Diensten Tech Q2 FY27 results: net profit ₹3.30 crore vs ₹1.02 crore loss, revenue up 161.6%

How did Diensten Tech perform in Q2 FY27?

Diensten Tech’s consolidated revenue for the July–September 2026 quarter was ₹134.31 crore, compared with ₹51.35 crore in Q2 FY26 and ₹65.43 crore in Q1 FY27. Revenue rose 161.6% year on year and 105.3% sequentially. EBITDA was ₹8.53 crore, up from ₹2.06 crore in Q2 FY26 and ₹3.58 crore in Q1 FY27; the margin was 6.4%, compared with 4.0% and 5.5%, respectively.

The company reported a net profit of ₹3.30 crore, against a net loss of ₹1.02 crore in Q2 FY26. Profit before tax was ₹4.82 crore, versus a loss of ₹1.32 crore in the year-ago quarter, and basic EPS was ₹3.99 against a loss of ₹1.24. Against Q1 FY27, net profit rose 103.7% from ₹1.62 crore, profit before tax rose 115.2% from ₹2.24 crore, and EPS was ₹3.99 compared with ₹1.97.

On a standalone basis for Q2 FY27, revenue was ₹122.28 crore and profit after tax was ₹2.73 crore, against a profit before tax loss of ₹1.02 crore in the corresponding prior-year period. The figures in the quarter discussion are consolidated unless stated otherwise.

What changed in Diensten Tech's costs and profit?

Total expenses increased by ₹77.55 crore from Q2 FY26 to ₹130.95 crore, or 145.2%, while revenue increased by ₹82.96 crore. Employee cost was the largest expense at ₹99.66 crore, up ₹57.09 crore or 134.1%, and other expenses rose ₹19.41 crore or 289.3% to ₹26.12 crore. The filing does not state why these costs changed.

Finance costs increased by ₹1.11 crore or 49.8% from ₹2.23 crore to ₹3.34 crore, while depreciation was ₹1.82 crore, down ₹0.06 crore or 3.2% from ₹1.88 crore. There was no exceptional item in either quarter. Other income increased by ₹0.72 crore or 98.6% from ₹0.73 crore to ₹1.45 crore.

The tax charge was ₹1.52 crore, compared with a ₹1.81 crore credit in Q2 FY26. Against Q1 FY27, employee cost rose ₹49.89 crore, other expenses rose ₹14.04 crore, finance costs rose ₹1.79 crore and depreciation rose ₹0.93 crore; there was no exceptional item in that quarter either.

What do the balance sheet and cash flow show?

Total assets increased from ₹106.99 crore on 31 March 2026 to ₹134.91 crore on 30 September 2026. Total equity rose from ₹21.02 crore to ₹25.95 crore, while borrowings increased from ₹62.00 crore to ₹73.01 crore. Cash and cash equivalents were ₹5.37 crore, compared with ₹5.62 crore, and trade receivables increased from ₹45.07 crore to ₹54.48 crore.

In H1 FY27, operating cash flow was negative ₹0.93 crore, against positive ₹1.89 crore in H1 FY26. Investing cash flow was negative ₹6.32 crore, compared with negative ₹25.80 crore, while financing cash flow was positive ₹7.52 crore against positive ₹17.65 crore. Capital expenditure was ₹0 crore in H1 FY27, compared with ₹17.64 crore in H1 FY26.

How has Diensten Tech done over the last 5 quarters?

Revenue rose from ₹51.35 crore in Q2 FY26 to ₹52.03 crore in Q3 FY26, then increased to ₹111.44 crore in Q4 FY26. It fell to ₹65.43 crore in Q1 FY27 before reaching ₹134.31 crore in Q2 FY27, the highest level in the five-quarter series. The latest quarter therefore extended the revenue increase from the preceding quarter.

Profit moved from a net loss of ₹1.02 crore in Q2 FY26 to a net loss of ₹3.88 crore in Q3 FY26 and a net loss of ₹1.75 crore in Q4 FY26. It then turned positive at ₹1.62 crore in Q1 FY27 and increased to ₹3.30 crore in Q2 FY27, the highest quarterly profit in the series. EBITDA margin bottomed at 4.0% in Q2 FY26 and reached 6.4% in Q2 FY27, the highest level shown.

What else did the company announce?

The board approved the incorporation of a company in the United Arab Emirates as a wholly owned subsidiary on 28 October 2026. The proposed entity would conduct information technology consultancy and computer systems consultancy activities, and the company said it would hold 100% of its share capital. The initial investment amount had not been finalised.

The company said the proposed subsidiary would expand its presence in the Middle East. Incorporation was expected within approximately 3 months from the board approval, subject to a trade licence, UAE registration, Foreign Exchange Management Act compliance and other applicable approvals. The entity’s name, final capital structure and investment amount were yet to be finalised. No dividend or fund-raising matter was stated in the same-day filings.

What did Diensten Tech's management say?

Management said GCC clients were the core growth engine and identified demand for AI, data, cloud and engineering talent as growth drivers. It said the company planned to deepen its wallet share with existing GCC clients, expand its client base and build a presence across the Middle East, while increasing the share of managed services, statement-of-work and outcome-based revenue.

Management set out targets of “5x revenue growth by FY29” and “10x EBITDA growth by FY29”. It said Ushta Te was “60% targeted by March 2027” for integration into DTL. Management also said that, over the next five years, it aspired to expand its global reach by following clients into new markets and becoming their trusted partner for high-value technology talent.

Management identified customer concentration, weak FY26 cash conversion, leverage and acquisition integration as watchpoints. It said the top five clients accounted for 57.3% of FY26 revenue, compared with 69.4% in FY25. Management also said Ushta Te was only 40% integrated after its first year of consolidation, and that FY26 consolidated PAT was negative ₹2.8 crore because of a ₹4.57 crore tax charge from LLP reconstitution.

How did Diensten Tech shares react?

The results were filed after market hours on 28 October 2026. From the previous close of ₹115.55, the stock closed 0.1% lower in the first session that could trade on the news. No trading reaction after 5, 15 or 30 minutes, or for the next day and five days, was available.