Updater Services FY26 PAT falls 30% to ₹828 Mn

Updater Services reported financial results for the fourth quarter and fiscal year ended March 31, 2026, revealing a 7% year-on-year increase in total revenue from operations to ₹29,602.0 Mn. The Integrated Facility Management (IFM) segment delivered its highest-ever annual revenue, driven by new client additions and the ramp-up of strategic contracts. Despite the revenue growth, the company's reported profit after tax (PAT) for FY26 declined by 30% to ₹827.8 Mn, impacted by one-time provisions and strategic investments in higher-volume contracts. The audio recording of the earnings call held on May 29, 2026, is now available on the company's website.

Financial Performance

For the quarter ended March 31, 2026 (Q4FY26), total revenue from operations stood at ₹7,495.7 Mn, a 3% increase from ₹7,256.0 Mn in Q4FY25. Reported EBITDA for Q4FY26 was ₹493.5 Mn, a 6% decrease year-on-year, with margins contracting to 6.6% from 7.2% in the prior year. The decline in margins was attributed to a strategic decision to undertake higher volume contracts, which incurred upfront costs, as well as transitory factors. Profitability is expected to normalize as these contracts mature.

Particulars (₹ Mn.)	Q4 FY26	Q4 FY25	YoY	FY26	FY25	YoY
Total revenue from operations	7,495.7	7,256.0	3%	29,602.0	27,717.3	7%
Reported EBITDA	493.5	522.7	-6%	1,548.5	2,022.1	-23%
Reported EBITDA margin (%)	6.6%	7.2%		5.2%	7.3%
Reported profit after tax	273.7	341.9	-20%	827.8	1,189.8	-30%

One-Time Provisions and Adjustments

The financial results were affected by specific one-time charges. The company recorded a one-time loss of ₹211.0 Mn in FY26 related to receivables at Avon, taken as a prudent measure. Additionally, the adoption of new Labour Codes resulted in an exceptional charge of ₹53.6 Mn, primarily due to higher provisioning for gratuity. Excluding these items, Adjusted EBITDA for FY26 was ₹1,759.5 Mn, and Adjusted PAT was ₹828 Mn.

Segment and Operational Highlights

The IFM segment, which contributed 67% of revenues in FY26, achieved its highest-ever annual revenue, with growth momentum back on track. The Business Support Services (BSS) segment, contributing 33% of revenues, continued to invest heavily in technology and AI-led solutions to improve efficiency and scalability. Denave, a BSS subsidiary, witnessed strong margin recovery in Q4FY26 driven by a better service mix of higher-margin new logos and increasing adoption of AI-led automation. Global delivered its highest-ever profitability, supported by high-margin non-scheduled flight operations and strong seasonal traffic.

Balance Sheet and Cash Flow

Updater Services maintained a net cash position with a Net Debt to Equity ratio of -0.24X. Cash and cash equivalents at the end of FY26 stood at ₹2,085.3 Mn, up from ₹1,185.0 Mn in the previous year. Including mutual funds and fixed deposits, total liquid assets were ₹4,565.5 Mn. Net cash generated from operating activities for FY26 was ₹1,436.5 Mn.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+1.87%	+1.39%	+11.16%	-6.15%	-47.12%	-38.25%

Updater Services Limited has approved the re-appointment of Mr. Raghunandana Tangirala as the Managing Director and Chairperson for a period of five years effective January 01, 2027. The decision was taken by the Board at its meeting held on May 28, 2026, pursuant to the recommendation of the Nomination and Remuneration Committee. The re-appointment is subject to regulatory disclosures under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Mr. Tangirala is a first-generation entrepreneur with over four decades of experience in the Integrated Facilities Management (IFM) industry. The Board noted that his leadership has been instrumental in the company's growth, including its Initial Public Offering and strategic acquisitions. His continued stewardship is expected to aid in the integration of recent acquisitions and the realization of long-term strategic synergies.

Key Details of the Re-appointment

The following table outlines the specific details regarding the re-appointment:

Particulars	Details
Designation	Managing Director and Chairperson
Effective Date	January 01, 2027
Term	Five years
DIN	00628914

Governance and Disclosures

The company confirmed that Mr. Tangirala is not debarred from holding office by the Securities and Exchange Board of India (SEBI) or any other authority. Regarding inter-relationships, the filing disclosed that Mr. Tangirala is the father-in-law of Mrs. Jigyasa Sharma, the Executive Director of the company. The Board expressed that his re-appointment would ensure continuity, stability, and sustained growth for the company and its stakeholders.