Exato Technologies Limited Makes Strong Debut with 90.00% Premium, Lists at ₹266.00 Against Exceptional Subscription

Exato Technologies Limited, a customer transformation partner providing technology-driven solutions including customer experience and analytics, unified communications and infrastructure, and Exato IQ leveraging artificial intelligence, automation, and cloud platforms serving banking, financial services, insurance, healthcare, retail, telecom, manufacturing, and IT sectors, serving marquee clients including MakeMyTrip, RBL Bank, IGT Solutions, and WNS across India, USA, and Singapore, made a strong debut on BSE SME on December 5, 2025. After closing its IPO bidding between November 28 - December 2, 2025, the company commenced trading with a premium of 90.00% opening at ₹266.00 and touched ₹279.30 (up 99.50%).

Exato Technologies Limited Listing Details

Exato Technologies launched its IPO at ₹140 per share with minimum investment of 2,000 shares costing ₹2,80,000. The IPO received exceptional response with subscription of 947.21 times - individual investors at 1,068.74 times, QIB at 327.08 times, NII at 1,488.72 times.

First-Day Trading Performance

Listing Price: Exato Technologies opened at ₹266.00 representing premium of 90.00% from issue price of ₹140.00, touched high of ₹279.30 (up 99.50%) and low of ₹266.00 (up 90.00%), with VWAP at ₹274.80.

Growth Drivers and Challenges

Growth Drivers:

Strong Financial Performance: Revenue increased 10% and PAT surged 84% between FY24 and FY25, exceptional ROE of 28.13%, robust ROCE of 26.38%, RoNW of 23.03%, PAT margin of 7.85%, EBITDA margin of 12.64% demonstrating operational efficiency and scalability.

Strategic Partnerships: NICE Platinum Partner for South Asia and Middle East regions, strategic tie-ups with Mitel, UiPath, and Autonom8, over 40% revenue from long-term contracts exceeding five years providing recurring revenue visibility and business stability.

Integrated Technology Solutions: End-to-end services in artificial intelligence, automation, customer experience as a service, and cybersecurity, marquee client base including MakeMyTrip, RBL Bank, IGT Solutions, IKS, and WNS, experienced leadership with global CXO-level background from NICE and Wipro.

Challenges:

Modest Revenue Growth: Despite 84% PAT growth, revenue increased only 10% indicating limited top-line expansion momentum, dependence on key clients and strategic partnerships creating business concentration risk and client retention concerns.

Rising Debt Levels: Total borrowings increased from ₹6.21 crore in FY23 to ₹31.63 crore in FY25, debt-to-equity of 0.75, increasing financial leverage creating interest burden concerns despite strong profitability metrics.

Valuation Sustainability: Exceptional listing premium of 90.00%, subscription of 947.21 times creating extreme valuation concerns, post-issue P/E of 9.70x appears attractive but rapid price appreciation raises questions about sustainability, significant promoter dilution from 75.85% to 54.73%.

Utilisation of IPO Proceeds

Working Capital: ₹15.73 crore for funding working capital requirements supporting business operations, technology infrastructure, and expansion initiatives to serve growing customer base across multiple industry sectors.

Product Development: ₹6.80 crore for investment in product development enhancing artificial intelligence capabilities, automation solutions, and customer experience platforms to maintain technological edge and competitive positioning.

Debt Repayment and Corporate Purposes: ₹2.53 crore for repayment and prepayment of borrowings strengthening balance sheet, ₹4.68 crore for general corporate purposes supporting operational needs and strategic growth initiatives.

Financial Performance

Revenue: ₹126.16 crore for FY25, growth of 10% from ₹114.91 crore in FY24, reflecting expanding client base across banking, financial services, healthcare, retail, telecom.

Net Profit: ₹9.75 crore in FY25, exceptional growth of 84% from ₹5.31 crore in FY24, demonstrating significant operational leverage and improving profitability through better product mix, higher-value contracts, and operational efficiency gains.

Financial Metrics: Exceptional ROE of 28.13%, robust ROCE of 26.38%, debt-to-equity of 0.75, RoNW of 23.03%, PAT margin of 7.85%, EBITDA margin of 12.64%, price-to-book of 2.52x, post-issue EPS of ₹14.43, P/E of 9.70x, total borrowings of ₹31.63 crore, and market capitalisation of ₹281.13 crore.