XTGlobal Infotech: Q3 FY26 Showcases Resilient Growth and Margin Expansion

XTGlobal Infotech Limited has delivered a robust performance for the third quarter and nine months ended December 31, 2025, demonstrating resilience and significant margin expansion despite a selective demand environment. The company's standalone revenue for Q3 FY26 reached ₹17.8 crore, marking a 2.7% year-on-year increase. More notably, profitability saw a substantial boost, with EBITDA soaring by 46.0% year-on-year to ₹4.3 crore. This impressive growth translated into a 716 basis point expansion in EBITDA margins, reaching 24.2%. Profit After Tax (PAT) also grew significantly by 38.1% year-on-year to ₹1.6 crore, with PAT margins improving by 229 basis points to 8.9%.

For the nine-month period of FY26, XTGlobal Infotech reported standalone revenue of ₹53.6 crore. EBITDA for this period stood at ₹9.7 crore, with a margin of 18.1%, while PAT reached ₹4.9 crore, reflecting a PAT margin of 9.1%. This consistent performance underscores the company's effective execution, deeper market penetration within key accounts, and sustained operating leverage across its business segments. During the quarter, the company successfully added 7 new client engagements, comprising 5 in Finance & Accounting Services and 2 in Digital IT Services, which is expected to enhance revenue visibility and strengthen its client portfolio in the coming quarters.

Strategic Initiatives and Operational Enhancements

XTGlobal Infotech has been proactive in implementing strategic initiatives to bolster its operational efficiency and market positioning. A significant development is the successful mutation and name change of its Madhurawada Unit. Following its exit from the SEZ unit at MSEZ, Madhurawada, the company received approval from the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) for the name change/mutation from Xenosoft to XTGlobal in its records. This marks the final step in the SEZ exit process, allowing the unit to operate fully as a non-SEZ entity, which is expected to support better alignment and future growth prospects.

Furthermore, the company is undergoing a comprehensive ZOHO Platform Transformation. Core functions, including Zoho People, Payroll, Books, Recruit, Expense, and Analytics, are now live on the Zoho platform. The Zoho Customer Relationship Management (CRM) system is in its final rollout stage, with data migration underway and go-live anticipated shortly. This transformation is aimed at strengthening process integration and enhancing sales efficiency across the organization.

Market Opportunities and Growth Strategy

Looking ahead, XTGlobal Infotech is witnessing increasing traction in Global Capability Centre (GCC)-linked engagements, as enterprises continue to expand their India-based delivery capabilities. While discretionary spending remains measured in the broader market, the demand for cloud modernization, automation, and efficiency-led transformation initiatives continues to support the company's robust pipeline. The company's growth strategy is centered on strengthening client partnerships and expanding market reach by targeting high-growth sectors such as BFSI, Healthcare, Manufacturing, Real Estate, Hospitality, and Retail with tailored digital solutions.

XTGlobal is also focused on enhancing its ERP, Cloud, and Automation services with Robotic Process Automation (RPA) and Intelligent Automation to optimize workflows. The company plans to scale its Digital & Cloud capabilities through strategic partnerships with industry leaders like Oracle and Microsoft. By driving talent and operational excellence through an agile, client-focused delivery model, XTGlobal aims to sustain profitable growth and create long-term shareholder value. The company's proven IT expertise, robust long-term client contracts, and expanding presence in high-growth domains position it as a strong player in the evolving digital landscape.

Consolidated Performance Overview

For the consolidated financials, XTGlobal Infotech reported revenue of ₹92.5 crore for Q3 FY26 and ₹279.2 crore for 9M FY26. Consolidated EBITDA stood at ₹9.2 crore for Q3 FY26 (10.0% margin) and ₹22.6 crore for 9M FY26 (8.1% margin). Consolidated PAT was ₹3.7 crore for Q3 FY26 (4.0% margin) and ₹10.9 crore for 9M FY26 (3.9% margin). It is important to note that year-on-year consolidated financial results are not presented due to the consolidation of Network Objects, an associate company that became a subsidiary effective January 2025. This makes direct year-on-year comparisons not strictly like-for-like.

XTGlobal Infotech's Q3 FY26 performance underscores its strategic clarity and disciplined execution. The company's focus on margin-accretive growth, client expansion, and operational efficiencies positions it well to navigate the dynamic market and capitalize on emerging opportunities in digital transformation and automation.