Datamatics Global Services Limited has announced ambitious growth targets, aiming for a 13-15% revenue compound annual growth rate (CAGR) with profit after tax (PAT) growth exceeding 20%. The company plans to achieve these targets through strategic initiatives and leveraging its AI-automation suites.

Key Growth Drivers

Datamatics is banking on its AI-automation suites, TruBot and TruAI, to drive growth. The company is also focusing on securing new enterprise deals in key sectors:

• Banking
• Financial Services
• Insurance
• Manufacturing

Financial Targets

Cash Position and Growth Initiatives

Datamatics maintains a strong cash position of ₹509.00 crores, which it plans to use to support inorganic growth initiatives through FY27. This substantial cash reserve provides the company with flexibility for potential acquisitions and investments in emerging technologies.

Q2FY26 Financial Highlights

The company's recent financial results for Q2FY26 demonstrate progress towards these ambitious targets:

Segment Performance

Datamatics operates in three main segments:

1. Digital Operations: Revenue of ₹272.48 crore with an EBIT margin of 16.70%
2. Digital Experiences: Revenue of ₹64.62 crore with an EBIT margin of 10.80%
3. Digital Technologies: Revenue of ₹153.13 crore with an EBIT margin of 10.80%

The company's focus on AI-powered products and services appears to be yielding results, with strong growth across all segments.

Management Commentary

Rahul Kanodia, Vice Chairman and CEO, stated, "We have continued our growth momentum from the previous quarter to Q2FY26, reporting a consolidated revenue of ₹490.20 crore, an increase of 4.80% QoQ. EBITDA stood at ₹88.80 crore, reflecting a substantial growth of 17% QoQ with EBITDA margin at 18.10%, driven by improved operational efficiencies and continued cost-optimization efforts."

Datamatics' ambitious growth targets and strong financial performance indicate the company's confidence in its AI-driven strategy and market positioning. As the company continues to leverage its technological capabilities and expand its presence in key sectors, investors and industry observers will be closely watching its progress towards these goals.

Datamatics Global Services has reported its unaudited financial results for the quarter and half year ended September 30, 2025, showing strong performance across key metrics.

Financial Highlights

The company's consolidated net profit for the quarter ended September 30, 2025, rose to ₹63.24 crore from ₹42.36 crore in the corresponding quarter of the previous year, marking a substantial 49.3% increase. This growth was supported by a 20.5% year-over-year rise in revenue, which reached ₹490.23 crore compared to ₹406.75 crore in the same period last year.

Operational Performance

Datamatics witnessed a remarkable improvement in its operational efficiency, with EBITDA surging to ₹88.80 crore from ₹48.76 crore in the year-ago quarter. The EBITDA margin expanded significantly to 18.12% from 11.99%, reflecting enhanced profitability and operational excellence.

Segment-wise Performance

The company's performance was driven by growth across its three main business segments:

1. Digital Operations: Emerged as the largest revenue contributor with ₹272.48 crore.
2. Digital Technologies: Generated revenue of ₹153.13 crore.
3. Digital Experiences: Contributed ₹64.62 crore to the total revenue.

The total segment revenue for the quarter was ₹490.23 crore.

Corporate Developments

• The company appointed Mr. Mahesh Zurale as Additional Director to serve as Independent Director for a 2-year term starting October 30, 2025, subject to shareholder approval.
• The board approved a revised policy on Code of Conduct for regulating, monitoring and reporting of trading by insiders and code of practice for fair disclosure.

Investments and Subsidiaries

Datamatics has investments of ₹11.05 crore in preference shares and ₹36.14 crore in perpetual debentures in a step-down subsidiary that has a negative net worth of ₹30.78 crore. Management expects this RPA business subsidiary to turn around given its growth stage and profit generation potential.

Future Outlook

While specific forward-looking statements were not provided, the company's consistent performance and growth across segments indicate a positive outlook. The management's expectation for the RPA business subsidiary to turn around suggests confidence in future growth prospects.

Datamatics Global Services continues to demonstrate its resilience and adaptability in the IT services market, as reflected in its quarterly performance and strategic initiatives.