Updater Services Limited — PPTs, 06-11-2025: Investor Presentation

**Updater Services (UDS) Q2 & H1 FY26 Snapshot:**

**1. Business Performance:**

UDS saw H1 FY26 revenue rise 7% YoY to ₹1,440.2 Cr. However, EBITDA declined 17% to ₹81.5 Cr, and Profit After Tax (PAT) fell 9% to ₹48.8 Cr. Q2 FY26 revenue also grew 7% to ₹734.9 Cr, but EBITDA dropped 27% to ₹37.1 Cr, and PAT slid 29% to ₹19.8 Cr. Integrated Facility Management (IFM) revenue grew 10%, while Business Support Services (BSS) saw modest 1% growth, impacted by global headwinds.

**2. Growth Drivers & Strategy:**

UDS is focused on expanding its market share, introducing new products and services, and pursuing strategic acquisitions of high-margin businesses to enhance its integrated service platform. The company is actively investing in digital tools and automation to future-proof operations and adapt to market shifts.

**3. Recent Developments:**

During H1 FY26, UDS secured 28 new major client accounts across IFM and BSS. It also achieved 'Great Place to Work' accreditation for the third consecutive year. The company is addressing past due diligence issues at Avon by strengthening internal reviews and pursuing fund recovery.

**4. Key Financial Metrics:**

H1 FY26 diluted EPS was ₹7.2 (vs ₹8.0 in H1 FY25). Return on Capital Employed (RoCE) decreased to 13.0% from 22.1% (Mar-25), while Net Debt/Equity improved to -0.16x, maintaining a net cash positive position.

**5. Management Outlook:**

UDS anticipates full-year FY26 revenue growth of 9-10%. Management noted that current margins were affected by upfront employee costs for new strategic contracts in their ramp-up phase and a shift in sales mix, expecting these costs to normalize in upcoming quarters.