GTT Data Solutions reported a consolidated net profit of Rs 0.005 crore for Q2 FY27, marking a turnaround from a loss of Rs 1.16 crore in the same quarter last year. The company is accelerating its international footprint by incorporating a new Hungarian subsidiary and initiating the acquisition of a 90% stake in STRATIS Management and IT Consulting for up to EUR 9 million. Investors should track progress on the pending Rs 125 crore rights issue and regulatory clearances for ongoing acquisitions, which remain critical to the company's growth strategy.
GTT Data Solutions Q2 Profit Turnaround and Strategic European Expansion
- Q2 FY27 Net Profit: Rs 0.005 crore
- Revenue from Operations: Rs 32.44 crore
Reader Takeaway: Turnaround to profit signals operational efficiency, yet growth hinges on pending regulatory approvals for rights issue and acquisitions.
What just happened
GTT Data Solutions Ltd has reported a consolidated net profit of Rs 0.005 crore for the quarter ended September 2026, shifting from a loss of Rs 1.16 crore in the year-ago period. While the company achieved a bottom-line turnaround, its revenue from operations dipped to Rs 32.44 crore compared to Rs 36.77 crore in Q2 FY26. The board has also formally incorporated a new wholly-owned subsidiary in Hungary, named AntWorks Europe Solutions Kft (AESK).
Why this matters
The establishment of the Hungarian subsidiary marks a significant step in the company's international expansion plans. Through AESK, the company is moving to acquire a 90% stake in STRATIS Management and IT Consulting for a consideration of up to EUR 9 million, to be paid in tranches. This acquisition is intended to strengthen the firm’s consulting capabilities in the European market.
Risks to watch
Investors should remain cautious regarding the timeline of the proposed Rs 125 crore rights issue, which is currently pending regulatory approval. Similarly, the company has several ongoing acquisition plans—including stakes in AntWorks Solutions India Private Limited and Insurants AI Limited—that are contingent upon specific closing conditions. Furthermore, the potential impact of a planned employee transfer to Alpharithim Technologies Pvt. Ltd. on future financials remains uncertain at this stage.
What to track next
The primary focus for shareholders should be the status of the Draft Letter of Offer filed for the rights issue on August 4, 2026. Regulatory clearance for this capital raise is essential for the company’s liquidity and future growth execution. Additionally, monitor the finalization of the STRATIS transaction and any updates regarding the share-swap arrangements for other pending acquisitions.