Want a quick, clear understanding of the Excelsoft Technologies IPO? Let’s discuss everything you need to know about the IPO, let’s go!
What is Excelsoft Technologies' IPO?
Excelsoft Technologies Limited is bringing its shares to the Indian stock market through an IPO (Initial Public Offering). Think of an IPO as a company inviting the public to become part-owners of its business.
This company specializes in learning and assessment solutions—basically, they create software and technology platforms that help schools, universities, and companies test and teach students and employees online. They’ve been doing this since 2000 and now operate in more than 60 countries worldwide.
Quick IPO Facts at a Glance
Investment Options - Who Can Invest How Much?
The IPO has different investment categories based on investor types. Here’s how much each category can invest:
What’s HNI? HNI stands for High Net Worth Individual—basically, investors with higher income who can invest more money.
Share Allocation - Who Gets How Many Shares?
The IPO shares are divided among different types of investors:
This allocation ensures that ordinary retail investors like you get a fair chance to buy shares, not just big institutions.
Meet the Company: What Does Excelsoft Technologies Do?
Excelsoft Technologies is a vertical SaaS company specializing in education technology — creating software that powers online learning, assessments, and digital content for schools, universities, corporates, and government agencies.
Products & Solutions
All tools integrate AI to enhance learning effectiveness and ensure fair, secure assessments.
Financial Performance: Is This Company Making Money?
Let’s look at the numbers—did the company make a profit? How much did they earn? This is crucial information.
The financials highlight that FY2025 was a turnaround year, marked by a clear recovery in both growth and profitability after a slowdown in FY2024. Revenue rose from ₹200.7 crores in FY2024 to ₹248.8 crores in FY2025, reflecting a 17.65% increase, while EBITDA improved from ₹55 crores to ₹73.26 crores, lifting margins from 27.72% to 31.40%. Net profit also strengthened sharply from ₹12.75 crores to ₹34.69 crores, with the PAT margin expanding from 6.43% to 14.87%.
The early Q1 FY2026 numbers show revenue at ₹60.28 crores, EBITDA at ₹10.18 crores, and PAT at ₹6.01 crores, with margins of 18.27% (EBITDA) and 10.78% (PAT). These results suggest a slight moderation compared to FY2025 levels, possibly reflecting seasonal or short-term factors. Maintaining the revenue trajectory and stabilizing margins in subsequent quarters will be key to sustaining overall performance.
Balance Sheet: Is the Company Financially Healthy?
Debt (Money They Owe):
- FY2023: ₹118.09 Crores
- FY2024: ₹76.73 Crores
- FY2025: ₹26.59 Crores
Good news: The company is paying back its debts. Debt has fallen dramatically, showing financial strength.
Assets (Things They Own):
- FY2025: ₹470.49 Crores (and growing)
Net Worth (What’s Left After Subtracting Debt):
- FY2025: ₹371.29 Crores
What it means: The company has a strong balance sheet with very little debt—this is healthy!
Cash Flow Position
- OCF(Operating Cash Flow) falling fast: From ₹555.8 Cr in FY23 to ₹526 Cr in FY25, and only ₹47.5 Cr in Q1 FY26 — showing weaker cash generation.
- ICF still negative but improving: Outflows reduced from –₹155.6 Cr in FY24 to –₹74.6 Cr in FY25.It means the company is still seeing cash outflows, but they’ve improved significantly from last year.
- FCF deeply negative: Worsened to –₹564.7 Cr in FY25 and –₹97.1 Cr in Q1 FY26, meaning the company isn’t generating enough cash to fund its investments.
Key Performance Indicators (KPIs): How Well is the Company Performing?
These are special numbers that show how efficiently a company operates:
What Will Excelsoft Do With the IPO Money?
When the company raises ₹180 crores from the fresh issue, here’s how they plan to use it:
What it means: Most of the money will go into building better facilities and upgrading technology—investments aimed at future growth. However, since the land purchase is still not finalized, there is a risk that the project could face delays.
About the Promoters: Who Owns the Company?
Before the IPO, here’s who owns Excelsoft:
What it means: After the IPO, promoters will still own about 59.09% of the company—they’re staying heavily invested!
Hidden Risk Factors
- ₹3,000 crore corporate guarantee given for promoter company’s debt — 80.8% of net worth, posing high financial risk.
- Multiple compliance lapses: CSR non-compliance, auditor appointment violations, EPF payment delays, and ESOS vesting breaches.
- Geographic concentration: Heavy dependence on North America (~60% of FY25 revenue), with limited diversification across Europe (~23%), India (~8%), and APAC (~7%).
- Critical customer concentration: Pearson’s share has surged from 41.9% in FY23 to 58.8% in FY25, and 59.2% in Q1 FY26. The top 1 customer contributes 59%, and the top 5 customers contribute 73% of revenue. Contracts remain short-term and can be terminated at any time.
Peer Comparison
Excelsoft’s revenue is smaller than most peers except Ksolves, and its ROE sits mid-range in the group. Its Pre-IPO PE of ~39x is above MPS and Ksolves but below higher-valued peers like Silver Touch and Sasken, placing it in a moderately priced zone.
Strengths & Weaknesses of the Company
Strengths
- Strong recovery in FY25.
- Growing demand for AI-led EdTech solutions.
- Profitable business with high operating margins.
- Long-term customer contracts that provide revenue visibility.
Weaknesses
- Heavy dependency on Pearson (59% of revenue).
- Declining revenue contribution from non-Pearson clients.
- Deterioration in performance in Q1 FY26.
- Presence of contingent liabilities.
- Overvaluation compared to peers.
- Small client base with only 101 clients.
- OFS-heavy issue indicating promoter exit/liquidity pressure.
Grey Market Premium (GMP)
Date | IPO GMP (₹) | Trend | Approx. Gain (%) |
21 Nov 2025 | 09 | Down | 07.50% |
15 Nov 2025 | 30 | Up | 25.00% |
Note: Grey market premiums fluctuate frequently and are not officially provided by the company or exchanges. Investors should consider GMP data only as indicative market sentiment.
Final Summary
Excelsoft Technologies is a 25-year-old company focused on learning and assessment software, serving over 200 clients across 60+ countries. It has a strong financial position with low debt and a FY2025 profit margin of 14.87%. The company relies on a few large clients, including Pearson, and operates in a competitive education technology market.
The IPO is priced between ₹114 and ₹120 per share, with an expected listing on November 26, 2025. The minimum investment for retail investors is ₹15,000.
Disclaimer: Disclaimer: This blog is purely informational and educational. It does not constitute investment advice. Always read the official IPO prospectus (RHP) from SEBI and consult a financial advisor before making any investment decision.
FAQs
₹15,000 for 125 shares (at the upper price band of ₹120).
November 19-21, 2025. You can apply online through your bank or stockbroker.
Allotment is expected on November 24, 2025.
Shares will be credited by November 25, 2025.
Expected listing on November 26, 2025, on BSE and NSE.
Retail investors can apply for a maximum of 13 lots (₹1,95,000). If you want to invest more, you’d need to qualify as an HNI investor.
Promoter shares have a 3-year lock-in period. Retail investor shares can be sold immediately after they are listed.
The information provided in this reference is for educational purposes only and should not be considered investment advice or a recommendation. As an SEBI-registered organization, our objective is to provide general knowledge and understanding of investment concepts.
It is recommended that you conduct your own research and analysis before making any investment decisions. We believe that investment decisions should be based on personal conviction and not borrowed from external sources. Therefore, we do not assume any liability or responsibility for investment decisions made based on the information provided in this reference.
