Exato Technologies Q4 FY26 Earnings Call — Analysis (BSE: 544626)
Exato Technologies reports 35% revenue growth to ₹168 Cr and 67% PAT jump to ₹16.09 Cr for FY26, unveils aggressive international expansion plans and a ₹600 Cr order book.
The take
FY26 Revenue from Operations ₹168 Cr ( +35% YoY ) . New guidance — FY27 fy27 consolidated revenue growth 50–60% . New story: International expansion as primary growth driver .
Results
FY26 revenue from operations rose 35% YoY to ₹168 Cr, PAT grew 67% YoY to ₹16.09 Cr, and PAT margin expanded from 7.7% to 9.5%.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Revenue from Operations | ₹168 Cr | +35% | yoy · FY26 |
| PAT | ₹16.09 Cr | +67% | yoy · FY26 |
| PAT Margin | 9.58% | +181bps | yoy · FY26 |
| Order Book | ₹600 Cr | point_in_time · Mar-26 · as of Mar-26 | |
| ARR | ₹118 Cr | +~₹53-58 Cr | yoy · FY26 |
| Export Revenue Share | ~28-30% | none · FY26 · of FY26 revenue |
Guidance
Management guided for 50–60% revenue and PAT growth in FY27, with export revenue share targeted to reach 50–55% within two years.
What management committed to
- FY27 revenue will grow by 50–60% compared to FY26. — 50–60%, FY27
- FY27 PAT will grow by 50–60% compared to FY26. — 50–60%, FY27
- Export revenue share will reach 50–55% within the next two years. — 50–55%, FY28
- Exato IQ (IP platform) will contribute 15–20% of total revenue within three years. — 15–20%, FY29
- Infrastructure business will contribute around 30–35% of total revenue in the next two to three years. — 30–35%, FY28
- 30–35% of the remaining ~₹330 Cr order book will be billed in FY27. — 30–35% of ~₹380 Cr, FY27
- Customer base will expand from 150 to 500–600 over the next three to four years. — 500–600, FY29
- Exato aims to move to the mainboard (BSE/NSE) in the next three years. — FY29
Key themes
International expansion and AI-led platform pivot
How the narrative shifted
- International expansion as primary growth driver: Management positions the build-out of US, Australia, and Singapore subsidiaries, along with senior leadership hires with global experience, as the core engine for revenue acceleration and margin improvement.
- Shift from point solutions to managed services: Moving from selling individual solution sets to managed services deals where Exato takes full technology ownership, which increases stickiness and deal sizes.
- AI and IP-led revenue mix transformation: Exato IQ proprietary platform and AI-as-a-service offerings are positioned to grow from 2–3% to 15–20% of revenue over three years, driving higher profitability and stickiness.
- Leveraging existing large OEM partnerships: Deep relationships with NICE, Mitel, and Acumatica provide credibility, customer access, and a springboard for international expansion, especially in the US.
- Order book provides multi-year revenue visibility: A ₹600 Cr order book with multi-year contracts and a growing ARR base of ₹118 Cr gives a stable foundation to invest aggressively in global expansion and IP.
- Favorable US regulatory environment under Trump administration: Management notes that US-based customers have a mandate to buy from a US company, which benefits Exato's US subsidiary and its local hiring plans.
- Cautious expansion into Middle East: Due to ongoing geopolitical tensions, the company will watch the Middle East cautiously and may deliver from India without establishing a local presence initially.
Operational commentary
- Order book expanded to ₹600 Cr with ~₹330 Cr yet to be executed, providing multi-year visibility.
- Australia subsidiary established; US subsidiary strengthened with senior hires to target international markets.
- Senior leadership team bolstered: Naveen Krishna (CRO), Murali Menon (CAIO from TCS), Gopinath P Bailur (COO), and Dr. Milind Godbole (Board Director).
- Closed a ₹172 Cr managed services deal on 31st March, marking a strategic shift toward higher-value managed services engagements.
- Won two Agentic AI orders from US and UK customers, signaling early traction in AI-led deals.
- Expanded ERP practice with Acumatica partnership, closing two deals in FY26 with significant pipeline for FY27.
- Proprietary IP platform Exato IQ deployed at HDFC Bank, Axis Bank, TaskUs, with plans to scale globally.
- Plan to scale customer base from 150 to 500–600 over 3–4 years via hybrid sales model and international partnerships.
- Targeting US Partner of the Year award next year; elevated to Platinum Partner with Mitel; received five awards at NICE event.
Analyst Q&A
Q. Reason for sharp increase in purchase of software and hardware costs in Q4 impacting margins.
Attributed to strategic AI infrastructure deals where hardware was bought and sold to customers to capture IT budget spend; margins lower on transactional deals but seen as building a new vertical with long-term margin potential.
Q. Guidance for FY26 revenue and PAT.
Guided 50–60% growth in both revenue and PAT for FY27, driven by international expansion and higher-margin export business.
Q. Can Exato reach ₹500 Cr revenue in two years?
Management said it is possible and on their wish list; alluded to organic and inorganic plans under NDA.
Q. Traction and challenges from international subsidiaries and macroeconomic risks.
Expects 50% revenue from international geographies in 2 years; major challenge could be cash flow for high growth, but assured backing from investors and financial institutions.
Q. Inorganic growth strategy — product vs. services targets.
Evaluating both product companies that fit existing AI/CX ecosystem and services integrators for regional diversity and capability scale-up; in discussions with 3–4 companies.
Research and educational content only. Not investment advice.