'Next Three Years Look Very Promising,' Datamatics CEO Kanodia Says After Implementing AI-First Strategy

Datamatics Global Services' early start in artificial intelligence has positioned it to capture opportunities in the coming years according to its Chief Executive Officer Rahul Kanodia.

Speaking to NDTV Profit, Kanodia said the company's partnerships with global technology companies, including Microsoft and Google, give it an edge in the market. "The next two to three years look very promising," he said.

This comes as the company's share price has surged nearly 60% in the last six months and 42% over the past month.

For the first quarter of the 2026 financial year, Datamatics reported a drop in revenue but an improvement in profit. Consolidated revenue fell 6% to Rs 467.56 crore, down from Rs 497.15 crore in the previous quarter. All three business segments declined: Digital Operations fell 4% to Rs 255.62 crore, Digital Experiences dropped 6% to Rs 67.58 crore, and Digital Technologies was down 9% to Rs 144.36 crore.

Despite the drop in revenue, net profit rose 12% to Rs 50.38 crore, up from Rs 44.86 crore, due to better cost management. Operating margins expanded to 12.1% from 11.0%, while EBIT grew 3% to Rs 56.43 crore. Quarterly attrition remained steady at 3.61%.

The United States accounted for 55% of revenue, up from 54%, while the UK and Europe's share increased to 21% from 15%. The company's revenue from India fell to 16% and the Rest of the World dropped to 8%.

Kanodia said customer uncertainty and slower decision-making are expected to continue for the near term. "That turmoil will continue," he said, adding that no change is expected for the next six months. The company is targeting mid-single-digit organic growth despite the uncertain demand.