Datamatics Global Services Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025. The IT services company reported mixed performance with revenue growth offset by declining profitability due to exceptional charges and operational challenges.

Financial Performance Overview

The company's consolidated financial results showed contrasting trends across different metrics. While revenue demonstrated year-on-year growth, quarterly profitability faced significant pressure.

Segment-wise Performance

Datamatics operates through three primary business segments, each contributing differently to overall performance during Q3FY26.

Digital Operations emerged as the largest revenue contributor, generating ₹273.82 crores compared to ₹177.98 crores in Q3FY25, marking substantial growth of 53.85%. The segment's results improved to ₹49.59 crores from ₹25.89 crores year-on-year.

Digital Technologies contributed ₹169.60 crores in revenue, slightly declining from ₹173.37 crores in the corresponding quarter last year. However, segment results more than doubled to ₹18.27 crores from ₹7.87 crores.

Digital Experiences recorded revenue of ₹66.68 crores against ₹74.12 crores in Q3FY25, with segment results declining to ₹6.38 crores from ₹10.98 crores.

Impact of Exceptional Items

The company's profitability was significantly affected by exceptional charges totaling ₹40.25 crores during the quarter. These charges primarily stemmed from the implementation of new Labour Codes notified by the Government of India on November 21, 2025.

The new legislation replaced 29 existing labour laws with four comprehensive codes, resulting in increased gratuity and leave encashment liabilities. Management classified this impact as exceptional due to its non-recurring nature and legislative origin.

Nine-Month Performance Analysis

For the nine months ended December 31, 2025, Datamatics demonstrated resilient performance across key metrics:

The nine-month results reflected stronger operational performance with revenue growth of 19.70%, though net profit declined marginally by 6.57% primarily due to exceptional charges.

Operational Metrics and Outlook

The company maintained its paid-up equity share capital at ₹29.55 crores with a face value of ₹5 per share throughout the reporting periods. Employee benefit expenses increased to ₹313.89 crores in Q3FY26 from ₹266.87 crores in Q3FY25, reflecting business expansion and the impact of new labour regulations.

Finance costs rose to ₹4.55 crores from ₹2.14 crores year-on-year, while other income contributed ₹12.47 crores during the quarter. The company's total comprehensive income stood at ₹39.58 crores for Q3FY26, compared to ₹34.87 crores in the corresponding quarter last year.

Datamatics Global Services Limited (DGSL) has announced a postal ballot to seek shareholder approval for the appointment of Mahesh Zurale as a Non-Executive Independent Director. The company is proposing to appoint Zurale for a two-year term, from October 30, 2025, to October 29, 2027.

Key Details of the Proposed Appointment

• Candidate: Mahesh Zurale (DIN: 10535033)
• Position: Non-Executive Independent Director
• Term: 2 years (October 30, 2025 - October 29, 2027)
• Approval Method: Special Resolution via Postal Ballot

About Mahesh Zurale

Mahesh Zurale brings a wealth of experience to DGSL:

• Former Senior Managing Director at Accenture
• Led Accenture's Advanced Technology Centers (ATC) Global Network until 2025
• Member of Accenture's Global Management Committee (GMC)
• Previously served as Chief Operating Officer of Datamatics Global Services Limited

Voting Process

DGSL has outlined the following voting details:

• E-voting Period: November 11, 2025 (9:00 AM IST) to December 10, 2025 (5:00 PM IST)
• E-voting Platform: National Securities Depository Limited (NSDL)
• Results Declaration: On or before December 12, 2025

Compliance and Disclosures

The company has confirmed that Mahesh Zurale:

• Meets the criteria of independence as per Section 149(6) of the Companies Act, 2013 and SEBI Listing Regulations
• Is not disqualified from being appointed as a Director
• Is not debarred from holding the office of Director by any SEBI Order or other statutory authority

Shareholder Considerations

Shareholders should note:

• The appointment requires approval through a Special Resolution
• Voting rights will be proportional to shareholding in the paid-up equity share capital as of November 7, 2025 (Cut-Off Date)
• The resolution, if passed, will be deemed effective on the last date of e-voting (December 10, 2025)

This move by Datamatics Global Services Limited to appoint Mahesh Zurale as an Independent Director aligns with corporate governance best practices and regulatory requirements. Shareholders are encouraged to review the full postal ballot notice and exercise their voting rights within the specified period.