Datamatics Global Services Limited announced its financial results for the second quarter of FY27, reporting an 11.5% year-on-year revenue growth to INR 546.6 crores. EBITDA saw a significant increase of 30%, reaching INR 115.5 crores. The company highlighted deeper engagement with strategic clients, expansion within existing accounts, and growing AI-led services as key drivers for this performance. The outlook for the second half of FY27 remains positive.
Datamatics Q2 FY27 Earnings Highlights
Datamatics Global Services Limited has reported a robust financial performance for the second quarter ending September 30, 2026 (Q2 FY27). The company announced a year-on-year revenue growth of 11.5%, reaching INR 546.6 crores. This strong performance was attributed to deeper engagement with strategic clients, continued expansion with existing accounts, and a growing portfolio of AI-led services.
Financial Performance
EBITDA for the quarter increased by a substantial 30% year-on-year to INR 115.5 crores, reflecting an expansion of 301 basis points to 21.1%. EBIT grew by 33.8% year-on-year to INR 92.2 crores, with an EBIT margin of 16.9%. The company also noted that the amortization of intangible assets from the TNQTech acquisition is a non-cash charge impacting reported figures.
Segmental Growth and Strategy
The Digital Operations segment emerged as the strongest growing segment, with revenue up 15.6% year-on-year. Digital Technologies saw an 8.8% growth, driven by accelerated demand in AI-led application modernization. The company emphasized its strategy to scale execution and deepen client engagements by shifting further towards AI-led services. Investments in the U.S. and Europe are also highlighted as key growth areas.
Future Outlook
Looking ahead to the second half of FY27 (H2 FY27), Datamatics anticipates a steady performance, maintaining healthy growth. The company expects its margins to remain stable, in line with its initial projections. The pipeline for new engagements is described as strong, suggesting continued momentum in the latter half of the fiscal year.
Client Concentration
Datamatics maintained a healthy client concentration, with its top 5, 10, and 20 clients contributing 29%, 39%, and 53% respectively. The company reported an improvement in its top 5 client concentration, which increased to 29% in Q2 FY27 from 26% in Q2 FY26.
Source: BSE
