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    XELPMOC

    XELPMOC
    Information Technology·14 Nov 2025
    Management Summary

    Xelpmoc Design and Tech Limited reported a challenging Q2 FY26 with consolidated operating revenue at INR7.6 million, a significant decrease YoY and QoQ, leading to increased net losses of INR19.3 million. The company is strategically shifting focus to corporate segments and in-house products like RELY and DocuXray, aiming for profitability/breakeven in the next couple of quarters. While investments in portfolio companies grew, the broader startup ecosystem continues to face headwinds, impacting the company's traditional venture studio model.

    Highlights

    5

    • Investment in portfolio companies stood approximately INR703.4 million as of 30 September 2025 as compared to INR572.7 million as on 30th September 2024.

    • Mihup currently has contracted ARR of INR1 billion.

    • Pencil... have signed USD 950,000 service deals with Alphabet for a period of 36 months.

    • Woovly... is achieving an impressive 3.2 million ARR in USD with 245 brands utilizing the platform and operating at an EBITDA positive status.

    • TSIM has secured new clients including Siemens and Flutter. It has recorded a revenue of INR3 crores in H1 FY '26.

    Concerns

    4

    • Consolidated operating revenue for the quarter was recorded INR7.6 million for Q2 FY '26 as compared to INR16.3 million in Q2 FY '25 and INR7.8 million in Q1 FY '26, representing a significant YoY and QoQ decline.

    • Operating EBITDA adjusted for the quarter was negative INR16.1 million, worsening from negative INR10.2 million in Q2 FY '25.

    • Net losses for the quarter was INR19.3 million, an increase from INR11.1 million in Q2 FY '25.

    • Challenges persist in the start-up sector due to volatility in funding and heavy headwinds for new ventures.

    Key financials

    Single quarter

    04 metrics
    1. 01Consolidated Operating Revenue7.6 Mn-53.4%YoY
    2. 02Adjusted Operating EBITDA-16.1 Mn+57.8%YoY
    3. 03Net Loss-19.3 Mn+73.9%YoY
    4. 04ESOP Expenditure2.5 Mn

    Order Book

    medium confidence

    Composition

    Mix2 product clientss
    • DocuXray Clients2 count33.3%
    • Data Science Clients4 count66.7%

    Share of order book by product clients (derived from disclosed amounts)

    Pipeline

    qualified rfp

    RELY pilot projects to be signed

    "We are seeing interest from corporate clients for our services and the solutions what we are building. However, the conversion is expected to take some time, hence, we expect our revenues to gradually start getting traction over the next few quarters."

    Source:
    Prepared remarks

    Capital allocation

    2
    high confidence
    CategoryHeadline
    M&A

    Zoop.Money

    Other · announced · Consideration ₹8 crores (undisclosed)

    M&A

    OsteoForge

    Other · announced · Consideration ₹2 crores (cash)

    Guidance & targets

    7
    CategoryTargetPriority
    Revenue
    Revenue Traction
    gradual traction
    		Medium
    Product Monetization
    RELY Product Monetization
    monetize
    		Medium
    Product Monetization
    RELY Monetization
    monetization by Q4
    		Medium
    Operating Costs
    Operating Costs Stability
    stable
    		High
    Profitability
    Profitability/Breakeven
    profitability or breakeven
    		High
    Market Conditions
    Startup Ecosystem Recovery
    turning the corner
    		Low
    Market Conditions
    Startup Resurgence
    happen
    		Low

    Profitability/Breakeven

    next couple of quarters
    CurrentNegative EBITDA and Net Loss
    TargetProfitability or Breakeven

    Why it matters

    Achieving profitability is a key management target and crucial for financial stability.

    the target is next couple of quarters, we should turn to profitability or breakeven.

    How to verify

    guidance_and_targets[metric='Profitability/Breakeven']

    Risks & concerns

    4
    RiskSeverity

    Volatility in startup funding

    Challenges persist in the start-up sector due to volatility in funding within the emerging technology sector. — Management acknowledged

    high

    Headwinds for new startups

    New start-ups are facing consistently heavy headwinds, not expected to turn the corner in the next 3 months. — Management acknowledged

    high

    Policy paralysis in education sector for AI adoption

    Schools are skeptical about AI adoption due to policy paralysis and concerns about its impact on children. — Management acknowledged

    medium

    ESM Stage impact on market cap

    ESM stages prevent market cap from crossing INR500 crores, potentially hindering institutional investment and shareholder returns. — Analyst deflected

    high

    Q&A highlights

    8

    “The aging of the grain market in India is estimated currently at close to about $15 billion. Now when I start up the $15 billion market size, this includes whether you have aging at home, which is the home health care setup or you have aging in communities, whether it is a part of senior independent living or whether it is assisted living communities.”

    Provides market size and opportunity for their new AgeTech product, RELY, indicating a significant addressable market.

    asked by Abhishek Agrawal

    2 min read6 chapters

    Detailed Narrative

    01

    Q2 FY26 Financial Performance Overview

    Xelpmoc reported consolidated operating revenue of INR7.6 million for Q2 FY26, a significant decrease from INR16.3 million in Q2 FY25 and INR7.8 million in Q1 FY26. Adjusted operating EBITDA was negative INR16.1 million, worsening from negative INR10.2 million in Q2 FY25. The company posted a net loss of INR19.3 million for the quarter, partly due to INR2.5 million in ESOP expenditure, compared to a net loss of INR11.1 million in Q2 FY25 and INR18.8 million in Q1 FY26.

    02

    Strategic Shift to Corporate Segment and In-house Products

    The revenue decline is attributed to a strategic transition from the startup segment to the corporate segment and a heightened focus on in-house products. Management noted continued challenges in the startup sector due to funding volatility within the emerging technology sector. The company is now concentrating its efforts on the corporate segment, particularly in data science, artificial intelligence, and machine learning solutions, expecting gradual revenue traction in the coming quarters.

    03

    AgeTech and LegalTech Product Development

    Xelpmoc is actively developing new in-house products, including RELY for the AgeTech industry and DocuXray for legal tech applications. RELY, a SaaS product designed for senior independent and assisted living, is expected to monetize by Q3-Q4 FY26 end, with pilot projects slated for signing in November/December. DocuXray, a framework, already serves a couple of clients and is being applied across real estate, accounting, and finance sectors.

    04

    Portfolio Company Updates and Investments

    The fair value of investments in portfolio companies increased to INR703.4 million as of September 30, 2025, from INR572.7 million a year prior. Notable portfolio companies include Mihup, which has contracted ARR of INR1 billion, and Woovly, achieving USD3.2 million ARR. Pencil secured USD950,000 service deals with Alphabet over 36 months, and TSIM recorded INR3 crores in revenue for H1 FY26. Biome, their venture studio, is investing INR8 crores in Zoop.Money and INR2 crores for a 10% stake in OsteoForge.

    05

    Outlook on Profitability and Startup Ecosystem

    Management aims to achieve profitability or breakeven within the next couple of quarters, driven by the successful scaling and monetization of RELY and DocuXray. While the broader startup ecosystem continues to face significant challenges and headwinds, Xelpmoc is not actively onboarding new startups unless exceptional opportunities arise. The company believes the market is increasingly recognizing the value of their data science and AI expertise, leading to renewed interest and conversions from corporate clients.

    06

    Update on Older Portfolio Companies

    Regarding older portfolio companies, Soultrax Studios' content strategy in the kids' space did not work out, and the investment has been written off. For Signal, the company is still exploring how to take it to market in the education space, facing challenges like policy paralysis and skepticism from schools regarding AI adoption. Management expects some clarity and movement for Signal by December or January.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.