XTGlobal Infotech Limited

XTGlobal Infotech Limited conducted its Q1 FY27 Earnings Conference Call on August 17, 2026, at 5:00 PM IST. The call was hosted by Rik Capital and featured management representatives including Mr. Ramarao Mullapudi (CEO, President & Director), Mr. Raghuram Kusuluri (Chief Financial Officer), and Mr. Sridhar Pentela (Company Secretary & Compliance Officer).

Operating Environment and Business Developments

The global technology services environment in Q1 FY27 remained measured with businesses assessing technology spending amid macroeconomic uncertainty and geopolitical developments. Clients were selective on discretionary technology spending with longer decision-making cycles. Enterprises prioritized initiatives improving productivity, cost optimization, and measurable business outcomes. Artificial intelligence continued to influence technological discussions, moving beyond experimentation toward practical deployment.

During the quarter, the company expanded its client base across finance and accounting services and IT services businesses:

  • Finance and accounting services practice added seven new engagements across Australia, United States, and Ireland
  • IT services business added clients in India and the United States
  • Entered the Irish market through first finance and accounting outsourcing engagement, establishing an offshore finance support function from India delivery centers covering management account support, accounts payable supervision, employee onboarding, HR administration, and ongoing finance function support

Internal transformation initiatives included Zoho implementation that was 90% completed during the quarter, covering approximately 13 products and modules.

Financial Performance - Standalone

  • Revenue from operations: ₹19.19 crore, representing 8% year-on-year increase and 1.8% quarter-on-quarter improvement
  • EBITDA: ₹2.82 crore compared with ₹1.60 crore in Q1 FY26 (76.3% YoY increase)
  • EBITDA margin: 14.7% compared with 9% in Q1 FY26 (571 basis points YoY improvement)
  • Earnings before interest and tax: ₹3.08 crore (75.6% YoY increase)
  • EBIT margin: 16% (618 basis points YoY improvement)
  • Profit after tax: ₹1.82 crore (19.8% YoY increase)
  • PAT margin: 9.5% (474 basis points YoY improvement)

Financial Performance - Consolidated

  • Revenue: ₹93.30 crore compared to ₹92.31 crore in Q1 FY26 (1.1% YoY increase)
  • Quarter-on-quarter revenue increased by 2% from ₹89.52 crore in Q4 FY26
  • Consolidated EBITDA: ₹7.06 crore (7.8% YoY increase)
  • Earnings before interest and depreciation improved by 64.2% quarter-on-quarter
  • EBITDA margin: 7.6% compared to 4.8% in Q4 FY26 and 7.1% in Q1 FY26
  • Consolidated earnings before interest: ₹6.15 crore (25.2% YoY growth, 2.1% QoQ rise)
  • EBIT margin: 6.6%
  • Consolidated profit after tax: ₹3.89 crore (4.3% YoY growth compared to ₹3.73 crore in Q1 FY26)
  • PAT margin: 4.2% (broadly stable)

Management Commentary and Outlook

Management highlighted a strategic shift from onsite to offshore delivery, explaining that while revenue numbers may appear lower due to this transition (onsite resources at $70 vs offshore at $35), real growth is occurring with improved profitability margins.

Service margin breakdown:

  • Product services: 25% margin, contributing 25% of total revenue
  • Finance and accounting services: 14% margin, recurring in nature with resource expansion potential

The Circulus automation product was noted for generating long-term engagements with sustainable profit margins.

Growth opportunities identified:

  • AI and cloud technologies
  • US public sector contracts (recently admitted into general bidding for state sectors)
  • GCC (Global Capability Center) customers in mid-market segment, starting with 3-5 members potentially growing to 50 members
  • European market expansion through Ireland entry

Geographic revenue expectations:

  • Australia and Ireland markets expected to reach million dollars in local currencies over next year
  • International markets currently contribute less than 10% of revenue, expected to remain at this level for next couple of years

Dividend consideration for next quarter was mentioned but not confirmed.

Q&A Session Highlights

Questions covered:

  • PaaS evolution as growth engine in international markets
  • Growth areas (AI, cloud, automation, digital transformation)
  • US contract pipeline and expected revenue
  • Strategy to deepen relationships with existing global clients
  • Scale building in US and Europe markets
  • GCC engagement evolution
  • Consolidated revenue growth outlook
  • EBITDA margin sustainability
  • High-margin services
  • Dividend plans