Nucleus Software Exports (531209) Q2 26/27 earnings summary

Executive summary

• Q2 consolidated revenue was INR 227.7 crore, up 8.2% QoQ and 6.7% YoY; profit after tax was INR 21.3 crore, down 19.2% YoY.

• Order book reached INR 1,317 crore at September 30, with 90% product and 10% project work; conversion timing varies by project.

• Priorities include AI investment, product transformation and disciplined execution; no specific revenue or earnings guidance was provided.

Financial highlights

• H1 consolidated revenue was INR 438.13 crore, up 1.6% YoY; net profit was INR 45.12 crore, down 26.6% YoY.

• Q2 EBITDA was INR 15.4 crore versus INR 23.1 crore YoY; margin was 6.8% versus 10.8%.

• H1 EBITDA was INR 23 crore versus INR 56.8 crore YoY; margin was 5.3% versus 13.2%.

• H1 PBT before exceptional items and tax was INR 46.48 crore; reported PBT was INR 56.3 crore after an INR 9.82 crore exceptional benefit.

• Consolidated Q2 basic and diluted EPS was INR 8.08 versus INR 9.99 YoY; H1 EPS was INR 17.15 versus INR 23.36.

Outlook and guidance

• No specific revenue or earnings guidance; management said project conversions should contribute in subsequent quarters, with timing varying by project stage.

• Implementations typically span 3–18 months and may extend to two years; transformation remains a focus through coming quarters and the next financial year.

• AI initiatives are expected to support operating efficiency and product quality over time; margin impact is expected once they stabilize.