Expleo Solutions Approves Incorporation of Wholly Owned Subsidiary in GIFT City, Gujarat

Expleo Solutions Limited's Board of Directors, at its meeting held on Wednesday, May 13, 2026, approved the proposal to incorporate a wholly owned subsidiary (WOS) company named 'Expleo Solutions GIFT IFSC Limited' in GIFT City, Gujarat, India. The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and in reference to the company's earlier communication dated June 27, 2025.

Investment and Shareholding Structure

The Board approved an investment of Euros 0.2 million, equivalent and rounded off to Rs. 2,10,00,000/- (Rupees Two Crores Ten Lakhs only), towards the share capital of the proposed entity. The investment will be divided into 21,00,000 equity shares of INR 10/- each, with 100% subscription to the share capital held by Expleo Solutions Limited, making it a wholly owned subsidiary upon completion of the incorporation process.

The key details of the proposed subsidiary are outlined below:

Parameter: Details Name of Entity: Expleo Solutions GIFT IFSC Limited Location: GIFT City, Gujarat, India Industry: Financial Services Investment Amount: Euros 0.2 million equivalent and rounded off to Rs. 2,10,00,000/- Number of Shares: 21,00,000 equity shares of INR 10/- each Shareholding: 100% held by Expleo Solutions Limited Regulatory Approval Required: International Financial Services Centre Authority (IFSCA)

Purpose and Regulatory Context

The proposed wholly owned subsidiary is intended to be incorporated in GIFT City, Gujarat, India, which is being developed as a global financial services hub by the Government of India. The primary objective of the WOS is to provide financial services, subject to the approval of the International Financial Services Centre Authority (IFSCA).

Related Party and Governance Disclosures

The proposed WOS has been identified as a related party of Expleo Solutions Limited. The Promoter, Promoter Group, and Group Companies hold an interest in the new entity by virtue of common directorship. Any transactions with the WOS, if any, are stated to be conducted on an arm's length basis.

The intimation was signed by S. Sampath Kumar, Company Secretary and Compliance Officer (Membership No. FCS 3838), and the above information is also available on the company's investor relations website at https://investors.expleo.com/ .

Expleo Solutions Limited has announced its financial results for the quarter and year ended March 31, 2026. The company reported a consolidated net profit of ₹1,405 million for FY26, an increase of 37.3% compared to ₹1,023 million in the previous year. Total comprehensive income for the year stood at ₹1,405 million. Basic EPS for FY26 stood at ₹79.89, up from ₹66.52 in FY25.

Consolidated Q4 Performance

For the quarter ended March 31, 2026, the company recorded a consolidated net profit of ₹493 million, a significant rise from ₹236 million in the same period last year. Revenue from operations for Q4 FY26 reached ₹2,863 million, compared to ₹2,558 million in Q4 FY25. The Profit After Tax (PAT) margin improved to 15.8% in Q4 FY26 from 9.1% in the prior year. Basic EPS for the quarter stood at ₹26.85, up from ₹15.51 in Q4 FY25.

Metric Q4 FY26 Q4 FY25 YoY Growth Net Revenue ₹2,863 million ₹2,558 million 11.9% Total Income ₹2,989 million ₹2,603 million 14.8% Net Profit ₹493 million ₹236 million 2.1 times PAT Margin 15.8% 9.1% -

Operational Metrics

The company's operational performance showed strong traction across key metrics. Digital revenue accounted for 50.3% of total revenue in Q4 FY26, amounting to ₹1,441 million. Active clients remained stable at 201 for the quarter, while delivery employee count increased to 3,593 from 3,563 in Q4 FY25. Debtors days stood at 91 days, an improvement from 96 days in the corresponding quarter of the previous year.

Segmental and Regional Performance

Revenue from the BFSI sector constituted the largest share at 81.0% in Q4 FY26, followed by Aero at 11.1% and Auto at 7.6%. Geographically, Europe contributed 56.9% of the revenue, while Asia and North America accounted for 31.6% and 11.5%, respectively. The top 5 clients contributed 37% to the total revenue in Q4 FY26.

Exceptional Items and Corporate Actions

The financial results include an exceptional item of ₹147.28 million related to the impact of New Labour Codes notified by the Government of India. This charge pertains to reassessments of employee benefit obligations for gratuity and compensated absences. The Board has also approved the re-appointment of M/s. Sundaram & Srinivasan as Internal Auditor for a two-year term effective April 1, 2026.

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