Exato Technologies LtdQ1 FY27
Exato Technologies Ltd Q1 FY27 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Price: ₹742P/E: 33.2Market Cap: ₹618 CrSector: IT - Services
Management growth scorecard
Revenue
Category 1
Margin
Category 1
Fundraise
N/A
Order
Yes
Capex
Yes
4 of 4 growth signals are positive — a strong management growth story.
Full analysisRevenue guidance
Category 1- →Exato Technologies expects revenue to grow at least 60-70% or more in FY27, with profitability growing 70-80%+.
- →The company aims to build a customer base of 400 to 500 clients in the coming years, adding 300 to 500 customers (organic and inorganic) over two to three years.
- →By FY27, annual recurring revenue (ARR) is targeted between ₹180 to ₹200 crore, up from ₹140 crore currently.
- →Long-term market growth is anticipated at an 18-20% CAGR, with total addressable market size expected to expand.
- →CEO Appuorv K Sinha expresses ambitions to reach ₹1,000 crore revenue earlier than three years.
- →Growth will be driven by expansion in international markets, especially the US, and diversification into AI infrastructure and CX as a service verticals.
- →Inorganic growth via acquisitions will strengthen existing verticals, contributing to top-line acceleration.
- →Overall, the company maintains an aggressive sales engine and fast-paced growth strategy to capitalize on market opportunities.
Margin guidance
Category 1- →Revenue growth expected at least 60-70% or more in FY27.
- →Profitability projected to grow more than 70-80% in FY27.
- →Uptick in margins anticipated due to increased international deals, especially in the US.
- →ARR (Annual Recurring Revenue) increased from 118 crore to ~140 crore; targeted 180-200 crore by FY27.
- →Expansion driven by both organic growth (customer additions, IP revenue) and inorganic growth (acquisitions).
- →AI infrastructure vertical expected to add significant top-line contribution while initial margins are relatively lower but improving over time.
- →Aim to diversify revenue sources across multiple verticals, focusing on CX and AI as service which have higher margins.
- →Long-term vision includes large scale growth leveraging existing leadership expertise and international market penetration.
Fundraise plans
- Regarding fundraising for mergers and acquisitions, the Chairman & Managing Director, Mr. Appuorv K Sinha, mentioned that it will depend on the other party's preference and could be a mix of cash and equity.
- The final decision will involve the Board's approval.
- Mr. Sinha expressed a personal preference for having some equity held by the company being acquired, in staggered terms tied to performance.
- No specific mention was made of a standalone debt or equity fundraising round currently planned.
- Discussions are ongoing with advisors, including one of the Big Four firms, and announcements will be made at the appropriate time.
In summary, funds for acquisition may come from both cash and equity, but no explicit current or future standalone fundraising through debt or equity was declared at this time.
Order book
Yes- →As of the Q1 FY2027 call, the total order book is ₹660 crore.
- →At 31st March 2026, the order book was ₹600 crore, with ₹221 crore delivered and ₹379 crore pending.
- →During Q1, ₹30 crore worth of orders were executed, increasing total execution to ₹251 crore.
- →The unexecuted order book currently stands at around ₹410 crore.
- →Since last year, approximately ₹150 to ₹180 crore worth of new orders have been added.
- →The company expects continued order execution and new additions over FY27, FY28, and FY29.
Capex plans
Yes- →The company is actively pursuing inorganic growth through acquisitions to strengthen existing verticals rather than entering new ones.
- →Discussions are ongoing for acquiring companies that provide geographical expansion (APAC, UK, Middle East, US) and fit within current business areas like applications, ERP, or products.
- →Capital deployment for mergers and acquisitions may be a mix of cash and fundraise; equity stake from the acquired company in staggered terms is preferred.
- →They are investing in internal AI tools to optimize headcount and employee costs, enhancing finance, HR, operations, sales, and delivery efficiency.
- →Expansion into AI infrastructure involves strategic investments including partnerships (e.g., with HPE) and building managed services capabilities.
- →The company plans significant product go-to-market initiatives, with results expected to be announced in upcoming calls.
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Margin guidance
Category 1- →Revenue growth expected at least 60-70% or more in FY27.
- →Profitability projected to grow more than 70-80% in FY27.
- →Uptick in margins anticipated due to increased international deals, especially in the US.
- →ARR (Annual Recurring Revenue) increased from 118 crore to ~140 crore; targeted 180-200 crore by FY27.
- →Expansion driven by both organic growth (customer additions, IP revenue) and inorganic growth (acquisitions).
- →AI infrastructure vertical expected to add significant top-line contribution while initial margins are relatively lower but improving over time.
- →Aim to diversify revenue sources across multiple verticals, focusing on CX and AI as service which have higher margins.
- →Long-term vision includes large scale growth leveraging existing leadership expertise and international market penetration.
Order book
Yes- →As of the Q1 FY2027 call, the total order book is ₹660 crore.
- →At 31st March 2026, the order book was ₹600 crore, with ₹221 crore delivered and ₹379 crore pending.
- →During Q1, ₹30 crore worth of orders were executed, increasing total execution to ₹251 crore.
- →The unexecuted order book currently stands at around ₹410 crore.
- →Since last year, approximately ₹150 to ₹180 crore worth of new orders have been added.
- →The company expects continued order execution and new additions over FY27, FY28, and FY29.
How does Exato Technologies Ltd rank vs peers in IT - Services?
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