IPO Review: Excelsoft Technologies’ ₹500 Cr Public Issue Explained

Excelsoft Technologies is a homegrown software company from Mysore that builds powerful learning and testing platforms for schools, universities, governments, and large enterprises across the world. The company runs a smart tech-based business, creating digital tools powered by artificial intelligence (AI) that help organizations teach, assess, and certify people online.

Its IPO opens from November 19 to November 21, 2025, with a price band of ₹114-₹120 per share. The total issue size is ₹500 crore, and the expected listing date is November 26, 2025. The latest GMP stands around ₹15, which means shares are trading about 12% above the issue price in the unofficial (and often volatile) grey market. Remember, GMP is not an official indicator; it only shows early sentiment and can change quickly.

In this article, you’ll find what the company really does, why it’s raising money, its key strengths, major risks, and what numbers say about its future.

IPO Overview

• IPO Date: November 19 to November 21, 2025
• Total Issue Size: ₹500 crore
• Price Band: ₹114 - ₹120 per share
• Minimum Investment: ₹15,000
• Lot Size: 125 Shares
• Tentative Allotment Date: November 24, 2025
• Listing Date: November 26, 2025 (Tentative)
• GMP: The GMP for the Excelsoft Technologies IPO is ₹15, reflecting a 12.5% gain over the issue price, according to Chittorgarh.com.

Disclaimer: GMP is an unofficial indicator and is subject to market volatility.

How Excelsoft Technologies Makes Money

Excelsoft is like a “software supplier” for the education world. It doesn’t teach students directly; instead, it builds the digital systems that others use to teach, test, and manage learning.

The company has four main products and services:

• Testing and Proctoring (Monitoring Exams): It's platforms like SARAS and EasyProctor help conduct online exams safely. They use AI to watch over exams remotely, spotting suspicious movements or cheating.
• Learning Platforms: Tools like OpenPage and EnablED help schools and companies run online classes, track progress, and manage digital content.
• Technology Services: Excelsoft helps clients design and customize their digital learning systems using its software expertise.
• Content & Course Design: It helps publishers and learning companies turn textbooks and training material into digital lessons.

In short, Excelsoft earns money through long-term contracts from educational boards, corporates, governments, and certification bodies across 19 countries, including the US, UK, and Europe. About 61% of its income comes from North America, showing its strong global presence.

The business works on an asset-light model; it doesn’t own many heavy physical assets like factories. Instead, it builds software that can be sold, reused, and updated easily. This makes it scalable (easy to grow without huge costs). As of FY25, the company had 101 global clients and over 1,100 employees.

Objectives of the IPO

Out of the total ₹500 crore issue, ₹180 crore is fresh funding to the company, while the rest is a promoter’s Offer for Sale (OFS). Here’s how the fresh ₹180 crore will be used:

• Buying land and building a new campus (₹61.77 crore): The company plans to buy land in Mysore’s Hootagalli Industrial Area to set up a new facility that will support larger teams and new product lines.
• Upgrading its existing office (₹39.51 crore): The old building will be renovated to add more seats, modern facilities, and improved workflow systems.
• Improving IT infrastructure (₹54.64 crore): This includes faster servers, stronger cybersecurity systems, and upgraded AI capabilities to handle global clients efficiently.
• General corporate purposes: The rest will fund working capital, branding, and business expansion costs.

Strengths:

• High Profit Margins: In FY25, its gross profit margin was 61.67%, and EBITDA margin was 31.4%. This means for every ₹100 earned, the company kept ₹31 after operational costs, a healthy sign for a SaaS (software-as-a-service) business.
• Strong Client Loyalty: Its top 10 clients have been with it for over 10.8 years on average. Such deep relationships mean stable, recurring revenue.
• Low Debt and Strong Finances: Debt-to-equity ratio dropped from 0.37 in FY23 to 0.05 in FY25, showing the company uses very little borrowed money. This reduces risk and improves financial flexibility.
• Improving Productivity: Each employee generated revenue of about ₹20.9 lakh in FY25, a 12% rise from FY23. Higher revenue per employee often means efficient use of manpower.

Risks:

• Single Client Dependence: One client, Pearson Education Group, made up 59% of FY25 revenue. Losing this client would hit earnings sharply.
• Foreign Currency Risk: About 62% of income comes in US dollars, but the company doesn’t hedge (protect) against currency changes. Big swings in the rupee–dollar rate can directly affect profits.
• Customer Renewal Risk: Most contracts are short-term or non-exclusive. The company lost about 13-16% of its clients in FY23–24. Renewals are not always guaranteed.
• Corporate Guarantee Risk: The company gave a ₹300 crore guarantee for loans taken by its promoter. That’s nearly 80% of its net worth. However, this will be settled once the promoter repays the debt using IPO proceeds (OFS).

For detailed information, visit Excelsoft Technologies’ official IPO page at INDmoney.

Peer Comparison

Excelsoft Technologies’ listed peers include MPS, Ksolves India, Silver Touch, Sasken, and InfoBeans.

• Excelsoft earned ₹233 crore in FY25, smaller than MPS Ltd (₹727 crore).
• It has one of the best EBITDA margins at 31.4%, matching larger peers.
• Its ROE (Return on Equity) is 10.38%, meaning it earned ₹10 for every ₹100 owned by shareholders, healthy but below top tech peers.

Source: RHP, internal calculation

Financial Performance

Excelsoft’s revenue grew from ₹195 crore in FY23 to ₹233 crore in FY25, with profit rising from ₹22 crore to ₹34.7 crore in the same period.

FY24 was a tough year; profits dropped by 43% because of higher costs and bad debts. But FY25 marked a turnaround thanks to lower borrowings and better cost control. Finance costs fell by 54.6%, while profit margins improved sharply.

Debt dropped from ₹118 crore to ₹26 crore, showing a cleaned-up balance sheet. Its interest cover ratio (how easily profits cover interest payments) rose from 3.2x to 14x, meaning it can now easily pay its interest dues.

Excelsoft Technologies IPO Valuation

At the upper price band of ₹120, the company’s post-IPO market cap will be about ₹1,381 crore. That values the stock at a P/E ratio of 39.8x based on FY25 earnings.

In simple words, investors are paying ₹39.8 for every ₹1 of profit the company made last year. That’s higher than the industry average of 32.8x, which means it’s slightly expensive.

However, the premium price may reflect investors’ faith in its growth potential and strong rebound. Profit jumped 172% in FY25 after two weak years. Still, this is a growth story priced at the higher end, suitable only for investors willing to take some risk.

Disclaimer: The P/E ratio here is calculated using the company’s post-IPO equity and its most recent FY25 net profits at the upper end of the price band.

People Behind the Company

• Dhananjaya Sudhanva (CMD): The founder and driving force, with 32 years in IT. He completed his master’s from Worcester Polytechnic Institute, USA. Known for his deep client connections and technology foresight, he earned ₹2.4 crore in FY25.
• Shruthi Sudhanva (Director): Heads strategy and communications, with a background at Pearson Education in Boston, and earned ₹29 lakh in FY25.
• Subramaniam Ravi (CFO): Experienced cost accountant who earlier worked at Kaynes Technology and Lenovo.
• Jambardi Maheshkumar (COO): Veteran technologist and IIT-Kanpur graduate with decades of experience in software delivery.

Who’s Making Money from the IPO?

Promoter Pedanta Technologies Pvt. Ltd. is selling shares worth ₹320 crore in this IPO. It isn’t raising money for growth but to repay a ₹300 crore loan taken earlier from Investec Bank. Promoter Dhananjaya Sudhanva and his family control this entity. Their long association shows confidence, though such large OFS portions mean no new ownership change.

Industry Outlook

The global SaaS industry is booming, expected to grow from ₹26,110 crore in 2024 to ₹73,372 crore by 2030, a CAGR of nearly 19%.

Within this, the learning and assessment software market, Excelsoft’s niche, is also growing fast, expected to double by 2030 as remote examinations, upskilling, and digital classrooms rise worldwide.

Three key trends drive this market:

• Rise of specialized “vertical SaaS” firms that target specific industries.
• Growing demand for continuous learning and employee training.
• Increasing adoption of AI tools for testing and monitoring.

Overall, Excelsoft operates in a growing space backed by long-term digital adoption trends.

Analyst View

Excelsoft is a strong technology story from India with global customers, a clean balance sheet, and high margins. But investors must note its client concentration, currency risk, and high valuation.

Short-term investors may find the pricing demanding. For long-term investors who believe in India’s SaaS and digital education growth story, it could be worth watching once listed.

For a seamless application process, visit the INDmoney IPO page.

Disclaimer

Source: Excelsoft Technologies' RHP. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Please be informed that merely opening a trading and demat account will not guarantee investment in securities in the IPO. Investors are requested to do their own independent research and due diligence before investing in an IPO. Please read the SEBI-prescribed Combined Risk Disclosure Document prior to investing. This post is for general information and awareness purposes only and is nowhere to be considered as advice, recommendation, or solicitation of an offer to buy or sell, or subscribe for securities. INDstocks is acting as a distributor for non-broking products/services such as IPO, Mutual Fund, and Mutual Fund SIP. These are not exchange-traded products. All disputes with respect to the distribution activity would not have access to the Exchange investor redressal forum or the Arbitration mechanism. INDstocks Private Limited (formerly known as INDmoney Private Limited) does not provide any portfolio management services, nor is it an investment adviser. Logos above are the property of respective trademark owners, and by displaying them, INDstocks has no right, title, or interest in them. SEBI Stock Broking Registration No: INZ000305337, Trading and Clearing Member of NSE (90267, M70042) and BSE, BSE StarMF (6779), SEBI Depository Participant Reg. No. IN-DP-690-2022, Depository Participant ID: CDSL 12095500, Research Analyst Registration No. INH000018948 BSE RA Enlistment No. 6428.