Updater Services Limited (UDS) has demonstrated full compliance with its Initial Public Offering (IPO) fund utilization, according to its latest monitoring agency report for the quarter ended September 30, 2025. The report, prepared by ICRA Limited, confirms that the company has adhered strictly to the stated objectives of its IPO issue, with no deviations observed in fund allocation or utilization.

IPO Fund Allocation and Utilization

UDS raised Rs 640.00 crores through its IPO, with net proceeds of Rs 377.87 crores earmarked for specific purposes. The allocation and utilization of these funds are detailed in the following table:

As of September 30, 2025, UDS has utilized Rs 377.76 crores, leaving a minimal balance of Rs 0.11 crores unutilized. This remaining amount is currently held in the company's public issue account.

Implementation Timeline

The monitoring agency report indicates that all implementation timelines for the stated objectives remain on schedule. The company has set March 31, 2025, as the completion date for all fund utilization purposes, and current progress suggests they are well on track to meet this deadline.

Regulatory Compliance

The submission of this report aligns with the regulatory requirements set forth by the Securities and Exchange Board of India (SEBI). Specifically, it adheres to Regulation 32(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and Regulation 41(4) of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.

Management's Commitment

Updater Services Limited's strict adherence to its stated objectives and timely reporting demonstrate the company's commitment to transparency and responsible fund management. This approach is likely to instill confidence among investors and stakeholders in the company's financial governance practices.

The monitoring agency, ICRA Limited, has found no major deviations, delays, or unfavorable events that could affect the viability of the stated objectives. This clean report underscores the company's disciplined approach to executing its growth strategy as outlined in its IPO prospectus.

Investors and market observers can access the full monitoring agency report on the company's website at www.uds.in for more detailed information on the fund utilization and compliance status.

Promoter Increases Stake

In a separate development, Raghunandana Tangirala, a promoter of Updater Services Limited, purchased 36,070 equity shares on November 10, 2025, through on-market transactions on NSE. Following this acquisition, his shareholding increased from 1,60,33,579 shares (3.94%) to 1,60,69,579 shares (24.00%). The company disclosed this transaction in compliance with SEBI insider trading regulations.

Updater Services Limited (UDS) has released its financial results for the second quarter of fiscal year 2026, reporting a decline in revenue but an improvement in EBITDA.

Financial Highlights

Revenue Decline Amid Strategic Wins

Updater Services reported consolidated revenue of ₹7,349.00 million for Q2 FY2026, marking a 7.00% decrease from ₹7,869.00 million in the same quarter last year. Despite the revenue decline, the company secured several strategic contracts during the quarter, which are currently in the ramp-up phase.

EBITDA Improvement

Despite the revenue decline, UDS saw a significant improvement in its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). EBITDA increased to ₹506.00 million from ₹371.00 million in the previous year, representing a 36.39% growth. The EBITDA margin expanded notably, rising from 5.00% to 7.40%, an improvement of 240 basis points year-over-year.

Half-Year Performance

For the first half of FY2026, Updater Services reported a 7.00% decline in revenue to ₹14,402.00 million. EBITDA for H1FY26 fell by 17.00% to ₹815.00 million compared to the same period last year.

Business Segment Performance

The company's BSS companies, Denave and Athena, experienced impacts from global industry headwinds. However, UDS Group added 28 marquee clients across its business segments during the quarter.

Operational Highlights

• UDS received Great Place to Work accreditation for the third consecutive year.
• The company anticipates full-year FY2026 revenue growth in the 0-10% range.
• An internal review of the Avon subsidiary identified certain instances where thorough due diligence processes for customers were not adequately completed.

Looking Ahead

While Updater Services faces challenges in revenue growth, the improvement in EBITDA and margins suggests effective cost management. The strategic contract wins and new client additions provide potential for future growth. However, the company will need to address the identified due diligence issues in its Avon subsidiary and navigate the global headwinds affecting its BSS companies.

Investors and market observers will likely keep a close watch on how Updater Services leverages its strategic wins and manages the ramp-up costs of new contracts to drive sustainable growth and profitability in the coming quarters.