Financial Performance
Exato Technologies reported a 35% year-on-year increase in operating revenue, reaching ₹168 Cr for the fiscal year ended March 31, 2026. This performance exceeded management's initial guidance. Profit after tax witnessed a more significant jump of 67%, closing at ₹16.09 Cr compared to ₹9.75 Cr in the previous year.
The PAT margin improved to 9.58% from 7.77%, driven by a strategic shift toward high-margin software services and improved cost management despite higher hardware purchase costs in the final quarter which slightly impacted sequential margins.
Management Outlook and Growth Strategy
The leadership team has issued an optimistic outlook for FY27, guiding for revenue and PAT growth between 50% and 60%. This guidance is anchored by a robust total order book of ₹600 Cr, of which ₹330 Cr remains to be executed. A key pillar of this growth strategy is the aggressive expansion into international markets, including the United States, Australia, and Singapore.
The company aims to increase the share of international revenue to 50-60% of the total mix, leveraging its recently established overseas subsidiaries to capture higher-margin export opportunities.
Business Overview and Innovation
Exato is evolving its business model from providing specific point solutions to offering comprehensive AI-led managed services. Central to this transition is the launch of the Exato IQ platform and new initiatives in Agentic AI. These platforms are designed to provide scalable, AI-as-a-service solutions to a growing client base.
Currently serving over 150 customers, the company targets expanding its footprint to between 500 and 600 clients over the next three to four years. Management is also exploring inorganic growth through potential acquisitions in the AI and ERP space to enhance their technical capabilities.
Sector Dynamics
The IT consulting and software sector is currently undergoing a rapid shift toward integrated AI capabilities. Exato's management noted that client demand is moving away from traditional ERP implementations toward intelligent systems that utilize agentic AI for process automation. While the company faces competitive pressures, its focus on AI-as-a-service provides a differentiated value proposition in the SME and mid-market segments.
The move to establish a local presence in Australia and Singapore is intended to mitigate domestic market volatility and capitalize on the higher billing rates available in developed IT markets.
What to Watch
- Execution of the ₹330 Cr pending order book over the next four quarters
- Revenue contribution from the newly formed Australian and US subsidiaries
- Adoption rates of the Exato IQ platform among the existing 150+ client base
- Impact of rapid international scaling on operating cash flows, which stood at ₹1.53 Cr in FY26
- Potential announcements regarding inorganic growth or acquisitions in the AI and ERP segments
