Fidel Softech Limited Q2 FY27 Revenue Rises 64% to ₹37.97 Crore

Fidel Softech Limited reported consolidated revenue of ₹37.97 crore for Q2 FY27, a 64.05% increase from ₹23.15 crore a year earlier. EBITDA rose to ₹5.61 crore and profit after tax reached ₹3.60 crore, while the EBITDA margin declined to 14.8% from 16.1% in Q2 FY26.

What did Fidel Softech report for Q2 FY27?

Fidel Softech reported strong year-on-year growth in consolidated revenue for the quarter ended September 2026. Revenue rose by ₹14.82 crore from the corresponding quarter of FY26, when the company reported ₹23.15 crore. The quarterly figure was also marginally higher than Q1 FY27 revenue of ₹37.93 crore.

The reported figures are based on the company’s Q2 FY27 investor presentation. The available material does not include an earnings-call transcript or management guidance for the quarter, so the financial discussion is limited to the disclosures in the presentation and related reported data.

The company reported EBITDA of ₹5.61 crore, compared with ₹3.73 crore in Q2 FY26. Profit after tax increased to ₹3.60 crore from ₹2.77 crore in the year-earlier quarter. Both revenue and profit therefore expanded on a year-on-year basis, although the operating margin was lower than a year ago.

Why did Fidel Softech’s operating margin decline despite higher revenue?

Fidel Softech’s EBITDA margin was 14.8% in Q2 FY27, calculated from EBITDA of ₹5.61 crore and revenue of ₹37.97 crore. This was below the 16.1% margin reported in Q2 FY26, meaning EBITDA grew more slowly than the top line during the period.

The presentation data establishes the margin movement but does not provide a detailed quarter-specific break-up of costs or a formal explanation from management. As a result, the available disclosures support the conclusion that profitability improved in absolute terms while operating leverage was weaker than in the corresponding quarter last year.

The margin comparison is relevant because revenue growth alone does not show how efficiently additional sales convert into operating profit. For investors, the 1.3 percentage-point reduction indicates that the company’s expenses increased at a faster rate than revenue between Q2 FY26 and Q2 FY27.

Fidel Softech had reported an EBITDA margin of about 13.2% in Q1 FY27, based on EBITDA of ₹5.03 crore and revenue of ₹37.93 crore. The Q2 FY27 margin of 14.8% was therefore higher sequentially, though still below the year-earlier level of 16.1%.

How did Fidel Softech perform in the first half of FY27?

Fidel Softech reported revenue of ₹75.91 crore for the first half of FY27, up 90% from ₹39.78 crore in the first half of FY26. The half-year number reflects two quarters of revenue close to ₹38 crore each, with Q1 FY27 revenue at ₹37.93 crore and Q2 FY27 revenue at ₹37.97 crore.

H1 FY27 EBITDA was ₹10.64 crore, representing year-on-year growth of 22.5%, according to the reported figures. The difference between the pace of revenue growth and EBITDA growth indicates that the margin pressure seen in the quarterly numbers also remains relevant at the half-year level.

The company had previously stated that it crossed the ₹100 crore annual revenue milestone in FY26. It has also outlined a longer-term plan to expand revenue from ₹100 crore to ₹500 crore over the next five years. That target is a stated company plan rather than a forecast supported by Q2 guidance.

What business developments were disclosed during the quarter?

Fidel Softech said it added about six new Japanese clients in India during the quarter as it expanded customer relationships. The company operates across India, Japan and the United States, with its business model including technology and digital engineering services.

The addition of Japanese customers is relevant to the company’s stated cross-border operating model, which is supported by bilingual engineering teams, local customer relationships and consulting capabilities. However, the presentation does not quantify the revenue contribution, contract value or expected timing of revenue from these new clients.

Reported geographic data indicates that overseas business has historically been important to the company. The supplied data shows revenue outside India at ₹37.38 crore and domestic revenue at ₹0.55 crore, representing 98.5% and 1.5%, respectively. The period for this geographic split is not specified in the provided information, so it should not be treated as a direct Q2 FY27 segment disclosure.

What does the Q2 FY27 result mean for investors and operations?

Fidel Softech’s Q2 FY27 result shows substantial revenue growth and higher absolute profit, supported by a stronger first-half revenue base. The company maintained quarterly revenue near the level recorded in Q1 FY27, while year-on-year growth remained high because Q2 FY26 revenue was ₹23.15 crore.

For investors, the key financial trade-off is the contrast between revenue expansion and lower operating margin. EBITDA rose by 50.4%, but this lagged the 64.05% increase in revenue. The source does not provide a Q2 FY27 share-price reaction, valuation change or updated management outlook, so no conclusion can be drawn from the available data on immediate market response.

For operations, new Japanese client additions and the company’s presence across three markets provide context for the revenue expansion. But the financial effect of customer additions, capital expenditure and any future investments cannot be quantified from the disclosed Q2 presentation figures.

Conclusion

Fidel Softech delivered Q2 FY27 consolidated revenue of ₹37.97 crore, EBITDA of ₹5.61 crore and profit after tax of ₹3.60 crore. The results show meaningful year-on-year gains in sales and earnings, while the EBITDA margin of 14.8% remained below the 16.1% reported in Q2 FY26.

The next area to watch is whether Fidel Softech can sustain the H1 FY27 revenue pace while improving margin conversion. The company’s stated plan to scale annual revenue from ₹100 crore to ₹500 crore over five years and its expansion of Japanese customer relationships provide the disclosed milestones for assessing future progress.