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Platform-led Growth Continues:

Demand environment for the software vendors catering to the BFSI sector remains strong, supported by continued investments in core banking modernization, digital payments, and platform-led transformation. Revenue growth is expected to remain robust across our coverage, while EBITDA margin is likely to remain stable, supported by a favorable revenue mix and disciplined execution. Internet companies in our coverage are expected to report healthy revenue growth, while margin trajectories remain mixed. Focus continues to remain on scaling the user base on its platform both organically and through acquisitions. Enterprise AI adoption continues to accelerate in AIled service companies. Our top investment ideas remain Fractal Analytics, Meesho, and Aurionpro, driven by their strong growth prospects and execution momentum.

Banking Software Companies - Healthy revenue growth is expected, while EBITDA margin remain stable

* OFSS is expected to report a strong Q1FY27, with 9.8% QoQ revenue growth and continued EBITDA margin expansion, driven by the USD 100 Mn perpetual license deal secured in May'26.

* INDA is expected to report flat QoQ and 19.5% YoY revenue growth, supported by continued traction in the Purple Fabric platform, while growth in license-linked revenues is expected to outpace implementation revenues.

* AUPS is expected to deliver strong revenue growth of 13.1% QoQ and 16.0% YoY, driven by strong execution in the TIG segment and a recovery in the Banking & FinTech business following a large North American deal win. EBITDA margin is likely to remain stable at 20.2% as the company balances growth investments with margin discipline.

Internet Companies Healthy revenue growth is expected across the internet universe, while margin trajectories remain mixed

* MEESHO is expected to sustain its growth momentum with ~43% YoY growth expected in revenues, driven by continued expansion of its seller ecosystem and annual transacting user base. Contribution margin is expected to expand supported by logistics normalisation and steady progress in ad monetization.

* INMART’s revenue is expected to grow 4.4% QoQ and 13.5% YoY, supported by collections and deferred revenue. Margin may improve by 20 bps to 33.0% on incremental revenue growth. * NAZARA’ revenue is expected to grow 10.8% QoQ, driven by AdTech and Fusebox. However, EBITDAM is likely to fall 750 bps as Curve Games normalises after a strong Q4 and AdTech weakness outweighs Kiddopia's margin recovery

AI-led Service Companies – Enterprise AI adoption remains a key growth driver, with companies at different stages of monetization.

* DATA is expected to report a 3.7% QoQ decline in revenue due to a high base effect in Q4FY26, while EBITDA margin is likely to expand by 125 bps YoY to 17.5%, supported by currency tailwinds and improved profitability in the Digital Operations segment.

* FRACTAL is expected to report a 2.8% QoQ revenue growth, driven by continued client expansion while EBITDA margin is likely to decline marginally to 15.9% due to sustained investments.

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