XT Global Infot. Q1 FY27 Results (NSE: XTGLOBAL)
Signal: Steady quarter
The read
The trajectory has inflected from explosive consolidation-led growth to near-flat revenue: consolidated operating revenue rose only 1.08% YoY to ₹9330.21 lakh after +88.6% in Q3FY26, while EBITDA margin recovered 47bps YoY to 7.57% as regular employee cost fell 2.78%; earnings quality is broadly intact because EPS rose 4.55% with PAT up 4.25%, but the growth engine has clearly decelerated.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹93.3 Cr | +1.08% | +4.23% |
| EBIT | ₹5.72 Cr | +18.00% | |
| Net profit | ₹3.89 Cr | +4.25% | |
| EPS | ₹0.23 | +4.55% | |
| EBIT margin | 7.57% |
P&L walk
Consolidated operating revenue rose to ₹9330.21 lakh, +1.08% YoY and +4.23% QoQ, while EBITDA increased to ₹706.31 lakh, +7.77% YoY, as regular employee cost fell 2.78% YoY; PAT increased 4.25% to ₹389.43 lakh but included ₹82.15 lakh attributable to non-controlling interests.
Segments
The company reports a single IT/ITES segment; the material divergence is basis-related, with standalone PAT of ₹182.19 lakh versus consolidated PAT of ₹389.43 lakh, showing subsidiaries contribute most group earnings.
Key positives
- Consolidated EBITDA was ₹706.31 lakh, up 7.77% YoY against revenue growth of 1.08%, with regular employee cost declining 2.78% YoY to 47.85% of operating revenue.
- Standalone EBITDA rose 76.32% YoY to ₹282.46 lakh and standalone EBITDA margin expanded 570bps to 14.72%, helped by regular employee-cost discipline and ESOP/RSU expense falling 49.81%.
- Consolidated EPS of ₹0.23 rose 4.55% YoY, broadly matching PAT growth of 4.25%, with no material dilution signal from the PAT-to-EPS cross-check.
- Total financial indebtedness was ₹33.15 crore and the company reported zero defaults on loans and debt securities.
Key concerns
- Consolidated operating revenue growth slowed to 1.08% YoY from 88.6% in Q3FY26 and 87.2% in Q1FY26, making the prior scale-up difficult to sustain.
- Technical subcontractor cost rose 3.59% YoY to ₹3617.14 lakh, slightly faster than revenue and reaching 38.77% of operating revenue.
- Finance cost increased 14.33% YoY to ₹90.78 lakh consolidated and 97.47% YoY to ₹73.35 lakh standalone, outpacing revenue growth.
- Consolidated EPS of ₹0.23 remains materially below standalone EPS of ₹0.14 only on a per-share basis because consolidated PAT includes ₹82.15 lakh attributable to non-controlling interests; investors must track subsidiary economics and minority leakage.
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