Xtglobal Infotech Files SEBI Disclosure for US IT/ITES Acquisition Term Sheet

Xtglobal Infotech Limited has formally disclosed the signing of a term sheet for a proposed acquisition in the IT/ITES sector through a regulatory filing dated January 16, 2026. The disclosure, made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, provides comprehensive details about the strategic acquisition.

Regulatory Compliance and Disclosure

The company has submitted the disclosure to both BSE (Scrip Code: 531225) and NSE (Symbol: XTGLOBAL), ensuring full compliance with regulatory requirements. Company Secretary and Compliance Officer Sridhar Pentela signed the disclosure, emphasizing the company's commitment to transparent corporate governance.

Parameter:	Details
Filing Date:	January 16, 2026
Regulation:	SEBI (LODR) Regulations, 2015
Target Sector:	IT/ITES
Geographic Focus:	United States
Transaction Nature:	Business Acquisition

Acquisition Structure and Timeline

The target entity operates primarily in the United States IT/ITES sector and is described as being of moderate scale. The acquisition is structured to support strategic growth, business expansion, and operational synergies, strengthening the company's overall business profile.

Acquisition Details:	Information
Completion Timeline:	Approximately 3 months
Consideration Method:	Cash/Share swap
Shareholding:	Entire business acquisition
Related Party:	No (arm's length transaction)
Due Diligence:	Required for completion

Strategic Implications

The proposed acquisition does not constitute a related party transaction, with promoters and group companies having no interest in the target entity. The transaction is being conducted at arm's length, ensuring fair valuation and transparent dealings.

Certain commercial details, including the target entity's size, turnover, and financial performance for the past three years, remain confidential due to commercial sensitivity and confidentiality obligations under the term sheet. The company has committed to making further disclosures upon execution of definitive agreements and transaction completion.

Next Steps

The acquisition remains subject to completion of due diligence, execution of definitive agreements, and receipt of necessary statutory, regulatory, and governmental approvals. The company will provide updated disclosures as the transaction progresses through these critical phases.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.16%	-5.29%	-19.58%	-10.21%	-28.34%	-39.12%

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:

Metric	Q2 FY26	YoY Growth
Consolidated Revenue	₹94.41 crores	93.7%
EBITDA	₹6.78 crores	2.5% QoQ
EBIT	₹5.18 crores	17.1%
PAT	₹3.44 crores	26.9%

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.