ITC Infotech Q2 Revenue Rises 18.5%, Margin Hits 18.4%

ITC Infotech reported Q2'27 revenue of Rs 1,387 crore, up 18.5% year on year, while adjusted EBITDA margin reached 18.4% and the number of US$10 million-plus clients increased to 12 from nine. The presentation cited strong acceleration in Cloud, Data & AI and robust growth across Europe and Rest of World.

How did ITC Infotech perform in Q2'27?

ITC Infotech recorded reported revenue growth of 18.5% year on year and 5.8% quarter on quarter in Q2'27, reaching Rs 1,387 crore of IT Services revenue. At constant currency, which excludes the effect of exchange-rate movements, revenue grew 11.0% year on year and 5.3% quarter on quarter. Reported growth therefore exceeded constant-currency growth by 7.5 percentage points year on year.

ITC Infotech reported an adjusted earnings before interest, tax, depreciation and amortisation, or adjusted EBITDA, margin of 18.4% in Q2'27. The presentation says adjusted EBITDA excludes once-off acquisition-specific costs. It describes the 18.4% margin as being at the upper end of mid-tier IT companies, a comparison presented by ITC Infotech rather than through a separately disclosed industry benchmark.

The quarterly revenue result followed reported H1'27 growth of 17.4% and constant-currency growth of 8.8%. The 18.5% Q2'27 reported growth rate was therefore 1.1 percentage points above the first-half reported rate. The presentation identified Cloud, Data & AI as an area of strong acceleration, while describing US geography performance as resilient.

What changed in ITC Infotech’s first-half revenue and EBITDA?

ITC Infotech increased H1'27 revenue to Rs 2,698 crore from Rs 2,299 crore in H1'26, while adjusted EBITDA rose to Rs 497 crore from Rs 413 crore. This represents reported revenue growth of 17.4% and adjusted EBITDA growth of 20.3% for the first half. H1'27 constant-currency revenue growth was 8.8%.

The H1 comparison shows that revenue increased by Rs 399 crore and adjusted EBITDA increased by Rs 84 crore between H1'26 and H1'27. Adjusted EBITDA grew faster than revenue, and the margin rose by 0.4 percentage points to 18.4%. The presentation labels these as IT Services revenue and margin figures.

The H1'27 margin of 18.4% matched the Q2'27 adjusted EBITDA margin. In H1'26, the corresponding margin was 18.0%, so the year-on-year improvement was already reflected in the first-half result. The presentation does not disclose a separate Q2'26 adjusted EBITDA amount or margin from which to calculate a quarterly margin comparison.

Which markets and services generate ITC Infotech revenue?

ITC Infotech’s largest geography was Europe, accounting for 44.7% of IT Services revenue on the Q2FY27 basis used in the presentation. Rest of World, or RoW, contributed 31.3%, while the Americas accounted for 24.0%. Europe and RoW together represented 76.0% of revenue, and the Q2'27 highlights described growth in both geographies as robust.

Consumer packaged goods, retail and manufacturing was ITC Infotech’s largest vertical at 58.3% of revenue. Banking, financial services and insurance, or BFSI, represented 15.2%; travel and hospitality represented 13.3%; and other verticals made up 13.2%. The largest vertical was therefore 43.1 percentage points larger than BFSI, the second-largest disclosed vertical.

Next Gen Enterprise IT was the largest service line at 61.0% of revenue, followed by Industry 4.0 at 20.6% and Cloud, Data & AI at 18.4%. Although Cloud, Data & AI was the smallest of the three disclosed service lines by revenue mix, the presentation cited strong acceleration in that business during Q2'27. Next Gen Enterprise IT exceeded the combined 39.0% contribution of the other two disclosed service lines by 22.0 percentage points.

What do ITC Infotech’s client and workforce measures show?

ITC Infotech had 12 clients generating more than US$10 million of revenue in Q2'27, compared with nine in Q2'26. Its top 10 client share increased to 48.0% from 46.5% over the same period, a rise of 1.5 percentage points. The figures indicate both an expansion in the number of large accounts and a higher revenue share from the ten largest customers.

ITC Infotech’s headcount reached 13,202 in Q2'27, compared with 12,291 in Q2'26, an increase of 911 employees. Utilisation excluding trainees was 86.9%, down from 88.4% a year earlier. The presentation does not provide a split of this headcount by geography, vertical or service line.

Last-twelve-month voluntary attrition was 13.3% in Q2'27, compared with 17.1% in Q2'26, a reduction of 3.8 percentage points. That decrease occurred alongside the 911-person increase in headcount, while utilisation declined by 1.5 percentage points. These operating measures show that employee additions, attrition and utilisation did not move in the same direction during the year.

Conclusion

ITC Infotech’s Q2'27 presentation shows reported revenue growth of 18.5% to Rs 1,387 crore, an adjusted EBITDA margin of 18.4%, and an increase to 12 US$10 million-plus clients. For H1'27, adjusted EBITDA rose 20.3%, faster than the 17.4% rise in reported revenue, while Europe remained the largest geography at 44.7% and consumer packaged goods, retail and manufacturing remained the largest vertical at 58.3%.

The presentation does not disclose a forward revenue target, margin target or scheduled operating milestone for ITC Infotech. The next reported results will clarify whether acceleration in Cloud, Data & AI and robust Europe and RoW growth continue, and whether the top 10 client share of 48.0%, utilisation of 86.9% and voluntary attrition of 13.3% change further.