Nucleus Software loses Bajaj Finance to a rival that took its money.
Management confirmed on the FY26 call that its flagship client defected to a competitor that secured strategic investment from the financier itself.
— 5 earlier stories on Nucleus Software Exports Ltd. →What's new
- Nucleus Software confirmed it lost Bajaj Finance, its flagship client, to a competitor that received strategic investment from Bajaj.
- Quarterly revenue was flat at ₹224.77 cr; net profit slipped to ₹34.55 cr on higher employee costs and new labour code provisions.
- The full-year order book surged 59% to ₹1,044.31 cr, with seven new client logos added.
Why this matters
The loss of Bajaj Finance is a blow to Nucleus's core banking software franchise and validates the risk that a client's direct equity investment in a rival can flip a contract. The 59% jump in the order book is a strong offset, but the new work hasn't yet compensated for the top-line impact of losing a marquee account.
What we're watching
- Whether the new order-book additions include other large, sticky clients or are primarily smaller deals.
- How the flat revenue trajectory changes as the ₹1,044 cr book starts converting.
- If Bajaj Finance was a large enough contributor to create a material drag on FY27 guidance.
The full read
Nucleus Software's FY26 earnings call delivered a stark disclosure: it lost Bajaj Finance, its flagship client, to a rival that received strategic investment from the financier itself. That's a direct competitive hit to the core banking software business. Quarterly revenue was flat at ₹224.77 cr and net profit dipped to ₹34.55 cr on higher staff costs and labour-code provisions. The positive counterweight is a 59% surge in the order book to ₹1,044.31 cr, plus seven new client logos. But the top-line impact of losing a marquee account hasn't washed through yet. The open question is whether the new, larger order book can grow revenue faster than the Bajaj departure shrinks it.
Questions answered
- How did Nucleus lose Bajaj Finance?
- Bajaj Finance made a strategic investment in a competing software company, which then won the flagship contract away from Nucleus.
- Was the order book surge enough to offset the loss?
- It's early to tell. The 59% jump to ₹1,044.31 cr is substantial, but quarterly revenue was still flat at ₹224.77 cr in the last period, suggesting the new wins haven't yet hit the P&L.
- Why did net profit fall?
- Management cited higher employee costs and one-time provisions related to the new labour code. Profit for the quarter was ₹34.55 cr.
- What's the scale of the Bajaj relationship being lost?
- The filing does not quantify Bajaj Finance's exact contribution to revenue. Its status as the 'flagship client' implies it was a major, high-visibility account for Nucleus's banking software.
Story so far
All notes on NUCLEUS →- 26 May 2026 · 5:05 PM IST Nucleus Software loses Bajaj Finance to a rival that took its money.
- today Nucleus Software's CMO exits three days after filing, compounding a bad quarter.
- 14d ago Nucleus Software loses Bajaj Finance as a client
- 15d ago Nucleus Software's annual profit drops 28% on exceptional charge
- 15d ago Nucleus Software's Q4 profit hit by ₹21.95 cr labour-code charge