Transcript of Q2 & H1 FY26 Earnings Conference Call held on Tuesday, November 18, 2025
XTG LOBAL)
Date: 20/11/2025
To, The Listing Department, BSE Limited, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001. BSE Scrip Code: 531225
XTGLOBAL INFOTECH LIMITED Regd Office: Plot No. 31P & 32, 3™ Floor, Tower A, Ramky Selenium, Financial District, Nanakramguda, Hyderabad — 500 032 Tel No.: 040 - 66353456
CIN: L72200TG1986PLC006644
To, The Listing Department, National Stock Exchange of India Limited, Exchange Plaza, C-1, Block G, Bandra-Kurla Complex, Bandra (East), Mumbai - 400 051. NSE Symbol: XTGLOBAL
Subject: Transcript of Q2 & H1 FY26 Earnings Conference Call held on Tuesday, November 18, 2025.
Dear Sir/Madam,
Please refer to our Q2 & H1 FY26 Earnings Conference Call, scheduled for Tuesday, November 18, 2025, at 10:00 AM (IST), as announced in our letter dated November 12, 2025.
Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed the Q2 & H1 FY26 Earnings Conference Call transcript.
You are requested to take the same on record.
Thanking you,
Yours faithfully, For XTGlobal Infotech Limited Digitally signed by Pentela Sridhar Date: 2025.11.20 13:41:45 +05'30°
Pentela
Sridhar
.
Sridhar Pentela Company Secretary & Compliance Officer ACS 55735
XTGLOBAL)
XTGLOBAL)
XTGlobal Infotech Limited
Q2 & H1 FY26 Earnings Conference Call Transcript Tuesday, 18" November 2025
MANAGEMENT:
¢+
Mr. Ramarao Mullapudi - CEO, President & Director
Others:
Mr. Raghuram Kusuluri - Chief Financial Officer
Mr. Sridhar Pentela - Company Secretary & Compliance Officer
Q2 & HI FY26 Eamings Conference Call Transcript
XTGLOBAL)
Moderator:
Ladies and gentlemen, good morning and welcome to the XTGlobal Infotech
Limited Q2 and H1 FY'26 Earnings Conference Call hosted by Rik Capital.
We have with
us today from the XT Global Infotech Ltd management
Mr. Ramarao Mullapudi, CEO,
President and
Director,
Mr. Raghuram
Kusuluri,
Chief
Financial
Officer,
and
Mr.
Sridhar
Pentela, Company
Secretary and Compliance Officer.
Today's
discussion
may
be
forward-looking
in
nature
based
on
management's current beliefs and expectations. It must be viewed in
conjunction with the risks that our business faces that could cause our
future results, performance or achievements to differ significantly from
what may be expressed or implied by such forward-looking statements.
I now hand the conference over to Mr. Raghuram Kusuluri, Chief Financial
Officer, for opening remarks. Thank you, and over to you, sir.
Raghuram Kusuluri:
Thank you so much. Good morning, everyone and thank you for joining
XTGlobal's Q2 and first
half year of the Financial Year 2026 earnings
conference call. We appreciate your time and interest in our company's
performance. I trust you have had the opportunity to review our financial
results, investor presentation and press release available on our website
and on BSE and NSE portals.
To begin today's discussion, I will first share an overview of the prevailing
economic and industry environment, followed by a detailed update on our
operational progress and financial performance for the quarter and first half
of FY'25-26.
Economy and sector - The global economy continues to remain steady
despite persistent trade tensions and shifting policy dynamics. Growth is
holding around the 3% mark, supported by a rebound in global trade
activity during the first half of FY'26. At the same time, evolving tariff
structures and supply chain reassessments are prompting organizations to
re-evaluate how technology and IT services are sourced across regions.
India stands at a strategic advantage within this changing global landscape.
The economy expanded 6.5% in FY'25 and further accelerated to 7.8% in
Q2 FY'26, the fastest pace in over a year. This strong macro-economic
environment continues
to
support
digital
transformation
efforts
and
sustained investments in technology and services. Within this environment,
however, the Indian IT sector remains in
a phase of moderated demand.
Discretionary spending by clients is being deferred due to broader macro
uncertainty and ongoing tariff-related
noise
in
the
U.S. market. BFSI
Q2 & HI FY26 Eamings Conference Call Transcript
XTGLOBAL)
continues to remain stable, healthcare is exhibiting cautious sentiment,
while retail and automotive verticals are facing policy-driven pressures.
Deal
flow
remains
concentrated
around
cost
optimization,
vendor
consolidation, and efficiency-driven engagements.
Looking ahead, the
sector's focus
is
steadily
shifting toward
margin
improvement through
better
utilization,
disciplined
hiring,
and
stable
attrition. A strong pipeline across cloud, automation, Al-led services, and
rising offshoring demand in finance and accounting continues to present
compelling growth opportunities. By strengthening our automation and Al
capabilities, expanding high-value consulting services, and deepening our
global presence, we believe we are positioned to benefit meaningfully from
the industry's next phase of recovery.
Coming to operational performance, during the quarter, we strengthened
our business fundamentals and further expanded our market footprint. As
of November 13, 2025, we added 11 new clients, seven in finance and
accounting services, and four in IT services. These additions solidify our
presence across key verticals and are expected to support revenue growth
in the coming quarter.
We are pleased to announce that the Board has approved an
interim
dividend of 5 paise per equity share of face value of Z1, representing 5% of
the face value for the FY25-26, with 215t November 2025 as the record date.
We also successfully completed our compliant exit from the Madhurawada
SEZ unit
in Visakhapatnam. This strategic transition provides greater
operational
flexibility,
reduces
compliance
effort,
and
opens
up
opportunities to monetize unused infrastructure.
Another significant development during
the
quarter was
the
digital
transformation of our sales operations. We initiated the rollout of a new
CRM platform designed to enhance lead
visibility, strengthen pipeline
discipline, and improve client engagement. The platform is scheduled to go
live in December 2025.
In addition, we expanded our global footprint by launching operations in
Australia. We secured two anchor projects, which position us well
in
a
market with robust demand for digital and IT services. This expansion
enhances our
international
presence and
supports long-term growth
opportunities. Across our business lines, we continue to align with strong
industry trends such as
digital finance transformation, cloud adoption,
intelligent automation, robotic process automation, and offshore finance
Q2 & HI FY26 Eamings Conference Call Transcript
XTGLOBAL)
and accounting outsourcing. These themes continue to drive consistent and
sustainable demand for our offerings.
Let me walk you through our financial performance during the quarter.
Standalone, Q2 FY2025-26 performance showed a revenue increase to
%17.99 crore, reflecting a 1.2% quarter-on-quarter growth. EBITDA rose to
7288 lakhs, a strong 14.2% quarter-on-quarter improvement driven by
efficiency measures. EBIT grew 22% quarter-on-quarter, reaching to 214
lakhs, supporting by improved productivity. PAT was 7176 lakhs, delivering
16% quarter-on-quarter growth and 4.3% year-on-year growth despite a
high base. We also saw increasing margin expansion. EBITDA margins
improved by 182 basis points, and EBIT margins improved by 203 basis
points. Consolidated Q2 FY2025-26 performance showed a consolidated
revenue increase to 794.41 crores, up by 2.3% quarter-on-quarter and
93.7% year-on-year. EBITDA came in at 678 lakhs, growing 2.5% quarter-
on-quarter. EBIT rose to ¥518 lakhs, a 5.4% quarter-on-quarter and 17.1%
year-on-year increase. PAT stood at ¥344 lakhs, delivering 26.9% year-on-
year growth.
For the first half of the year, our standalone business continued to remain
stable. Revenue at 735.76 crore, EBITDA 7540 lakhs, EBIT 2389 lakhs and
PAT at 329 lakhs. Margins have begun stabilizing and the business is
moving towards consistent forward momentum. Our consolidated first-half
performance reflects strong
scale
benefits
and operational discipline.
Revenue reached 7186.72 crore, a 90.4% year-on-year increase. EBITDA
stood at 71,339 lakhs, growing 11.6% year-on-year. EBIT increased to
71,009 lakhs, 25% up by 25% year-on-year. PAT rose to ¥718 lakhs, a
strong 47.1% year-on-year growth.
The growth reflects the positive impact of our broadened capabilities with
the successful integration of network objects, which continues to contribute
meaningfully to our consolidated performance.
With this, I would like to conclude and open the floor for any questions.
Thank you.
Moderator:
Thank you. Ladies and gentlemen, we will begin the question and answer
session. We take the first question from the line of Rishabh Sharma from
SK Capital. Please go ahead.
Rishabh Sharma:
Thank you for the opportunity. I can see that the company reported 2.3%
sequential and 93.7% year-on-year consolidated revenue. So, can you
Q2 & HI FY26 Eamings Conference Call Transcript
XTGLOBAL)
break down the
key drivers
of
this revenue momentum by
vertical,
geography and service line?
Raghuram Kusuluri:
Industry vertical you are talking about?
Rishabh Sharma:
Sir, vertical means the business vertical.
Ramarao Mullapudi:
As of this last quarter, we are not declaring results by vertical, but going
forward from the next quarter, we will be declaring based on the vertical
side. Segment wise declaration is going to be there. But geographic wise,
most of the revenue right now is coming from the US side. We just started
getting revenue from Australia, but otherwise most of the revenue is coming
from North America right now.
Rishabh Sharma:
According to the services, most of the revenue is coming from which
services?
Raghuram Kusuluri:
Yes, most of the revenue Is coming from IT consulting services and
products. We have an automation product and accounting outsourcing
services. 10% is from accounting outsourcing services, and 25% to 30% is
product revenue and
the balance is
IT consulting. Around 50% is
IT
consulting and 50% is product and accounting outsourcing services.
Rishabh Sharma:
Okay, sir. And with this quarter, with the interim dividend payout, how can
we see the dividend policy evolving if the business has changed its current
operating performance?
Ramarao Mullapudi:
Yes. Our intention is to try and give dividends twice a year is what our plan
is, interim and then one more after that. That is how the current plan is.
Twice a year is what the plan is at this point.
Rishabh Sharma:
Thank you, sir. And I wish you all the best for the upcoming quarter.
Ramarao Mullapudi:
Thank you so much.
Moderator:
Thank you. We take the next question from the line
of Diya Jain from
Sapphire Capital. Please go ahead.
Diya Jain:
Hi, sir. Hope I am audible.
Ramarao Mullapudi:
Yes, please.
Diya Jain:
How does the H-1B visa impact us as most of our revenue comes from North
America?
Q2 & HI FY26 Eamings Conference Call Transcript
XTGLOBAL)
Ramarao Mullapudi:
Yes. Thanks for asking that question. So we as
a company, are
not
dependent on H-1B. So our H-1, so overall our H-1 revenue is very minimal.
We have less than I would say 25 employees who are actually H-1, and they
are also being with us for quite a long term. So our impact on H-1B is
actually less. And what we actually see is that it
is cost-effective for our
company. We see a
lot of growth opportunities in offshore IT services. We
as a company, are focusing on GDC as a service because of our excellent
infrastructure that we already have in place. We are able to present our
clients with a GDC model of a service, which is because of immigration
issues that our clients are seeing, mid-market companies are not able to
get the talent that is needed. So we are offering that benefit to the
customers. So it is actually we feel because our company is not dependent
on H-1B and then because of immigration issues, we see a lot more coming
to offshore services model. A lot of clients are looking for that. So we feel
it
is an advantage frankly, for us right now.
Diya Jain:
All right. And can you talk about network objects, your subsidiary and how
much it contributes to your overall revenue?
Ramarao Mullapudi:
Yes. Right now, about $20 million in revenue and then mainly it
is onsite
consulting. So the contribution of network objects in terms of our India
standalone finances is very minimal. It is all onsite consulting is what they
have right now. But there is also the split, where most of them are coming
as local consultants. So their dependency on H-1B is also not substantial at
this point of time. They have a consistent revenue coming from the last two
years from the clients, and their main focus is on supporting Vistex product
services. They are mostly focused on reaching Vistex as a product support.
That is what they do.
Diya Jain:
Okay. And any revenue and margin guidance for your H2 and FY'27?
Ramarao Mullapudi:
Yes. Our costs are stabilized from the actual non-billable revenue or non-
billable expenses because of the team that we built in non-billable revenue
expenditure is stabilized for us. So whatever we grow in terms of revenue,
positive revenue with GCC as
a service, our product side, our already
contracts that were already put in place in the last couple of years, which is
a long-term contracts, we see revenue stabilizing going. And more than
that, our EBITDA margins are expected to grow based on our current plans
that we see either in the GCC model or
in other ways, right, offshore
delivery model. Our gross profits and net profits are expected to grow up
over the next year or two.
Diya Jain:
Okay. Can you quantify the number?
Q2 & HI FY26 Eamings Conference Call Transcript
XTGLOBAL)
Ramarao Mullapudi:
We are basically looking at a stabilized at least 20% to 25% growth rate is
what our expectation is, our plans are. That is the goal that we have right
now in terms of revenue growth.
Diya Jain:
Can we achieve it this year or maybe by FY2027?
Ramarao Mullapudi:
We are looking at the fiscal year 2026-2027 is the growth plan that we are
looking.
Diya Jain:
And EBITDA margin, sir?
Raghuram Kusuluri:
Yes, at least 10% to 15%. So we are planning to achieve EBITDA margin of
at least 15% by increasing our operational efficiency and by utilizing our
existing infrastructure and also our capabilities. So we have very good
human capital, like we have long-standing employees, those who served us
here with us for more than 15 year. We are going to capitalize that expertise
and increasing our product revenue. So, because whatever we already
spent is spent, like we have to spend a minimal amount to increase, to scale
up to the next level. So that will help us to maximize our profitability EBITDA
margin.
Ramarao Mullapudi:
To add to that, we want to let you know again that we have infrastructure
that can support up to growth up to 2,000 employees without putting not
much additional capital in terms of infrastructure, own facilities. That is the
biggest asset for us in this new GCC kind of service model that we are going
for.
Diya Jain:
From this 10% to 15%, that is like a long-term target or that we can achieve
in FY'27?
Ramarao Mullapudi:
Yes, goal it for the next fiscal year.
Diya Jain:
Okay, sir. Understood. Thank you and all the best.
Moderator:
Thank you. We take the next question from the line of Divya Dutta from
Harmonium Capital. Please go ahead.
Divya Dutta:
Am I audible, sir?
Moderator:
Yes, please go ahead.
Divya Dutta:
Sir, last quarter, we began indoors in the U.S. government sector. So how
is this contributing in Q2 and what opportunity growth pipeline we have
currently? This is my first question. Second one, the interim dividend, which
Q2 & HI FY26 Eamings Conference Call Transcript
XTGLOBAL)
you announced this quarter, so how do we see the dividend policy evolving
coming quarter? Thank you.
Ramarao Mullapudi:
Thanks for the question. For the first question, right, for the government
contracts, this is our entire process for the last several years. We are mainly
focused on the private sector and on the product side of revenue. Only this
year we started trying to get into the public sector and we won our first
major RFP that we announced for the public sector, the Department of
Transportation. So, in that, it is $5 million over a period of five years is what
the award was, but each and every project is different and we won our first,
within that, in the last quarter, very first project that came out after vendor
collection was this, and we were able to win that. And we see consistently
winning around $1
to $1.5 million worth of revenue coming from this
particular public sector customer over the next few years is what our
expectation is at this point. Again, it
is a competitive bidding. We have to
bid each and every time, but that is what we have projected to win at this
point of time.
And regarding your second question, dividend, again, our goal is at this
point, I answered the previous person's question also. Our goal is to be able
to give at least twice a year dividend policy is what we are trying to get to
at this point of time. Depending on that particular quarter, that particular
offer, we will try to see what the best we can do on the dividend. But our
goal is to be able to provide dividend. Our margins and our profitability over
a period of last several years we are always been consistently profitable and
we believe that our profit margins will go up over the next years, and we
should be able to do better on the dividends as well.
Divya Dutta:
Thank you, sir. My last question is, as two - three quarters back, we had a
press release on that we are looking for new acquisitions. So have we
thought about something on that line?
Ramarao Mullapudi:
Yes. As a company, we have been looking for acquisitions, for the right kind
of acquisition, over the last several months. When we say the right fit
is
more important for
us, both culturally, how we integrate the acquired
company, what the capabilities that they are bringing in addition to what
we have, whether it
is horizontal fit or vertical fit or it is geographic. So we
are looking at various acquisitions and as of now also, we are consistently
in touch and at this point of time also, we are in discussions with a couple
of companies. Again, that has to materialize. We have to look at various
reasons, but we are always in look out for acquisitions is what I would say.
Q2 & HI FY26 Eamings Conference Call Transcript
XTGLOBAL)
Moderator:
Thank you. We take the next question from the line of Rishabh Sharma from
SK Capital. Please go ahead.
Rishabh Sharma:
Thank you once again, sir. With the recent expansion in Australia, where
we have secured two projects in finance and accounting, considering the
press releases I have read regarding the UK initiative, what progress has
been made in the UK market?
Ramarao Mullapudi:
Yes. When we started wanting to get into Australia, those two projects that
we won, actually won based on not even having an office, but be able to
promote in Australia as a foreign corporation or as an Indian company. So
at the same time, we started in the UK also or Europe also, and then we
are able to see some traction in the UK market right now or Europe market,
but we have not closed anything at this point, but we are looking at it. But
opening offices, we are actually pursuing this quarter to be able to open
offices in both locations, Australia as well as in Europe or Ireland-based
Europe as they go both the locations. We are working on it.
Rishabh Sharma:
Thank you sir.
Moderator:
Thank you. Ladies and gentlemen, as there are no further questions, I would
now hand the conference over to
the management for
their closing
comments.
Raghuram Kusuluri:
Thank you. Thank you, everyone for your questions. I hope you are all
satisfied with the answers. And with this, we would like
to conclude our
second quarter and first half year of the financial year 2025-2026 earnings
call. Thank you everyone. You can reach out to our investor relations team
for any queries. Thank you so much.
Moderator:
Thank you.
On
behalf of XTGlobal Infotech
Limited,
I conclude this
conference. Thank you for joining us and you may now disconnect your
lines.
(This document has been edited for readability purposes.)
Q2 & HI FY26 Eamings Conference Call Transcript
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