a regulatory filing dated February 18, 2026.

Subsidiary Company Details

The newly incorporated entity, Nucleus Software Vietnam Company Limited, was established on February 05, 2026, with specific operational objectives and financial parameters:

Business Objectives and Operations

The Vietnam subsidiary has been established with dual operational focus areas. The entity will serve as a business development and sales hub for the region while simultaneously providing software development services to local customers in Vietnam. As a newly incorporated company, it is yet to commence business operations and therefore has no turnover history.

Regulatory Compliance and Approvals

The incorporation has been completed in compliance with SEBI Listing Regulations, specifically under Regulation 30 read with SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024. The company has obtained necessary approval from the Department of Finance in Vietnam for the establishment.

Related Party Transaction Status

The company has clarified that this initial subscription does not fall within the purview of Related Party Transactions. Additionally, the promoter, promoter group, or group companies of Nucleus Software Exports Limited do not have any interest in the newly incorporated Vietnam entity.

Strategic Expansion

This incorporation represents Nucleus Software's strategic expansion into the Vietnamese market, focusing on IT and IT related services. The establishment of the subsidiary aligns with the company's main line of business, providing opportunities for local market penetration and service delivery in the region.

Nucleus Software Exports Limited announced its financial results for the quarter and nine months ended December 31, 2025, presenting a mixed performance with revenue growth offset by profit decline due to exceptional charges. The company filed its results under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance Overview

The company's consolidated financial results showed contrasting trends in revenue and profitability metrics for the third quarter of FY26.

Exceptional Items Impact

The company recorded a significant exceptional charge of ₹18.85 crores during the quarter related to the implementation of new Labour Codes. This charge comprised:

The Labour Codes, notified by the Government of India on November 21, 2025, consolidate twenty-nine existing labour laws and introduce changes including uniform wage definitions and enhanced leave benefits.

Standalone Performance

The standalone financial results also reflected similar trends with revenue growth but profit decline.

Earnings Call Highlights

The company held its earnings conference call on February 11, 2026, with senior management discussing quarterly performance and strategic initiatives. During the call, management highlighted steady customer engagement and platform adoption across its FinnOne Neo digital lending solution.

Key Business Updates

Management Commentary

Vishnu R. Dusad, Co-Founder & Managing Director, welcomed new Chief Business Officer Apurva Chamaria, who brings over two decades of experience from companies like HCL, RateGain, Tech Mahindra, and Google. CEO Parag Bhise emphasized continued focus on long-term strategy execution and customer engagement.

During the earnings call, management discussed the ongoing migration from legacy FinnOne platform to FinnOne Neo, indicating a 3-4 year timeline for complete transition. The company added seven new customer logos during the financial year, all on the newer Neo platform.

Strategic Focus Areas

The company is focusing on several growth areas including MSME sector expansion, gold loans, finance against securities, and co-lending solutions. Management highlighted increasing traction in these business lines and continued investment in AI-enabled capabilities with focus on explainability, compliance, and enterprise-grade reliability.

Board Meeting and Regulatory Compliance

The Board of Directors approved the audited standalone financial results and unaudited consolidated financial results at their meeting held on February 10, 2026. The meeting commenced at 10:00 a.m. and concluded at 2:10 p.m. The financial results were duly reviewed by the Audit Committee and received unmodified audit opinion and review conclusion from statutory auditors ASA & Associates LLP.

The earnings call transcript was filed with stock exchanges on February 15, 2026, under Regulation 30, signed by Company Secretary Poonam Bhasin.