Anand Rathi Share and Stock Brokers (ARSSBL) has given Excelsoft Technologies a strong “BUY” rating and a 12-month target price of INR 145. Excelsoft’s shares are trading around INR 86, suggesting a ~60% upside. Anand Rathi coverage report comes after Excelsoft’s strong Q3 FY26 results, which show that the company is growing faster and expanding into new markets with its SaaS-based learning and assessment solutions.
Excelsoft’s Strategic Advantage: SaaS-led Growth
Excelsoft Technologies has been in the vertical SaaS space for more than 25 years and is now a leader in digital learning and assessment. The company’s clientele includes big names such as Pearson, AQA, CQI, and Ascend Learning. Excelsoft provides end-to-end assessment platforms, and digital content solutions. It has a debt-free balance sheet and more than 100 clients around the world, including in North America, Europe, Asia, and the Middle East.
Anand Rathi’s coverage report on Excelsoft highlights “recurring revenue stream with marquee clientele” and points out that it has kept 100% of its top 10 clients over the past three years and has an average client age of 11 years. Pearson alone makes up 58% of FY25 revenue, and their relationship with Excelsoft goes back almost 20 years. This shows how valuable Excelsoft is strategically in a market that is becoming more consolidated in publishing and EdTech.
Q3 FY26 Financials: Reaching New Heights
Excelsoft’s Q3 FY26 results support ARSSBL’s positive outlook. For Q3FY26, revenue from operations rose 29.4% from the same quarter the year before to INR 71.03 crore. EBITDA went up to INR 19.67 crore, and net profit (PAT) went up 7.7% to INR 10.3 crore. For the first nine months of FY26, revenue grew 17.1% year over year, and PAT nearly doubled. This was due to both operational leverage and the fact that Excelsoft’s SaaS-based model is very sticky.
| Metric | Q3 FY25 | Q2 FY26 | Q3 FY26 | YoY (%) |
|---|---|---|---|---|
| Revenue from Operations | 54.87 | 64.63 | 71.03 | 29.4 |
| EBITDA | 18.02 | 17.48 | 19.67 | 9.2 |
| PAT | 9.56 | 10.64 | 10.30 | 7.7 |
Valuation: Discount to Peers, Strong Upside Potential
At the current market price, Excelsoft trades at FY27/28e P/E multiples of 15.8x and 11.7x, which is a steep discount (~60%) to its midcap IT peers (trading at ~27x FY28e P/E), despite a projected FY26-28E EPS CAGR of ~31% versus ~17% for the peer group. Anand Rathi’s INR 145 target price is derived from an equal blend of DCF and peer multiple methodologies, applying a prudent 20% discount to account for scale and client concentration risks.
The report’s scenario analysis says that the base case for FY28 earnings per share (EPS) is INR 7.3, and the bull case target price is INR 162 (implying a 78% upside from CMP INR 91 per share). Expectations of margin growth (EBIT margins rising to 22.2% by FY28e) and continued global SaaS adoption, especially in North America and Europe, which together make up about 90% of Excelsoft’s revenue, support the valuation.
Growth Drivers: AI, Global Expansion, and New Vertical Opportunities
Excelsoft’s growth plan is based on ongoing investments in AI/ML, cloud services, and data analytics. The company is adding AI-powered features like modular, domain-adaptive LLMs for personalized learning and assessment. It is also expanding into new countries like Egypt, France, Italy, Brazil, and the Philippines.
The global SaaS market is expected to grow at a compound annual growth rate (CAGR) of 18.5% from USD 261 billion in 2024 to USD 514 billion by 2028. The assessment and proctoring (A&P) segment is expected to grow at a CAGR of 23.4%, which are both trends that Excelsoft is strategically taking advantage of. The company’s long-term client relationships, strong track record, and consultative, product-led approach give it stability and visibility in a field that is still very competitive.
Excelsoft Post IPO Performance
Excelsoft’s IPO was launched in November 2025, with a total issue size of INR 500 crore. The IPO consisted of both a fresh issue and an offer for sale (OFS). The offering received an overwhelming response from investors, being subscribed 43x. However, despite such high subscription, the stock’s listing fell significantly below expectations, closing at INR 125.97 on the first day—just 5% higher than the allotment price of INR 120 per share.
Following its debut, the Excelsoft share price fell sharply, reaching a low of INR 69.24, representing a significant correction of approximately 42% from the allotment price. Currently, the stock is in a recovery phase and is trading at INR 91 per share. Currently, the price-to-earnings (PE) ratio is 27.5x, which is in line with the industry average.
Risks: Client Concentration and Segmental Volatility
Anand Rathi says that having a lot of clients in one place—Pearson and the top 10 clients make up 80% of revenue—could be a risk. Other risks include revenue that changes a lot between segments and the risk of making mistakes when buying companies in other countries. But the fact that Excelsoft’s contracts are always the same and that it works closely with its clients helps to ease these worries to some extent.
Outlook
Excelsoft Technologies is ready to take advantage of the fast digitalization of education and testing around the world. The company have a lot of experience in management, a global reach, and a unique set of SaaS products. Excelsoft target price show that Anand Rathi believes in the company’s fundamentals, its strong growth prospects, and its ability to give shareholders value even when the sector is not doing well.
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