Xtranet Technologies Limited reappointed Sukhbir Singh Kukreja as Managing Director for a five-year term. The Board also approved the appointment of new internal and secretarial auditors.

The decisions were taken at a Board meeting held on September 5, 2026. The reappointment of Mr. Kukreja is subject to shareholder approval at the upcoming Annual General Meeting.

Key Appointments

The Board approved the following key appointments during the meeting:

• Managing Director: Mr. Sukhbir Singh Kukreja was reappointed for five consecutive years, effective January 29, 2027.
• Internal Auditor: M/s R Jayantilal Shah and Company was appointed for the financial year 2026-27.
• Secretarial Auditor: M/s Ayush Khandelwal & Associates was appointed for five years, from FY27 to FY31.

Governance and Compliance

Mr. Kukreja has served as a Director since January 29, 2002. He holds over 25 years of experience in the IT and ITes industry. The company confirmed he is not debarred from holding office by any SEBI order or other authority.

Annual General Meeting

The Board approved the notice for the 25th Annual General Meeting. The event is scheduled for Wednesday, September 30, 2026, at 3:00 pm IST. It will be conducted via video conferencing or other audio-visual means.

The company will send the AGM notice in due course. The Board also approved the 25th Board’s Report for the financial year ended March 31, 2026.

Xtranet Technologies Limited reported a consolidated profit after tax (PAT) of ₹6.04 crore for Q1FY27, rising 77.8% year-on-year. The company also announced a revenue target of over ₹500 crore for FY27, signaling an expected growth trajectory of 35-40% from the previous fiscal year.

The Board of Directors approved the unaudited financial results on August 19, 2026. Management discussed these results during an earnings conference call on August 24, 2026, led by Managing Director Sukhbir Singh Kukreja and Group Chief Financial Officer Chetan Anand.

Financial Performance

Consolidated revenue from operations increased 11% year-on-year to approximately ₹51 crore. Operational EBITDA surged 89% to approximately ₹10 crore, with margins expanding by 855 basis points to 20.59%. Profit after tax stood at approximately ₹6 crore, representing a 77% increase, while PAT margin improved by 444 basis points to 11.88%.

Standalone metrics also showed robust growth. Standalone PAT rose 79.6% to ₹5.38 crore from ₹3.00 crore in Q1FY26. Standalone revenue grew 9.6% to ₹43.38 crore.

On a standalone basis, profit before tax more than doubled to ₹7.15 crore from ₹3.45 crore in the corresponding period last year. Basic and diluted EPS rose to ₹1.37 per share from ₹0.77.

Business Mix and Margins

A significant driver of the improved profitability was the shift in business mix towards higher-margin services. Services accounted for approximately 65-68% of Q1FY27 revenue, compared to roughly 46% in Q1FY26. Management noted that product deployment yields an EBITDA margin of 6-8%, whereas services deliver end-to-end margins of 20-22%.

The revenue composition by segment for Q1FY27 was as follows:

• Data Centre Infrastructure & IT Operations: 48%
• Enterprise Applications: 26%
• Proprietary Platforms: 14%
• Digital Services: 12%

Government and PSU customers contributed approximately 47% of FY26 revenue. In Q1FY27, the customer mix was 45% government and 55% non-government. The order execution model split was approximately 45% direct and 55% indirect orders.

Order Book and Pipeline

The company secured fresh orders worth approximately ₹60 crore during the quarter. The outstanding order book stood at ₹373 crore as of June 30, 2026, across 55 projects. Approximately 55% of this order book is expected to be executable in FY27.

The active bid pipeline remained strong at approximately ₹1,200 crore, spanning data centre infrastructure, enterprise applications, digital services, and proprietary platforms. Management indicated that 40-45% of this pipeline is at an advanced stage, with expectations to close 30% within the next quarter.

Strategic Outlook and Working Capital

Management outlined a target of achieving ₹500 crore in revenue for FY27, compared to ₹365 crore in FY26. The long-term goal is a compound annual growth rate (CAGR) of 35-40% over the next three years. The medium-term revenue mix aims for Data Centres at 50-55%, Enterprise Applications at 20-25%, and Proprietary Platforms/Digital Services contributing over 30%.

Regarding working capital, management explained that large data centre projects involve an initial deployment phase lasting 12-15 months, followed by operation and maintenance (O&M) contracts spanning 3-7 years. Government project cycles typically take 120-150 days for realization, while service-side revenues have a cycle of 45-60 days. The company maintains an internal benchmark of 17-18% internal rate of return (IRR) for project bidding.

Addressing hardware price inflation, management stated that strategic inventory holding has mitigated immediate cost pressures for existing projects. New bids now incorporate price escalation clauses linked to USD variations and OEM policies.

What the Numbers Show

The divergence between top-line growth and bottom-line expansion highlights the impact of mix shift. While consolidated revenue grew by 11%, operational EBITDA nearly doubled (up 89%). This disproportionate improvement is directly attributable to the rise in services contribution from 46% to 65-68% of revenue. Given the disclosed margin differential—6-8% for products versus 20-22% for services—the structural move toward recurring service revenues is the primary engine behind the 855 basis point expansion in EBITDA margins.