Board approves September quarter and half-year results; auditor's review conclusion unmodified
Board of Datamatics Global Services met on November 03, 2026 and approved the unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2026.
By ScoutQuest · · 2 min read
| Line item | Latest | Year ago | YoY | Prev qtr | QoQ |
|---|---|---|---|---|---|
| Revenue from operations | 546.64 | 490.23 | +11.5% | 513.91 | +6.4% |
| Total income | 556.57 | 505.91 | +10% | 532.13 | +4.6% |
| Profit before tax | 95.79 | 80.53 | +18.9% | 91.99 | +4.1% |
| Profit after tax | 73.58 | 63.39 | +16.1% | 72.36 | +1.7% |
| Total comprehensive income | 81.38 | 68.47 | +18.9% | 74.44 | +9.3% |
| Basic EPS | 12.42 | 10.70 | +16.1% | 12.24 | +1.5% |
- Total income YoY growth
- (+10%)
- Period
- Quarter ended 30-Sep-26
Auditor's review
Conclusion: Unmodified
- Other matter: one step-down subsidiary (total revenue Rs. 102.36 crores for the quarter) reviewed by other auditors; conclusion not modified in this respect.
- Other matter: eleven subsidiaries' unaudited results (total revenue Rs. 21.21 crores for the quarter) certified by Management, not reviewed; stated as not material.
Notes to the results
- Investments of Rs 11.96 crores in preference shares and Rs 36.14 crores in perpetual debentures of a step-down subsidiary with negative net worth of Rs. 24.63 crores; no provision made.
- Exceptional items (consolidated, FY ended March 31, 2026): Labour Codes impact Rs. 24.02 crores and fair value change of contingent consideration Rs. 40.85 crores; standalone Labour Codes impact Rs 11.37 crores.
- Scheme of Amalgamation of Dextara Digital Pvt Ltd and Datamatics Cloud Solutions Pvt Ltd (WOS) with the Company, approved 21 May 2026; NCLT sanction pending; appointed date 1 April 2026.
Board meeting outcome
- The board of Datamatics Global Services Limited met on Tuesday, November 03, 2026, from 02:00 P.M. to 03:53 P.M.
- It approved the unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2026, prepared under Ind AS 34.
- Statutory auditors M L Bhuwania and Co LLP issued a Limited Review Report on both sets of results.
Auditor's conclusion
The review conclusion is unmodified. The auditors state that nothing has come to their attention that causes them to believe the statements contain any material misstatement. This is a review, not a full audit, and the report says no audit opinion is expressed.
What the results show (consolidated)
- Revenue from operations was Rs 546.64 crore for the quarter, against Rs 490.23 crore in the same quarter a year earlier.
- Profit after tax from ordinary activities was Rs 73.58 crore, against Rs 63.39 crore.
- For the half year, both revenue from operations and profit after tax were above the same period a year earlier.
- On a standalone basis, profit after tax from ordinary activities was Rs 23.41 crore for the quarter, lower than a year earlier.
What the auditor draws attention to
- The standalone review report refers to Note 3: the company holds investments in preference shares of Rs 11.96 crores and perpetual debentures of Rs 36.14 crores in a step-down subsidiary.
- That step-down subsidiary has a negative net worth of Rs. 24.63 crores as on September 30, 2026.
- Management's position is that the subsidiary is in the RPA business, is at a growth stage, has started generating profit and is expected to turn around, so no provision for the investment is considered necessary.
- The impact of the negative net worth has already been considered in the total equity of the consolidated results, and the auditor's opinion is not modified on this matter.
How the consolidated review was put together
The consolidated statement includes subsidiaries whose interim results were reviewed by other auditors or certified by the management, and the reporting auditor's conclusion relies on those inputs.
Other detail
A footnote to the list of subsidiaries states that the mergers of Dexara Digital Private Limited and Datamatics Cloud Solutions Private Limited with Datamatics Global Services Limited have been approved by the company's board, with petitions shared before the NCLT; the appointed date is April 01, 2026.
What it means for a retail reader
The headline numbers show the consolidated business earning more revenue and profit than a year earlier, and the auditors have not qualified the results. At the same time, the review report formally records that a step-down subsidiary is running with negative net worth while the parent carries preference share and perpetual debenture investments in it, which the management expects to recover through a turnaround.
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More numbers
- Standalone Net Profit from Ordinary Activities after tax, quarter ended 30-Sep-2623.41
- Investment in preference shares of step-down subsidiaryRs 11.96 crores
- Investment in perpetual debentures of step-down subsidiaryRs 36.14 crores
- Negative net worth of step-down subsidiary as on September 30, 2026Rs. 24.63 crores
- Total income, latest quarter556.57 (Rupees in crores)
- Total income, year-ago quarter505.91 (Rupees in crores)
- Total income, previous quarter532.13 (Rupees in crores)
- Total comprehensive income, latest quarter81.38 (Rupees in crores)
- Total comprehensive income, year-ago quarter68.47 (Rupees in crores)
- Total comprehensive income, previous quarter74.44 (Rupees in crores)
- Profit after tax, latest quarter73.58 (Rupees in crores)
- Profit after tax, year-ago quarter63.39 (Rupees in crores)
- Profit after tax, previous quarter72.36 (Rupees in crores)
- Revenue from operations, latest quarter546.64 (Rupees in crores)
- Revenue from operations, year-ago quarter490.23 (Rupees in crores)
- Revenue from operations, previous quarter513.91 (Rupees in crores)
- Profit before tax, latest quarter95.79 (Rupees in crores)
- Profit before tax, year-ago quarter80.53 (Rupees in crores)
- Profit before tax, previous quarter91.99 (Rupees in crores)
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