Xtglobal Infotech LtdInformation TechnologyXTGLOBAL
Q1 FY27 concall · earnings callXtglobal Infotech Ltd
The company delivered modest revenue growth but a sharp improvement in profitability, driven by a shift towards offshore delivery and focus on high-margin products and services.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Standalone Revenue (Cr) | ₹19.19 Cr | 8% YoY, 1.8% QoQ | |
| Standalone EBITDA (Cr) | ₹2.82 Cr | 76.3% YoY | |
| Standalone EBITDA Margin | 14.7% | 571 BPS YoY | |
| Consolidated Revenue (Cr) | ₹93.3 Cr | 1.1% YoY, 2% QoQ | |
| Consolidated EBITDA (Cr) | ₹7.06 Cr | 7.8% YoY, 64.2% QoQ | |
| Consolidated EBITDA Margin | 7.6% | — | |
| Consolidated PAT (Cr) | ₹3.89 Cr | 4.3% YoY |
Financials
From filed quarterly results. YoY and QoQ compare each metric on the same accounting basis.
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹49.05 Cr— YoY+0.6% QoQ | ₹3.68 Cr— YoY+35.8% QoQ | ₹0.28— YoY+40% QoQ |
| Q2 FY25 | ₹48.74 Cr— YoY— QoQ | ₹2.71 Cr— YoY— QoQ | ₹0.20— YoY— QoQ |
TL;DR
- Consolidated revenue grew 1.1% YoY, while EBITDA margin improved to 7.6% from 4.8% in the prior quarter.
- The company added new clients in finance & accounting and IT services across Australia, the US, and Ireland.
- Management sees growth opportunities in AI, cloud, and the US public sector, where they have gained general admission to bid.
- The strategic shift from onsite to offshore delivery is improving profit margins.
- High-margin segments include the Circulus automation product (25% of revenue) and finance & accounting services.
Said on the call
“The offshore margin will be higher. Even though the revenue is halved, but the profit margin will definitely increase when compared to onsite versus offshore.”
From the Q&A
| Topic | What management said |
|---|---|
| Growth Engine in International Markets | Management expects high focus on Australia and Ireland, with revenues from these markets expected to reach 'million dollars, both local currencies over the next year', but overall percentage of revenue from international markets to remain less than 10% for the next couple of years. |
| Growth Opportunities in Technologies | Management sees a lot of growth in AI and cloud technologies, and has gained general admission to bid for US government contracts, marking a shift from the private sector. |
| Strategy for Existing Clients | Revenue growth from existing clients is driven by volume increases in the SaaS AP product (15-20% of revenue) and by adding incremental work, with one new client expected to grow significantly. |
| Scale Building in US & Europe | Focus is on the US public sector for new revenue, with more onshore delivery expected to increase the US revenue percentage. In Europe, growth is expected from the first client in Ireland. |
| GCC Engagement Strategy | The company targets mid-market GCC customers, starting with small teams of 3-5 members that can scale up to 50 members as the relationship develops. |
| Consolidated Revenue Growth Outlook | The modest YoY growth (1.1%) is attributed to a shift from onsite to offshore delivery, where revenue per resource is lower but the client base is increasing. |
| Sustainability of Improved EBITDA Margin | The improved consolidated EBITDA margin of 7.6% is considered sustainable due to lower expenses from the offshore shift, where resources are cheaper and margins are higher. |
| High-Margin Services | The product segment (like Circulus) contributes 25% of revenue with high margins, and finance & accounting services contribute around 14% of revenue; both are recurring in nature. |
Guidance
- Focus on Australia and Ireland markets is high, expecting revenues to reach 'million dollars, both local currencies over the next year'.
- Expect growth in the US public sector through newly gained bidding access for government contracts.
- See growth opportunities in AI and cloud technologies.
Source
Summary written from the transcript filed by Xtglobal Infotech Ltd for the call held on 21 Aug 2026; published 21 Aug 2026, 17:49 IST.
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