Datamatics Global Services Limited (DATAMATICS) AI Stock Analysis

• Market Cap: ₹41.48B
• Dividend Yield: 0.58%
• Average Volume (3M): 13.42K
• Price to Earnings (P/E): 21.3
• Beta (1Y): 1.34
• Revenue Growth: 18.81%
• EPS Growth: 29.35%
• Country: IN
• Employees: 12,311
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 6.16
• Shares Outstanding: 59,106,388
• 10 Day Avg. Volume: 12,368
• 30 Day Avg. Volume: 13,416
• PEG Ratio: 5.53
• Price to Book (P/B): 2.74
• Price to Sales (P/S): 2.17
• P/FCF Ratio: 19.94
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ₹779.00 ▼(-2.33% Downside)

Datamatics Global Services scores well due to its strong financial performance, characterized by high profitability and a solid balance sheet. Technical analysis indicates neutral momentum, while valuation metrics suggest moderate pricing. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Balance sheet strength

Conservative leverage and a high equity ratio provide durable financial flexibility. This strengthens the company's ability to fund organic growth, absorb cyclical shocks, and pursue strategic investments or acquisitions without stressing creditors or needing urgent external financing.

Sustainable profitability

Healthy gross and net margins reflect lasting operational efficiency and pricing power in services and automation offerings. Consistent margins support reinvestment in capabilities, platform development and talent, underpinning long-term competitive positioning in digital and BPM services.

Cash generation quality

Positive free cash flow growth and strong cash conversion indicate the business reliably converts earnings into cash. That supports sustainable capital allocation for capex, platform investment, and working capital needs, enhancing resilience over multi‑quarter cycles.

Negative Factors

Declining cash reserves

A declining cash reserve trend weakens the liquidity buffer needed for payroll, client program scaling, or opportunistic investments. Over several quarters this could force higher borrowing, constrain capital allocation choices, and increase vulnerability to demand shocks.

EBITDA margin pressure

A falling EBITDA margin signals rising costs or margin compression in service delivery. If persistent, it will reduce operating leverage, lower cash flow generation capacity, and require structural cost optimization or pricing improvements to maintain long‑term returns.

Free cash flow conversion below earnings

FCF below net income implies that some reported earnings are not fully realized as cash. Over time this limits balance sheet strengthening and discretionary spending, and increases sensitivity to working capital swings or investment timing decisions.

Datamatics Global Services Limited Business Overview & Revenue Model

Company Description

Datamatics Global Services Limited provides information technology (IT), business process management, consulting, and engineering services in India, the United States, Europe, and internationally. The company operates through two segments, IT Services and Business Process Management. It offers TruBot, a digital workforce product that enables unattended and attended automation for a range of tasks and processes; TruCap+, an intelligent document processing solution; iPM, an intelligent process manager and a web-based workflow system; and True Test, a robotic test automation solution. The company also provides Trade Finance, a business accelerator solution that automates trade lifecycle; TruFare, an automated fare collection system for rapid transit systems; TruBI, a business intelligence and data visualization tool; and TrueAI, an artificial intelligence and cognitive sciences platform. It serves banking and finance, media and publishing, healthcare, transportation, insurance, manufacturing and logistics, travel and hospitality, retail and e-commerce, market research, education technology, and international organizations. The company was formerly known as Datamatics Technologies Limited and changed its name to Datamatics Global Services Limited in January 2009. The company was founded in 1975 and is based in Mumbai, India. Datamatics Global Services Limited is a subsidiary of Delta Infosolutions Private Limited.

How the Company Makes Money

DATAMATICS generates revenue primarily through its diverse service offerings. Key revenue streams include IT services, which encompass software development, application management, and IT consulting; business process outsourcing (BPO) services, which provide companies with outsourcing solutions for their operational tasks; and data management services that include data entry, data processing, and data analytics. The company also earns revenue from licensing its proprietary technology and software solutions. Significant partnerships with various multinational corporations and enterprises enhance its market reach and customer base, contributing positively to its earnings. Additionally, DATAMATICS benefits from long-term contracts with clients, which provide stable and recurring revenue.

Datamatics Global Services Limited Financial Statement Overview

Summary

Datamatics Global Services demonstrates strong financial performance with robust revenue growth, high profitability margins, and effective return on equity. The balance sheet is solid with low leverage, though a decrease in cash reserves suggests a need for careful liquidity management.

Income Statement

Datamatics Global Services has demonstrated strong revenue growth, with a notable increase of 11.2% in the latest year. The company also maintains a robust gross profit margin of 34.9% and a healthy net profit margin of 11.9%. EBIT and EBITDA margins have shown improvement, reflecting operational efficiency. However, the slight decline in EBITDA margin from the previous year suggests a need to monitor cost controls closely.

Balance Sheet

The balance sheet of Datamatics Global Services is solid with a low debt-to-equity ratio of 0.14, indicating conservative leverage practices. Return on equity stands at 15%, showcasing effective utilization of equity to generate profits. The equity ratio of 66.3% highlights strong financial stability with a significant portion of assets funded by equity. However, the reduction in cash reserves over the years could pose a potential risk if liquidity needs arise.

Cash Flow

Datamatics Global Services shows a positive trend in free cash flow growth, with an increase of 12%. The operating cash flow to net income ratio is favorable at 1.09, indicating effective cash conversion from net income. The free cash flow to net income ratio of 0.92 suggests strong cash generation relative to earnings, though there is room for improvement. The company's ability to maintain healthy cash flows supports its operational resilience.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	17.97B	17.23B	15.50B	14.59B	12.01B	11.49B
Gross Profit	6.06B	3.83B	5.50B	5.59B	4.56B	3.97B
EBITDA	3.18B	2.30B	2.91B	2.83B	2.30B	1.53B
Net Income	2.12B	2.05B	1.98B	1.89B	1.57B	797.46M
Balance Sheet
Total Assets	0.00	20.56B	14.63B	12.81B	11.10B	9.08B
Cash, Cash Equivalents and Short-Term Investments	3.65B	3.65B	4.58B	3.91B	4.26B	3.27B
Total Debt	0.00	1.90B	173.80M	212.60M	630.21M	200.68M
Total Liabilities	-13.56B	7.00B	2.43B	2.41B	2.56B	1.93B
Stockholders Equity	13.56B	13.65B	12.29B	10.48B	8.57B	7.16B
Cash Flow
Free Cash Flow	0.00	1.88B	1.68B	908.20M	1.58B	853.57M
Operating Cash Flow	0.00	2.24B	1.84B	1.31B	1.82B	1.02B
Investing Cash Flow	0.00	-2.49B	-1.79B	-989.60M	-1.34B	-792.95M
Financing Cash Flow	0.00	1.19B	-384.60M	-664.40M	207.00M	-989.83M

Datamatics Global Services Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 797.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:DATAMATICS, the sentiment is Negative. The current price of 797.55 is above the 20-day moving average (MA) of 711.03, above the 50-day MA of 781.84, and above the 200-day MA of 786.84, indicating a bearish trend. The MACD of -32.83 indicates Negative momentum. The RSI at 42.03 is Neutral, neither overbought nor oversold. The STOCH value of 84.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:DATAMATICS.

Datamatics Global Services Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CIGNITITEC	80 Outperform	₹44.60B	14.72	―	―	13.58%	104.94%
EXPLEOSOL	73 Outperform	₹14.13B	13.58	―	4.95%	3.80%	-4.66%
RSYSTEMS	73 Outperform	₹44.83B	23.73	―	3.06%	8.36%	36.68%
SAKSOFT	72 Outperform	₹22.92B	17.56	―	0.42%	21.17%	27.66%
DATAMATICS	72 Outperform	₹41.48B	21.29	―	0.58%	18.81%	29.35%
SASKEN	64 Neutral	₹18.46B	46.95	―	1.83%	77.13%	-39.91%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Datamatics Global Services Limited Corporate Events

Datamatics CEO Rahul Kanodia Receives Honorary Doctorate from Amity University

Rahul Kanodia, Vice Chairman & CEO of Datamatics, has been awarded an Honorary Doctorate by Amity University, Kolkata, in recognition of his significant contributions to the global technology landscape and digital transformation. This accolade highlights his visionary leadership and the impact of Datamatics on the digital and AI ecosystem, further strengthening the company’s resolve to deliver meaningful innovations and maintain its industry positioning.