Motilal Oswal cuts its earnings estimates by 12%/8% for FY26E/FY27E to reflect the slower growth trajectory and margin pressures across both IFM and BSS segments. Updater's management's guidance downgrade to 9–10% growth for FY26 (from 13–15% earlier), coupled with persistent weakness in the BSS portfolio, suggests a more gradual recovery ahead.
NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Updater Services Ltd. reported a Q2 FY26 revenue growth of 7% YoY to Rs 7.3 billion, below our estimate of ~Rs 7.7 billion. Core Ebitda margin came in at 4.3% (estimate 5.9%), down 130bp QoQ.
Consolidated adjusted net profit stood at Rs 198 million (down 30% YoY), below our estimate of Rs 321 million.
Updarer's H1 FY26 revenue grew 7.3% YoY, whereas Ebitda declined 16.3% YoY. For H2 FY26, we expect its revenue/Ebitda to grow by 13%/1.0% YoY.
We downgrade the stock to Neutral with a revised target price of Rs 230, as weaker BSS trends (FY26 growth cut to 3–3.5%), lower overall guidance (9–10% vs 13– 15% earlier), margin pressures from client issues, and ramp-up costs limit near-term visibility.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
