Nucleus Software Exports Ltd Q2 FY26 – When Fintech Feels Like Family Drama With Quarterly Twists, CFO Musical Chairs & A ₹720 Cr Order Book Cliffhanger

1. At a Glance

If Nucleus Software were a Bollywood franchise, it would be “Koi Mil Gaya” meets “Mission Impossible” — emotionally stable but constantly rebooting itself. With amarket cap of ₹2,760 crore, the Gurugram-based fintech veteran continues to power200+ financial institutions across 50 countries, while juggling CFOs faster than IPL franchises switch captains.

For theSeptember 2025 quarter, the company clockedrevenue of ₹214 crore(up 5.6% QoQ) andPAT of ₹26.3 crore(down 20.5% QoQ). The OPM cooled to11%, down from 16% last quarter — perhaps because other income (₹16 crore) continues to look like that one friend who carries the group project.

The stock trades around₹1,031, with aP/E of 17.1x,ROE of 16.8%, and adividend yield of 1.21%— a classic “respectable engineer salary” of valuation metrics. Over the last three months, it has inched up3.3%, which in IT stock terms is basically saying: “I’m stable, boss.”

Oh, and debt? A cute₹2 crore— basically the cash a fintech startup burns before its first tweet.

2. Introduction – When Code Meets Karma

Once upon a time in 1986, before “fintech” became a buzzword and computers had the thickness of aloo parathas,Nucleus Softwarequietly began coding its way into India’s financial backbone. Four decades later, it’s still writing software that managesUS $700+ billion worth of loansglobally — which is basically all the EMI pain of middle-class India in one SQL query.

FromICICI Bank to RBL, Bajaj Finserv to Mirae Asset, their platforms are silently running under your friendly loan officer’s nose. Whether it’sFinnOne Neo, the digital lending solution that claims to make loan approvals smoother than butter, orFinnAxia, which helps banks track cash, trade finance, and liquidity — Nucleus is that dependable nerd from college who never fails a submission.

But FY25 hasn’t been boring. CFOs resigned faster than TikTok influencers switch niches, two top executives quit in November, and the new CFOAshok Kumar Bhuratook charge on October 1, 2025. The company’s balance sheet is clean, margins still healthy, but the street is wondering: will the next quarter bring code or chaos?

3. Business Model – WTF Do They Even Do?

Imagine a fintech buffet — from retail loans to cash management to Islamic banking — Nucleus Software serves it all, with extra garnish of legacy credibility.

The company earns86% of revenue from products— that includes software licenses, implementation, and maintenance fees. The remaining14% comes from services, which is their consulting, testing, and digital transformation work.

Their flagshipFinnOne Neois the main dish — managing end-to-end loan lifecycles for banks.FinnAxiais the global transaction banking suite, andPaySeis their digital payment innovation that even works offline (because India still has zones where Wi-Fi is more myth than service).

And it’s not just domestic — Nucleus operates acrossJapan, Singapore, Netherlands, USA, South Africa, and Australia, ensuring they never rely solely on Indian monsoon moods or IT budgets.

The company’s₹720 crore order book(as of Q2 FY25) is largely from products (₹672 crore), proving that it’s still very much a product powerhouse and not just another IT outsourcer serving western banks.

But if you’re wondering — “Wait, if they power 200+ banks, why’s their revenue still under ₹900 crore?” — congratulations, you’ve discovered the paradox of Indian enterprise software: lots of prestige, limited pricing power.

4. Financials Overview

Annualized EPS ≈ ₹39.3At CMP ₹1,031 →P/E = 26.2x (TTM 17.1x)

Commentary:Margins look like they’re on a yoga retreat — flexible but stressed. Despite growing revenues, higher expenses and slower license