Xtglobal Infotech , a leading IT services company, has reported a robust financial performance for Q2 FY26, marking significant growth and expansion. The company's strategic moves and financial results paint a picture of strong momentum and future potential.

Financial Highlights

Xtglobal Infotech delivered impressive financial results for Q2 FY26:

The company's standalone performance also showed positive trends, with revenue increasing to ₹17.99 crore, reflecting a 1.2% quarter-on-quarter growth. EBITDA rose to ₹2.88 lakhs, a 14.2% quarter-on-quarter improvement driven by efficiency measures.

Strategic Expansion and Operational Highlights

• Australian Market Entry: Xtglobal Infotech has successfully launched operations in Australia, securing two anchor projects. This expansion enhances the company's international presence and supports long-term growth opportunities.

• Interim Dividend: The Board has approved an interim dividend of 5 paise per equity share (5% of face value) for FY25-26, with November 21, 2025, as the record date.

• Digital Transformation: The company initiated the rollout of a new CRM platform designed to enhance lead visibility, strengthen pipeline discipline, and improve client engagement, scheduled to go live in December 2025.

• SEZ Exit: Xtglobal Infotech completed a compliant exit from the Madhurawada SEZ unit in Visakhapatnam, providing greater operational flexibility and opportunities to monetize unused infrastructure.

Business Outlook

Xtglobal Infotech has set targets for the future:

• Revenue Growth: The company aims for a 20-25% revenue growth rate for FY27.
• EBITDA Margin: A target of 15% EBITDA margin has been set, driven by increased operational efficiency and utilization of existing infrastructure.
• Market Focus: The company is expanding its presence in the public sector, having won its first major RFP with the Department of Transportation in the U.S.
• Global Expansion: Plans are underway to open offices in both Australia and Europe (potentially Ireland) to further strengthen the company's international footprint.

Industry Trends and Positioning

Xtglobal Infotech is aligning itself with industry trends such as digital finance transformation, cloud adoption, intelligent automation, robotic process automation, and offshore finance and accounting outsourcing. The company's focus on GDC (Global Delivery Center) as a service model may benefit from the current immigration challenges in the U.S. market, potentially driving more business towards offshore service models.

CEO Ramarao Mullapudi commented, "We see a lot of growth opportunities in offshore IT services. Our infrastructure allows us to offer clients a GDC model of service, which is particularly beneficial for mid-market companies facing talent shortages due to immigration issues."

As Xtglobal Infotech continues to expand its global footprint and enhance its service offerings, the company appears well-positioned to capitalize on the evolving demands of the IT services market, both domestically and internationally.

Xtglobal Infotech (BSE: 531225, NSE: XTGLOBAL), a publicly listed IT/ITES company, has announced its unaudited standalone financial results for Q2, ending September 30. The company reported steady growth in key financial metrics and strategic expansion into new markets.

Financial Highlights

Xtglobal Infotech's Q2 standalone performance showed resilience amid challenging global market conditions:

Operational Highlights

• New Client Acquisitions: The company secured 11 new client engagements, with 7 in Finance & Accounting Services and 4 in IT Services.
• Australian Market Entry: Xtglobal Infotech commenced operations in Australia, securing two anchor projects related to finance and accounting outsourcing services.
• Madhurawada SEZ Unit Exit: The company completed the exit process for its SEZ unit at Madhurawada, Visakhapatnam, during the quarter.
• Digital Upgrade: A new CRM platform is being deployed to enhance lead visibility, streamline the sales pipeline, and strengthen customer engagement, scheduled to go live in December.
• Interim Dividend: The Board declared an interim dividend of ₹0.05 per equity share (face value ₹1), representing a 5% dividend.

Management Commentary

Mr. Ramarao Mullapudi, CEO, President & Director of Xtglobal Infotech Limited, commented on the results: "At a time when the global technology landscape is going through a significant shift, the Indian IT sector continues to face macroeconomic pressures, tariff constraints in the US, and rising client expectations for AI-led efficiency. Despite these challenges, the sector has displayed resilience, adaptability, and a commitment to creating value."

He added, "Our standalone Q2 performance remained steady, with EBITDA growing 14.2% QoQ and PAT increasing 16% QoQ, supported by healthy margin improvement. Our ability to leverage and scale AI responsibly will be central to accelerating our transition from stability to stronger growth. With a clear focus on innovation, customer priorities, and disciplined execution, we are confident of delivering sustainable value to shareholders."

Future Outlook

Xtglobal Infotech is positioning itself for future growth through strategic initiatives:

1. Expansion into the Australian market, tapping into a strong demand for digital and IT services.
2. Implementation of a new CRM platform to enhance sales operations and customer engagement.
3. Focus on AI-led efficiency to meet evolving client expectations and drive growth.

The company's expansion into Australia and its focus on innovation and customer priorities indicate a strategic approach to navigating the challenging global IT landscape. As Xtglobal Infotech continues to adapt to market demands and leverage new technologies, investors and stakeholders will be watching closely to see how these initiatives translate into long-term value creation.