Good afternoon and a warm welcome to this Nucleus Software conference call for the year ending 31st March, 2026. This being our 30 years of our going public, we celebrated the occasion with bell-ringing ceremony last month, and we would want to take this opportunity to thank all of you for your sustained support to this company with your voting in the form of your shares.

We want to reiterate our commitment to long-term growth of the company. With those words, I would like to hand over to Parag.

Thank you very much, Vishnu, others. Good afternoon and welcome, everyone, to this Q4 and year-ending investor call.

As Vishnu rightly indicated, we all know we are going through very uncertain times. However, I'd like to assure all of you that we're taking lots of steps to make sure that we understand the situation very well and respond to it.

We're taking various initiatives, and some of these will, whatever, a part of the Q&A that happens later. Thank you very much.

Now I request Mr. Tapan to present the financial numbers.

Over to you, Mr. Tapan.

Hello? Am I audible, Swati?

Yes, you are. Please go ahead,

you're audible. Our consolidated revenue for the quarter is at Rs 224.77 crore against Rs 220.03 crore quarter-on-quarter and Rs 228.96 crore year-on-year.

For the year, it is Rs 876.03 crore against Rs 832.25 crore for the previous year. Overall revenue in foreign currency including India rupee revenue is US$24.75 million for the quarter against US$24.92 million quarter-on-quarter and US$26.53 million year-on-year.

For the year, it is US$99.6 million against US$98.5 million for the previous year. Product revenue for the quarter is at Rs 189.05 crore against Rs 185.58 crore quarter-on-quarter and Rs 199.56 crore year-on-year.

For the year, it is Rs 740.56 crore against Rs 713.79 crore for the previous year. Revenue from projects and services for the quarter is at Rs 35.72 crore against Rs 34.45 crore quarter-on-quarter and Rs 29.4 crore year-on-year.

For the year, it is Rs 135.47 crore against Rs 118.46 crore for the previous year. Moving on to expenses, cost of delivery including cost of product development for the quarter is 70.1% of revenue against 70.4% of revenue quarter-on-quarter and 57.3% of revenue year-on-year.

In absolute terms, this is Rs 157.45 crore against Rs 155 crore quarter-on-quarter and Rs 131.29 crore year-on-year. For the year, it is Rs 622.85 crore against Rs 568.69 crore for the previous year.

As for marketing and sales expenses for the quarter is 7.1% of revenue against 7.8% of revenue quarter-on-quarter and 4.9% year-on-year. In absolute terms, this is Rs 15.93 crore against Rs 17.2 crore quarter-on-quarter and Rs 11.24 crore year-on-year.

For the year, it is at 61.93 crore against Rs 36.13 crore for the previous year. As for G&A expenses for the quarter is 7.5% of revenue against 6.9% of revenue quarter-on-quarter and 5.3% year-on-year.

In absolute terms, this is Rs 16.77 crore against Rs 15.10 crore quarter-on-quarter and Rs 12.09 crore year-on-year. For the year, it is at Rs 67.09 crore against Rs 59.82 crore for the previous year.

EBITDA for the quarter is at Rs 34.62 crore against Rs 32.72 crore quarter-on-quarter and Rs 74.33 crore year-on-year. For the year, EBITDA is at Rs 124.15 crore against Rs 167.6 crore in the previous year.

Other income from investments and deposit is at Rs 11.27 crore against Rs 14.87 crore quarter-on-quarter and Rs 16.75 crore year-on-year. Total other income for the quarter is at Rs 14.92 crore against Rs 15.12 crore quarter-on-quarter and Rs 16.62 crore year-on-year.

For the year, the other income from investments and deposit at Rs 56.49 crore against Rs 64.79 crore for the previous year. Total other income for the year is Rs 64.16 crore against Rs 66.26 crore for the previous year.

Total taxes are at Rs 6.96 crore against Rs 3.96 crore quarter-on-quarter and Rs 22.77 crore year-on-year. For the year, taxes are Rs 33.14 crore against Rs 56.05 crore in the previous year.

Net profit is at Rs 34.55 crore for the quarter against Rs 20.7 crore for the quarter and Rs 64.77 crore year-on-year. For the year, it is at Rs 116.74 crore against Rs 163 crore in the previous year.

Other comprehensive income is at negative Rs 1.58 crore for the quarter against Rs 3.58 crore quarter-on-quarter and negative Rs 0.20 crore year-on-year. For the year, it is Rs 9.4 crore against negative Rs 3.56 crore in the previous year.

Total comprehensive income which includes net profit and other comprehensive income is at Rs 32.97 crore for the quarter against Rs 24.28 crore quarter-on-quarter and Rs 64.57 crore year-on-year. For the year, it is at Rs 126.14 crore against Rs 159.44 crore in the previous year.

EPS for the quarter is at Rs 13.12 as against Rs 7.86 in the previous quarter and Rs 24.6 in year-on-year. For the year, it is at Rs 44.35 against Rs 61.40 in the previous year.

In terms of foreign currency hedges, on 31st March, we had USD 2.5 million of forward contracts at an average rate of Rs 91.33. There is a mark-to-market loss of Rs 1.09 crore, which is taken to hedging reserve in the balance sheet.

Revenue contribution from the top five clients for the quarter is 29.3% against 27% in the previous quarter. Order book position is Rs 1,044.31 crore including Rs 899.44 crore of product business and Rs 144.87 crore of project and services business.

On 31st December, the order book position was Rs 656.68 crore including Rs 588.74 crore of product business and Rs 67.94 crore of projects and services business. Total cash and cash equivalent as of 31st March are Rs 972.37 crore against Rs 971.6 crore as on December 31st.

This includes balances in current accounts of Rs 80.01 crore, various schemes of mutual fund Rs 597.02 crore, fixed deposit of Rs 263.22 crore, investments in tax-free bonds of Rs 32.12 crore. With regards to receivable, we are at Rs 121.12 crore against Rs 137.41 crore the previous quarter.

During the quarter, there is a gross addition of fixed assets of Rs 18.35 crore consisting primarily of Rs 6.35 crore on computer and servers and Rs 11.78 crore on building and plant and machinery. I'll hand it over to Swati.

Thank you, sir. With this, we are now open for the question-and-answer session.

Over to you, Madhuri.

Am I audible?

my question was we have lost one of the leading NBFCs as our customer to our competitor. Just wanted to know what could be the reason that a leading NBFC in India is no more our customer.

Was it the pricing part or the software issues?

Which NBFC you are talking about? Can you please name that?

Bajaj Finance.

Bajaj Finance. Bajaj Finance is not because of any other reason, but I would say they have been on their own invested in a company which is a competitor to us, so that was a strategic reason with which this decision was taken.

Bajaj Finance itself invested in a company where the company is a competitor, correct?

Yes.

Okay. My next question was that we had the problem that customers are not migrating from FinnOne to FinnOne Neo, they are content with the software they are using because it fulfills their requirement.

What incentives do we provide them so that they shift to the newer platforms and pay higher? If you could also give me some numbers on how many customers have shifted to the new platform?

Very recently, one of the leading public bank in India, we witnessed a large transformation that has happened, and that was as smooth as a cakewalk. I am sure you must have got to know through the news on the transformation project.

Now, the good part is that we are using various tools and tech like AI to detect, map, and initiate the transformation journey. One of the challenge is that since some of these implementations are two decades and more than that older, a lot of customization has gone by.

Then one exercise that has been done, at the same time, we are also in talks with the customer to be ready to come up to the new platform. All these discussions are happening, and a roadmap is being prepared.

It is very much in our focus and on our cards also. Does that answer your— Yeah.

Just a follow-up on

this

one, sir. As you said, the roadmap is ready and the implementation takes a lot of time, could you just— No, no,

no. I did not mention that implementation takes lots of time.

I'm saying that the erstwhile version which is called FinnOne is there in production for more than two decades or beyond or even older. In such cases, these implementations have taken their own path through different customizations at various times.

We have created our in-house transformation toolkit, which is AI-enabled, and we are making AI to detect these changes and mapping to the product capability and features that FinnOne Neo offers. To ensure that the onboarding or transformation from old version to the new version is seamless, and that is the way forward.

That strategy we are taking.

Okay. My next question is that some years ago you had mentioned that it's a good challenge for Nucleus to have [unclear] have the ability to crack Japan as a market.

Yeah.

Yeah. As we know that Japan market runs on relationship because it takes time for Japanese culture to take up and adopt new product lines.

We have been there in the market from past 25 years, and we have built a lot of credibility and trust with our customers since we have been there from past 25 years. We have been making a conscious effort to tap some of the top Japanese banks.

There are some active discussions which are currently on, and we might see some results in upcoming quarters because it takes time, actually, to get the required level of confidence on the new product. I hope that answers your query.

Yeah. Thank you so much, sir.

Also, there's a last question on in the previous calls, you have mentioned that it was a mistake that we didn't focus much on the marketing of our product. Although we knew Nucleus has one of the best products in the world.

When I see your sales and marketing expense, it is still around 1% of the revenue. Are we seriously looking at marketing our products?

Since you have said that you are focusing on sales and marketing part, how many new sales people have you hired in the last let's say 4 to 5 years?

I think in last two years, our focus was to strengthen our sales and account management function. This has led to a growth of about a headcount of anywhere between 40 to 50 sales executives in the team.

This is across all sales domains. Hunting, which is for new sales, account management for existing customers, generating business through existing customers.

We also have a team onboarded for partnerships and alliances. To lead this team, we have recently onboarded Dr.

Apurva Chamaria, who has joined us as Chief Business Officer, and all these sales and partnership and account management functions roll up to him.

Okay. Thank you, ma'am.

Good afternoon. Thank you for the opportunity.

Could you just tell me what was the total number of logos that we added this year? If you could repeat the order book?

We have added the seven new logos this year in financial year '25-'26 versus three logos in '24-'25. Trajectory is promising and moving in the right direction.

If we talk about order book, we are sitting at the close of March '26 in the upwards of 1,000 crores as compared to last financial year of around 600 crores.

Did you say 1,000 crores?

Sorry?

Did you say 1,000 crores was the

order book? 1,000 crores, yeah.

Great. We are actually finally seeing the benefit of the marketing spend that we've been spending over the last couple of years.

Absolutely.

Great.

It is a combined effort of multiple things, marketing expenses, our investment in improving our capacities, our investment in terms of upskilling our teams, our efforts in terms of spend in AI and everything. Collectively it is finally showing the results.

Got you. Sir, and you had mentioned in the earlier question that Bajaj Finance invested and went with a competitor.

I believe that competitor also has now got a product, at least a product line, I'm not sure how much, from HDFC Bank as well, which is I think one of our oldest clients. If you could talk about that, are we losing market share with HDFC?

What's happening there?

We can't really comment on our competitors and their ways of working and they approaching any client or not. We can't really comment on that.

No, fair. What could you comment on our relationship with HDFC given it's one of our oldest clients and I would assume a decent amount of revenue?

The relationship is nearly 30 years now and it continues to grow strong.

Okay. We—

Is my line audible?

Hi. This is Rahul Jain from Dolores Capital.

Maybe there was a correction in the name. My question was that we have a very strong order signing that has happened during the quarter.

I would appreciate if management could share some color in terms of which market this came from and local offices that we have set up in different regions, have some of these efforts fructified causing this book to jump? Also is this coming from SaaS side of revenue because we don't see much momentum happening in the Q4 revenue, or we expect this order book to actually fructify in the next couple of quarter and it came much more closer to the end of the quarter?

Thank you.

Most of our contracts are spread across few years. That is why the revenue impact might not be seen in the first quarter or maybe one or two quarters, coming quarters.

However this robust order book is going to definitely impact in positive terms for quite few quarters. If we talk about geographies from where we have got this order, happy to share that one of the orders which we have booked is from US and other orders, most of the orders are from India.

There are few orders from other geographies as well, but majorly it is from India and US.

India and US. You're saying, Ashok, I could not follow the part which you said it should flow out in the next few quarter or because we got it towards the later part of the thing or you're saying generally it takes time for us to recognize the revenues?

It generally takes time. While we have received the order, there is a implementation cycle as well which goes before we recognize the revenue.

That cycle depends on the complexity of the order which we have received and the size of the order which we have got and integration with the customers. That is why I was saying it might not be immediately reflective in revenue maybe in immediate one or two quarters, but definitely once the implementation is done, we should see that revenue flowing in our books.

Sure. If I could ask one more.

In general, if you could talk about how the deal wins are trending? Are these more happening towards the subscription model or the traditional on-prem model is one thing.

One data point question is if you could share what was the headcount at the end of the quarter? That's it from my side.

Thank you.

Headcount at the end of the quarter was 2,000

35. 84.

2,084,

in the range of 2,000. Which is pretty much same as maintained across last few quarters if you see, plus minus of 100 counts which you can think of.

If we talk about the other question was with revenue, right?

I was trying to understand are deals coming on the SaaS model or mostly coming on the on-prem model?

We are a product company, and our deals are with respect to product. Yes, a part of the revenue definitely is subscription-based fees as well, but however it is a hybrid model on which we work, and most of the deals are long-term deals, there is I would say reasonably assured revenue which is going to come for future.

I have just one question, sir. In a couple of quarters, you had talked about new features like the co-lending and the gold loan.

Any update on that front?

I think both co-lending and gold loan is going to be the focus area, and we have been trying to understand more on both these capabilities that we have built across. Even in this current GA which is getting released, both this line of businesses are being strengthened, be it co-lending, be it gold loan, and we have also strengthening the finance against security as going to be the potential line of business as we have understood the market.

These are going to be the key LOBs where we are going to invest.

Okay. Just a small question.

In general terms, when a customer is in our pipeline, how long does it take to convert the customer into sales? What could be the possible reasons from the customer's end to get the process get delayed?

While there is no right or wrong answer to it, but it can typically take anywhere between six weeks to maybe I would say three months or three years also. There are customers we have been engaging for almost two years, and we have closed contract after two years of discussion.

If it is a greenfield kind of project, it might be done in six months. If it is already established, I would say company or something of that sort which is doing a migration, it may take a lot of time.

Okay. Thank you so much.

It technically depends upon from where the transformation is happening. If it is a different system altogether, and the customers struggle, sometimes we also see that the team itself struggles to give us enough information about the implementation.

That discovering the unknown unknown takes at times. Usually, if it is a vanilla implementation, For SaaS businesses, it is matter of days, otherwise means as Ashok talked about, sometimes it takes three months also.

Yeah. Thanks for the opportunity again.

Just wanted to follow up on the previous question that I had. Is it fair to say that none of our existing customers have shifted away from us either completely or any of their product lines over the last three years?

Sorry, I couldn't follow the question. Can you please repeat again?

I'm so sorry.

I just wanted to confirm, over the last three years, have any of our customers either shifted away from us completely or even any of the product lines away from us?

Right now, no other customer has walked away from us. That is what he is trying to ask.

See, he's talking about— Last three years, he's talking about. Then, nothing significant.

Yeah. If we talk about other than this Bajaj thing which you are following, or there is nothing significant.

Bajaj is still with us, right? I'm sorry, I didn't get that.

Sorry?

I didn't get your previous answer.

I am saying there is no significant loss of movement from any of our customers in terms of either module or moving out completely.

Got you. Would you be able to share what our win rate is in RFPs over the last year?

That is a detail we may not be able to provide.

Last question was, in Japan, you mentioned you're making some inroads. Can you share which software the Japanese banks currently use?

Most of their software is homegrown. Homegrown,

in-house software.

Yeah.

Got you. Thank you so much.

Thank you.

Hi, good afternoon.

Good afternoon.

My question is about last Q4, Q4 of 2000 FY '24-'25, company has grown up almost 10% in revenue, and compared to this quarter of Q4 '26, it's almost flat. What are the reason?

Is it because of the problems happening, geopolitical problems, or we couldn't close or we couldn't start new projects or any of the projects have moved from Q4 to Q1? Any reason that there was flat?

You are

comparing last year year-on-year quarter or you are talking about sequential?

No,

year-on-year.

Q4 of last year, yeah, Q4 we grew almost 10%, yeah.

That is on the back of one account where we cracked the deal and we were able to book the revenue in the last year in the quarter itself. That has jumped the revenue last year, and that is why you are able to see that flat growth, but otherwise if you normalize it, it has grown revenue per se.

Additionally, there were a few orders, at least couple of them, which got postponed from Middle East because of the war situation.

Right. I just wanted to understand the impact of this geopolitical issue is causing to company.

Even the employee cost has gone up by almost 25% compared to last year. When the revenue is flat, is it something expected to

be higher and— We continue to invest in our teams because they are the ones who deliver value. We realize it that the revenue may or may not match the investment in our people, and that's how we look at it.

It

also has significant impact because of the new labor code changes that would have added to the employee cost going up.

Okay. My last question is about where are you seeing a demand now?

Is it more from India, Middle East, or is in Southeast Asia? Where are you seeing the demand now, where you will be getting more work?

India remains our foothold and our strong, I would say, growth center, but we are focusing also on other countries as well. To cultivate that markets, we have recently opened our subsidiary in Vietnam, we are looking forward to explore those areas for the growth prospect.

I see. All right.

Thank you very much and all the best.

Thank you. Thank you,

Thank you, Madhuri. Now we would like to thank all the investors for joining us today.

Now I pass it over to Vishnu sir for his closing comments. Over to you, sir.

I'd like to take this opportunity to thank you for your continued interest in Nucleus Software, and would like to reiterate our commitment to deliver long-term value to all our stakeholders. Thank you.