Datamatics revenue climbs 15% as board clears subsidiary merger
FY26 profit dipped to ₹195 crore amid exceptional costs; Rahul Kanodia secures a five-year extension as CEO.
— 6 earlier stories on Datamatics Global Services Ltd. →What's new
- Revenue grew 15% to ₹1,987 crore for FY26.
- Net profit slipped to ₹195 crore, down from ₹206 crore due to exceptional items.
- The board approved merging subsidiaries Dextara Digital and Datamatics Cloud Solutions into the parent.
Why this matters
The merger of two wholly owned subsidiaries is the real news here, as it aims to clean up the group structure. While the 15% revenue growth shows the top line is active, the profit decline confirms that one-time costs like the Labour Code impact are weighing on margins.
What we're watching
- Progress on the subsidiary merger process and regulatory approvals.
- Whether margins recover in FY27 without the exceptional items seen this year.
- The impact of the ongoing leadership term of Rahul Kanodia.
The full read
Datamatics Global Services delivered a mixed bag in FY26. While the company grew its top line by 15% to ₹1,987 crore, bottom-line profits slipped to ₹195 crore from the previous year's ₹206 crore. Management attributed the shortfall to exceptional items, specifically the impact of the Labour Code and fair value changes. Beyond the numbers, the board initiated a structural cleanup by merging two wholly owned units, Dextara Digital and Datamatics Cloud Solutions, into the parent entity. Rahul Kanodia has also locked in his role as vice chairman and CEO for another five years starting in February 2027. Shareholders receive a final dividend of ₹5 per share, matching the prior year's payout. The next test for the company is showing whether this structural reorganization can yield the promised efficiencies and return margins to growth in the new fiscal year.
Questions answered
- What is happening with the Datamatics subsidiaries?
- The board approved a scheme to merge Dextara Digital Private Limited and Datamatics Cloud Solutions Private Limited into Datamatics Global Services to simplify the corporate structure.
- How much dividend did the board recommend?
- The company recommended a final dividend of ₹5 per share.
Datamatics Global Services Ltd.
Latest quarter · Mar 2026
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All notes on DATAMATICS →- 21 May 2026 · 7:02 PM IST Datamatics revenue climbs 15% as board clears subsidiary merger
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