Datamatics Global Services Limited reported a 9.9% year-on-year revenue growth for Q1 FY27, reaching INR 513.9 crores. The company highlighted strong EBITDA growth of 31.1% to INR 101.1 crores, with EBITDA margins expanding to 19.7%. Key strategic focus areas include leveraging AI-first strategies, enhancing digital operations, and pursuing strategic acquisitions, with a target of INR 3,000 crores revenue in 3-4 years.
Datamatics Reports Strong Q1 FY27 Performance
Datamatics Global Services Limited has announced its financial results for the first quarter of Fiscal Year 2027 (Q1 FY27), demonstrating robust growth driven by its AI-first strategy and operational excellence. The company posted a revenue of INR 513.9 crores, marking a significant 9.9% increase compared to the same period last year. This performance underscores the resilience of Datamatics’ business model and the increasing trust placed in its capabilities by clients.
Key Financial Highlights
EBITDA for the quarter stood at INR 101.1 crores, representing a substantial 31.1% year-on-year growth. The company’s EBITDA margins saw an expansion of 343 basis points, reaching 19.7%. This improvement is attributed to a continued focus on innovation, disciplined cost management, and operational efficiency. Furthermore, EBIT grew by 39% year-on-year to INR 78.4 crores, with EBIT margins at 15.3%, an expansion of 319 basis points.
Profit After Tax (PAT) after non-controlling interest was INR 72.3 crores, up by an impressive 43.5% year-on-year. The PAT margin for the quarter was 13.6%. The company also noted that annual salary increments effective April 2026 have been accounted for during this quarter.
Segment Performance and AI Integration
In terms of segment performance, Digital Operations revenue for the quarter reached INR 296.8 crores, an increase of 16.1% year-on-year, with an EBIT margin of 19.3%. Digital Technologies revenue was INR 153.1 crores, up by 6.1% year-on-year, while Digital Experiences revenue stood at INR 64 crores, a slight decrease of 5.3% year-on-year, with an EBIT margin of 11.7%.
Datamatics emphasized its AI-first strategy, with a significant portion of new deals secured based on its AI capabilities. Recent wins include a project with SBI Life Insurance for AI-powered underwriting and an expanded engagement with an American pet and wellness provider for AI-powered voice agents. The integration of TNQTech into Lumina Datamatics is now complete, strengthening the company’s position as a digital content outsourcing leader.
Future Outlook and Strategy
Looking ahead, Datamatics aims to accelerate the adoption of AI and advanced technologies. The company is targeting revenue of approximately INR 3,000 crores within the next three to four years, a significant increase from its current run rate. This growth is expected to be driven by AI-based platforms, agentic underwriting, claim processing, and strategic bolt-on acquisitions. The company also noted its AI R&D investment is expected to remain steady.
Despite market uncertainties, Datamatics is confident in its strategy to drive sustainable long-term growth. The company is actively exploring potential M&A opportunities and is focused on core sectors like insurance, banking, and logistics, while remaining open to opportunistic picks.
Source: BSE
