Datamatics Glob. Q2 FY27 Results (NSE: DATAMATICS)
Signal: Margin expansion
The read
The trajectory remains margin-led rather than growth-led: consolidated revenue rose 11.5% YoY to ₹546.64 Cr, EBIT rose 33.8% to ₹92.19 Cr and EBITDA margin expanded 310bps to 21.2%, but growth moderated from Q1FY27's 9.8% YoY? The current quarter's revenue growth is 11.5% versus 9.8% in Q1FY27, while Digital Operations drove the improvement and Digital Technologies' segment profit declined 4.1%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹546.64 Cr | +11.5% | +6.4% |
| EBIT | ₹92.19 Cr | +33.8% | |
| Net profit | ₹73.58 Cr | +16.1% | |
| EPS | ₹12.42 | +16.1% | |
| EBIT margin | 21.2% |
P&L walk
Consolidated revenue increased 11.5% YoY to ₹546.64 Cr and EBIT increased 33.8% to ₹92.19 Cr, lifting EBITDA margin to 21.2% from 18.1%; employee costs rose 16.4% and depreciation rose 19.2%, so the margin gain is not attributable to a clean fixed-cost leverage signal.
Segments
Digital Operations is the main driver, with revenue up 15.6% YoY to ₹314.93 Cr and segment result up 50.8% to ₹68.57 Cr; Digital Technologies grew 8.8% to ₹166.58 Cr but its result fell 4.1% to ₹15.80 Cr, partially offsetting the group improvement.
Key positives
- Consolidated revenue increased 11.5% YoY to ₹546.64 Cr and 6.4% QoQ, with Digital Operations revenue up 15.6% YoY to ₹314.93 Cr.
- EBITDA margin expanded to 21.2% from 18.1% YoY, while EBIT rose 33.8% to ₹92.19 Cr.
- Digital Operations segment result rose 50.8% YoY to ₹68.57 Cr, materially outpacing its 15.6% revenue growth.
- H1 operating cash flow increased 61.3% YoY to ₹190.41 Cr, exceeding H1 PAT of ₹145.94 Cr.
- EPS rose 16.1% YoY to ₹12.42, tracking PAT growth without a dilution signal.
Key concerns
- Digital Technologies segment result declined 4.1% YoY to ₹15.80 Cr despite revenue growth of 8.8%, indicating weaker profitability in that unit.
- Consolidated finance costs rose 55.5% YoY to ₹6.33 Cr as borrowings increased to ₹248.97 Cr from ₹141.36 Cr at March 31, 2026.
- Standalone PAT fell 47.3% YoY to ₹23.41 Cr, underscoring that the group's earnings are concentrated in subsidiaries rather than the parent.
- Revenue growth remains below the 20% YoY pace recorded in the prior-results series for Q2FY26 and Q3FY26, despite the current quarter's margin expansion.
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