Datamatics Global Services Limited has notified stock exchanges regarding an order received from the Income Tax Department under Section 144C(1) of the Income Tax Act, 1961 for Assessment Year 2023-24. The communication was made pursuant to Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Order Details and Nature

The Income Tax Department issued the order on January 30, 2026, concerning scrutiny assessment for AY 2023-24. The order specifically addresses transfer pricing adjustments proposed by the Assessing Officer to determine the arm's length price of international transactions conducted by the company.

Company's Response and Action Plan

Datamatics Global Services is currently evaluating the merits of the matter and intends to exercise its right to file an appeal before the appellate authority within the prescribed timelines. The company has expressed confidence in its position, stating it believes there are adequate factual and legal grounds to reasonably substantiate its stance in the matter.

Financial and Operational Impact

The company has assessed that there will be no material impact on its financials, operations, or other activities as a result of this order. This assessment is based on the company's belief in the strength of its legal and factual position regarding the transfer pricing matter.

Regulatory Compliance

The disclosure was made in compliance with Para A (20) of Part A of Schedule III to the SEBI Listing Regulations. The information has also been placed on the company's website at www.datamatics.com for public access. The communication was signed by Divya Kumat, President, Chief Legal Officer and Company Secretary, on January 31, 2026.

Datamatics Global Services Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025. The IT services company reported mixed performance with revenue growth offset by declining profitability due to exceptional charges and operational challenges.

Financial Performance Overview

The company's consolidated financial results showed contrasting trends across different metrics. While revenue demonstrated year-on-year growth, quarterly profitability faced significant pressure.

Segment-wise Performance

Datamatics operates through three primary business segments, each contributing differently to overall performance during Q3FY26.

Digital Operations emerged as the largest revenue contributor, generating ₹273.82 crores compared to ₹177.98 crores in Q3FY25, marking substantial growth of 53.85%. The segment's results improved to ₹49.59 crores from ₹25.89 crores year-on-year.

Digital Technologies contributed ₹169.60 crores in revenue, slightly declining from ₹173.37 crores in the corresponding quarter last year. However, segment results more than doubled to ₹18.27 crores from ₹7.87 crores.

Digital Experiences recorded revenue of ₹66.68 crores against ₹74.12 crores in Q3FY25, with segment results declining to ₹6.38 crores from ₹10.98 crores.

Impact of Exceptional Items

The company's profitability was significantly affected by exceptional charges totaling ₹40.25 crores during the quarter. These charges primarily stemmed from the implementation of new Labour Codes notified by the Government of India on November 21, 2025.

The new legislation replaced 29 existing labour laws with four comprehensive codes, resulting in increased gratuity and leave encashment liabilities. Management classified this impact as exceptional due to its non-recurring nature and legislative origin.

Nine-Month Performance Analysis

For the nine months ended December 31, 2025, Datamatics demonstrated resilient performance across key metrics:

The nine-month results reflected stronger operational performance with revenue growth of 19.70%, though net profit declined marginally by 6.57% primarily due to exceptional charges.

Operational Metrics and Outlook

The company maintained its paid-up equity share capital at ₹29.55 crores with a face value of ₹5 per share throughout the reporting periods. Employee benefit expenses increased to ₹313.89 crores in Q3FY26 from ₹266.87 crores in Q3FY25, reflecting business expansion and the impact of new labour regulations.

Finance costs rose to ₹4.55 crores from ₹2.14 crores year-on-year, while other income contributed ₹12.47 crores during the quarter. The company's total comprehensive income stood at ₹39.58 crores for Q3FY26, compared to ₹34.87 crores in the corresponding quarter last year.