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A source-linked quarter view: reported numbers, management language, guidance, and the risks that should carry forward.
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Revenue
₹510 Cr
verified against source
Revenue YoY
19.9%
reported change
EBITDA
₹96.22 Cr
latest reported figure
Source
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record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Datamatics delivered a strong Q3 FY26 with revenue of ₹510.1 crore (+19.9% YoY) and EBITDA of ₹96.2 crore (+76.4% YoY), driving EBITDA margin expansion of 604 bps YoY to 18.9%. Growth was broad-based across segments, led by digital technologies (10.8% QoQ). PAT was impacted by a one-time ₹40.3 crore charge from labor code changes; excluding this, PAT margin would have been ~12.7%. Management guided for high single-digit organic growth in FY27, citing a healthy pipeline and improving client sentiment on AI adoption. The digital experiences segment faces near-term headwinds from two clients transitioning to captives, but new logo wins are expected to drive recovery from Q1 FY27. Key risk: US political uncertainty remains an overhang, though management sees it as the new normal.
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Guidance to track
- Management guided for high single-digit organic revenue growth in FY27, excluding M&A, citing a healthy pipeline and improving client sentiment.
- Digital experiences segment is expected to remain soft in Q4 FY26 due to captive transitions, but will recover from Q1 FY27 with new logos and healthier margins.
- Management expects to maintain and gradually improve EBITDA margins through cost control and operational efficiencies.
- The company will continue to invest ₹40-50 crore per year in AI and transformation technologies, expensed rather than capitalized.
Risks flagged
- Management acknowledged that US political overhang continues to create uncertainty, though clients have adapted to it as the new normal.
- Two clients transitioning work to captives will continue to pressure digital experiences revenue and margins through Q4 FY26.
- Customers remain hesitant to allow AI access to core systems due to data security fears, slowing production deployments.
- While the one-time charge is behind, management noted ongoing clarifications could lead to marginal increases in gratuity costs.
Key quotes
- We are rolling out Google Gemini Enterprise across the organization, empowering our teams to build intelligent agents, improve productivity, and drive innovation at scale.
- The hesitation that we used to see about a year ago seems to be waning and we see them more open to adopting AI in the main operations of their business.
- We are looking at high single-digits growth and then of course occasionally we do look at M&A. So I'm not factoring M&A into this but the high single digits is something that would be a decent number to look at.
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