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.

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.

Mr. Subinder Jeet Singh Khurana has resigned as an Independent Director of Denave India Private Limited, a material subsidiary of Updater Services Limited , effective from the close of business hours on July 31, 2026. The resignation stems from pre-occupation and other personal commitments. Consequently, Mr. Khurana will step down from his roles as a member of the Audit Committee, Nomination and Remuneration Committee, and Corporate Social Responsibility Committee of Denave India Private Limited.

The disclosure was made to the exchanges pursuant to Regulation 30(9) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Updater Services Limited confirmed that there are no other material reasons for the resignation beyond those stated. The Board of Denave India Private Limited has been requested to complete the necessary formalities under the Companies Act, 2013, and file the relevant forms with the Registrar of Companies.

Resignation Details

The specific details regarding the change in directorship are outlined below: