Expleo Solutions Ltd
NSE:EXPLEOSOL
Expleo Solutions Ltd
Expleo Solutions Ltd. engages in the provision of software validation and verification services to the banking and financial services industry. The company is headquartered in Chennai, Tamil Nadu and currently employs 1,882 full-time employees. The company went IPO on 2009-10-26. The firm is engaged in providing software testing services. The firm primarily delivers software validation and verification services to the banking, financial services, and insurance industry around the world. Its services include test management, functional testing, non-functional testing, product testing, compliance testing, user experience (UX)/ customer experience (CX) testing, mobile testing and managed testing services. The firm offers its services to various industries, including banking and finance, aerospace, automotive, defense and naval, energy and utilities, rail and transportation, healthcare and life sciences, and space. The company serves approximately 150 customers in Asia-Pacific, the United States, the United Kingdom, Europe and Middle East.
Expleo Solutions Ltd. engages in the provision of software validation and verification services to the banking and financial services industry. The company is headquartered in Chennai, Tamil Nadu and currently employs 1,882 full-time employees. The company went IPO on 2009-10-26. The firm is engaged in providing software testing services. The firm primarily delivers software validation and verification services to the banking, financial services, and insurance industry around the world. Its services include test management, functional testing, non-functional testing, product testing, compliance testing, user experience (UX)/ customer experience (CX) testing, mobile testing and managed testing services. The firm offers its services to various industries, including banking and finance, aerospace, automotive, defense and naval, energy and utilities, rail and transportation, healthcare and life sciences, and space. The company serves approximately 150 customers in Asia-Pacific, the United States, the United Kingdom, Europe and Middle East.
Revenue Growth: Expleo Solutions delivered 9% revenue growth both quarter-on-quarter and year-on-year, driven by strength in digitech and engineering services.
Margin Expansion: EBITDA margin improved sharply to 17.1% from 12.8% last quarter, with profit after tax also rising to 14.6% from 9.3%, mainly due to operational efficiencies and ForEx gains.
Strong BFSI and AI Momentum: Banking, financial services, insurance, and defense verticals led growth, with increasing demand for AI and digital services contributing significantly.
Selective Investment & M&A: The company is evaluating two potential acquisitions, focusing on assets that complement its skills or expand its industry/geographic presence. Dividend decisions will follow M&A outcomes.
Outlook Unchanged for FY '26: Management kept its high single-digit revenue growth guidance for the current fiscal year, citing upcoming furlough periods; however, it aims for double-digit growth in the next fiscal year.
Operational Efficiency: Bench levels were kept below 6%, helping drive margin improvement, and the company sees further potential for non-linear growth as revenue outpaces headcount.
Margin Aspirations: Management emphasized a continued focus on high-margin, high-value services, though did not give a specific margin target.
