This article first appeared on GuruFocus .
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Consolidated Revenue (Quarter):INR224.77 crores, compared to INR220.03 crores quarter-on-quarter and INR228.96 crores year-on-year.
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Consolidated Revenue (Year):INR876.03 crores, compared to INR832.25 crores for the previous year.
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Product Revenue (Quarter):INR189.05 crores, compared to INR185.58 crores quarter-on-quarter and INR199.56 crores year-on-year.
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Product Revenue (Year):INR740.56 crores, compared to INR713.79 crores for the previous year.
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Projects and Services Revenue (Quarter):INR35.72 crores, compared to INR34.45 crores quarter-on-quarter and INR29.4 crores year-on-year.
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Projects and Services Revenue (Year):INR135.47 crores, compared to INR118.46 crores for the previous year.
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Cost of Delivery (Quarter):70.1% of revenue, compared to 70.4% quarter-on-quarter and 57.3% year-on-year.
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Marketing and Sales Expenses (Quarter):7.1% of revenue, compared to 7.8% quarter-on-quarter and 4.9% year-on-year.
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G&A Expenses (Quarter):7.5% of revenue, compared to 6.9% quarter-on-quarter and 5.3% year-on-year.
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EBITDA (Quarter):INR34.62 crores, compared to INR32.72 crores quarter-on-quarter and INR74.33 crores year-on-year.
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Net Profit (Quarter):INR34.55 crores, compared to INR20.7 crores quarter-on-quarter and INR64.77 crores year-on-year.
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EPS (Quarter):INR13.12, compared to INR7.86 in the previous quarter and INR24.6 year-on-year.
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Order Book Position:INR1,044.31 crores, including INR899.44 crores of product business and INR144.87 crores of project and services business.
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Cash and Cash Equivalents:INR972.37 crores as of March 31.
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Receivables:INR121.12 crores, compared to INR137.41 crores the previous quarter.
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Warning! GuruFocus has detected 1 Warning Sign with BOM:531209.
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Release Date: May 22, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Nucleus Software Exports Ltd ( BOM:531209 ) reported a year-on-year increase in annual revenue, reaching INR876.03 crores compared to INR832.25 crores in the previous year.
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The company added seven new logos in the financial year 2025-2026, compared to three in the previous year, indicating successful client acquisition efforts.
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The order book position significantly increased to INR1,044.31 crores from INR656.68 crores, showcasing strong future business prospects.
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Nucleus Software Exports Ltd has made strategic investments in AI and other technologies to enhance product capabilities and facilitate smooth client transitions to newer platforms.
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The company has expanded its sales and account management team, adding 40 to 50 sales executives, and appointed a Chief Business Officer to strengthen its market presence.
Negative Points
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The company's EBITDA for the year decreased to INR124.15 crores from INR167.6 crores in the previous year, indicating a decline in operating profitability.
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Net profit for the year fell to INR116.74 crores from INR163 crores, reflecting challenges in maintaining profit margins.
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Nucleus Software Exports Ltd lost Bajaj Finance as a client due to Bajaj's strategic investment in a competitor, impacting client retention.
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The company faces challenges in migrating clients from older software versions to newer platforms, with some implementations taking significant time due to extensive customizations.
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Despite efforts to increase marketing and sales expenses, these costs remain relatively low at 7.1% of revenue, potentially limiting market penetration and brand visibility.
Q & A Highlights
Q: We have lost Bajaj Finance as a customer. What was the reason for this? A: Bajaj Finance invested in a competitor, which was a strategic decision on their part, not due to pricing or software issues. - Parag Bhise, CEO
Q: Customers are not migrating from FinnOne to FinnOne Neo. What incentives are provided for this transition? A: We are using AI tools to facilitate a smooth transition. A recent transformation with a leading public bank in India was successful, and we are actively engaging with customers to prepare for migration. - Parag Bhise, CEO
Q: How is Nucleus Software progressing in the Japanese market? A: Japan is a relationship-driven market, and we have been present there for 25 years. We are in active discussions with top Japanese banks and expect results in upcoming quarters. - Parag Bhise, CEO
Q: What is the current status of sales and marketing efforts? A: We have strengthened our sales team with 40 to 50 new hires across various functions and appointed Dr. Apurva Chamaria as Chief Business Officer to lead these efforts. - Swati Patwardhan, CHRO
Q: Can you provide details on the order book and new client additions? A: We added seven new logos this year, and our order book stands at over INR 1,000 crores, up from INR 600 crores last year. - Ashok Bhura, CFO
Q: How are geopolitical issues affecting the company, and why has employee cost increased? A: Some orders were postponed due to geopolitical issues, and employee costs increased due to investments in our team and new labor code changes. - Vishnu R Dusad, Managing Director
Q: What is the focus area for product development, particularly in co-lending and gold loans? A: Co-lending and gold loans are focus areas, and we are enhancing these capabilities in our current product releases. - Vishnu R Dusad, Managing Director
Q: What is the typical timeline for converting a customer from the pipeline to sales? A: It varies widely, from six weeks to three years, depending on the complexity and nature of the project. - Ashok Bhura, CFO
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
