Q1 2027 Nucleus Software Exports Ltd Earnings Call Transcript
Key Points
- Nucleus Software Exports Ltd (BOM:531209) reported a strong order book of INR 1,244 crore, up from INR 1,044 crore in the previous quarter, driven by new logo wins and renewals.
- The company added 10 new logos over the last 15 months, indicating successful market expansion efforts.
- Nucleus Software Exports Ltd (BOM:531209) launched FinnOne Neo release 9.0 with embedded AI capabilities, showcasing product innovation and a strong enterprise AI foundation.
- The company maintains a healthy cash position with total cash and cash equivalents of INR 977.9 crore as of June 30, 2026.
- Nucleus Software Exports Ltd (BOM:531209) is focusing on high-margin deals and expanding into promising geographies like the Middle East, Southeast Asia, and the US.
- The company's order book is largely composed of product revenue (88%), reinforcing its product-centric business model.
- Nucleus Software Exports Ltd (BOM:531209) experienced a significant decline in EBITDA margin to 3.6% from 15.4% quarter-on-quarter, due to increased employee and marketing costs.
- Profit after tax (PAT) declined by 30.9% quarter-on-quarter and 32.2% year-on-year, reflecting pressure on profitability.
- The company lost a major NBFC client in India, which shifted its business to a competitor, highlighting client concentration risk.
- Employee benefit expenses have risen to approximately 75% of sales, and management expects them to remain elevated in the near term.
- Revenue growth has been sluggish, with a 3.4% year-on-year increase, despite a doubling of the order book, due to longer implementation cycles and a mix of long-term AMC contracts.
- Days Sales Outstanding (DSO) increased to 63 days from 42 days in the previous quarter, indicating a slowdown in receivables collection.
Good afternoon, everyone. This is Akash. A very warm welcome to all of you for this Nucleus Software earnings conference call for the quarter and year ended on June 30, 2026. For discussions, we have here from the management team, Mr. Vishnu R. Dusad, our Managing Director, Mr. Parag Bhise, CEO and Executive Director, Mr. Ashwani Arora, Chief Financial Officer, Mr. Apurva Chamaria, Chief Business Officer, Mr. Anurag Mantri, Chief Operating Officer, Mr. Mukesh Bangia, Vice President, Mr. Abhishek Pallav, Vice President, Mrs. Swati Patwardhan, Chief Human Resources Officer, Mr. Bhavit, Chief Customer Success Officer, and Mr. Tapan Jayaswal, Financial Controller.
As you all are aware, Nucleus Software does not provide any specific revenue earnings guidance.Anything which is said during this call which may reflect companyâs outlook for the future, or which may be considered as forward-looking statement must be reviewed in conjunction with the risk that the company faces. An audio and transcript of this call would be shortly available on the investor section of the companyâs website,
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