Other income overshadowed Datamatics' operating profit in Q1FY27
Standalone operating margin was 10.22 percentage points below the IT peer median, while a 12.12% tax rate supported reported profit.
Filed 05 Aug 2026, 18:02 IST · after market close · Datamatics Global Services Ltd (DATAMATICS)
Key takeaways
- Standalone Q1FY27 profit before tax was lifted by Rs 20.44 cr of other income against operating profit of Rs 11.49 cr.
- Operating margin of 7.53% was 10.22 percentage points below the 17.75% median for 27 reported IT peers, ranking Datamatics second from the bottom.
- Net profit of Rs 25.52 cr benefited from a 12.12% tax rate alongside the non-operating income contribution.
Price around the results
Operating earnings lagged reported profit
Datamatics' standalone operating profit of Rs 11.49 cr was well below profit before tax of Rs 29.04 cr, with other income of Rs 20.44 cr providing a major lift. The 12.12% tax rate also supported net profit of Rs 25.52 cr, making operating performance a weaker measure of the quarter than reported earnings.
Q1 margin was near the bottom of the IT peer set
The 7.53% operating margin trailed the 17.75% median among 27 IT peers that had reported the same quarter by 10.22 percentage points. Datamatics ranked second from the bottom, highlighting the gap between its operating profitability and the sector comparison.
Presentation cites global-vendor recognition
The company's presentation said Datamatics was recognized among the Top 15 Global Vendors in an analyst recognition. This was the main disclosed competitive positioning point alongside the quarterly financials.
Results were filed after market close
Datamatics filed its standalone Q1FY27 results at 18:02 IST on 5 August 2026, after market close. The immediate stock reaction was therefore not part of the results-day record.
Q1FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹153 cr |
| Other income | ₹20 cr |
| Expenses | ₹141 cr |
| Operating profit | ₹11 cr |
| Operating margin (%) | 7.53% |
| Interest | ₹1 cr |
| Depreciation | ₹2 cr |
| Profit before tax | ₹29 cr |
| Tax | ₹4 cr |
| Net profit | ₹26 cr |
| EPS (₹) | ₹4.32 |
Operating margin of 7.53% compares with a Information Technology sector median of 17.75% across 27 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Competition
- Datamatics was recognized among the Top 15 Global Vendors in an analyst recognition.
What to watch
- Whether operating margin moves up from 7.53% toward the 17.75% IT peer median.
- Whether operating profit narrows the gap with profit before tax of Rs 29.04 cr as other income moves from Rs 20.44 cr.
- Whether the tax rate remains near 12.12% in the next reported quarter.