Expleo Solutions Q4 FY25 results: net profit up 53.4% to ₹24.08 crore, revenue up 0.2%

How did Expleo Solutions perform in Q4 FY25?

On a consolidated basis, Expleo Solutions reported Q4 FY25 revenue of ₹255.80 crore for the January–March 2025 quarter, compared with ₹255.41 crore in Q4 FY24 and ₹257.58 crore in Q3 FY25. EBITDA was ₹40 crore, with an EBITDA margin of 15.6%, against ₹34.22 crore and 13.4% in the year-ago quarter. Against the previous quarter, EBITDA was higher than ₹38.54 crore and the margin was up 0.6 percentage points from 15.0%.

Profit before tax for the quarter was ₹35.52 crore, up 35.6% from ₹26.19 crore a year earlier and up 25.5% from ₹28.30 crore in Q3 FY25. Net profit was ₹24.08 crore, against ₹15.70 crore in Q4 FY24 and ₹19.78 crore in the previous quarter. Basic EPS was ₹15.51, compared with ₹10.12 and ₹12.75 respectively, and the profit margin was 9.4% against 6.1% a year earlier.

On a standalone basis for the quarter, revenue was ₹255.80 crore and profit after tax was ₹28.88 crore, against profit of ₹13.46 crore before tax in the standalone figures given for the period. The board approved both standalone and consolidated audited financial results for the quarter and financial year ended 31 March 2025, along with the auditor's report and declaration of unmodified opinion.

What changed in Expleo Solutions' costs and profit?

Total expenses for Q4 FY25 were ₹224.78 crore, down ₹6.25 crore, or 2.7%, from ₹231.03 crore in the year-ago quarter and down ₹7.36 crore, or 3.2%, from ₹232.14 crore in Q3 FY25. Employee cost was ₹160.88 crore, up ₹4.82 crore, or 3.1%, from a year earlier but up ₹14.22 crore, or 9.7%, from the previous quarter.

Other expenses fell to ₹53.20 crore from ₹63.73 crore a year earlier, a decline of ₹10.53 crore, or 16.5%, and were down ₹16.64 crore, or 23.8%, from Q3 FY25. Depreciation was ₹8.05 crore, down ₹1.04 crore from the year-ago quarter and ₹4.32 crore from the previous quarter. Cost of materials was ₹1.72 crore against ₹1.40 crore a year earlier, and finance costs were ₹0.94 crore against ₹0.76 crore.

Other income was ₹4.51 crore, up ₹2.70 crore, or 149.2%, from ₹1.81 crore in Q4 FY24 and up ₹1.65 crore, or 57.7%, from ₹2.86 crore in the previous quarter. Tax was ₹11.45 crore against ₹10.49 crore a year earlier. There was no exceptional item in any of the three quarters.

How did Expleo Solutions do in FY25 as a whole?

For FY25, Expleo Solutions reported revenue of ₹1,024.80 crore, up ₹59.93 crore, or 6.2%, from ₹964.87 crore in FY24. Total income was ₹1,041.00 crore, up ₹68.62 crore, or 7.1%, from ₹972.38 crore, and profit before tax was ₹139.24 crore, up ₹19.67 crore, or 16.5%, from ₹119.57 crore.

Net profit for the full year was ₹103.24 crore, up ₹12.80 crore, or 14.2%, from ₹90.44 crore in FY24. Basic EPS rose ₹8.25, or 14.2%, to ₹66.52 from ₹58.27.

What do the balance sheet and cash flow show?

At 31 March 2025, total assets were ₹831.08 crore, lower than ₹875.54 crore at 30 September 2024, and total equity was ₹635.84 crore against ₹670.58 crore. Cash stood at ₹217.49 crore, down from ₹273.69 crore, while trade receivables fell to ₹222.30 crore from ₹260.15 crore and trade payables were ₹61.08 crore against ₹71.88 crore. The company reported no borrowings at either balance sheet date.

For FY25, cash flow from operating activities was ₹179.42 crore, against ₹71.35 crore in FY24. Investing cash flow was negative ₹53.16 crore compared with negative ₹31.32 crore, and financing cash flow was negative ₹87.10 crore compared with negative ₹15.20 crore. Capital expenditure was ₹7.92 crore against ₹17.48 crore, and closing cash in FY24 was ₹176.14 crore.

How has Expleo Solutions done over the last 8 quarters?

Revenue rose year on year in each of the last eight quarters, according to the trend data. Quarterly revenue peaked at ₹259.26 crore in Q2 FY25 and was at its lowest of the period at ₹225.12 crore in Q1 FY24, with Q4 FY25 revenue of ₹255.80 crore slightly below the Q3 FY25 level of ₹257.58 crore.

Net profit for the quarter was ₹24.08 crore, up from ₹19.78 crore in Q3 FY25, and the EBITDA margin was 15.6% against 15.0%. Over the eight quarters, profit peaked at ₹35.48 crore in Q2 FY25 and bottomed at ₹15.70 crore in Q4 FY24, while the EBITDA margin peaked at 16.3% in Q2 FY25 and bottomed at 13.4% in Q4 FY24.

What else did the company announce?

Alongside the results, the company filed a press release for the Q4 and FY25 financial results and submitted its earnings presentation for the quarter and financial year ended 31 March 2025 on 22 May 2025. The board meeting on 22 May 2025 approved the audited standalone and consolidated financial results for the quarter and financial year ended 31 March 2025, together with the auditor's report and declaration of unmodified opinion. The statutory auditor, Mis. Deloitte Haskins & Sells, issued an audit report with unmodified opinion on the annual standalone and consolidated financial results for the financial year ended 31 March 2025. The same-day filings also included disclosures required under Regulation 30 of the SEBI listing regulations.

What did Expleo Solutions' management say?

Management said in its earnings call and press release that FY25 revenue grew 7.1% and the EBITDA margin improved by 80 basis points against FY24. The company expects growth from the Middle East and North America, where it opened a new office in Saudi Arabia, and said it will concentrate efforts on those markets given the uptake of its Mechanical Product Engineering, AI and Big Data offerings.

Management said the company sees a chance to establish Centres of Excellence in GCCs in India, aligned with the Make in India initiative, which it said is positively impacting the defence sector. It also said it is broadening service offerings around AI and digital transformation, and that it is focused on managing costs and boosting utilisation and productivity to safeguard margins amid potential economic and geopolitical turbulence. Management also said the talent market is currently subdued, that the company is investing in upskilling its workforce, and that its core strategy is to fuel growth through targeted initiatives and pursue operational excellence.

How did Expleo Solutions shares react?

The filing came after market hours. From the price when the filing appeared, the stock was up 2.4% after five minutes, 4.0% after fifteen minutes and 8.9% after thirty minutes. On the reaction day, it rose 9.9% from the previous close of ₹935.80, and by the next day's close it was up 12.1% from that pre-results close, with a five-day move of 12.8%.

The industry median move was flat on the reaction day and the next day, and the stock's excess move over the sector was 9.9 percentage points on the reaction day, 12.1 percentage points on the next day and 13.4 percentage points over five days. The Nifty Microcap 250 rose 0.7% on the reaction day and 2.1% over five days. Earlier reaction-day moves were -3.4% on 6 February 2025, 7.0% on 14 November 2024, 3.7% on 1 August 2024 and -4.9% on 23 May 2024.

How did other IT Enabled Services companies do?

Among 62 other IT Enabled Services companies that have filed this quarter, the median revenue growth was 14.7%. Of the peers compared, 18 grew slower than Expleo Solutions and 44 grew faster than the company. Of 59 peers for which profit was compared, 34 reported higher profit.