XTGlobal Infotech Limited: Navigating Growth Amidst Sector Headwinds in Q2 & H1 FY26

XTGlobal Infotech Limited, a prominent player in the IT services and outsourcing landscape, has unveiled its financial performance for the second quarter and first half of the fiscal year 2026. The company's results showcase a resilient growth trajectory, particularly on a consolidated basis, even as the broader Indian IT sector grapples with moderated demand and macroeconomic uncertainties. Management's strategic initiatives, coupled with robust financial metrics, paint a picture of a company poised for sustained expansion.

For Q2 FY26, XTGlobal reported a consolidated revenue of ₹94.41 crore, marking a 2.3% sequential growth and an impressive 93.7% year-on-year increase. This significant top-line expansion was complemented by a consolidated EBITDA of ₹6.78 crore, up 2.5% quarter-on-quarter, and an EBIT of ₹5.175 crore, reflecting a 5.4% sequential rise. While consolidated PAT saw a slight sequential dip to ₹3.441 crore, it still registered a strong 26.9% year-on-year growth. The first half of FY26 further solidified this positive trend, with consolidated revenue reaching ₹186.717 crore (90.4% YoY growth) and PAT expanding by 47.1% year-on-year to ₹7.177 crore. These figures underscore the company's ability to drive scale benefits and maintain operational discipline.

Strategic Expansion and Operational Excellence

XTGlobal's growth narrative is not merely about numbers; it is deeply rooted in strategic execution and operational enhancements. The company has been proactive in expanding its client base, securing 11 new client engagements in Q2 FY26, with 7 in Finance and Accounting Services and 4 in IT Services. This client acquisition drive is expected to be a significant revenue driver in the upcoming periods.

In a move to enhance operational flexibility and optimize asset utilization, XTGlobal successfully completed the exit process for its SEZ unit at Madhurawada, Visakhapatnam. This transition is anticipated to reduce compliance efforts and unlock opportunities to monetize unused infrastructure. Concurrently, the company is upgrading its sales operations by deploying a new CRM platform, slated for a December 2025 go-live, aimed at improving lead visibility, streamlining the sales pipeline, and boosting customer engagement.

Global Footprint and Market Adaptation

Geographic expansion remains a cornerstone of XTGlobal's strategy. The company has successfully commenced operations in Australia, securing two anchor projects in finance and accounts outsourcing. This strategic entry into a new region with high demand for digital and IT services is expected to significantly strengthen XTGlobal's international portfolio and foster long-term growth. Furthermore, the company is actively exploring opportunities in the UK and European markets, with plans to establish offices in these regions.

XTGlobal is also making inroads into the US government sector, having won its first major RFP with the Department of Transportation, a contract valued at $5 million over five years. This achievement is expected to generate consistent revenue of$1 million to $1.5 million annually from this public sector client. The company's low dependency on H-1B visas, with fewer than 25 employees, positions it advantageously in the current immigration climate, enabling it to leverage a Global Delivery Center (GDC) model for offshore services.

Financial Outlook and Management Confidence

Management's commentary reflects confidence in XTGlobal's future trajectory. The company is targeting a stabilized revenue growth rate of 20-25% for the fiscal year 2026-2027. A key focus is on margin improvement, with a goal to achieve an EBITDA margin of at least 15% by the next fiscal year, driven by enhanced operational efficiency and optimal utilization of existing capabilities and infrastructure. Notably, XTGlobal's current infrastructure can support up to 2,000 employees without substantial additional capital expenditure, providing a strong foundation for scalable growth.

In a gesture of commitment to shareholders, the Board has approved an interim dividend of ₹0.05 per equity share, representing 5% of the face value for FY25-26, with a record date of November 21, 2025. The company intends to maintain a policy of distributing dividends twice a year. XTGlobal is also actively pursuing strategic acquisitions to further enhance its capabilities and market reach, currently being in discussions with a couple of potential targets.

Financial Summary

A Future-Ready Approach

XTGlobal Infotech Limited's Q2 and H1 FY26 performance underscores its strategic clarity and disciplined execution. By focusing on innovation, customer priorities, and responsible AI leverage, the company is accelerating its transition towards stronger growth. The management's proactive approach to market expansion, operational efficiency, and talent management positions XTGlobal as a resilient player in a dynamic global technology landscape, committed to delivering sustainable value to its shareholders.