Datamatics Global Services Q2 FY27 results: net profit up 16.1% to ₹73.58 crore, revenue up 11.5%

How did Datamatics Global Services perform in Q2 FY27?

Consolidated revenue for Q2 FY27, the July–September 2026 quarter, was ₹546.64 crore, up 11.5% from ₹490.23 crore in Q2 FY26. EBITDA was ₹115.51 crore, up 30.0%, while the EBITDA margin rose 3.0 percentage points to 21.1%. Total expenses increased 8.3% to ₹460.78 crore, slower than the rise in revenue.

Net profit was ₹73.58 crore, up 16.1% from ₹63.39 crore a year earlier, and profit attributable to owners was ₹73.44 crore against ₹63.24 crore. Basic EPS was ₹12.42, up from ₹10.70. Against the previous quarter, revenue rose 6.4% from ₹513.91 crore, EBITDA rose 14.3% from ₹101.06 crore, and PAT rose 1.7% from ₹72.36 crore.

On a standalone basis, revenue was ₹153.9 crore and PAT was ₹23.41 crore, against standalone PAT of ₹44.44 crore in the year-ago period, a fall of 4.3% in revenue. The consolidated figures include the results of the company's subsidiaries, including Lumina Datamatics Ltd.

What changed in Datamatics Global Services' costs and profit?

Total expenses rose ₹35.40 crore, or 8.3%, to ₹460.78 crore from ₹425.38 crore in Q2 FY26. Employee cost was the largest component at ₹332.59 crore, up ₹29.78 crore or 9.8%. Finance costs rose ₹2.26 crore to ₹6.33 crore, depreciation increased ₹3.41 crore to ₹23.32 crore, and other expenses edged up ₹0.22 crore to ₹98.54 crore.

Other income fell ₹5.75 crore, or 36.7%, to ₹9.93 crore from ₹15.68 crore in the year-ago quarter. Against the previous quarter, other income declined ₹8.29 crore or 45.5% from ₹18.22 crore. There was no exceptional item in any of the three quarters.

Tax expense rose ₹5.07 crore, or 29.6%, to ₹22.21 crore from ₹17.14 crore, and was ₹2.58 crore or 13.1% higher than Q1 FY27's ₹19.63 crore. PBT rose 18.9% year on year to ₹95.79 crore, but increased 4.1% from ₹91.99 crore in the previous quarter. The PAT margin was 13.5%, up 0.6 percentage points year on year but down 0.6 percentage points from the previous quarter.

How did the first half of FY27 go?

For the first half of FY27, consolidated revenue was ₹1060.55 crore, up 10.7% from ₹957.79 crore in H1 FY26. Total income rose 10.4% to ₹1088.7 crore from ₹985.82 crore, while PBT increased 30.0% to ₹187.78 crore from ₹144.42 crore.

PAT for the first half was ₹145.94 crore, up 28.3% from ₹113.74 crore, and EPS was ₹24.66 against ₹19.22. The company's release showed H1 FY27 EBITDA of ₹216.6 crore, up 31.4% from ₹164.8 crore, with the EBITDA margin at 20.4% against 17.2%.

What do the balance sheet and cash flow show?

Total assets stood at ₹2382.48 crore on 30 September 2026, against ₹2355.07 crore at 31 March 2026. Total equity rose to ₹1662.17 crore from ₹1535.95 crore, while borrowings increased to ₹248.97 crore from ₹141.36 crore. Cash and cash equivalents were ₹137.87 crore against ₹141.42 crore, and trade receivables were ₹377.67 crore against ₹341.76 crore.

For H1 FY27, net cash from operating activities was ₹190.41 crore, against ₹118.01 crore in H1 FY26. Net cash used in investing activities was ₹247.3 crore, against ₹170.39 crore, and financing activities provided ₹53.34 crore against an outflow of ₹37.28 crore. Capital expenditure was ₹37.7 crore, against ₹9.64 crore. The company reported net cash and investments of ₹557.0 crore, against ₹639.2 crore at FY26.

How has Datamatics Global Services done over the last 8 quarters?

Revenue rose in each of the last eight quarters on a year-on-year basis, and has generally moved upward since the ₹425.47 crore reported in Q3 FY25. It reached its highest level of the series in Q2 FY27 at ₹546.64 crore, after ₹519.26 crore in Q4 FY26 and ₹513.91 crore in Q1 FY27.

Profit has been less steady. PAT bottomed at ₹36.34 crore in Q3 FY26 and was ₹44.87 crore in Q4 FY26, before rising to ₹72.36 crore in Q1 FY27 and ₹73.58 crore in Q2 FY27, the highest in the series shown. The EBITDA margin peaked at 21.3% in Q4 FY26 and was 21.1% in Q2 FY27, against a low of 12.8% in Q3 FY25.

Which businesses drove the quarter?

Digital Operations remained the largest segment, with revenue of ₹314.93 crore in Q2 FY27, up 15.6% from ₹272.48 crore a year earlier. Segment EBIT rose to ₹68.57 crore from ₹45.48 crore, and the EBIT margin was 21.8%.

Digital Experiences reported revenue of ₹65.13 crore, up 0.8% from ₹64.62 crore, with EBIT of ₹7.82 crore against ₹6.97 crore and an EBIT margin of 12.0%. Digital Technologies recorded revenue of ₹166.58 crore, up 8.8% from ₹153.13 crore, and EBIT of ₹15.8 crore against ₹16.47 crore, with an EBIT margin of 9.5%.

What else did the company announce?

The board met on 3 November 2026 and approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026, along with the limited review report of the statutory auditors. The meeting began at 2:00 pm and concluded at 3:53 pm. The results were also filed with BSE and an investor presentation was published.

The same-day press release said Datamatics appointed Dr. Rajesh Gharpure as President and Chief Operating Officer to accelerate AI-led growth. The release also listed new and renewed engagements, including Prometric selecting Datamatics to support its remote examination operations globally, and analyst recognitions from Everest, ISG and Avasant. No dividend or fund raise was disclosed in the same-day filings.

What did Datamatics Global Services' management say?

Rahul Kanodia, Vice Chairman and CEO, said performance was driven by deeper engagement with strategic clients, continued account expansion, and a growing portfolio of AI-led services. He said the company was seeing business momentum for AI-led transformation services and that customers were increasingly choosing Datamatics for combining AI innovation with execution excellence.

Sameer Kanodia, Vice Chairman and CEO of Lumina Datamatics, said the company was focused on sustaining momentum from Q1 FY27 while accelerating the adoption of AI and advanced technologies across solutions and operations. He said the company remained committed to strengthening capabilities, deepening customer relationships, and driving innovation across verticals.

Management's stated priorities included investment in AI, collaboration with hyperscalers, focus on proprietary products and platforms, increasing market presence and awareness in the US and Europe, and strengthening customer relationships. The presentation also noted risks around client concentration, with the top five clients at 39%, and days sales outstanding rising to 66 days from 63 days in FY26.

How did Datamatics Global Services shares react?

The filing appeared after market hours, and the stock was up 1.0% after 5 minutes, 1.2% after 15 minutes, and 1.6% after 30 minutes from the price when the filing appeared. On the reaction day, the stock fell 1.3% from its previous close, against a 2.7% rise for the IT Enabled Services sector median, a lag of 4.0 percentage points.

By the next day's close, the stock was up 0.1% from its pre-results close, against a 3.4% rise for the sector median, a lag of 3.2 percentage points. Earlier reaction-day moves were negative on 5 August 2026 at 3.3%, 21 May 2026 at 4.1%, 30 October 2025 at 4.5% and 15 May 2025 at 6.2%.

How did other IT Enabled Services companies do?

Thirty-one other IT Enabled Services companies filed for the quarter, and their median revenue growth was 23.4%, against Datamatics Global Services' 11.5%. Nine peers grew revenue more slowly than Datamatics Global Services, while 22 grew faster. Of the 28 peers for which profit was compared, 20 reported higher profit.