Xchanging Solutions Tax Demand Escalates to ₹113.05 Crores with Interest Costs

Xchanging Solutions Limited has provided an addendum to its earlier tax demand disclosure, revealing that the total demand amount has increased to ₹113.05 crores due to accumulated interest costs. The company, operating as a DXC Technology subsidiary, issued this clarification following its December 24, 2025 disclosure regarding pending litigation under SEBI Listing Regulations.

Revised Tax Demand Breakdown

The company has clarified that while there is no change in the principal demand and penalty amounts, additional interest costs have been quantified and added to align with the original 2023 disclosure methodology:

Particulars:	Amount (₹)
Original Demand (August 14, 2023):	1,05,55,74,464
Additional Interest Cost:	7,49,57,836
Total Demand (November 27, 2025):	1,13,05,32,300

The estimated interest cost represents a roll-forward calculation that continues to increase daily until the demand is finalized, highlighting the ongoing financial implications of the unresolved tax matter.

Previous Tax Components

The earlier disclosure had detailed the core components of the tax demand, which remain unchanged in terms of principal amounts:

Component:	Amount (₹)
Tax Demand:	23,58,82,562
Penalty:	23,58,92,562
Previous Total:	47,17,75,124

Company's Position and Legal Strategy

Xchanging Solutions maintains its position to challenge the tax demand through appropriate legal channels. The company continues with its plan to file an appeal against the demand order before the CESTAT (Customs, Excise and Service Tax Appellate Tribunal).

The management's assessment of the business impact remains consistent with earlier communications:

Impact Assessment:	Status
Financial Position:	No material impact
Operations:	Unaffected
Business Continuity:	Normal operations continue

Regulatory Compliance Framework

This addendum represents the company's commitment to transparent disclosure under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The clarification addresses the methodology for calculating the total demand amount, ensuring consistency with the company's 2023 disclosure practices.

Corporate Background

Xchanging Solutions Limited (CIN: L72200KA2002PLC030072) operates from Electronic City, Bengaluru, as part of the DXC Technology group. The company provides technology solutions and services, maintaining its operational focus despite the ongoing regulatory challenges. The disclosure was signed by Company Secretary & Compliance Officer Radhika Khurana, emphasizing the company's adherence to corporate governance standards.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.22%	-2.74%	-6.10%	-17.91%	-27.31%	-8.48%

Xchanging Solutions Limited, a DXC Technology Company, has announced its financial results for the second quarter of fiscal year 2026, showcasing significant growth across key financial metrics.

Revenue and Profit Surge

The company reported a substantial increase in its quarterly revenue, which rose to ₹528.00 million, marking an 18.9% year-over-year growth from ₹444.00 million in the same quarter of the previous fiscal year. This impressive top-line growth was accompanied by a remarkable surge in profitability.

Xchanging Solutions' consolidated net profit for Q2 FY26 jumped to ₹163.00 million, representing a significant 66.3% increase from ₹98.00 million reported in the corresponding quarter of the previous year.

Improved Operational Efficiency

The company's operational efficiency saw notable improvement, as evidenced by the growth in EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). EBITDA for the quarter stood at ₹170.00 million, up from ₹108.80 million in the same period last year, reflecting a robust 56.3% increase.

Moreover, the EBITDA margin expanded significantly, reaching 32.21% compared to 24.47% in the previous year, indicating enhanced profitability and operational excellence.

Financial Performance Overview

Here's a tabular representation of Xchanging Solutions' key financial metrics for Q2 FY26:

Metric	Q2 FY26	Q2 FY25	YoY Change
Revenue	₹528.00 million	₹444.00 million	+18.9%
Net Profit	₹163.00 million	₹98.00 million	+66.3%
EBITDA	₹170.00 million	₹108.80 million	+56.3%
EBITDA Margin	32.21%	24.47%	+774 bps

Conclusion

Xchanging Solutions Limited has demonstrated a strong financial performance in Q2 FY26, with substantial growth in revenue and profitability. The company's ability to expand its EBITDA margin significantly points to improved operational efficiency and cost management. As Xchanging Solutions continues to build on this momentum, investors and market watchers will likely keep a close eye on its future performance and growth trajectory in the dynamic IT services sector.

Investors are advised to consider these results in the context of broader market trends and the company's long-term strategy when making investment decisions.