The Board of Directors of XTGlobal Infotech approved the unaudited standalone and consolidated financial results for the quarter ended June 30, 2026 (Q1FY27). The Hyderabad-based IT services company reported improved profitability across both standalone and consolidated metrics compared to the previous fiscal year.

Consolidated net profit after tax rose to ₹3.89 crore in Q1FY27, up from ₹3.74 crore in Q1FY26. This marks a 27% year-on-year increase. On a sequential basis, profit also expanded from ₹3.74 crore in the preceding quarter (Q4FY26). Standalone net profit was ₹1.82 crore, an increase of 20% from ₹1.52 crore recorded in the corresponding quarter of FY26.

Revenue and Cost Dynamics

Consolidated income from operations reached ₹93.30 crore, a modest 1% growth over the ₹92.31 crore reported in Q1FY26. Sequentially, revenue increased by 4% from ₹89.52 crore in Q4FY26. Standalone revenue from operations was ₹19.19 crore, up 8% YoY from ₹17.77 crore.

Employee costs remained the largest expense component. Consolidated regular employee costs were ₹44.64 crore, slightly lower than the ₹45.92 crore incurred in Q1FY26. However, costs for technical subcontractors rose to ₹36.17 crore from ₹34.92 crore in the prior year period, indicating a shift in resource utilization.

Standalone results showed similar trends. Total expenses were ₹17.88 crore, compared to ₹17.36 crore in Q1FY26. Financial costs increased to ₹73.35 lakh from ₹42.31 lakh in the prior year, while depreciation remained stable at ₹78.54 lakh.

What the Numbers Show

A significant portion of the consolidated profit improvement stems from tax adjustments rather than purely operational leverage. While profit before tax increased substantially to ₹5.24 crore from ₹4.12 crore in Q1FY26, the effective tax impact was moderated by prior period tax credits. The consolidated statement shows a prior period tax credit of ₹10.41 lakh in Q1FY27, compared to no such credit in Q1FY26. Additionally, deferred tax expense was ₹32.06 lakh, whereas it was a credit of ₹46.65 lakh in the same quarter last year. This reversal in deferred tax treatment contributed to the higher absolute tax outlay despite the rise in pre-tax profits.

Corporate Developments and Compliance

The board meeting, held on August 13, 2026, also addressed operational updates. The company exited its Special Economic Zone (SEZ) unit in Visakhapatnam, with approval granted by SEZ authorities on September 22, 2025. Consequently, XTGlobal Infotech terminated its land lease agreement with the government and purchased the land in July 2026, transferring the title to the company.

Regarding regulatory compliance, the company evaluated the impact of the four Labour Codes notified by the Government of India on November 21, 2025. Management concluded that there is no significant material impact on employee benefits under Ind AS 19.

The unaudited results were reviewed by statutory auditors C. Ramachandram & Co., who issued unmodified opinions on both standalone and consolidated statements. The consolidated figures include wholly owned subsidiary XT Global Inc and subsidiary Network Objects Inc. Promoter holding remains at 61.99%, with no pledged shares.

XTGlobal Infotech has secured its first Finance & Accounting Outsourcing engagement in Ireland worth €11600, marking its entry into the Irish market. The publicly listed IT/ITES company announced the signing of the deal on June 21, 2026, as part of its strategy to expand its IT Consulting and Finance & Accounting services footprint across Europe. This engagement is expected to contribute recurring revenues through ongoing service delivery and strengthens the company's presence in the European market.

The engagement involves establishing and operating a dedicated offshore finance support function from XTGlobal's delivery centers in India. The scope of services includes management accounts support, accounts payable supervision, employee onboarding, HR administration, and ongoing finance function support. This win demonstrates XTGlobal's growing capabilities in delivering high-quality Finance & Accounting outsourcing services to international clients and validates its global delivery model.

Ramarao Atchuta Mullapudi, Managing Director of XTGlobal, highlighted the strategic importance of this development. “This engagement marks an important milestone for XTGlobal as our first customer engagement in Ireland and strengthens our growing international portfolio,” he said. Mullapudi added that the company views this as a crucial step in expanding its presence across Europe and building long-term relationships with clients seeking scalable and efficient business process services.

Key Details of the Engagement

The company focuses on delivering measurable business outcomes through structured execution, engineering excellence, and scalable global delivery models. With over two decades of experience, XTGlobal serves clients across sectors such as Transportation, Public Sector, Healthcare, Finance, Retail, and Manufacturing.