Nucleus Software Exports Limited (NUCLEUS)
₹677.00 -0.34% last close, 16 Oct
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Nucleus Software's revenue was ₹210 Cr (-3.3% year on year, -6.5% on the previous quarter), and net profit ₹23.9 Cr (-32.2% year on year); the operating margin was 3.8%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹210 | -3.3% | -6.5% |
| Operating profit | ₹8.0 | -76.6% | -77.3% |
| Net profit | ₹23.9 | -32.2% | -31.8% |
| EPS (₹) | 9.07 | -32.2% | -30.9% |
| Operating margin | 3.8% | — | — |
NUCLEUS delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 30.5% of the NUCLEUS shares traded on NSE were taken to delivery, against the stock's own 20-session average of 55.83%. That is lower than usual for this stock.
Delivery in the last 5 sessions: 44.0% · 43.5% · 51.5% · 50.3% · 30.5%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Nucleus Software announced that its Generative AI-powered Visual Report Agent, integrated with flagship digital lending platform FinnOne Neo, won the 'Most Innovative Practice' award at the 3rd CII National AI Awards 2026. The tool converts loan data into personalized video summaries in over 10 Indian vernacular languages and Arabic. The company estimates this solution could reduce customer education operational costs by 10-15% and improve customer experience by 50%. While an encouraging product innovation, the press release does not disclose direct commercial contract wins or incremental revenue commitments.
- Won 'Most Innovative Practice' at the 3rd CII National AI Awards 2026
- Generates personalized loan statement videos in 11+ languages (10+ Indian vernacular languages and Arabic)
- Projects a 10–15% reduction in customer education operational costs
- Projects an estimated 50% improvement in customer experience
Nucleus Software Exports Limited has submitted its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by its Registrar and Share Transfer Agent, KFin Technologies Limited, covers the period from July 1, 2026, to September 30, 2026. It confirms that dematerialization requests received during the quarter were processed, verified, and cancelled within the prescribed 15-day window. This is a standard quarterly administrative filing confirming statutory share-transfer compliance.
- Covers the quarter and half-year ended September 30, 2026
- Compliance period spans July 1, 2026, to September 30, 2026
- Demat requests processed within the mandated 15-day timeline
- Issued by Registrar and Share Transfer Agent KFin Technologies Limited
Nucleus Software Exports has received a Show Cause Notice (DRC 01) from the GST Department, Gautambuddha Nagar, Uttar Pradesh, on September 29, 2026. The notice raises a total demand of ₹17.49 crore for FY 2022-23, which includes ₹6.92 crore in interest and ₹0.96 crore in penalties. The demand pertains to credit notes issued and input tax credit (ITC) claims under reverse charge mechanisms and other ITC matters. The total demand represents approximately 16.5% of the company's TTM PAT of ₹106 crore, though the company plans to defend the matter legally.
- Received Show Cause Notice under Section 73(1) demanding ₹17.49 cr for FY 2022-23
- Demand includes ₹6.92 cr in interest and ₹0.96 cr in penalty
- Issues relate to credit notes issued and input tax credit claimed under reverse charge mechanism
- Total demand equals ~16.5% of TTM PAT (₹106 cr) and ~2.0% of TTM revenue (₹869 cr)
Nucleus Software has appointed Sudhanshu Tripathi as its Chief Marketing Officer, effective September 21, 2026. Tripathi brings over 20 years of experience in enterprise technology marketing and previously served as CMO at Quick Heal Technologies. The appointment comes as Nucleus Software attempts to reaccelerate top-line growth and drive global expansion for its core platforms, FinnOne Neo and FinnAxia. With FY26 net profit declining to ₹116.9 Cr from ₹163.2 Cr in FY25, strengthening the go-to-market leadership aligns with its revamped sales strategy.
- Sudhanshu Tripathi appointed as Chief Marketing Officer effective September 21, 2026
- Tripathi brings over 20 years of experience across Quick Heal, Sterlite Power, Cyient, and TCS
- Nucleus currently serves 200+ banks and financial institutions across 50 countries
- The company's transaction solutions handle over $15 trillion in yearly transaction value
Nucleus Software Exports Limited has appointed Mr. Sudhanshu Tripathi as Chief Marketing Officer, effective September 21, 2026. Mr. Tripathi brings over two decades of experience, having previously served as CMO and Head of ESG at Quick Heal Technologies Limited. This leadership hire aligns with the company's stated strategic initiative to scale global sales and marketing across 50+ countries. In FY26, Nucleus Software reported ₹876.75 crore in revenue and ₹116.9 crore in net profit.
- Sudhanshu Tripathi appointed Chief Marketing Officer effective September 21, 2026
- Candidate brings over 20 years of experience building technology businesses across domestic and international markets
- Previously served as Chief Marketing Officer and Head of ESG at Quick Heal Technologies Limited
- Holds a B.E. from Nagpur University and a management degree in Strategy and Marketing from The University of Western Australia
Nucleus Software Exports Limited has amended its Policy on Code of Conduct for Prevention of Insider Trading pursuant to SEBI (PIT) Regulations, 2015. The amendment was approved by the Board of Directors via a resolution by circulation, with the policy last modified on August 31, 2026. The revised code defines roles, silent period norms starting 7 days prior to quarter-end, and reporting requirements for designated persons. This is a routine statutory compliance update with zero direct impact on the company's financial performance.
- Board approved amendment to Insider Trading Code via resolution by circulation effective August 31, 2026
- Company instituted a silent period starting 7 calendar days prior to April 1, July 1, October 1, and January 1 until earnings release
- Designated persons are required to report executed pre-cleared transactions within 4 days
- Aimed at aligning internal controls and compliance with SEBI (PIT) Regulations, 2015
Nucleus Software Exports announced that its Equity Incentive Trust proposes to acquire up to 1,14,187 equity shares from the secondary market on or before September 30, 2026. The purchase is intended to service forthcoming vesting commitments under the Nucleus Software RSU Scheme 2026. At the current market price of Rs 709.4, the maximum transaction size is approximately Rs 8.1 crore (around 0.43% of total equity). Purchases will be executed in multiple tranches in compliance with SEBI insider trading regulations.
- Trust authorized to acquire not exceeding 1,14,187 equity shares from the secondary market
- Acquisition to be completed by the end of Q2 FY26 (on or before September 30, 2026)
- Purchases will occur in multiple tranches outside closed trading window periods
- Transaction aims to fund share pool for the Nucleus Software RSU Scheme 2026
Nucleus Software Exports Limited has announced that the Nucleus Software Equity Incentive Trust proposes to acquire up to 1,14,187 equity shares from the secondary market. The purchases will be completed by the end of Q2 FY26 (on or before September 30, 2026) to fulfill forthcoming vesting commitments under the RSU Scheme 2026. The acquisition will take place in multiple tranches outside trading window closure periods in accordance with SEBI regulations. At the current share price of Rs 709.4, the total value of shares to be acquired stands at approximately Rs 8.1 crore (~0.43% of total market cap).
- Trust authorized to acquire up to 1,14,187 equity shares from the secondary market.
- Purchases scheduled to be executed in multiple tranches on or before September 30, 2026.
- Acquisition aims to create a pool for employee vesting commitments under RSU Scheme 2026.
- Estimated transaction outlay is ~Rs 8.1 crore at current market price of Rs 709.4 per share.
Nucleus Software has formalized the legal structure for its employee stock benefits by executing a Trust Deed with Beacon Trusteeship Limited. This filing is a procedural requirement under Regulation 3(3) of the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. While the document confirms the administrative setup of the 'Nucleus Software Equity Incentive Trust', it does not specify the number of shares or the financial outlay involved. This move is part of the company's strategy to manage talent attrition, which is a critical risk factor for its Rs 869 Cr TTM revenue business.
- Executed Trust Deed with Beacon Trusteeship Limited on August 14, 2026
- Complies with SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021
- Company maintains a high promoter holding of 73.6% as of June 2026
- TTM revenue stands at Rs 869 Cr with a market capitalization of Rs 1,856 Cr
Nucleus Software has successfully upgraded Stanbic IBTC Bank, a member of the Standard Bank Group, to its latest FinnAxia 9.0 platform. This upgrade marks a milestone in a partnership spanning over 10 years, focusing on enhancing the bank's payments, collections, and liquidity management capabilities. While the specific financial value of the upgrade was not disclosed, it reinforces Nucleus's strategy of migrating its existing client base to newer product versions. The company currently manages over $15 trillion in annual transaction value across 200+ banks globally.
- Successful upgrade of Stanbic IBTC Bank to FinnAxia 9.0 for advanced transaction banking.
- Continuation of a long-standing partnership exceeding 10 years with the Standard Bank Group member.
- Nucleus Software's global footprint includes 200+ banks and financial institutions across 50 countries.
- The company's platforms manage a significant $15 trillion+ in yearly transaction value.
- Daily transaction volume handled by Nucleus platforms exceeds 26 million units.
Nucleus Software has launched its latest AI-powered digital lending (FinnOne Neo 9.0) and transaction banking (FinnAxia 9.0) platforms in Vietnam, its largest Southeast Asian market. The launch follows the February 2026 incorporation of a local subsidiary in Hanoi to formalize delivery and compliance. Partnering with FPT Corporation, the company is targeting Vietnam's banking sector, which is projected for double-digit growth through 2030. This move aims to transition existing clients like MB Bank and Vietcombank to higher-value, AI-integrated versions of their software.
- Vietnam identified as the company's largest market in Southeast Asia
- Incorporated Nucleus Software Vietnam Company Limited in February 2026 to formalize local operations
- Lending platform currently manages over $1.2 trillion in loan value globally
- Transaction banking platform handles over $15 trillion in yearly transaction value across 26 million daily transactions
- New 9.0 versions introduce AI-based credit decisioning and pre-delinquency prediction
Nucleus Software reported a modest 3.4% YoY revenue growth to ₹210.4 crore for Q1 FY27, but faced a severe margin squeeze with EBITDA margins dropping to 3.6% from 15.4% in the previous quarter. The order book remains a bright spot, growing 19% QoQ to ₹1,244 crore, providing high revenue visibility relative to its ₹877 crore TTM revenue. However, the company confirmed the loss of a major NBFC client who shifted to a competitor, and receivables stretched with DSO rising to 63 days. Profitability was supported by a ₹9.82 crore exceptional gain from revised employee benefit liabilities.
- Order book increased to ₹1,244 crore as of June 30, 2026, up from ₹1,044 crore in March 2026.
- EBITDA margins contracted sharply to 3.6% from 15.4% in the preceding quarter.
- Days Sales Outstanding (DSO) deteriorated to 63 days from 42 days in the previous quarter.
- Recognized an exceptional gain of ₹9.82 crore due to a reduction in gratuity and leave liabilities.
- Product revenue contributed 83.9% of total revenue, amounting to ₹176.6 crore.
Nucleus Software Exports Limited has granted 9,060 Restricted Stock Units (RSUs) to an eligible employee under its 2026 RSU Scheme. Each RSU is convertible into one equity share of face value Rs. 10. The exercise price has been set at Rs. 10 per unit, representing the face value of the shares. The exercise period is defined as a maximum of 2 years from the date of vesting.
- Grant of 9,060 Restricted Stock Units (RSUs) approved on August 02, 2026
- Exercise price fixed at Rs. 10 per RSU, equal to the face value
- RSUs are convertible into an equal number of equity shares (1:1 ratio)
- Maximum exercise period of 2 years from the date of respective vesting
Nucleus Software has published the audio recording of its earnings conference call for the quarter ended June 30, 2026. The company currently reports a TTM revenue of ₹877 Cr and a TTM PAT of ₹117 Cr, with operating margins at 14.3%. This filing is a routine procedural requirement following the earnings announcement to provide transparency to shareholders. Investors should focus on management commentary regarding the transition of clients to the FinnOne Neo platform and the performance of the new regional sales structure.
- Earnings conference call conducted on July 31, 2026, for the June quarter.
- TTM Revenue stands at ₹877 Cr with an Operating Profit Margin of 14.3%.
- Promoter holding remains high and stable at 73.6% as of June 2026.
- Top 5 clients contribute 27.1% of revenue, showing slight diversification from 28.6% in the previous quarter.
Nucleus Software reported a weak start to FY27, with consolidated revenue declining 3.3% YoY to ₹210.43 Cr. Profitability was significantly impacted as PAT fell 32.2% YoY to ₹23.87 Cr, down from ₹35.20 Cr in Q1 FY26. EBITDA for the quarter stood at a low ₹7.59 Cr, representing a margin of just 3.6%, well below the TTM OPM of 14.3%. The company continues to prioritize long-term investments in product modernization and global sales expansion, including the appointment of a new Chief Customer Success Officer.
- Consolidated Revenue for Q1 FY27 stood at ₹210.43 Cr, a 3.3% decline from ₹217.72 Cr in Q1 FY26.
- Consolidated PAT dropped to ₹23.87 Cr, representing a 32.2% decrease compared to the year-ago period.
- EBITDA margin compressed significantly to 3.6% (₹7.59 Cr) during the quarter.
- Standalone PAT saw a sharper decline of 42% YoY, falling to ₹22.95 Cr from ₹39.59 Cr.
- The company's lending platform currently manages over $1.2 trillion in loans globally across 50+ countries.
Financial Performance
Revenue Growth by Segment
Total consolidated revenue for Q2 FY26 was INR 213.51 Cr, representing a 5.59% YoY growth from INR 202.20 Cr, but a 1.93% QoQ decline from INR 217.72 Cr. The Product business segment contributed INR 181.02 Cr (84.8% of total), growing 5.61% YoY. The Projects and Services segment contributed INR 32.50 Cr (15.2% of total), growing 5.49% YoY.
Geographic Revenue Split
Not specifically disclosed by region, but the company operates in 50+ countries. Total revenue in foreign currency (including India Rupee revenue) was US$ 24.47 million for Q2 FY26, compared to US$ 24.12 million YoY, a marginal increase of 1.45%.
Profitability Margins
Net Profit for Q2 FY26 stood at INR 26.29 Cr, a decline of 20.48% YoY from INR 33.06 Cr and a 25.31% decline QoQ from INR 35.20 Cr. Net Profit margin compressed to 12.3% from 16.4% YoY. This was driven by a rise in delivery costs which reached 73.9% of revenue compared to 71.4% YoY.
EBITDA Margin
EBITDA for Q2 FY26 was INR 23.09 Cr, a significant decline of 26.74% YoY from INR 31.52 Cr. The EBITDA margin dropped to 10.8% in Q2 FY26 from 15.6% YoY. The compression is attributed to increased investments in product development and a 72.39% YoY surge in marketing and sales expenses.
Capital Expenditure
Not specifically disclosed in INR Cr for the current period; however, the company is investing heavily in product enhancements and the rollout of latest releases to drive future implementations and upgrades.
Credit Rating & Borrowing
Not disclosed in available documents. The company maintains a strong cash position with other income from investments and deposits contributing INR 13.50 Cr in Q2 FY26.
Operational Drivers
Raw Materials
As a software company, the primary 'raw material' is human capital. Cost of delivery, including product development, represents the largest expense at 73.9% of total revenue (INR 157.70 Cr).
Import Sources
Not applicable for software services; however, the company is aggressively onboarding global sales representatives to expand its international footprint.
Key Suppliers
Not applicable. The company relies on its internal workforce of 'Nucleites' for product engineering and innovation.
Capacity Expansion
The company does not have physical MT/MW capacity. Instead, it expanded its sales capacity by appointing 6 regional sales heads and is actively recruiting global sales representatives to scale the top line.
Raw Material Costs
Delivery and product development costs were INR 157.70 Cr in Q2 FY26, up 9.2% YoY from INR 144.42 Cr. This increase is due to heavy investment in the latest product releases and efforts to improve product configurability.
Manufacturing Efficiency
Not applicable. Efficiency is measured by product implementation speed. The recent go-live at Tamilnad Mercantile Bank (TMB) with FinnOne Neo® aims for significantly faster loan processing and rule-based automation.
Logistics & Distribution
Marketing and sales expenses, which cover global distribution and sales efforts, were INR 15.67 Cr in Q2 FY26, representing 7.3% of revenue, up from 4.5% YoY.
Strategic Growth
Growth Strategy
Growth will be achieved through a revamped sales structure with 6 regional heads and global sales reps to capture the 'booming' consumer lending market. The strategy focuses on transitioning existing customers to latest releases (FinnOne Neo) and increasing annuity revenue through upgrades and new lines of business.
Products & Services
FinnOne Neo (digital lending), FinnAxia (transaction banking), LeaseWare, and Nucleus Software Digital Services (transformation and infrastructure maintenance).
Brand Portfolio
FinnOne Neo, FinnAxia, FinnOne, LeaseWare.
New Products/Services
Latest releases of FinnOne Neo and FinnAxia are being rolled out. These are designed to be more configurable to reduce implementation timelines and improve client agility.
Market Expansion
Targeting global markets with a focus on 50+ countries. The company is specifically gaining traction in tough-to-enter global markets by investing in marketing events and senior executive recruitment.
Market Share & Ranking
Not disclosed, but the company powers 200+ banks across 50 countries, positioning it as a global leader in lending and transaction banking technology.
Strategic Alliances
Recent successful go-live with Tamilnad Mercantile Bank (TMB) to power their digital lending era. The company also maintains partnerships with 200+ financial institutions globally.
External Factors
Industry Trends
The industry is shifting toward 'digital agility' and 'intelligent credit experiences.' There is a strong trend of financial inclusion and retail finance growth, particularly in India, which the company is positioning for with its FinnOne Neo platform.
Competitive Landscape
Competitors include global firms like Silver Lake, Access, and Temenos (referenced as Theranos in transcript). These competitors typically have 60-70% of revenue from maintenance, while Nucleus sees 80-90% from existing clients.
Competitive Moat
The company has a strong moat based on high switching costs; 80-90% of revenue is annuity-based from existing customers. This long-term partnership model is sustained by continuous product upgrades and a 'Great Place to Work' certified workforce.
Macro Economic Sensitivity
Highly sensitive to the consumer lending market and regulatory environment. Growth in retail finance and the emergence of new NBFCs directly drive demand for the company's lending platforms.
Consumer Behavior
Shift toward mobile and internet banking is driving banks to modernize legacy systems, benefiting Nucleus's digital-first product suite.
Geopolitical Risks
Operating in 50+ countries exposes the company to diverse regulatory shifts and trade environments, though specific barrier impacts were not detailed.
Regulatory & Governance
Industry Regulations
The company must comply with global financial technology standards and local banking regulations in 50 countries. It also adheres to SEBI (Prohibition of Insider Trading) Regulations, 2015.
Taxation Policy Impact
Total taxes for Q2 FY26 were INR 9.12 Cr, representing an effective tax rate of approximately 25.7% on profit before tax.
Legal Contingencies
The company terminated a Project Manager (Nitin Kumar Garg) for insider trading violations following an Audit Committee investigation. His gratuity was forfeited as part of the disciplinary action approved on Nov 8, 2025.
Risk Analysis
Key Uncertainties
The primary uncertainty is the conversion of the potential sales pipeline into actual revenue, which management noted has been 'weaker' despite good traction. This could impact top-line growth by 5-10% if delays persist.
Geographic Concentration Risk
While global, the company has a significant presence in India. The top 5 clients represent 27.1% of revenue, indicating moderate concentration risk.
Third Party Dependencies
Low dependency on physical suppliers, but high dependency on specialized engineering talent for product innovation.
Technology Obsolescence Risk
Risk of products becoming outdated is mitigated by heavy investment in 'FinnOne Neo' and 'FinnAxia' and a focus on AI, cloud, and digital transformation.
Credit & Counterparty Risk
The order book of INR 671.10 Cr is with 200+ established banks and financial institutions, suggesting high-quality receivables and low counterparty risk.
