ExlService is selling an upgrade story, and the last six months have made it plausible. The February 2026 annual report recast the company from an IT outsourcer into a global data and AI firm. The second quarter of 2026 delivered revenue growth of 15.6% year over year. Adjusted diluted EPS rose 22.3%. In July the company raised full-year guidance, in August it closed a new credit facility, and in early September it announced the departure of the president of its two largest units.
The question this report works through is whether the repositioning is real enough to re-rate the multiple. Four named events frame it: the first-quarter 2025 reorganization into Industry Market Units, the iMerit acquisition signed in June, the new credit agreement struck in August, and the departure of President Vivek Jetley announced in September. The verdict below: the business is compounding, the balance sheet is being built for M&A, and the risk sits in segment mix and execution, not in demand.