Datamatics Glob. Q1 FY27 Results (NSE: DATAMATICS)

5 Aug 2026 · Analysis by Alpha Inflection

Signal: Growth reaccelerated

The read

The key inflection is operating margin: the prior-results series moved from 16% in Q1FY26 to 21% in Q4FY26 and the current filing reports EBITDA margin of 23.2%, while revenue growth decelerated to 9.9% YoY from 20.0% in Q3FY26 and 4.4% in Q4FY26; PAT of ₹72.36 Cr also benefited from the absence of the prior quarter's ₹24.62 Cr exceptional charge.

P&L walk

Consolidated revenue rose to ₹513.91 Cr, +9.9% YoY and -1.0% QoQ; EBITDA was ₹119.28 Cr at a 23.2% margin, PAT reached ₹72.36 Cr, +43.7% YoY and +61.3% QoQ, with no current-quarter exceptional item and other income of ₹18.22 Cr classified as clean by the earnings-quality test.

Segments

Digital Operations drove the group with revenue of ₹296.75 Cr, +16.1% YoY, and segment result of ₹57.36 Cr, +36.8% YoY; Digital Experiences dragged growth with revenue down 5.3% YoY despite result rising 63.2% to ₹7.46 Cr.

Key positives

• Consolidated EBITDA was ₹119.28 Cr at a 23.2% margin, extending the margin expansion visible from 16% in Q1FY26 to 21% in Q4FY26.
• Digital Operations revenue grew 16.1% YoY to ₹296.75 Cr and segment result grew 36.8% YoY to ₹57.36 Cr, making it the principal growth engine.
• Employee cost rose only 4.4% YoY to ₹317.99 Cr against 9.9% revenue growth, lowering employee cost intensity to 61.9% from 65.2%.

Key concerns

• Consolidated revenue growth decelerated to 9.9% YoY and declined 1.0% QoQ, versus 20.0% YoY growth in Q3FY26 and 20.4% in Q2FY26.
• Digital Experiences revenue declined 5.3% YoY to ₹64.03 Cr and Digital Technologies revenue growth slowed to 6.1% YoY.
• Standalone revenue declined 5.0% YoY to ₹152.62 Cr, showing that the consolidated trajectory is being driven primarily by subsidiaries.

View original filing

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