Datamatics reports Q1FY27 results; Revenue up 9.9% YoY, PAT jumps 43.5% as AI strategy gains traction
Datamatics Global Services Ltd., a global Digital Technologies and Experiences company, announced its standalone and consolidated financial results for the first quarter of fiscal year 2027 (Q1FY27), ending June 30, 2026. The company reported revenue of ₹513.9 crore, marking a 9.9% year-on-year growth, while Profit After Tax (PAT) reached ₹72.3 crore, reflecting a significant increase of 43.5% over the previous year.Commenting on the Q1FY27 performance, Rahul Kanodia, Vice Chairman and CEO of Datamatics, stated that the results provided a positive start to FY27. He highlighted that EBITDA for the quarter grew by 33.1% year-on-year to ₹101.1 crore, with the EBITDA margin improving by 343 basis points (bps) to 19.7%. Kanodia attributed this strong performance to a focus on innovation and disciplined cost management. He added that customers are increasingly validating Datamatics' AI-first strategy due to the company’s ability to blend AI innovation with execution excellence, allowing it to secure larger, higher-value engagements across both new and existing accounts.
Sameer Kanodia, Vice Chairman & CEO of Lumina Datamatics, noted a strong beginning to FY27, driven by healthy growth in Publishing and eCommerce businesses. He emphasized that the business model demonstrates resilience and is focused on accelerating AI adoption across solutions and operations. Furthermore, he mentioned that the integration of TNQTech was completed, positioning the combined organization for enhanced innovation potential and reinforcing its status as a global leader in scholarly journal production services.
Q1FY27 Financial Performance Analysis
The financial data reveals key operational trends across various metrics during Q1FY27 compared to previous periods. The following table details the performance indicators:| Particulars (₹ in Crore) | Q1FY27 | Q4FY26 | QoQ % | Q1FY26 | YoY % |
|---|---|---|---|---|---|
| Revenue from Operations | 513.9 | 519.3 | (1.0%) | 467.6 | 9.9% |
| EBITDA | 101.1 | 110.6 | (8.6%) | 75.9 | 33.1% |
| EBITDA Margin % | 19.7% | 21.3% | (163bps) | 16.2% | 343bps |
| EBIT | 78.4 | 88.0 | (10.9%) | 56.4 | 39.0% |
| PBT before exceptional item | 92.0 | 98.4 | (6.5%) | 63.9 | 44.0% |
| PBT Margin % | 17.3% | 18.4% | (111bps) | 13.3% | 397bps |
The company reported robust PAT growth, with the following figures:
| Metric | Q1FY27 | Q4FY26 | QoQ % | Q1FY26 | YoY % |
|---|---|---|---|---|---|
| PAT (After NCI) | 72.3 | 44.2 | 63.6% | 50.4 | 43.5% |
| EPS (Diluted) (₹) | 12.24 | 7.48 | 63.5% | 8.52 | 43.5% |
Other balance sheet highlights included Net Cash & Investments at ₹710.2 crore in Q1FY27, compared to ₹639.2 crore in FY26 and ₹415.3 crore in FY25. Days Sales Outstanding (DSO) stood at 60 days for Q1FY27.
Operational Strengths and Recognitions
Datamatics secured several significant operational engagements during the quarter. Key highlights include:- SBI Life Insurance selected Datamatics’ TruAI Underwriting to transform underwriting operations using Agentic AI-powered automation.
- A global engineering solutions provider serving energy, defense, aerospace, and industrial sectors expanded its relationship with Datamatics to modernize legacy platforms through AI-powered application transformation.
- An American pet wellness and veterinary care provider engaged Datamatics for an AI-powered voice agent solution designed to enhance customer experience by delivering natural conversations.
- A leading American pharmaceutical patient support organization chose Datamatics for leveraging AI-powered customer support, aiming for faster and more accurate responses.
- A renowned UK university focused on economics, politics, law & public policy selected Datamatics to modernize and manage its enterprise applications.
Furthermore, Lumina Datamatics was recognized as one of ET Edge’s Best Organisations to Work 2026 for the second consecutive year. Sameer Kanodia, Vice Chairman & CEO of Lumina Datamatics, earned recognition among India's Top 50 CEOs, MDs, and Founders for 2026 by Great Manager Institute®, marking his second consecutive award.
Analyst Insights
Various market analysts provided assessments on Datamatics’ capabilities:- Gartner recognizes Datamatics as a Niche Player in the Magic Quadrant for Finance and Accounting Business Process Outsourcing.
- Avasant positions Datamatics as a Challenger in the F&A Banking Process Transformation RadarView report.
- Nelson Hall identifies Datamatics as an Innovator in Salesforce Services NEAT assessment.
- HFS recognizes Datamatics as a Disruptor in Data Modernization and AI: The Three Horizons of Enterprise Transformation Maturity Assessment 2026.
- ISG views Datamatics as a Contender in AI-Driven ADM Services 2026: Application Quality Assurance - Europe.
DATAMATICS Stock Price Movement
Datamatics Global Services Limited rallied today, closing at ₹877.15 after surging 4.24%. The equity saw strong activity in the post-market trading phase, recording a volume of 295,610 shares.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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