Nucleus Software Exports Ltd

Regulatory notice

• Show Cause Notice received from GST Department under CGST Act Section 73(1) for FY 2022-23.
• Demand of INR 17.49 crore, comprising interest INR 6.92 cr and penalty INR 0.96 cr.
• Date of receipt: September 29, 2026.
• SCN relates to credit notes, reverse charge input tax credits, and other ITC matters.
• There is no impact on finances or operations; defense to be mounted.
• Authority: GST Department, State Tax Deputy Commissioner, Gautambuddha Nagar, Uttar Pradesh.

Appointment

• Sudhanshu Tripathi named Chief Marketing Officer, effective September 21, 2026.
• Brings 20+ years in technology marketing, category creation, demand generation, and partner-led growth.
• Role includes global brand strategy, GTM, demand generation, and partner-led growth.

Company scale and capabilities

• Serves 200+ banks and financial institutions across 50 countries.
• Yearly transactions exceed $15 trillion; loans under management exceed $1.2 trillion.
• Daily transactions exceed 26 million.

Appointment of Chief Marketing Officer

• Change: Appointment of Sudhanshu Tripathi as Chief Marketing Officer, effective 21 September 2026.
• Profile: Over two decades' experience; ex-CMO at Quick Heal; BE in Electrical; MBA in Strategy/Marketing.

RSU share acquisition plan

• Trust to acquire 1,14,187 shares for RSU Scheme 2026 vesting.
• Acquisitions to occur in multiple tranches by Sept 30, 2026.
• Purchases to be made when trading window is open.
• Compliant with SEBI insider trading regulations and company's Code of Conduct.
• RSU Scheme 2026 administered by Nucleus Software Equity Incentive Trust.

Formation and purpose

• Trust formed to administer Employee Benefit Schemes (ESOS/RSU) for beneficiaries.
• Board resolution dated 25 March 2026 approved formation; conditions noted.
• Initial corpus Rs 10,000 contributed by the Settlor.

Parties and governance

• Settlor: Nucleus Software Exports Limited; Trustee: Beacon Trusteeship Limited.
• Board may appoint additional Trustees; initial number is one.

Approvals and key dates

• Shareholder approval obtained on 7 May 2026.
• Trust Deed executed on 29 May 2026.
• Authorized representatives empowered to finalize documents and accounts.

Financials and compliance

• Initial corpus Rs 10,000; stamp duty Rs 500.
• Registration and related upfront fees total Rs 1,117; compliance with SEBI SBEB Regulations.

Subject

• Stanbic IBTC Bank advances to FinnAxia 9.0 with Nucleus Software upgrade.

Key capabilities

• Upgrade enhances integrated payments, collections, liquidity and cash management.

Parties and collaboration

• Long-standing partnership between Stanbic IBTC Bank and Nucleus Software continues.

Financial metrics

• No revenue or profit figures disclosed in the release.

Key developments

• Vietnam launch of FinnOne Neo 9.0 and FinnAxia 9.0 as part of the first Nucleus Synapse Vietnam.
• Dual-platform release powers AI-enabled lending and connected transaction banking.
• Vietnam is the company’s largest market in Southeast Asia.
• In February 2026, Nucleus Software Vietnam Company Limited was incorporated.
• Office established in Hanoi to formalize local delivery and procurement compliance.
• MB Bank and Vietcombank are customers in Vietnam.
• Nucleus Synapse Vietnam forum promotes knowledge exchange across the sector.
• FinnOne Neo 9.0 and FinnAxia 9.0 enhance lending intelligence and governance.
• Forum theme is AI in Lending: From Potential to Performance in Vietnam.

Financial Performance

• Consolidated quarterly revenue: INR 210.4 crore; QoQ +6.4%; YoY +3.4%.
• Product revenue: INR 176.6 crore (83.9% of revenue); prior quarter 84.1%.
• EBITDA: INR 7.6 crore; margin 3.6% (QoQ 15.4%; YoY 15.5%).
• PAT: INR 23.9 crore; QoQ -30.9%; YoY -32.2%.
• Other income: INR 17.8 crore; +19.5% QoQ; YoY -0.7%.
• Forex loss: INR 1.1 crore.
• Order book: INR 1,244 crore; 88% from products (INR 1,096 crore).
• Cash & equivalents: INR 977.9 crore; Receivables: INR 174.7 crore.
• DSO: 63 days; Headcount: 2,059; Attrition: 3%.
• One-offs: gratuity relief 6.99 crore; compensated absence 2.83 crore; RSU grants issued.

Operating / Segment Update

• Geography: India 56% of revenue; ME 12%; South Asia 11%; Europe 5%; others rest.
• Prior quarter shares: India 58%; ME 13%; South Asia 11%; Europe 4%; others.
• Top five clients contributed 28.1% of revenue in quarter; vs 29.3% prior quarter.
• Product revenue share remains 83.9% of revenue.

Balance Sheet and Cash Flow

• Cash and equivalents: INR 977.9 crore; Receivables: INR 174.7 crore.
• DSO 63 days; Total headcount 2,059 (vs 2,028 on 31 Mar 2026).

Q&A Highlights

• NBFC top client loss discussed as a one-off; management focusing on AI/product investments.
• Order book doubled by growth in new logos; longer implementation cycles; AMC contracts included.
• About 10 new logos added in last 15 months; mostly India; US market growth discussed.
• Pricing remains premium; competition pressure acknowledged; potential price actions as markets improve.
• AI productivity benefits expected but not yet quantified; measurement to follow.
• India revenue softness linked to one-time event with a major customer; some logos added.

Guidance and Outlook

• No formal revenue guidance provided; company does not publish specific revenue earnings guidance.

Risks and Watchpoints

• Execution cycle length may extend due to AMC contracts and customer migrations.
• Rising DSO signals working-capital concentration risk; receivables have increased QoQ.
• Top client concentration remains a watchpoint; performance tied to large orders' realization.
• Investments in AI and product development continue, with uncertain near-term impact.

Meeting Details

• Earnings call for quarter ended June 30, 2026 held July 31, 2026 at 1500 IST.
• Format: audio transcript of earnings conference call (virtual).

Participants

• Key participant: Company Secretary.

Organiser

• Event organized by Nucleus Software Exports Limited.

Availability

• Audio transcript is available.

Purpose

• Purpose: earnings discussion for the quarter ended June 30, 2026.