Updater Services Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Updater Services Ltd filed with BSE on 04 Jun 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Updater Services reported FY26 revenue growth of about 7% year-on-year to Rs 2,960 crore, with the IFM segment growing 10% and BSS growing 1%. Management addressed a provisioning issue at its Avon subsidiary related to receivables from a logistics and freight brokerage business, taking a total provision of approximately Rs 23 crore over two quarters. Segment CEOs of Denave, Athena and Matrix now report directly to the Managing Director following an organizational simplification.
Numbers mentioned
Revenue: Rs 2,960 crore (FY26)
p. 10
“For the full year, the total revenue from operations grew 7% year-over-year to INR2,960 crores.”
Ram Praveen, page 10 of the filed PDF · View the filing
IFM segment revenue: Rs 1,995 crore (FY26)
p. 10
“The IFM segment grew 10% year-over-year to INR1,995 crores and the BSS segment grew 1% to INR966 crores.”
Ram Praveen, page 10 of the filed PDF · View the filing
Adjusted EBITDA margin: 5.9% (FY26)
p. 10
“The adjusted EBITDA after taking this onetime loss due to Avon incident for the year stood at INR176 crores with the adjusted EBITDA margin standing at 5.9%.”
Ram Praveen, page 10 of the filed PDF · View the filing
PAT: Rs 83 crore (FY26)
p. 10
“The overall PAT is at approximately INR83 crores for the full year.”
Ram Praveen, page 10 of the filed PDF · View the filing
Return on capital employed: 14.9% (FY26)
p. 10
“Adjusted return on capital employed is at 14.9%.”
Ram Praveen, page 10 of the filed PDF · View the filing
Net debt to equity: negative 0.24 (as of March 31, 2026)
p. 10
“Net debt to equity stood at negative 0.24 as of 31st March 2026, reflecting our strong cash generation and disciplined capital management.”
Ram Praveen, page 10 of the filed PDF · View the filing
Q4 revenue: Rs 750 crore (Q4 FY26)
p. 10
“The total revenue from operations for Q4 grew by 3% year-over-year to INR750 crores in FY '26 as compared to INR726 crores in FY '25.”
Ram Praveen, page 10 of the filed PDF · View the filing
Q4 EBITDA: Rs 49 crore (Q4 FY26)
p. 10
“EBITDA for Q4 stood at INR49 crores.”
Ram Praveen, page 10 of the filed PDF · View the filing
Avon provision: Rs 23 crore (FY26)
p. 4
“Over the last two quarters, Avon took a total provision of approximately INR23 crores relating to receivables from its relatively new logistics and freight brokerage business.”
Raghunandana Tangirala, page 4 of the filed PDF · View the filing
Global Flight Handling EBITDA margin: 6% (FY26)
p. 6
“The business delivered an EBITDA of 6% versus 3% last year.”
Raghunandana Tangirala, page 6 of the filed PDF · View the filing
IFM division revenue contribution: 67% (FY26)
p. 5
“The total contribution from IFM segment is 67% for FY '26.”
Raghunandana Tangirala, page 5 of the filed PDF · View the filing
IFM EBITDA margin: 5.2% (FY26)
p. 5
“EBITDA margins for the year stood about 5.2%.”
Raghunandana Tangirala, page 5 of the filed PDF · View the filing
BSS segment revenue: Rs 965 crore (FY26)
p. 6
“The BSS segment revenue for FY '26 reached approximately INR965 crores, which is broadly flat year-on-year.”
Amitabh Jaipuria, page 6 of the filed PDF · View the filing
BSS adjusted EBITDA: Rs 85 crore (FY26)
p. 6
“Adjusted EBITDA, adjusted for onetime on account of Avon for the division stood at INR85 crores with margins standing at approximately 9%.”
Amitabh Jaipuria, page 6 of the filed PDF · View the filing
Denave revenue growth: 11% (FY26)
p. 7
“At an overall level, our sales enablement business under Denave grew 11% over last year with an EBITDA of INR26 crores with a margin of about 4.5%.”
Amitabh Jaipuria, page 7 of the filed PDF · View the filing
Athena revenue: Rs 113 crore (FY26)
p. 7
“Our sales enablement business under Athena in FY '26, the revenue stood at INR113 crores for FY '26 with an EBITDA of INR23.6 crores and an EBITDA margin at 21%.”
Amitabh Jaipuria, page 7 of the filed PDF · View the filing
Matrix EBGC revenue decline: 11% (FY26)
p. 7
“our EBGC business under Matrix underwent a challenging time and witnessed an 11% revenue decline in FY '26 over last year, and the Audit and Assurance business grew at 5.8% in FY26 over last year.”
Amitabh Jaipuria, page 7 of the filed PDF · View the filing
Athena FY25 revenue: Rs 136 crore (FY25)
p. 8
“Revenue for FY '26 stood at INR113 crores as compared to INR136 crores in financial year '25 and EBITDA declined to INR23 crores from INR35 crores.”
Elizabeth Jacob, page 8 of the filed PDF · View the filing
Athena BFSI concentration: 81% (FY26)
p. 8
“As a result, the BFSI concentration reduced from 86% in financial year '25 to 81% in financial year '26.”
Elizabeth Jacob, page 8 of the filed PDF · View the filing
Headcount: 25,586
p. 10
“On headcount, we have crossed 25,586 with 59,000-odd coming from IFM segment and close to 16,000 in the BSS segment.”
Ram Praveen, page 10 of the filed PDF · View the filing
Denave revenue: Rs 590 crore (FY26)
p. 16
“So Denave revenue was at INR590 crores.”
Amitabh Jaipuria, page 16 of the filed PDF · View the filing
Matrix revenue: Rs 128.6 crore (FY26)
p. 16
“Matrix revenue was at INR128.6 crores.”
Amitabh Jaipuria, page 16 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
IFM growth — high single-digit growth · FY27
stated as an aspiration by Raghunandana Tangirala
p. 5
“Looking ahead, we remain confident of delivering healthy high single-digit growth in IFM, supported by strong industry tailwinds, increasing outsourcing penetration and expanded opportunities across industrial manufacturing, infrastructure and commercial real estate.”
Raghunandana Tangirala, page 5 of the filed PDF · View the filing
FY27 revenue guidance — FY27
stated as an aspiration by Amitabh Jaipuria
p. 16
“At this point in time, I would avoid a formal guidance in terms of where we are going to go.”
Amitabh Jaipuria, page 16 of the filed PDF · View the filing
Growth relative to industry — ahead of industry growth · FY27
stated as an aspiration by Amitabh Jaipuria
p. 16
“We believe we will continue to be ahead of the India pack, and that's really all I can say.”
Amitabh Jaipuria, page 16 of the filed PDF · View the filing
Capital allocation — acquisitions, shareholder returns, organic investment
stated firmly by Amitabh Jaipuria
p. 11
“But you will see us move forward on all 3 as this year progresses.”
Amitabh Jaipuria, page 11 of the filed PDF · View the filing
Pending acquisition
stated conditionally by Amitabh Jaipuria
p. 16
“At this point in time, we cannot guarantee that a deal will happen, but we remain cautiously hopeful.”
Amitabh Jaipuria, page 16 of the filed PDF · View the filing
FY27 revenue visibility — 85% to 90% visibility · FY27
stated firmly by Amitabh Jaipuria
p. 15
“So we have visibility of between 85% and 90%.”
Amitabh Jaipuria, page 15 of the filed PDF · View the filing
Q1 FY27 performance — Q1 FY27
stated as an aspiration by Raghunandana Tangirala
p. 17
“We expect to give you better numbers in the next first quarter, but that's not something which we can commit now.”
Raghunandana Tangirala, page 17 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said the cash will be deployed across acquisitions, organic investment in technology and talent, and shareholder returns, with the exact mix a Board decision.
Answered by Amitabh Jaipuria
Asked by Viraj Shah: How does the company plan to utilize its cash of around Rs 450 crore?
p. 11
“Acquisitions, of course, remain the primary use of this cash.”
Amitabh Jaipuria, page 11 of the filed PDF · View the filing
Management said major customer losses have stopped, new non-BFSI logos were added, and margins have stabilized around 19-20%.
Answered by Amitabh Jaipuria
Asked by Viraj Shah: Are there early signs of recovery at Athena and what are normalized margins?
p. 12
“Our margins have also stabilized in the region of about 19% to 20% and this is in terms of financial EBITDA.”
Amitabh Jaipuria, page 12 of the filed PDF · View the filing
Management attributed the BSS decline mainly to Athena and the Avon Transport shutdown, noting other businesses like Denave and Global Flight Handling grew strongly; IFM margin decline was linked to ECL/EPC provisions and lower interest income.
Answered by Amitabh Jaipuria
Asked by Vivek Desai: What drove the BSS revenue decline and margin expansion, and what caused front-loaded costs in IFM?
p. 13
“Denave has actually grown 11% during the year, right? So Denave is the largest part of our business, as you know.”
Amitabh Jaipuria, page 13 of the filed PDF · View the filing
Management said the decline was due to one-time provisioning and lower interest income, both viewed as non-recurring.
Answered by Amitabh Jaipuria
Asked by Priyam Shrivastava: Why is IFM earning a low return on capital despite revenue growth, and what steps are being taken?
p. 14
“So the go-forward action, onetime cleanup done, prudent provisioning done. So that will not roll through this year.”
Amitabh Jaipuria, page 14 of the filed PDF · View the filing
Management said the decision on shareholder returns, whether dividend or buyback, rests with the Board and will factor in growth opportunities.
Answered by Amitabh Jaipuria
Asked by Priyam Shrivastava: Why hasn't the company pursued a buyback given its cash position?
p. 15
“There is a share buyback route and there is a dividend route. It's up to the Board to decide what they want to do.”
Amitabh Jaipuria, page 15 of the filed PDF · View the filing
Management said visibility is currently between 85% and 90%, similar to prior years.
Answered by Amitabh Jaipuria
Asked by Kushal Maheshwari: How much of FY27 revenue is already visible through existing contracts?
p. 15
“So we have visibility of between 85% and 90%. The balance 10% or thereabouts, we'll have to find.”
Amitabh Jaipuria, page 15 of the filed PDF · View the filing
Management declined to give formal guidance, citing encouraging early signs, and said clarity would come after Q1.
Answered by Amitabh Jaipuria
Asked by Mehul: Can management give formal FY27 revenue and EBITDA guidance split by segment?
p. 16
“But at this point in time, I would avoid a formal guidance in terms of where we are going to go.”
Amitabh Jaipuria, page 16 of the filed PDF · View the filing
Management said the deal is still being negotiated with due diligence largely complete but no guarantee of completion.
Answered by Amitabh Jaipuria
Asked by Mehul: Is the previously discussed acquisition still on track?
p. 16
“The DD is almost closed, but there are other negotiating items that are right now being done.”
Amitabh Jaipuria, page 16 of the filed PDF · View the filing
Risks flagged
Provisioning loss at Avon's logistics and freight brokerage business
p. 4
“Over the last two quarters, Avon took a total provision of approximately INR23 crores relating to receivables from its relatively new logistics and freight brokerage business.”
Raghunandana Tangirala, page 4 of the filed PDF · View the filing
Technology spending headwinds and macroeconomic uncertainty affecting Denave
p. 7
“Technology spending headwinds and macroeconomic uncertainty continued to create almost near-term turbulence, particularly in the first half.”
Sunil Munshi, page 7 of the filed PDF · View the filing
Geopolitical tensions creating uncertainty for demand gen industry
p. 8
“Global technology spending trends and geopolitical tensions, as we know, particularly in West Asia, continue to create near-term uncertainty for the overall industry.”
Sunil Munshi, page 8 of the filed PDF · View the filing
Loss of major customers impacting Athena revenue
p. 8
“The company witnessed a meaningful impact on the revenue due to the full year effect of the loss of 2 major customers and the downsizing of operations by another customer during financial year '25 and earlier.”
Elizabeth Jacob, page 8 of the filed PDF · View the filing
Softness in IT and ITES hiring affecting background verification business
p. 9
“we have been guiding over the last for almost 5 or 6 quarters now that we are seeing continued softness in IT hiring, ITES hiring, and that continues.”
Amitabh Jaipuria, page 9 of the filed PDF · View the filing
One large customer reduced spending in Audit and Assurance business
p. 9
“One large customer has reduced their spending.”
Amitabh Jaipuria, page 9 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.