XTGLOBAL - XT Global Infot.

📊 NSE: XTGLOBAL 🏢 Computers - Software - Medium / Small 📅 Last Updated: 12/14/2025 15:19

💰 Financial Performance

Revenue Growth by Segment

IT Consulting services and products represent the majority of revenue, with Accounting Outsourcing contributing 10% and Automation products contributing 25% to 30%. Standalone revenue for Q2 FY26 was INR 17.98 Cr, a 1.2% increase from Q1 FY26 (INR 17.77 Cr), but a 2.8% decrease YoY from Q2 FY25 (INR 18.49 Cr). Consolidated revenue for Q2 FY26 stood at INR 94.41 Cr, up 2.3% from Q1 FY26 (INR 92.30 Cr).

Geographic Revenue Split

The majority of revenue is currently sourced from North America (USA). The company has recently initiated revenue generation from Australia and is looking to expand into the Middle East.

Profitability Margins

Standalone PAT margin for Q2 FY26 was 9.8%, improving by 125 bps from 8.6% in Q1 FY26. Consolidated PAT margin for Q2 FY26 was 3.6%, down from 4.0% in Q1 FY26. Standalone EBIT margins improved to 11.9% in Q2 FY26 from 9.9% in Q1 FY26.

EBITDA Margin

Standalone EBITDA margin for Q2 FY26 was 16.0%, a 182 bps improvement over Q1 FY26 (14.2%). However, this is a decline from 20.3% in Q2 FY25. Consolidated EBITDA margin for Q2 FY26 was 7.2%, consistent with Q1 FY26.

Capital Expenditure

As of September 30, 2025, Property, Plant & Equipment stood at INR 79.36 Cr (Consolidated) and Intangible Assets were INR 51.35 Cr. Total assets increased to INR 200.97 Cr from INR 189.94 Cr in the previous period.

Credit Rating & Borrowing

Total consolidated borrowings as of September 2025 were INR 49.77 Cr (INR 28.41 Cr non-current and INR 21.36 Cr current). Standalone finance costs for Q2 FY26 were INR 0.45 Cr, compared to INR 0.42 Cr in Q1 FY26.

⚙️ Operational Drivers

Raw Materials

Human capital is the primary operational cost, with employee costs accounting for 74% of standalone revenue (INR 13.31 Cr) and 50.5% of consolidated revenue (INR 47.65 Cr) in Q2 FY26.

Import Sources

Talent is primarily sourced from India to support the offshore delivery model for global clients, particularly in the US.

Key Suppliers

The company utilizes technical subcontractors, with costs amounting to INR 0.99 Cr (Standalone) and INR 35.68 Cr (Consolidated) in Q2 FY26.

Capacity Expansion

The company is expanding its Global Capability Center (GCC) model and offshore delivery capabilities to drive operational efficiency and margin growth.

Raw Material Costs

Consolidated employee costs increased to INR 47.65 Cr in Q2 FY26 from INR 46.52 Cr in Q1 FY26. Technical subcontractor costs represent 37.8% of consolidated revenue.

Manufacturing Efficiency

The company aims to reach a 15% EBITDA margin by increasing operational efficiency and utilizing the offshore delivery model more effectively.

Logistics & Distribution

Not applicable for the service-based model of XTGlobal.

📈 Strategic Growth

Expected Growth Rate

20% to 25%

Growth Strategy

Growth will be driven by the expansion of the GCC (Global Capability Center) model, scaling the 'Circulus' automation product, and growing the accounting outsourcing business (currently 10% of revenue). The company is also focusing on high-margin Cloud and Automation services and strengthening marketing through digital campaigns and inside sales.

Products & Services

IT Consulting services, Automation products (Circulus), Accounting Outsourcing, Cloud Services, and Vistex product support.

Brand Portfolio

XTGlobal, Circulus.

New Products/Services

Focus on expanding revenue streams in Accounting Outsourcing, Automation, and Cloud Services to capture high-margin opportunities.

Market Expansion

Targeting growth in the domestic Indian market, USA, Australia, and the Middle East.

Strategic Alliances

Partnerships with AWS, Microsoft, Mendix, and UiPath. The company is also a Vistex partner.

🌍 External Factors

Industry Trends

The industry is shifting toward Digital Transformation, Automation, and the GCC model. XTGlobal is positioning itself as a 'Strong Player' by aligning with these global IT trends.

Competitive Landscape

Faces competition from large international companies establishing their own subsidiaries in India and low-cost providers in China and Europe.

Competitive Moat

Moat is built on proven IT expertise, long-term client contracts, and specialized support for products like Vistex. Sustainability is driven by agility and adaptability to technology cycles.

Macro Economic Sensitivity

Highly sensitive to the economic conditions in the USA and Europe, as these regions provide the bulk of revenue.

Consumer Behavior

Clients are increasingly seeking automation and offshore delivery models to optimize their own operational costs.

Geopolitical Risks

Potential for more stringent norms for onsite consulting and restrictions on offshore projects due to changing political situations in the USA and Europe.