Xchanging Solutions has announced its Q3FY26 financial results for the quarter ended December 31, 2025, showing mixed performance with revenue growth but a decline in net profit. The company also announced the appointment of a new independent director to strengthen its board.

Financial Performance Overview

The company's consolidated revenue from operations increased to ₹4,832 lakhs in Q3FY26 compared to ₹4,564 lakhs in the corresponding quarter of the previous year, representing a 6% year-on-year growth. However, consolidated net profit declined to ₹1,318 lakhs from ₹1,448 lakhs in Q3FY25.

Nine Months Performance

For the nine months ended December 31, 2025, the company demonstrated strong performance with consolidated revenue reaching ₹15,162 lakhs compared to ₹13,416 lakhs in the corresponding period of the previous year. Net profit for the nine-month period stood at ₹4,321 lakhs versus ₹3,493 lakhs in the previous year.

Board Appointment

The Board of Directors approved the appointment of Mrs. Padmaja Priyadarshini B N as an Additional Director in the category of Non-Executive Independent Director for a five-year term commencing February 5, 2026, subject to shareholder approval. Dr. Priyadarshini brings extensive experience across banking, academia, and entrepreneurship, currently serving as Managing Director of HomePlanGuru Civil Consultants Pvt Ltd.

Operational Highlights

The company operates in the Information Technology services segment and has recognized an incremental impact of ₹103 lakhs under employee benefits expense due to the new Labour Codes notified by the Government of India. The financial results were reviewed by the Audit Committee and approved by the Board of Directors on February 5, 2026.

Xchanging Solutions Limited has received an Income Tax order under Section 92CA(3) for Assessment Year 2023-24, involving significant transfer pricing adjustments. The company disclosed this development to stock exchanges on January 23, 2026, in compliance with SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Transfer Pricing Adjustments Details

The Income Tax Authority has computed transfer pricing adjustments amounting to approximately INR 23.88 crores for specific transactions with Associated Enterprises. The adjustments cover two main areas of concern identified by the tax authorities.

Nature of Violations

The transfer pricing adjustments specifically relate to transactions involving interest on loans provided to Associated Enterprises and interest on delayed receivables from Associated Enterprises. These transactions were scrutinized under the transfer pricing provisions of the Income Tax Act, which require arm's length pricing for international transactions between related entities.

Financial Impact and Company Response

The company has indicated that the impact on financial statements remains undetermined at this stage. The final tax demand, including any applicable penalties, will be determined as part of the comprehensive assessment order that follows this initial computation.

Xchanging Solutions Limited plans to file its objections and response with the Income Tax Appellate Authorities within the prescribed timelines. This represents the company's standard approach to contest transfer pricing adjustments through the established appellate process.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of SEBI Listing Regulations, specifically under clause 20 of Para A of Part A of Schedule III. The company provided comprehensive details as required under the Master SEBI circular dated November 11, 2024, ensuring full transparency with stakeholders regarding this regulatory development.