Courtesy: https://www.chittorgarh.com/
Review By Dilip Davda on November 25, 2025
- The company is a preferred partner for CXaaS and AaaS related solutions and services.
• ETL is a NICE Ltd.’s Platinum Partner in South Asia and the Middle East regions.
• The company posted growth in its top and bottom lines for the reported periods.
• It has marquee client list with long term relationship that augurs well for future prospects.
• Based on its recent financial data, the issue appears lucratively priced.
• Investors may park funds for medium to long term.
ABOUT COMPANY:
Exato Technologies Ltd. (ETL) is a Customer Transformation Partner that helps businesses improve how they serve and communicate with their consumers. Its offerings are built around Customer Experience-as-a-Service (CXaaS) and AI-as-a-Service, helping organizations enhance customer engagement, streamline operations, and achieve measurable business outcomes.
It creates solutions that make customer service smarter, faster, and more efficient by leveraging technologies such as artificial intelligence (AI), automation, and cloud platforms. Its tools include virtual assistants, automation features, and customer sentiment analysis, enabling companies to manage interactions across multiple channels i.e., phone, chat, email, and others in a seamless manner. These solutions reduce costs and response time while improving the customer experience. Since its inception in 2016 as a contact-center systems integrator, the company has expanded into broader customer engagement and digital transformation services. It has served over 150 clients, including several from the ET500 list. More than 40% of its revenues are derived from long-term service contracts exceeding five years (around sixty months), reflecting continuity and stable client relationships.
ETL operates with a team of over 60 engineers in India, delivering solutions to both international clients and domestic enterprises, ensuring the presence across global and Indian markets. The company serve clients in the USA, Singapore, and other international markets, supported by delivery partnerships while also catering to enterprises within India. Its business is further supported by technology partnerships with NICE Ltd., Acumatica, and Mitel, enabling it to provide customer experience and unified communication solutions. Its capabilities are demonstrated by the trust placed in it by leading enterprises across industries. The company works with MakeMyTrip, RBL Bank, IGT Solutions Pvt. Ltd., IKS, and WNS, delivering customer experience solutions that are scalable, resilient, and outcome-driven. These associations reflect its ability to design and implement reliable CX platforms that enhance customer engagement, improve service efficiency, and create measurable business impact across travel, banking, IT-enabled services, and business process management sectors.
Its unique value proposition lies in delivering integrated AI, automation, and CX solutions that reduce implementation timelines through the work of its dedicated in-house data science team. It is also NICE’s only Platinum Partner in South Asia & the Middle East, and have been recognized as Partner of the Year for four consecutive years (2021–2024). By combining technology expertise with a metric-driven delivery model, it enables clients to adopt the next wave of customer experience innovation and digital operational excellence. As of October 31, 2025, it had 133 employees on its payroll.
ISSUE DETAILS:
The company is coming out with its maiden book building route combo IPO of 2675000 equity shares of Rs. 10 each to mobilize Rs. 37.45 cr. at the upper cap. The issue opens for subscription on November 28, 2025, and will close on December 02, 2025. The IPO comprises of 2275000 fresh equity shares (worth Rs. 31.85 cr. at the upper cap), and an Offer for Sale (OFS) of 400000 equity shares (worth Rs. 5.60 cr. at the upper cap). The company has announced a price band of Rs. 133 – Rs. 140 per share. Post allotment, shares will be listed on BSE SME. The minimum application to be made is for 2000 shares and in multiples of 1000 shares thereon, thereafter. The issue constitutes 26.58% of the post-IPO paid-up capital of the company. From the net proceeds (current IPO + pre-IPO placement), it will utilize Rs. 15.73 cr. for working capital, Rs. 6.80 cr. for product development, Rs. 2.53 cr. for repayment/prepayment of certain borrowings, and the rest for general corporate purposes.
The IPO is solely lead managed by GYR Capital Advisors Pvt. Ltd., while KFin Technologies Ltd., is the registrar to the issue. Giriraj Stock Broking Pvt. Ltd. is the market maker, and GYR Capital Advisors is a syndicate member, while Intellect Stock Broking Ltd. is a sub-syndicate member.
Having issued the initial equity capital at par value, the company issued further equity shares in the price range of Rs. 140 – Rs. 56520 between March 2022, and November 2025. It has also issued bonus shares in the ratio of 134.493 for 1 in June 2025. The average cost of acquisition of shares by the promoters/ selling stakeholders is Rs. 0.02, Rs. 0.83 and Rs. 12.50 per share.
Post-IPO, company’s current paid-up equity capital of Rs. 7.79 cr. will stand enhanced to Rs. 10.07 cr. Based on the upper price band of the IPO, the company is looking for a market cap of Rs. 140.92 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, the company has (on a consolidated basis) posted total income / net profit, of Rs. 73.13 cr. / Rs. 5.06 cr. (FY23), Rs. 114.91 cr. / Rs. 5.31 cr. (FY24), Rs. 126.16 cr. / Rs. 9.75 cr. (FY25). For H1 of FY26 ended on September 30, 2025, it posted a net profit of Rs. 7.26 cr. on a total income of Rs. 71.53 cr. Quantum jump in net profits from FY25 onwards raises eyebrows and concern over its sustainability as it is operating in a highly competitive and fragmented segment. Rising trade receivables also raises concern.
For the last three fiscals, the company has posted an average EPS of Rs. 10.81, and an average RoNW of 21.94%. The issue is priced at a P/BV of 2.15 based on its NAV of Rs. 65.10 per share as of September 30, 2025, but its post-IPO NAV data is missing from the offer documents.
If we attribute annualized super earnings of FY26 on post-IPO paid-up capital, then the issue price is at a P/E of 9.70, and based on its FY25 earnings, the P/E stands at 14.45. Thus, the issue appears lucratively priced.
For the reported periods, the company has posted PAT margins of 6.95% (FY23), 4.66% (FY24), 7.85% (FY25), 10.22% (Q1-FY26), and RoCE margins of 21.28%, 23.16%, 26.38%, 19.27% respectively for the referred periods.
DIVIDEND POLICY:
The company has not paid any dividends for the reported periods. It will adopt a prudent dividend policy, based on its financial performance and future prospects.
COMPARISON WITH LISTED PEERS:
As per offer document, the company has shown Black Box Ltd., as its listed peer. It is currently trading at a P/E of 32.4 (as of November 24, 2025). However, they are not truly comparable on an apple-to-apple basis. Such comparison appears to be an eyewash.
MERCHANT BANKER’S TRACK RECORD:
This is the 52nd mandate from GYR Capital in the last five fiscals. Out of the last 11 listings, 1 opened at par and the rest with premium ranging from 4.92% to 90% on the date of listing.
Conclusion / Investment Strategy
ETL is a preferred partner for CXaaS and AaaS related solutions and services. The company is a NICE Ltd.’s Platinum Partner in South Asia and the Middle East regions. The company posted growth in its top and bottom lines for the reported periods. It has marquee client list with long term relationship that augurs well for future prospects. Based on its recent financial data, the issue appears lucratively priced. Investors may park funds for medium to long term.
Review By Dilip Davda on November 25, 2025
Review Author
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detailed fundamental and financial analysis of companies coming up with IPOs helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
Courtesy: https://www.chittorgarh.com/
