XT Global Infot.

XTGlobal Infotech reported strong consolidated financial results for Q2 and H1 FY26. Consolidated revenue for Q2 FY26 reached ₹94.41 crores, marking a 93.7% year-on-year and 2.3% quarter-on-quarter growth. Consolidated PAT for Q2 FY26 stood at ₹3.44 crores, growing 26.9% YoY. For the first half of FY26, consolidated revenue was ₹186.72 crores (up 90.4% YoY), with PAT at ₹7.18 crores (up 47.1% YoY). Standalone Q2 FY26 revenue was ₹17.99 crores, with EBITDA at ₹2.88 crores, showing a 14.2% QoQ improvement and EBITDA margins expanding by 182 basis points.

The company strengthened its market footprint by adding 11 new clients as of November 13, 2025, comprising seven in finance and accounting services and four in IT services. XTGlobal also expanded its global presence by launching operations in Australia, securing two anchor projects. In the public sector, the company won its first major RFP with the U.S. Department of Transportation, valued at $5 million over five years, with an expectation to consistently win $1 to $1.5 million annually from this customer.

XTGlobal is focusing on margin improvement through better utilization, disciplined hiring, and stable attrition. The company successfully exited its Madhurawada SEZ unit, providing greater operational flexibility and reducing compliance efforts. A new CRM platform is being rolled out to enhance lead visibility and client engagement, scheduled to go live in December 2025. The company also noted its existing infrastructure can support growth up to 2,000 employees without significant additional capital expenditure.

The Board approved an interim dividend of 5 paise per equity share for FY25-26, representing 5% of the face value of ₹1, with November 21, 2025, as the record date. Management expressed its intention to provide dividends twice a year, with an interim and one more payout. They anticipate improved profit margins in the coming years, which should enable better dividend payouts.

Despite a global economy growing at 3% and India's economy accelerating to 7.8% in Q2 FY26, the Indian IT sector faces moderated demand and deferred discretionary spending due to macro uncertainty^🌐 and U.S. tariff-related noise. XTGlobal sees compelling growth opportunities in cloud, automation, AI-led services, and offshoring demand in finance and accounting. The company's focus on a Global Delivery Center (GDC) model is seen as an advantage, particularly given H-1B visa challenges faced by clients.

XTGlobal is actively seeking strategic acquisitions that align culturally and enhance capabilities, whether horizontally, vertically, or geographically. The company is currently in discussions with a couple of potential targets. Management is targeting a stabilized revenue growth rate of 20% to 25% for FY26-27 and aims to achieve an EBITDA margin of at least 15% by FY27, driven by operational efficiency and leveraging its existing infrastructure.