Datamatics Q1 Profit Soars 95% Despite Revenue Dip
A sharp 850 bps year-on-year jump in net profit margin drove profit to ₹25.5 crore, even as revenue fell 5%.
Datamatics delivered a standout Q1 FY27 with profit nearly doubling year-on-year. This impressive performance was driven by a dramatic expansion in net profit margin, despite a contraction in quarterly revenue.
Datamatics Global Services has kicked off FY27 with a powerful profit performance, nearly doubling its bottom line from a year ago. This remarkable gain came even as quarterly revenue softened, highlighting a significant improvement in the company's profitability.
The numbers tell a story of contrasting trends. While revenue for Q1 FY27 came in at ₹152.6 crore, down 5% from the same quarter last year, profit after tax surged 94.5% to ₹25.5 crore. This divergence points to a major expansion in net profit margin, which rose to 16.7% from just 8.2% a year ago—an increase of 850 basis points. Sequentially, profit grew 56% from the March quarter, even as revenue declined 16.3% from a seasonally strong Q4.
A look at the last five quarters shows the volatility and recent strength in profitability:
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 152.62YoY -5% | 182.43 | 160.63 |
| Profit (₹ Cr) | 25.52YoY +95% | 16.36 | 13.12 |
| Net Profit Margin | 16.7%YoY +104% | 9.0% | 8.2% |
The company's trailing twelve-month (TTM) performance remains solid, with a net profit margin of 15.3% on revenue of ₹664.1 crore. On the stock front, shares have faced pressure over the past year, declining nearly 19%, though they have delivered a strong 58% return over three years. The stock currently trades at a P/E of 18.6, slightly below the industry average.
The key question for Datamatics is whether it can sustain this new level of elevated profitability while reigniting top-line growth in the quarters ahead.
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· DATAMATICS
(BSE)
ISIN: INE365B01017
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