Datamatics Digital Operations reaches 21.8% EBIT margin

In Q2FY27, Datamatics’ Digital Operations recorded a 21.8% earnings before interest and tax (EBIT) margin on Rs 315 crore of revenue, the highest among its three reported segments. Digital Technologies posted a 9.5% margin on Rs 167 crore, while Digital Experiences reported 12.0% on Rs 65 crore.

How did Datamatics’ segment profitability compare in Q2FY27?

Datamatics’ Digital Operations had the highest Q2FY27 segment EBIT margin at 21.8%, ahead of Digital Experiences at 12.0% and Digital Technologies at 9.5%. It also had the largest reported segment revenue, at Rs 315 crore, compared with Rs 167 crore for Digital Technologies and Rs 65 crore for Digital Experiences. The margin difference between Digital Operations and the next-highest segment, Digital Experiences, was 9.8 percentage points.

Revenue and profitability rankings differed across the smaller segments in Q2FY27. Digital Operations led both measures, while Digital Technologies ranked second by revenue and Digital Experiences ranked second by EBIT margin. The presentation describes Digital Operations as mid-office and back-office transformation work delivered through proprietary platforms, process expertise and global delivery, using artificial intelligence, intelligent automation, smart workflows and analytics.

What changed in Datamatics Digital Operations from Q2FY26?

Datamatics Digital Operations increased revenue by Rs 43 crore year on year, from Rs 272 crore in Q2FY26 to Rs 315 crore in Q2FY27, while its EBIT margin rose by 5.1 percentage points from 16.7% to 21.8%. This was the largest year-on-year revenue increase among the three segments: Digital Technologies added Rs 14 crore, while Digital Experiences remained at Rs 65 crore.

The Q2FY27 result also improved sequentially for Digital Operations. Revenue rose from Rs 297 crore in Q1FY27 to Rs 315 crore in Q2FY27, and EBIT margin increased from 19.3% to 21.8%. The latest margin remained below the segment’s 23.2% in Q4FY26, but it was above the 18.1% reported in Q3FY26 and the 16.4% reported in both Q4FY25 and Q1FY26.

How has Datamatics Digital Technologies performed?

Datamatics Digital Technologies reported Rs 167 crore of Q2FY27 revenue and a 9.5% EBIT margin, compared with Rs 153 crore and a 10.8% margin in Q2FY26. Revenue therefore increased by Rs 14 crore year on year, while the margin was 1.3 percentage points lower. Its Q2FY27 margin was also 12.3 percentage points below the 21.8% recorded by Digital Operations.

On a sequential basis, Digital Technologies’ revenue increased from Rs 153 crore in Q1FY27 to Rs 167 crore in Q2FY27, and its EBIT margin moved from 8.9% to 9.5%. The segment’s margin had recovered from 1.0% in Q4FY25 to 10.8% in both Q2FY26 and Q3FY26, before registering 10.0% in Q4FY26. The presentation identifies Data and AI, cloud, intelligent automation, application modernization, and low-code or no-code platforms as Digital Technologies capabilities.

How has Datamatics Digital Experiences performed?

Datamatics Digital Experiences reported flat year-on-year revenue of Rs 65 crore in Q2FY27 and Q2FY26, while its EBIT margin rose from 10.8% to 12.0%. This left the segment’s latest revenue Rs 250 crore below Digital Operations’ Rs 315 crore, although its 12.0% margin was 2.5 percentage points higher than Digital Technologies’ 9.5%.

Quarter on quarter, Digital Experiences’ revenue rose by Rs 1 crore from Rs 64 crore in Q1FY27 to Rs 65 crore in Q2FY27, while EBIT margin increased from 11.7% to 12.0%. The segment had reached Rs 74 crore of revenue in Q3FY25, its highest figure in the nine-quarter table, and its margin ranged from 4.4% in Q4FY26 to 15.2% in Q2FY25. Datamatics describes the business as multilingual, omnichannel contact-centre services across the Philippines, India and the USA.

How do the segment results align with Datamatics’ consolidated performance?

Datamatics reported consolidated revenue from operations of Rs 546.6 crore in Q2FY27, up 6.4% from Rs 513.9 crore in Q1FY27 and 11.5% from Rs 490.2 crore in Q2FY26. Consolidated EBIT was Rs 92.2 crore, up 17.6% sequentially and 33.8% year on year, while the consolidated EBIT margin reached 16.9%, from 15.3% in Q1FY27 and 14.1% in Q2FY26.

For H1FY27, Datamatics reported Rs 1,060.6 crore of revenue from operations, compared with Rs 957.8 crore in H1FY26, and EBIT of Rs 170.6 crore, compared with Rs 125.4 crore. The H1FY27 EBIT margin was 16.1%, up from 13.1% a year earlier. Digital Operations’ Q2FY27 segment margin of 21.8% was therefore above the consolidated Q2FY27 margin of 16.9%, whereas the other two segment margins were below it.

Conclusion

Datamatics’ Q2FY27 segment record shows Digital Operations as the largest of the three reported businesses by revenue and the highest by EBIT margin. Its Rs 315 crore of revenue and 21.8% margin compare with Rs 167 crore and 9.5% for Digital Technologies, and Rs 65 crore and 12.0% for Digital Experiences. The contrast is also visible year on year: Operations expanded revenue by Rs 43 crore and margin by 5.1 percentage points.

Next, investors can watch whether Datamatics’ stated growth strategy translates into further segment changes. Management’s disclosed priorities are investment in AI, stronger customer relationships, greater market presence and awareness in the US and Europe, proprietary products and platforms, and collaboration with hyperscalers. The next quarterly segment table will show whether Digital Operations sustains its margin level and whether the other two businesses narrow their profitability gap.