Expleo Solutions Limited Q2 FY26 Concall Decoded: 9% growth, 17% margins, and AI suddenly pays rent
1. Opening Hook
Just when everyone declared mid-tier IT dead, Expleo walked into Q2 FY26 with a quiet mic drop. While peers blamed macro, furloughs, and “wait-and-watch clients,” Expleo blamed… growth. Bold move.
Revenue climbed, margins expanded like it’s 2021 again, and AI finally stopped being a PPT buzzword. Management sounded confident—but not reckless—like someone who’s seen the bills and still ordered dessert.
Yes, there were forex tailwinds. Yes, Europe auto is still sulking in a corner. But BFSI woke up, Middle East delivered, and AI actually showed up in revenue—miracles do happen.
Stick around. The fun part is figuring out how much of this is skill, how much is currency, and how much is just very good timing.
2. At a Glance
Revenue up 9% QoQ – Growth arrived without a hiring binge. HR fainted briefly.
EBITDA margin at 17.1% – From 12.8% last quarter; cost discipline finally hit puberty.
PAT margin at 14.6% – Profits flexed, helped by ops efficiency and friendly forex.
Constant currency growth 6% QoQ – Not all magic, some real work involved.
Cash at ₹303 cr – Balance sheet doing yoga while others stretch for loans.
3. Management’s Key Commentary
“We have seen a good quarter with 9% growth QoQ and YoY.” (Translation: Finally, a slide we didn’t have to over-explain.) 😏
“Our EBITDA moved from 12.8% to 17.1%.” (Translation: Bench discipline works better than motivational posters.)
“AI investments made last year are now yielding revenue.” (Translation: POCs have graduated to invoices. Investors exhale.)
“Bulk of renewals are happening due to our AI journey.” (Translation: Clients like buzzwords, but only if they actually work.)
“Bench has been maintained below 6%.” (Translation: Nobody is warming chairs for too long.)
“Headcount growth is no longer our benchmark.” (Translation: Welcome to non-linearity. Utilisation is king now.)
“Auto is no longer a strategic investment area.” (Translation: Europe auto hurt us enough. We’re moving on.) 😬
