Updater Services Limited (UDS) has reported a mixed performance for the second quarter, with its Integrated Facilities Management (IFM) segment showing growth while the Business Support Services (BSS) segment faced headwinds.

IFM Segment Growth

The company's IFM business recorded a 10% year-on-year revenue growth to INR 9,608.00 million in H1. UDS added 14 new clients during the quarter in this segment. However, EBITDA stood at INR 476.00 million, with margins impacted by upfront costs from new strategic contracts still in the ramp-up phase.

BSS Segment Challenges

The BSS segment encountered several challenges:

1. Overall BSS growth was limited to 1.5% year-on-year.
2. Denave's demand generation segment faced sluggish demand from a large global customer.
3. The employee background verification business was affected by the continued IT hiring slowdown.
4. Athena revenues declined by 20%.

Financial Outlook

Management expects consolidated revenue growth of 9-10% for the full year, targeting:

• 12-13% growth in IFM
• 3-4% growth in BSS

Strategic Focus

UDS maintains its focus on:

1. Private sector clients
2. Technology-led interventions to improve profitability

Avon Subsidiary Issues

The company took conservative provisions of INR 30.00 million related to receivables under review at its Avon subsidiary, primarily due to lapses in due diligence processes.

Segment-wise Performance

Management Commentary

Raghunandana Tangirala, Managing Director of Updater Services Limited, stated, "We acknowledge the fact that we have had a tough quarter. But we would like to assure all our investing community and friends that we remain a well-governed company with a strong focus on doing the right thing."

He added, "Our portfolio of businesses remains very strong, and we believe that the original investment thesis that all of you would have had is very well justified."

Future Outlook

The company expects a stronger performance in the second half of the fiscal year as collection cycles normalize and one-off impacts seen in H1 taper off. UDS is implementing efficiency measures and client-level initiatives to improve performance going forward.

Despite the challenges, Updater Services Limited remains confident in its ability to capitalize on the strong structural growth in the facilities management and business service industry, driven by increasing outsourcing and formalization trends.

Updater Services Limited , a prominent player in the business services sector, recently witnessed a significant insider transaction. Raghunandana Tangirala, a promoter and Managing Director of the company, has increased his stake through a substantial share purchase.

Transaction Details

On November 11, 2025, Tangirala acquired 20,000 equity shares of Updater Services Limited through on-market transactions on the National Stock Exchange (NSE). This move has resulted in a notable change in his shareholding position within the company.

The transaction, valued at approximately ₹39,80,000 (based on the LODR data), demonstrates Tangirala's confidence in the company's prospects and aligns his interests more closely with those of other shareholders.

Regulatory Compliance

In adherence to the Securities and Exchange Board of India (SEBI) insider trading regulations, Updater Services Limited promptly disclosed this transaction. The company filed the mandatory Form C on November 12, 2025, detailing the changes in Tangirala's shareholding.

Company Background

Updater Services Limited, previously known as Updater Services Pvt Ltd, is headquartered in Chennai. The company operates under the ethos of "Redefining Business Services." Its core values include fostering happy people, maintaining a clear purpose, striving for continuous improvement, doing good, and balancing all aspects of business.

Market Implications

While this insider purchase does not necessarily predict future stock performance, it often signals management's positive outlook on the company's value and future prospects. Investors and market analysts may view this development as a vote of confidence from a key insider with intimate knowledge of the company's operations and strategy.

Conclusion

As Updater Services Limited continues to evolve in the business services landscape, this insider transaction adds an interesting dimension to its market narrative. Stakeholders will likely keep a close eye on any further developments or insider activities that could provide insights into the company's trajectory.