Results · Enterprise Software & IT

Excitel reports first annual profit after cutting losses

What they do

Excitel provides broadband internet services to residential customers across major Indian cities

The company posted a ₹40 Cr profit for FY26, reversing a ₹70 Cr loss from the previous year

Total expenses were ₹460 Cr in FY26, with last-mile connectivity cost at ₹200 Cr

Excitel achieved ₹40 Cr profit after tax in FY26 compared to a ₹70 Cr loss in FY25.
Operating revenue grew slightly to ₹530 Cr from ₹517 Cr in the previous fiscal year.
EBITDA surged 2.5X year-on-year to reach ₹75 Cr due to improved operational efficiency.
The company shutted Mumbai operations and smaller North India towns starting mid-2024.
Mumbai exit occurred because local providers offered half rates and product-market fit was lacking.
Small town exits happened because it is hard to crack markets without complimentary telecom business.
Automation resolved 70% of customer tickets without human intervention using CRM and support tools.

This marks Excitel's transition from a loss-making startup to a profitable entity.
The profitability comes despite cost surges from modem prices and Rupee depreciation.
Strategic contraction allowed the company to focus on viable markets with better unit economics.
Self-sustaining cash flow eliminates the need for external funding in the near term.

Excitel operates as a last-mile connectivity provider for broadband internet services.
It shares 38% of revenue with local cable partners for network access costs.
Manpower spending accounts for approximately ₹100 Cr of total operational expenses.
Network expansion spend totaled around ₹80 Cr during the reported fiscal year.
The current user base stands at 1 Mn subscribers across selected Indian cities.
Per employee productivity has jumped by 15-20% year-on-year through automation.
The company focuses on major metros like Delhi, Bengaluru, Hyderabad, Lucknow, Kanpur, Jaipur, and Varanasi.
IPTV bundling OTT platforms with cable TV on broadband is a new product offering.
Cost drivers included supply chain disruptions and geopolitical tensions affecting component prices.