Datamatics Q3 Revenue Surges 20% on AI Push, PAT Dips 51% Due to One-Off

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AuthorRiya Kapoor|Published at:
Datamatics Q3 Revenue Surges 20% on AI Push, PAT Dips 51% Due to One-Off
Overview

Datamatics Global Services posted a robust Q3 FY26 with revenue climbing 19.9% YoY to ₹510.1 Cr and EBITDA margins expanding significantly to 18.9%. However, Profit After Tax declined 51% YoY to ₹36.4 Cr, impacted by a ₹40.3 Cr exceptional charge related to labour code changes. The company emphasized its strategic investments in enterprise AI and securing key global partnerships.

📉 The Financial Deep Dive

Datamatics Global Services Ltd. has unveiled its Q3 FY26 results, showcasing strong top-line expansion and operational efficiency gains, albeit with a notable dip in net profit due to an exceptional item.

The Numbers:

  • Revenue: ₹510.1 crores for Q3 FY26, marking a robust 19.9% increase year-on-year (YoY). Quarter-on-quarter (QoQ), revenue grew by 4.1% to ₹510.1 crores.
  • EBITDA: Surged by 76.4% YoY to ₹96.2 crores and 8.3% QoQ.
  • EBITDA Margin: Improved substantially to 18.9%, a significant jump of 604 basis points (bps) YoY and 75 bps QoQ.
  • EBIT: Grew by 65.9% YoY to ₹74.2 crores.
  • Profit After Tax (PAT): Declined by 51.0% YoY to ₹36.4 crores and 42.5% QoQ to ₹36.4 crores.
  • Exceptional Item: A one-time impact of ₹40.3 crores in Q3 FY26, attributed to changes in labour codes, directly affected PAT.

For the nine months ended December 31, 2025 (9MFY26), revenue stood at ₹1,467.9 crores (+19.7% YoY), with EBITDA at ₹261.0 crores (+68.7% YoY). EBITDA margins for the period improved by 516 bps to 17.8%. PAT for 9MFY26 decreased by 6.3% YoY to ₹150.0 crores.

The Quality:
While revenue and EBITDA metrics highlight operational strengths and cost management, the PAT decline due to the exceptional item warrants close monitoring in subsequent quarters. The significant margin expansion indicates improved operational efficiencies and pricing power.

The Grill:
Management commentary focused on the positive operational performance and strategic investments in enterprise AI, specifically mentioning the rollout of Google Gemini. The company's subsidiary, Lumina Datamatics, is set to bolster its offerings in AI, digital platforms, and automation. The focus is clearly on leveraging advanced technologies to drive future growth and deepen client relationships across various global sectors.

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