Updater Services Q2 FY27 results: net profit down 34.1% to ₹32.13 crore, revenue down 43.2%

How did Updater Services perform in Q2 FY27?

Updater Services reported consolidated Q2 FY27 revenue of ₹812.24 crore, EBITDA of ₹43.14 crore and a 5.3% EBITDA margin. Revenue rose 6.3% from ₹764.29 crore in Q1 FY27 but fell 43.2% from ₹1,429.59 crore in Q2 FY26. EBITDA increased ₹0.81 crore from Q1 FY27 but declined ₹27.73 crore from Q2 FY26, while margin was 0.3 percentage points higher than a year earlier.

Profit before tax was ₹34.70 crore, tax was ₹2.57 crore and net profit was ₹32.13 crore, with basic EPS of ₹4.82. Against Q1 FY27, PBT rose 4.7%, net profit rose 6.1% and EPS rose 8.6%. Against Q2 FY26, PBT fell 36.5%, net profit fell 34.1% and EPS fell 33.9%. On a standalone basis, revenue was ₹481.73 crore and profit after tax was ₹17.30 crore.

What changed in Updater Services' costs and profit?

Total expenses were ₹782.40 crore in Q2 FY27, down ₹603.13 crore from Q2 FY26. Employee cost fell ₹480.48 crore to ₹628.26 crore, other expenses declined ₹92.47 crore to ₹109.59 crore, cost of materials decreased ₹16.31 crore to ₹30.14 crore, depreciation fell ₹10.91 crore to ₹12.20 crore, and finance costs were lower by ₹2.61 crore at ₹1.10 crore.

Other income fell ₹5.72 crore to ₹4.86 crore from Q2 FY26, while tax expense declined ₹3.26 crore to ₹2.57 crore. There was no exceptional item in either reported period. Despite the lower revenue base, the consolidated EBITDA margin increased 0.3 percentage points to 5.3%, and the net profit margin increased 0.6 percentage points to 4.0%.

Against Q1 FY27, total expenses rose ₹46.78 crore, including an ₹8.38 crore increase in cost of materials, a ₹27.45 crore increase in employee cost and a ₹9.99 crore increase in other expenses. Finance costs fell ₹0.28 crore, depreciation fell ₹0.08 crore and other income rose ₹0.38 crore. Tax expense was lower by ₹0.30 crore, and there was no exceptional item.

What do the balance sheet and cash flow show?

As of 30 September 2026, total assets were ₹1,764.39 crore, compared with ₹1,639.83 crore as of 31 March 2026. Total equity rose to ₹1,110.63 crore from ₹1,055.82 crore, while cash declined to ₹158.96 crore from ₹208.53 crore and borrowings increased to ₹0.41 crore from ₹0.10 crore.

Trade receivables increased to ₹695.89 crore from ₹602.61 crore, inventories rose to ₹11.54 crore from ₹10.35 crore and trade payables increased to ₹84.13 crore from ₹66.45 crore. In the first half of FY27, operating cash flow was ₹45.80 crore, compared with ₹33.33 crore in the year-ago period.

Investing cash flow in the first half of FY27 was an outflow of ₹76.31 crore, compared with an inflow of ₹6.03 crore in the year-ago period. Financing cash flow was an outflow of ₹19.06 crore, compared with ₹61.72 crore a year earlier. Capital expenditure was ₹9.40 crore, against ₹8.87 crore.

How has Updater Services done over the last 8 quarters?

Revenue reached its highest level in the reported series at ₹1,429.59 crore in Q2 FY26 and its lowest at ₹694.89 crore in Q3 FY25. It has since remained between ₹742.82 crore and ₹812.24 crore, with Q2 FY27 revenue at ₹812.24 crore, the highest of the last three quarters. The direction at the end of the series was higher than Q1 FY27.

Net profit peaked at ₹48.79 crore in Q2 FY26 and bottomed at ₹6.61 crore in Q3 FY26. It then rose to ₹27.37 crore in Q4 FY26 and ₹30.28 crore in Q1 FY27 before reaching ₹32.13 crore in Q2 FY27. The EBITDA margin bottomed at 2.7% in Q3 FY26, then moved to 5.7% in Q4 FY26, 5.5% in Q1 FY27 and 5.3% in Q2 FY27.

Which businesses drove the quarter?

Integrated Facility Management Services reported revenue of ₹564.08 crore and EBIT of ₹22.96 crore in Q2 FY27. Revenue was down 42.9% from ₹988.73 crore in Q2 FY26, while EBIT was lower than ₹44.29 crore. The reported EBIT margin was 4.1%.

Business Support Services reported revenue of ₹269.18 crore and EBIT of ₹14.97 crore. Revenue fell 43.9% from ₹480.05 crore in the year-ago quarter, while EBIT was lower than ₹19.07 crore. The reported EBIT margin was 5.6%. Adjustments and eliminations recorded revenue of ₹-16.16 crore and EBIT of ₹-3.24 crore, compared with ₹-28.62 crore and ₹-8.74 crore in Q2 FY26.

What else did the company announce?

The board approved the standalone and consolidated unaudited financial results and limited review report for the quarter and half year ended 30 September 2026 on 30 October 2026. The same-day investor presentation covered the results, while the filing did not announce a dividend or fund raise.

The board also appointed R.G.N. Price & Co as internal auditor for 1 April 2026 to 31 March 2027. Separately, Jigyasa Sharma was designated CEO-designate of subsidiary Matrix Business Services India Private Limited from 1 December 2026 to 31 March 2027 and was to become CEO on 1 April 2027. Ravi Shankar was due to retire and would remain CEO of Matrix until 31 March 2027.

What did Updater Services' management say?

Management provided no formal FY27 guidance and considered the H1 FY27 consolidated EBITDA margin of 5.4% broadly sustainable and annualisable. It expected BSS FY27 results to improve on FY26 despite pressure on H2 margin percentages, and expected global flight-handling activity to improve in H2 with steadiness in Q4 FY27. The estimated FY27 profit impact of the PF ceiling was ₹1–2 crore after client pass-through, compared with ₹5–6 crore with zero pass-through.

Management said IFM added seven logos in Q2 and 13 in the first half, with multi-year client retention of about 95%. It expected two new BFSI contracts signed in October to ramp gradually and contribute from Q3 FY27, said Athena remained on track for annual plans, and remained confident of healthy IFM growth. It also said the BSS margin rose to 7.7% and sales enablement accounted for about 75% of segment revenue.

Amitabh Jethwani, Senior Executive Director, said, “Clients are no longer buying headcount; they are increasingly buying outcomes, productivity, and measurable return on their investments.” He also said, “The margin improvement has come alongside growth and not at the cost of it.” Raghunandan Tangirala, Promoter and CMD, said, “We remain confident in our ability to deliver profitable growth in the coming quarters.”

How did Updater Services shares react?

After the filing, the stock moved down 1.4% within 5 minutes, then was up 0.5% after 15 minutes and 0.4% after 30 minutes. It closed the reaction day 2.3% above its previous close of ₹197.00, at a reference price of ₹206.00. The Diversified Commercial Services median was unchanged on the reaction day, making the stock’s excess sector move 2.3 percentage points.

By the next day’s close, the stock was down 0.5% from its pre-results close. The industry median was up 0.3%, so the stock was 0.8 percentage points below the sector. Earlier reaction-day moves were 3.2% on 30 July 2026, -2.3% on 28 May 2026, -5.8% on 5 February 2026 and -11.3% on 5 November 2025.

How did other Diversified Commercial Services companies do?

Among 24 other Diversified Commercial Services companies that had filed for the quarter by 4 November 2026, the median revenue growth was 18.1%. Three peers grew slower than Updater Services, while 21 grew faster than Updater Services.

Of 30 peers for which profit was compared, 19 reported higher profit. The peer comparison covered the quarter and was based on filings available as of 4 November 2026.