Updater Services reports growth amid strategic contract ramp-up, margins dip

Updater Services Limited (UDS) announced its consolidated unaudited financial results for Q2 and H1 FY26, reporting a 7% year-over-year increase in total revenue from operations to ₹7,349 million in Q2 FY26. However, reported EBITDA for Q2 FY26 saw a 27% decline year-over-year to ₹371 million, with the EBITDA margin falling from 7.4% to 5.0%. Profit After Tax (PAT) also decreased by 29% to ₹198 million in Q2 FY26. For H1 FY26, total revenue rose 7% to ₹14,402 million, while EBITDA declined 17% to ₹815 million, and PAT decreased 9% to ₹488 million.

The company attributed the margin impact to upfront employee costs associated with new, strategic contracts still in their ramp-up phase, which are expected to normalize in coming quarters. UDS projects a revenue growth of 9-10% for the full year FY26. The firm also highlighted its continued investment in digital tools and automation capabilities to future-proof its businesses.

In H1 FY26, UDS Group added 28 Marquee Logos across its Business Support Services (BSS) and Integrated Facility Management (IFM) segments and received the "Great Place to Work" accreditation for the third consecutive year. The BSS segment grew at 2% to ₹2,419 million in Q2 FY26, while the IFM segment increased by 10% to ₹4,929 million.