November 14, 2025
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Chanakya IPO Review – Excelsoft Technologies Ltd.
Excelsoft Technologies is a two-decade-old SaaS provider in the global learning and assessment space, serving 200+ clients across 5 countries, including Pearson and AQA. FY24 revenue stood at Rs. 200.7 crore with PAT of Rs. 12.75 crore, improving sharply to PAT of Rs. 34.69 crore in FY25, indicating expanding scale and better operating efficiency. Margins remain healthy with EBITDA margin at 31.40% and PAT margin at 14.87%, supported by low leverage (Debt/Equity 0.05).
The IPO values the company at a market cap of Rs. 1,381 crore, implying a P/E of 34.6x and P/BV of 3.23x, which appears moderate for a specialised vertical SaaS player. The fresh issue will fund new campus development at Mysore and major IT infrastructure upgrades, which can further boost profitability over the next 2–3 years.
A strong global clientele, sticky SaaS revenues, and high-margin digital platforms make the company structurally attractive. However, investor appetite will depend on sustained growth momentum and quarterly execution.
Chanakya View: A stable, niche SaaS business with improving metrics. Suitable for medium-term investors; valuations are reasonable. Can Apply with Long-Term Perspective.
Valuation Comparison – Listed Peers in Learning-Tech / Vertical SaaS
Since India has very few pure-play listed learning and assessment SaaS companies, the closest comparisons are EdTech, digital assessment, and vertical SaaS companies. Here is a clean & relevant peer-set:
| Company | Business Type | P/E | P/BV | EBITDA Margin | Comment |
|---|---|---|---|---|---|
| Excelsoft Technologies (IPO) | EdTech + Assessment SaaS | 34.6x | 3.23x | 31.4% | High-margin, steady global SaaS business |
| NIIT Ltd. | EdTech, learning solutions | 36–40x | 3.0x | 12–15% | Lower margins, slower growth |
| MT Educare / CL Educate | Education services | 20–30x | 1.5–2.0x | 10–12% | Not SaaS-focused, weaker profitability |
| Hurix Digital (SME) | Digital content & learning | 25–28x | 2.5–3.0x | 18–22% | Smaller scale; digital content-heavy |
| R Systems / Sonata Software | Vertical SaaS + IT services | 25–32x | 4–6x | 12–18% | Not pure EdTech but close SaaS comparison |
| Coforge | Global SaaS/IT | 34–38x | 4.0x+ | 14–16% | Higher valuation; more diversified |
Chanakya Valuation Insight
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Excelsoft’s P/E of 34.6x is in line with global SaaS valuation norms and comparable to NIIT, Coforge.
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EBITDA margin at 31.4% is substantially higher than most peers, justifying a premium.
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Low debt + high recurring SaaS revenue strengthens valuation comfort.
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Peer group average P/E ~32–35x → Excelsoft’s pricing looks fair, not aggressive.
Chanakya Takeaway on Valuation
A niche, sticky, high-margin SaaS business priced at peer-range multiples. Valuation acceptable for long-term investors, especially given global clientele (Pearson, AQA, Ascend Learning, BYU Idaho) and strong FY25 profit jump.
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