EdTech Meets SaaS: Is Excelsoft IPO Ready for the Big League?

Excelsoft Technologies (ETL), a Mysuru-based SaaS company with over 25 years in the digital learning and assessment space, has opened its Initial Public Offering (IPO) to the public. The company aims to raise Rs 500 crore through a mix of fresh equity issue and an Offer for Sale. Investors can subscribe to the issue until 21 November.

But is this SaaS player worth adding to your portfolio or should you move with caution? Read our detailed IPO analysis covering growth drivers, financial performance and key risks before making your decision.

Excelsoft Technologies IPO Details 

• Issue Details: Mainstream
• Issue Size: Rs 500 crore
• Fresh Issue: Rs 180 crore
• Offer for Sale: Rs 320 crore
• Price Band: Rs 114 – Rs 120
• Lot Size: 125 shares
• Listing Date: November 26, 2025

Excelsoft Technologies: Business Overview

• ETL is a vertical SaaS (Software as a Service) company offering cloud-based platforms for learning management, e-assessments, remote proctoring and customised education-technology solutions. Its proprietary product suite — Saras LMS, Saras Test & Assess and EasyProctor — along with AI-driven learning modules, forms the core of its technology stack.
• Positioned at the intersection of EdTech, Learning and Development (L&D) and enterprise training, ETL is well-placed to benefit from long-term digitisation trends as organisations increasingly adopt online training, e-learning and AI-powered content creation. As a vertical SaaS provider, the firm delivers deeper value and higher customisation compared to horizontal SaaS peers, resulting in strong customer retention and high renewal visibility.

Excelsoft Technologies Key Strengths

• Steady Growth: Revenue from operations has grown at a CAGR of 9% between FY23 and FY25. During the same period, EBITDA expanded at 4% CAGR and net profit at 24% CAGR.
• Improving Return Metrics: Return on Capital Employed improved from 11.03% in FY23 to 16.11% in FY25, while Return on Equity increased from 8.41% to 10.38%, reflecting stronger capital efficiency and improved profitability.
• Diversified Global Client Base: ETL has served 101 enterprise clients across 19 countries, including global names such as Pearson Education, AQA, Ascend Learning and BYU, reinforcing platform credibility and enabling stable, long-term recurring revenue streams.
• High Client Retention: As of Q1FY26, 24 clients have been associated with ETL for over 10 years and 40 for more than 5 years, highlighting strong customer stickiness.

Excelsoft Technologies Risk Factors

• Client Concentration: ETL is significantly dependent on a few large customers, with the top 5, top 10 and top 20 clients constituting 66%, 76% and 89% of FY25 revenue. Pearson Group alone accounts for about 58% of revenue. This high reliance increases concentration risk, where loss or reduced business from any major client could materially impact revenue and profitability.
• Geographic Concentration: A significant portion of revenue is generated from North America, contributing around 61% in Q1FY26 and FY25. This exposes the business to regional macroeconomic slowdowns, regulatory changes and geopolitical uncertainties.
• Contingent Liability Exposure: ETL has provided a corporate guarantee amounting to 79.80% of its Net Worth as of June 30, 2025, to secure NCDs issued by its Corporate Promoter. Any invocation of this guarantee due to repayment failure could significantly affect Net Worth and overall financial stability.
• Foreign Exchange Risk: With approximately 64% of earnings denominated in USD and around 21% in GBP in FY25, the business is exposed to currency volatility. Adverse movements in exchange rates may affect margins and profitability.
• Customer Attrition: ETL lost 2, 6 and 12 customers during Q1FY26, FY25 and FY24 respectively, representing 2%, 8% and 13% of the customer base. Persistent attrition or slower onboarding of new clients may negatively impact revenue growth and competitive positioning.

Final Thoughts: Should You Subscribe to Excelsoft Technologies’ IPO?

• ETL has shown stable operational performance between FY23 and FY25, supported by healthy EBITDA margins of 28% to 35% and a near debt-free balance sheet that provides headroom for strategic investments in AI, infrastructure and product development. However, despite its strong margin profile, revenue growth has been relatively modest at 9% CAGR, which does not mirror the rapid scale-up seen in the global education SaaS market.
• In terms of valuations also, the IPO also appears fully priced at a P/E multiple of 35x FY25 earnings, which is slightly higher than the industry average.
• The broader digital learning and assessment ecosystem continues to benefit from multi-year structural tailwinds as institutions adopt cloud-based exam platforms, AI-assisted evaluation and digital content delivery. ETL’s focused positioning in this domain provides a clear thematic advantage.
• However, for ETL to move into a faster growth trajectory, expanding its client base will be essential. The customer count remained largely flat between FY23 and FY24 and only 6 new accounts were added in FY25, indicating challenges in scaling at a rapid pace. Sustained value creation will now depend heavily on execution — including strengthening its global presence, accelerating AI-driven innovation and managing capital allocation efficiently.
• In the near term, listing gains may be possible given sector sentiment, but valuations combined with execution risks call for caution. A more prudent approach would be to “buy on dips” post-listing, once the stock establishes a defined trading range.

For a deep dive into other IPOs, explore: IPO Corner on Liquide