First question is from the line of Urmish Shah from Moneywise. Please go ahead.

Yes. Am I audible?

Yes, please go ahead.

Yes. Thank you for the opportunity, sir. Sir, my first question is on the revenue split from product and services. We have seen a shift Y -o-Y. So, could you just give some color on, is this a strategic shift? And can we expect this revenue split going forward in the same direction?

Yes, the answer is yes, Mr. Shah. Basically, if you look at the split, the first split we kept it as it is as an ETS services, education technology services. The second one, we clubbed all the products together because these products are interconnected and then there are certain customers paying in a multiple products together. So, it makes sense for us to put into a one bucket and then call it as a product instead of going into a multiple product lines.

Okay. So, when in the opening remarks, when sir was explaining our wallet share is increasing , so is it on the product side or?

In both the sides. In some places where the customers are taking in a product, then the products are increasing, and the where there is a services business is also increasing. So, we can see a uniform growth across services as well as the products.

Okay, sir. Sir, one final question, I do understand that you explained that there was a one -time cost which led to the moderation in the margins. But of this impact, how do you see the marg in profile for the full year?

Sir, we would be, as we have kind of in the last quarter also we mentioned that we would be somewhere around like 24%, 25% on our margin, that's going to be the year end margin. S o we are in that direction and we are pretty much confident on achieving those numbers.

Okay, sir, thank you. I will join back the queue for further questions. Thank you so much.

Thank you. Thank you Mr. Shah.

Thank you. Next question is from the line of Disha from Sapphire Capital. Please go ahead.

Hello, am I audible, sir?

Yes, please proceed.

Yes, you’re audible.

Yes, thank you so much, sir, for this opportunity. Again, a couple of questions, sir. First question on your margins. I think in the last call you had mentioned that despite these ongoing investments, we'll see, higher utilization, we'll see revenue rampin g up much faster. So we're expecting EBITDA margins of around 30%, 31% for FY27. And right now I think you mentioned we're expecting EBITDA margins of 24%, 25%. So how should one look at that?

Yes, this is Prashanth here. [inaudible 0:32:08] responded to that question the previous one. So what we were talking about in the previous call was a slight shrink in the margins because of the operations in the U .S. that we were talking about. And we said that it would come back to normalized levels. However, the investments that we have made in the sales teams as well as the capacity building internally, those investments we hadn't taken account for. If you look at the operations around the near -shore alone, then that the impact of which will not be as much, because we have already been on a growth curve there. We have already been improving our margins in the near -shore operations as it is, we have grown up to about, like what Dore, mentioned, it's about 26% already right? So by the end of the year, we would have taken it to roughly about 35% to 40%, which in itself wouldn't impact so much on the margin. Overall see the idea is as simple as this. If there were two options, one where we deliver a 30- plus percent growth on the topline with a 25% EBITDA, or the other option could be grow at a 20%, 25% on the revenue with a 27% to 30% EBITDA. We would want to take the first one, right? So, grow at a faster pace, so that we acquire the market quickly, and then grow to a, God forbid, let's say, God willing, a INR1,000 crores company earlier than anybody's normal imagination. So that's where we are heading. We want to really grow fast and the necessary investments that are required to be done to that effect, we are not shying away from. That's the message we want to give it to you.

Okay. Okay. And sir, this, yes, yes and the impact of all these investments that we are making will only be for this year, right? For the next year onwards, we don't see any impact of those expenses coming in?

That's what, the growth rate of a 30-plus percent on the revenue would come by making some investments, and not necessarily that the investments we make now. So that's why we are a little cautious that, there could be further investments required going forward, and that would contribute to a slight impact on the EBITDA. I'm not saying that that is going to happen, and there is an op portunity to increase the EBITDA margins, but we would not want to commit, over-commit at this point in time. So what we want to do is ensure that it would be a 25% for sure. That's where we are.

Yes. This is Sudhanva . Particularly given the rapidly changing technology scenario. I said earlier that AI is a must, and AI-first applications and products are becoming a must. Because we have to keep up with the market, with the competition and with customer expectations more than anything else. If we have to do that, along the chain, from designers who design applications, to developers, to delivery, to training, all this will cost money. And will be an investment until AI matures. We have already seen that we, in the last one year we have seen so many models, so many different ways in which AI can be implemented. And that requires spending. If we don't do that, the risk on the other side is we may lose out to competition. And we have to be on par with the customer so that we don't lose customer's respect to our capabilities. Hence, the spend will be required, up -skilling will be required. If there is a new technology that comes by or AI takes a little different shape, and AI also means we have to address a lot of potential risks. Again, a spend on that. So this requires up-skilling of our workforce. Many times helping and providing support to our customers through our nearshore or onsite teams to help them be in sync, or help us be in complete sync. And hence, until it stabilizes, which is anybody's guess, but my experienced guess would be it will take two years to stabilize. Until then we will see shifts in underlying technology stack of AI. AI has a lot of math and algorithms below it to make AI happen as we see it. There are newer models emerging, newer devices being supported. As Excelsoft, we need to up-skill all our people, whether they are in QA or development or design or delivery or support. And that is a training that will go on, up-skilling that will go on for a couple of more years. Even in the last quarter, we trained all our people and up-skilling them to the current levels of AI. So that is a long answer, I am sorry, but I [inaudible 0:38:32].

No, no sir, thank you so much for the detail. Yes, sorry, go ahead sir.

No, no. I was saying you look at the top line growth, and this would be, if not at the same 44%, definitely it would be a very good growth in the rest of the quarters of this year as well. And that would definitely offset margins in absolute numbers, although the EBITDA...

Yes, you know what I mean.

Yes.

The percentage of profits will start getting adjusted.

And of course there are many other strategies that we are putting in place which would contribute to better improvement in the expansion in the margin. However, we would want to, keep it conservative at this point in time and commit to a 24%, 25%, but then deliver more probably.

Right, right, fair enough, sir. And also sir, in Q4 we mentioned that the EdTech business we were able to get a lot of several accounts. So do we see this momentum in the EdTech business sustaining? How's the pipeline looking there?

Yes. Yes two things there. One with our existing customers, we were talking about expanding because of multiple reasons. One is that we are able to provide additional services around AI and all such things, our existing customer accounts are growing one. Secondly, the opportunity because we are near shore, we are expanding our sales teams as well, the opportunity of being closer to the cus tomer acquiring newer customers for education technology services . If you remember, I had articulated a point that some of our product customers, who are already with us for more than a decade, they would say that I would look at you for any services provided you have operations onshore. So, such things are where we are seeing traction, and there is an expansion on ETS overall on the top line as well, happening across the board.

I'd like to add . (not audible) The fact, the testimony to our product superiority, differentiation, and also our ability to deliver superior services comes from the fact, one of the evidences is, all credible international conferences in the area of online learning and assessments, par ticularly assessments and testing, we get invited speaker slots. Sometimes in a conference we get four invited speaker slots. Wherever it happens in the world, we don't pay for it. We get invited to speak because they believe we are a thought leader in this space. They want to hear about what we are doing and our unders tanding of the current state of the market. So that is encouraging and also, it's an opportunity for us to evangelize our approach to this sector. And that is also generating leads and highly or high-quality leads because they come, they spend time or, they speak to us, they look at demos, and they will make up their minds and follow through with the next processes until procurement happens. And they also champion for us internally in their organization.

Right, right. So, sir, typically Q1 for us is the slowest quarter? And I think it accounts for around 18% to 20% of our overall revenues. So based on that we can easily extrapolate to...

20% to 22% generally.

20% to 22% generally.

Right, right. So, we can easily be targeting to touch around INR370 crores sort of revenues for this year?

: So, you have, we are confident of reaching a handsome number, but I don't want to commit a INR400 crores at this point of time at this call, but it looks positive, the market looks positive. And we are the digital assessments and the proctoring services are picking up in a big scale, we see a good amount of traction, hopefully like we should reach a good num ber, ye s.

Can I add? We are looking confident for 350 given the pipeline that we have got. And a little bit of luck and a stretch it could be closer. Yes, that's what I pointed.

Yes, and sir, just on the AQA integration, have you recorded any revenues for this quarter?

Yes, yes. Revenue has started coming in, yes.

Will it be possible to follow? Doreswamy Palaniswamy Yes, it's roughly INR2.5 crores we have booked it in the current quarter. It has started, the billing has started. And then we see INR12 crore s to INR15 crores billing in the current year.

And for the next year, sir, any contribution we are expecting?

No.

y: It is there but we are not quantified it.

Yes. Okay, sure. And just sir, the last thing on the acquisitions you just said that , we currently looking at acquisitions for both in US and India. Anything on the advanced stages sir?

.:Yes ma'am. Currently we are pursuing three targets. One in US and then two in India. Two are in the -- we have issued a non-binding offers, and then there's a negotiation going on. The third one is, in the early stage we just started interacting the promoters, trying to understand the business model, etcetera. So currently these three are in the pipeline.

Okay, okay. That’s it, sir from my side. Thank you and all the best. Moderator Thank you.

Next question is from the line of Keval Doshi from Onyx Capital. Please go ahead.

Hi. Good afternoon, everyone. A couple of housekeeping questions. One was what is our cash balance as of date or as of the quarter end?

It's INR400 crores including FDs we are carrying the balance sheet.

INR6.5 crores.

INR6.5 crores. And what is the fresh capitalization?

About INR4 crores .

About INR4 crores ?

About INR4 crores, sir. Yes. And all this is for freshly new products that we are like, like Mr. Sudhanva said, we are building AI native products and all this investment is going into AI native products that have the potential of earning revenue in the near future.

We have front loaded a little bit, sir. It won't be, by the end of the year, we would want to normalize it to the last year's level or slightly lower.

Okay. And considering that we are expanding our nearshore services, does it mean that there will be expansion in the growth rate at the cost of margins? The question was that since we are expanding nearshore services, the margins will not be as good as what they were for the offshore services we used to provide, so will this likely compromise on our margins for the sake of higher growth?

: In the short term, but it is a balanced approach what we are taking is, we are not going to build too much of nearshore capabilities immediately, unless there is an absolute necessity from the customer side. But on the other hand, nearshore is currently he lping us in terms of retention of the customer, some of the new projects, and then this nearshore team can act as a catalyst to get more business in the customer place and then shifting back to offshore team. So, in that way, there will be some lower margins, but in the long term, I don't see that is going to happen on a continuous basis.

If I can add, this is Sudhanva . To accelerate business development in the US, flying folks from here going across and spending a week or two with US customers or potential customers is not helping that much, and it's, you know that the visa processes have been quite difficult. So, one of the options we are exploring is to set up an office in Toronto in Canada and move a few of our people who are currently anyway talking to our US customers, both for business development and support, so that it will be easier for them to go across, not only to support existing customers, but also to do more business development and get us more revenues. That's in process.

Like any large organization, most of our customers have churn, so building strong relationships with them, continuously visiting them, meeting them week on week is very important, which is hard to do from here. Having people nearshore in the US, in Canada, will definitely help us, and that is the rationale for the investment.

That acquisition we are pursuing it right now, sir. One option, you know, again why there is a delay, due to the IPO, we have to slow down, and then we have to take it up for later. And then the numbers were also being changed by the time we went back, and then we want to review their numbers again. So, lot of re -negotiation has been happened, but we are now taking it up, and then it's moving on. It's actually in the final sta ge of our negotiation. In a couple of weeks, it's either, you know, they're accepting our offer …

We issued a non-binding offer.

Okay. And the last question was, whatever has been happening in the education industry in India, what we saw is happening to the competitive exams, is there any opportunity which we are looking at or has some gates opened for us to get into business with the government on some of the competitive examinations?

Very much. After the recent problems that we've seen, I'm glad to say the National Testing Agency's CEO got in touch with us. I don't know how he got our reference, but the question was, 'Apparently, you've done similar exams for customers overseas. Will you be able to do the kind of exam where we had problems recently?' We have said yes. And post that, we are already in touch with the task force that the government has formed, a 4-member task force, and I have a meeting with them on Thursday. So, yes, we are aggressively pursuing this opportunity, and they are also impressed from what we've done so far.

Excellent. Thank you so much, and wish the team all the very best.

Thank you, sir. Thank you, sir.

Thank you. Next question is from the line of Krishna Rao, an Individual Investor. Please go ahead.

Hi, sir. Congratulations on a good set of numbers. What I would like to understand is -- hello?

Yes, please proceed.

Yes. What I want to understand from the management is that how big the AQA opportunity could be for us going down say 1 or 2 years? And what is the vision and the growth strategies that our company's viewing, whether it will be more of inorganic or adding more logos, or what will be the roadmap going ahead to bec ome a much larger company?

Mr. Rao, thank you for this question. It's a good question. AQA, at this point of time, the visibility what we have over a period of 4 years, it's roughly around USD17 million revenue. That's the number which we are able to see, but we are hopeful of like getting a much more than that. So, it's going to be a large account, second largest account for us. And the second question for you, the growth for the future next 5 years, so the growth will be a mix of organic and inorganic. It would be -- at this point of time, we are crunching our numbers, roughly around 69% to 70% would be from an organic growth, and then 30% is coming from the inorganic growth. Is that answer to your question or …?

More or less. And one more on the margin side. How long will we be incurring these one -off expenses to build a good base in the overseas, and what is the potential that we're seeing over there also?

As we explained, these expenses are inevitable for our growth. So, we have got into this one, and the n the whole idea of investing into this one -off expenses, whether it is a sales or a nearshore or strengthening the management team, is for a future growth perspective. I wouldn't say that it is a recurring expenses on a quarter -on-quarter basis, but on a selective basis, there will be some -- investment will be there in a couple of quarters down t he line.

Got it, sir. Thank you. Thank you so much and best of luck for your future endeavors.

Thanks a lot. Thanks a lot, Mr. Rao.

Thank you. Ne xt question is from the line of Vivek Rai from Inga . Please go ahead.

Good afternoon. Congratulations on good set of numbers, sir. My question is regarding EBIT and PAT relation. So, when I see at the P&L of quarter, I see 62.02 million EBIT and PAT is about 118. So, can you explain the component which lead to increase in P AT level?

EBIT to PAT has an increase, so the question is why, what is the reason?

Interest is low, right? So, that's the key.

So, when I see interest amount , interest amount is 15.05 million.

Yes, it was 7.8 last year.

It was 7.8 last year.

So the 55.118 is the difference, approx 15, 15 million difference.

So, you're talking about EBIT, right?

EBIT to PAT. So, how PAT will increase after that?

Yes, EBIT to PAT, interest is the major portion, right? That is one.

Tax.

Tax is -- so, from EBIT, there's another income -- other income of one of -- it's been added into the PAT.

No, he's talking about the books. In the books, other income is part of EBIT only, no? It's part of EBIT only. So, the only between EBIT to PAT is -- Mr. Rai, please add other income into that one. I think in EBITDA what we're presenting right now is we have taken only operating income and then the operating expenses. So, that's why it's been arrived at EBIT. And then you add back the other income, so it's adds up to PAT.

Okay, understood. So, my second question regarding guidance. Can you give me some guidance regarding revenue or PAT level for the current year?

Currently, we are expecting between INR350 crores to INR360 crore, as our Chairman mentioned, that's the number which we are looking at it for the current financial FY26-' 27.

And at PAT level? The same margin will be continued, as I told.

We are talking about a 24 % to 25% of EBITDA.

Okay, understood. Thank you. Thank you, sir.

Thank you. Next question is from the line of Karthi from Suyash Advisors. Please go ahead.

Good afternoon, gentlemen. A couple of clarifications. One is on the INR40 crore s offshore order that you spoke about -- nearshore order that you spoke about. Would this be executed entirely with the onshore mix or would you be using any local resources also?

Okay, sir. This INR40 crores number what we referenced, used in the call, is for the top line of this team which is going to build it. The execution part, there will be some amount of an execution will happen from offshore and then the onshore.

And would this be only 1 client or have you been able to add other clients also?

Sir, we have added 2 clients. First, we started with a 1, and then this quarter, we added 1 more. They are supporting 1 more customer.

Perfect. Sir, the other thing is, in the first quarter, product revenues were flat -ish year-on-year basis, right?

Right.

So, what is the outlook for the revenue on a full year basis, product side only?

Sir, it will increase, because normally what happens in the first quarter, the number of test which has been taken using our platform on the lower side, and then it will increase in the coming quarter. Normally, that's a trend which you would have seen in our numbers.

Yes, yes. But what I'm asking is what is the current visibility for growth, because you'll be booking meaningful revenues from AQA as well. So, therefore, I'm just trying to understand what is a reasonable growth number to bake in here?

Anywhere between 25 % to 30% growth in the product line also.

Okay, versus 73 last year, we should assume another 25% -30% kind of a growth?

Right, correct.

Thank you.

Thank you. Ladies and gentlemen, as there are no further questions from the participants, I now hand the conference over to Mr. Dhananjaya Sudhanva for closing comments.

Thank you all. Thank you for giving us the opportunity to present our Q1 results. In summary, we are pleased with the strong start to FY27, and we are quite optimistic that we will do well during the year and see even better performance during succeeding quarters. The investments we've made over the past several quarters are beginning to deliver measurable results throug h stronger revenue growth, improved customer engagement, and an expanding quality pipeline globally. While we continue to invest in building long -term capabilities, we remain focused on maintaining financial discipline, improving operational efficiency, and delivering sustainable, profitable growth. With a stronger order pipeline, a healthy balance sheet, differentiated technology platforms, and increasing demand for AI-enabled learning and assessment solutions, we believe Excelsoft is well-positioned to create long -term value to all our stakeholders. Thank you very much. Thank you for taking your time to have this discussion with us. And we have made notes of all your comments, and we will definitely attend to it and hopefully, all of the comments will be addressed even in the next quarter. Thank you very much.

Thank you, everyone.

Thank you.

Thank you so much, sir. On behalf of Excelsoft Technologies Limited, that concludes this conference. Thank you all for joining us, and you may now disconnect your lines.