Nucleus Software loses Bajaj Finance as a client
Management confirmed the loss of its flagship customer during the May earnings call, reversing prior denials.
— 5 earlier stories on Nucleus Software Exports Ltd. →What's new
- Management admitted to losing Bajaj Finance to a competitor after previously denying the departure.
- Order book grew 59% to ₹1,044 cr, while revenue remained flat at ₹225 cr.
- Margins will stay under pressure due to new labour regulations and higher AI investment.
Why this matters
The loss of a flagship client is a material blow to revenue stability. Management's previous denial of this loss reflects a credibility gap that outweighs the positive news of an expanding order book.
What we're watching
- Whether the new order book can offset the loss of revenue from Bajaj Finance.
- Clarity on the timeline for margin recovery beyond the current compression phase.
- Market reaction to the admission of the client departure.
The full read
Nucleus Software reported flat quarterly revenue of ₹225 crore and a 47% drop in net profit. The financial performance is overshadowed by a critical admission during the May earnings call: the company has lost its flagship client, Bajaj Finance, to a competitor. Management previously denied that this account was at risk. While the company points to a 59% jump in the order book to ₹1,044 crore as proof of momentum, the departure of a primary anchor client suggests significant friction in its core business. Higher costs from new labour code regulations and aggressive spending on AI and sales headcount will keep margins compressed in the near term. Investors now face a narrative shift where promised growth from a ballooning order book must compete against the reality of a lost marquee account.
Nucleus Software Exports Ltd.
Latest quarter · Mar 2026
Strength & growth
Story so far
All notes on NUCLEUS →- 22 May 2026 · 4:00 PM IST Nucleus Software loses Bajaj Finance as a client
- 37d ago Nucleus Software's CMO exits three days after filing, compounding a bad quarter.
- 47d ago Nucleus Software loses Bajaj Finance to a rival that took its money.
- 52d ago Nucleus Software's annual profit drops 28% on exceptional charge
- 52d ago Nucleus Software's Q4 profit hit by ₹21.95 cr labour-code charge