Datamatics Global Services Limited (NSE: DATAMATICS) Q3 2026 Earnings Call dated Jan. 29, 2026
Corporate Participants:
Pratik Jagtap — E&Y Investor Relations
Rahul L. Kanodia — Vice Chairman & Chief Executive Officer
Ankush Akar — Chief Financial Officer
Mitul Mehta — Executive Vice President and Chief Marketing Officer
Analysts:
Unidentified Participant
Dhanshree Jadhav — Analyst
Yatin Shah — Analyst
Grishma Shah — Analyst
Bimal Parekh — Analyst
Rahil Mehta — Analyst
Srinivasu Kedarasetti — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to DataMartics Global Services Limited Q3FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please take the non operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr. Pratik Jabta from EY for his opening remarks. Thank you. And over to you sir.
Pratik Jagtap — E&Y Investor Relations
Thank you Shruti. Good evening to all the participants in the call today and welcome to Q3FY26 earnings call of Datamatics Global Services Ltd. The results and presentation have been already mailed to you and it is also available on the website of Datamatics. In case anyone has not received a copy of press release or presentation, please do write to us and we will be happy to send you all to take us through the results today and to answer your questions. We have with us the top management of the company represented by Rahul Kanodia, Vice Chairman and CEO Ankush Akar, SVP and Chief Financial Officer Mithul Mehta, EVP and Chief Marketing Officer.
Rahul will start the call with brief overview of the quarter on business which will be then followed by Ankush who will take us through the financials. Then we will open the floor for Q and A session. I would like to remind you that anything that is said on this call which gives any outlook for the future or which can be construed as a forward looking statement must be viewed in conjunction with the risks and uncertainties that we face. These risks and uncertainties are included but not limited to what we have mentioned in the prospectus filed with the SEBI and subsequent annual reports which you can find on our website.
With that said, I now hand over the call to Rahul sir. Over to you sir.
Rahul L. Kanodia — Vice Chairman & Chief Executive Officer
Thank you Pratik and a good day everyone and thank you all for joining the Datamatics Quarter 3 FY26 earnings calls and I wish you all a very happy New Year. I will begin the call with sharing some key highlights from our quarterly performance followed by Ankush who will take you through the financial update. We will then open the floor for Q and A sessions. Our total revenue for quarter three stood at 510.1 crores giving us a revenue growth of 19.9% on a year on year basis and a 4.1% on a quarter on quarter basis. Our EBITDA for quarter three stood at rupees 96.2 crores, giving us an EBITDA growth of 76.4% on a year on year basis 8.3% on a quarter on quarter basis.
We improved our EBITDA margin by 604 basis points year on year and 75 basis points quarter on quarter to 18.9% driven by our focus on improving operational efficiencies and disciplined cost optimization. I’m happy to state that this is one of the best quarters from a revenue and EBITDA perspective. We recorded a quarter on quarter revenue growth across all three business segments in digital technologies which delivered a double digit revenue growth and a sustained double digit EBIT margin. Revenue in digital operations remain stable and EBIT margins improved to 18.1%. Digital experiences performance remains soft and as highlighted in the previous quarters, two of our clients are transitioning their work to their captive centers.
However, we continue to add new logos as well as expand our existing relationship across clients. Datamatics is investing decisively in enterprise AI. We are further democratizing democratizing AI across the organization. I’m excited that we are rolling out Google Gemini Enterprise across the organization, empowering our teams to build intelligent agents, improve productivity and drive innovation at scale. In partnership with Google, we have certified 200 employees on Gemini Enterprise in the past one month as phase one of this exercise. Additionally, we have built industry specific AI solutions for insurance, banking and logistics enabling autonomous workflow orchestration, smarter decision making and enterprise wide productivity at scale.
This strengthens our AI first culture and positions Datamatics for sustainable growth and long term value creation. Our continued focus on scaling strategic accounts, strengthening global delivery and optimizing execution has further improved operating leverage and contributed to sustained margin improvement.
With that, I will now hand over the call to our CFO Mr. Ankush Akras. Ankush, over to you.
Ankush Akar — Chief Financial Officer
Thank you Rahul. Welcome everyone and wishing you a very happy new year. Let me start with financial performance for the quarter three FY26 and then I will take you through the nine month ended December 2025 financial performance as well. Our quarter three FY26 revenue stood at rupees 510.1 crore reflecting a growth of 19.9% on year on year basis and 4.1% on quarter on quarter basis. Our sustained cost optimization efforts and enhanced operational efficiency helped us improve our EBITDA to rupees 96.2 crore. A growth of 8.3% on quarter on quarter basis and 76.4% on year on year basis our EBITDA margin for the quarter stood at 18.9% reflecting an improvement of 604 basis points on year on year basis and improvement of 75 basis points on quarter.
On quarter basis our EBIT for the quarter stood at rupees 74.2 crore which is up by 7.7% on quarter on quarter basis and 65.9% on year. On year basis our EBIT margin was at 14.6% reflecting an improvement of 404 basis points on year on year basis and improvement of 50 basis points on quarter on quarter basis. Changes in the new labor codes resulted in one time increase of Rupees 40.3 crore in gratuity and leave encashment liability. This one time increase was shown as impact on labor codes under exceptional item. Due to this impact our PAT after non controlling interest was at rupees 36.4 crore down by 42.5% on quarter.
On quarter basis our PAT margin stood at 7%. Excluding the one time impact our PAT would have been approximately 12.7%. Our EPS for the quarter stood at rupees 6.16 per share. In terms of segments, Digital Technologies revenue for the quarter stood at rupees 169.6 crore which is up by 10.8% on quarter on quarter basis Digital Technologies EBIT margin was also at 10.8% for the quarter. Digital Operations revenue for the quarter stood at rupees 273.8 crore which is up by 0.5% on quarter on quarter basis Digital Operations EBIT margin was at 18.1% for the quarter. Digital experiences revenue stood at rupees 66.7 crore which is up by 3.2% on a quarter on quarter basis Digital experiences EBIT margin was at 9.6% for the quarter.
In terms of geographical footprint, US remains our largest geography with 52% of our business coming from here followed by UK and Europe at 22%, India at 17% and RoW at 9%. Our client concentration remains very healthy with top 5, 10 and 20 clients contributing to 29%, 42% and 55% respectively. Let me now take you through the performance. For the ninth month ended December 2025 our revenue stood at Rupees14.67 crore reflecting a growth of 19.7% on year. On year basis our EBITDA stood at Rupees 261 crore, a growth of 68.7% on year. On year basis our EBITDA margin for the for the nine month ended stood at 17.8% reflecting an improvement of 516 basis points on year.
On year basis our EBIT for the for the period stood at 199.6 crore which is up by 57.6% on year. On year basis our EBIT margin was 13.6% reflecting an improvement of 327 basis points on year. On year basis our profit after tax after non Controlling interest was 150 crore down by 6.3% on year. On year basis our PAT margin stood at 9.9%. This decline was primarily due to one time exceptional charge of Rupees 40.2 crore arising from changes in labor codes. In comparison nine months ended December 2024 pad was 160.2 crore which also included an exceptional gain of 34.8 crore.
Excluding exceptional item profit before tax grew strongly by 39.8% on year. On year basis our billed DSO was at 55 days as of December 2025. We continue to maintain a healthy balance sheet. As of December 2025 our net cash and investment net of Debt stood at rupees 540.2 crore. Overall we had a good quarter with a strong financial performance.
With this I will now pass on the call to operator to open the floor for questions. Thank you for your patience and continued interest in Datamat.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue you may press star and two participants are requested to use answers while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Dhanushi Zadav. Please proceed.
Dhanshree Jadhav
Yeah. Good evening everyone.
Rahul L. Kanodia
Good evening.
Dhanshree Jadhav
Yeah congrats on great slate of numbers on operational cell. Yeah. So my question is regarding the how should we see the three revenue I mean the three segmental mix evolve in next couple of quarters and also if you can throw some light on digital experience which has shown some decline in this quarter whether it will recoup that degrowth. Sorry, not degrowth. I mean in terms of margins and overall growth going ahead. That is the first question. Second is if you can throw some light on order booking and the nature of deals that we have won this quarter and pipeline if you can give us some cues on how it is growing and some cues on overall growth and margins going ahead.
Rahul L. Kanodia
On the digital experiences. I mentioned about two quarters earlier that we have two customers who are moving their work to the captives and therefore you see the margins becoming a little softer and the growth not being as much. Quarter four of this year, we will expect the full impact of that transition. From quarter one of next year, we’ll see an upswing because we signed several new logos and they are much healthier margins as well. So we will see an upswing in digital experiences starting quarter one of next year. But quarter four will remain a little soft on digital operations and digital technology.
As you see, the numbers on digital technology has been quite robust and I see that continuing for the next few quarters. I don’t see a major challenge there. We have a healthy pipeline on digital operations. There’s a lot of transitioning happening on the AI side, so the margins are improving. The pipeline will also improve as we deliver these solutions for automating business processes. So that’s really going to be the driver going forward. Overall, I’m quite okay with the next year going ahead. Revenue by industry. That’s not true to your point. In terms of the pipeline and the quarter right now it’s still fairly strong.
In fact, we are seeing a little uptick on the pipeline. So that’s good. I think the current uncertainty uncertainties in the US has become a state of normal in a way everybody knows and everybody remains uncertain. So they’ve sort of taken in this ride. Generally the mood is improving, the velocity is still slow, but it’s. We see a slight upward trend. So yeah, that’s that.
operator
Thank you. Before we take the next question, we would like to remind participants, you may press Star in one to ask a question. The next question is from the line of Yajit Shah, an investor. Please proceed.
Yatin Shah
Hi sir. Congrats on a great set of number. Just had a question regarding the Google Gemini enterprise solutions that we have started to provide. Is this a big portion of our revenue and also what is the expected revenue mix from that?
Rahul L. Kanodia
So we are implementing Google Gemini across the enterprise within Datamatics. So every person will be powered with an AI tool in their hands that should impact productivity, efficiency and things like that. We are also integrating some of the Google technology into our AI solutions which we are taking to the market. We built agent AI platforms for insurance, for logistics, for banks, and we started taking that to market. The revenues will flow in the next few quarters. We’ve tested the solution right now and the response has been quite promising. Promising from customers. But I think once we nail a few customers or once we acquire a few customers in the next, say three to four months, we will get a good visibility on what those revenues will look like.
So the agenda of Google Enterprise is to get every person hands on with AI technology in the company. Being an AI first company, that becomes paramount. So far the pockets of AI have been concentrated with a few people who are deep into the AI space, who are experts. But now we need to democratize this and make sure that every employee in the company is thinking AI first and is powered with any. I told him that. So that’s the lead agenda.
Yatin Shah
Great, great. Sir, and one last question. The labor code is back. Is this just for this quarter or Will we see any impacts over the next?
Rahul L. Kanodia
It is just for this quarter in the sense that there is a backlog because it is a one time hit with a retrospective effect. So therefore this quarter is taking a big hit. From next quarter onwards it will become a routine marginal increase in gratuity. So we expect something in the range of maybe 0.3, 0.4, 0.5, but thereabouts we still have to do the math because, because all these regulations are not yet clear, they’re still coming out with verifications. So we are keeping our eyes open and talking to the consultants who can advise us on that. So but fundamentally going forward there’s not be too much of an impact.
Yatin Shah
Great. Thank you sir.
Rahul L. Kanodia
Thank you.
operator
Thank you. Participants who wishes to ask a question may press star n1 on their touchstone telephone. Participant who wishes to ask a question may press Star in one. Now. The next question is from the line of Krishna Shah from Envision Capital. Please proceed.
Grishma Shah
Good evening to the management team and thanks for taking my question. Curious to know how is TNQ Tech doing? And you know, till nine months we have the benefit of integrating TNQ on a year on year basis. Therefore the numbers look good. But if you had to exclude that and then look at the standalone business, if you could give us some idea as to how the business is done, that should be great.
Rahul L. Kanodia
So TNQ is doing good. If you look at the. So we, we are successfully integrating it very well into the company. Overall we’ve had a sequential quarter on quarter growth of 4% as you see. So that of course includes TNQ as well as the rest of Datamatics. So the growth is not coming from the acquisition. Of course we got a bump up because of 19% because of the acquisition for Q1, Q2, Q3. But if you see for the last two quarters a sequential for the growth has been 4% for this quarter as well as the previous one. So I think we are doing quite well, in terms of organic growth and integration of tnq and they remain financially healthy. And so in that sense it was a very good acquisition from a dynamics perspective.
Grishma Shah
I mean, see, if you had to look at even sequential growth of 4%, I mean, if you could give us year on year, how has TNQ grown?
Rahul L. Kanodia
So I have that figure handy, but I know they’ve had a good growth. Their growth has been in line with the rest of Datamax, so probably they are also going to. I don’t have a figure exactly on hand, so I would be hesitant to give you a number, but maybe, you know, offline we can have a conversation and we can pull out those numbers or specifically take you.
Grishma Shah
Okay, Angus. Transitioning to captive center for the digital experience business line. This has been going on since last year, December. I, if I had, if I remember correctly, the last December quarter was, you know, really a slow quarter for us. So I mean, does it take like four quarters for the work to transition?
Rahul L. Kanodia
Yes, it depends on each customer situation. But it could be between two on the minimum it would be three one quarter. At the maximum it would be four quarters. It depends on each situation. So these are both very slow and steady, but this was something that was riding on the wall. So it’s good, it’s good that it’s been slow and steady. So therefore it does not create undue pressure on Datamatics as well as the customer.
Grishma Shah
And for FY27, you know, what does the outlook look like? Is it a flat year in terms of growth or is it low single digit? So what does it look like for you given the deal pipeline that in front of?
Rahul L. Kanodia
Yeah, so we are looking at high single digits growth and then of course occasionally we do look at M and A. So I’m not taxing M and A into this, but the high single digits is something that would be a decent number to look at.
Grishma Shah
Okay. And I mean, is Gemini the first AI tool that we are implementing or. I believe we would have multiple other AI tools also that we were working on. Right.
Rahul L. Kanodia
We worked with Llama from Facebook, we worked with Anthropic, we worked with Microsoft OpenAI, which is a big one, ChatGPT. We worked with Google as well. So we worked with multiple. We found that Gemini has an edge over most others on several fronts. So therefore we’ve gone with Gemini across the board because we find that output to be much better and the idea should democratize it. So really the assistance that we’re getting from Google to really train our people and, you know, empower all the employees. Having said that, in different pockets we use different AI tools. So not one tool is going to fit everything. So somewhere we’re using anthropic, somewhere it’s using OpenAI. But Gemini will be the dominant one having said that.
Mitul Mehta
So, hi, this is Mithilia. So while we are using Gemini for internal productivity tools, while we are building solutions, while we are recommending classic cases to customers, we have capabilities across all the tools, all the AI models which Rahul mentioned, OpenAI, Microsoft, OpenAI, Anthropic, Google, Llama. So capability development is across, but then when we have to adopt one particular tool across the organization for the people. And that’s why we decided to go ahead with Gemini, which suited more like us as an organization.
Rahul L. Kanodia
Having said that, we’ve also built our own small language models that we’ve deployed technology customer situations because it requires that kind of a solution.
Grishma Shah
Okay, and will the growth for next year be led by digital operations or you think it would be across all the three segments?
Rahul L. Kanodia
I mean, it will be across all the three segments. I think technologies would probably be leader and you’ll see an uptick in experiences as well, but it will be across all three, largely.
Grishma Shah
Okay, and how is Dextera doing above company average growth?
Rahul L. Kanodia
Yeah, Dextera is doing very well and we’ve been able to very successfully cross sell into the Datamatics customer base. We’ve got a very strong pipeline right now and not only a strong pipeline, but also much larger deals compared to what Dextera had. So overall, quite optimistic about the way Dakshada is panning out because of the cross sell, the pipeline and the deal sizes that they’re getting. And that allows us in our strategy of penetrating our existing accounts very well.
Grishma Shah
Okay, fine. Thank you and good luck.
Rahul L. Kanodia
Thank you.
operator
Thank you. Before we take the next question, we would like to remind participants that you may press Star and one to ask a question. The next question is from the line of Bimal Parikh from Suniti. Please proceed.
Bimal Parekh
Good evening and thank you for giving me a chance and congratulations on a great set of numbers. So my question was basically that during Q3, what was the spend on AI which we have written off is my first question. And the other was to Ralph that, you know, in his earlier experience, many had said that, you know, most companies are just testing out AI. So what is the experience now? Are the companies warming up to give more projects?
Rahul L. Kanodia
Yeah. So to your question, our spend, I can’t specifically say AI, but our spend on these transformation technologies is roughly 40 to 50 crores. A year earlier it was more in the product space where we are pivoting away from products, investments and more into the investment. So basically it’s all in the investment space. So a little more investment. So we’ve reallocated our funds internally so that investment continues. To your other question on what is the other question? Testing. So the customers are testing these things right now. They started going into production also we see some customers going into mainstream production.
And not only that, we find some customers very open to adopting technology as the main platform on which they want to operate. So we started seeing that transition happen. As I mentioned in my address, that is there, there are a few solutions that we built which we showcase to customers. We’ve already piloted it and the customers have loved the demos that we’ve seen. Not only demos, a proof of concept, actually. So now it’s about cashing in on those opportunities and converting them into live transactions. But the hesitation that we used to see about a year ago seems to be waning and we see them more open to adopting AI in the main operations of their business. So that’s good news. And also the solutions that they see from Datamax, they’ve been extremely happy about what they’ve seen.
Bimal Parekh
So do you expect this 50 crores to be spent every year or you expect that to taper down?
Rahul L. Kanodia
Right now we will maintain that between 40 and 50 because we are doing a lot of. This whole area of technology is changing so fast and we need to keep abreast with that area. So we will maintain it for some time, but we keep reviewing every quarter just to see where we going. So as of now, it’s there.
Bimal Parekh
And we write off this as an expense in our books instead of capitalizing, right?
Rahul L. Kanodia
That is correct.
Bimal Parekh
And sir, any other industries that we are now targeting, I believe last time was bfsi, largely insurance. So any other industries that are we targeting?
Rahul L. Kanodia
Our footprint is large in manufacturing, in education and publishing and bfsi. These are the three dominant ones. So I think that will remain as they are. We are not looking at any new industry per se.
Bimal Parekh
Okay. And your, you know, us was kind of lukewarm and so has things reversed there or they still lukewarm towards Indian?
Rahul L. Kanodia
They are still little. They are a little lukewarm, more because of, I think political reasons and political pressures more than business. And I think that overhang of the politics is still there. It’s beginning to look up right now. So it is improving because I think everyone, everybody is now very comfortable with the uncertainty that exists. Everybody is in the same boat and they’ve been in this boat for quite a while. So I think that’s the new normal that just remains uncertain. So generally it’s looking up, but there is still a political overhang which we don’t know which way to go.
Bimal Parekh
Thank you very much.
operator
Thank you. The next question is from the line of Rahel from Sapphire Capital. Please proceed.
Rahil Mehta
Good evening sir, can you hear me?
Rahul L. Kanodia
Yes.
Rahil Mehta
So just picking up on the previous one for the US market. So it is still like a heavy chunk of a business, right? 50 plus.
Rahul L. Kanodia
Yes, yes.
Rahil Mehta
Okay. Because this, you know, the scenario is, you know, ever going and not looking like it will settle in the near term. So are you trying to diversify and move away from the market or is it still, you know, reaping us good kind of contracts in business?
Rahul L. Kanodia
It gave us good contracts in business. We’re not looking at diversifying because between the US and UK it pretty much covers 80% of the global outsourcing market. So if you’re looking out elsewhere, you’re looking at at best a fraction. Now 20% is the rest of the world. Now obviously we can’t go to some low cost destinations like Africa and South America. We can’t go to certain other countries which are non English speaking, which are very different. So therefore, really that is the market and we will continue to focus on it. I’m sure this current political headwind will wane out soon and we are hoping that, you know, it at least reduces, if not goes away completely and that should improve the mood amongst all customers. So we’re not looking at other geographies.
Ankush Akar
But I was also there is our focus on our growing our existing customers. That is what one of the key growth strategies is, which is basically again distributed across the geography, which is us, Europe and India, Middle East. So I think that we have our hands full enough to plow there once the, you know, overall economic environment improves. I’m sure we will, we’ll get some, you know, you’ll see those in numbers.
Rahil Mehta
So is it fair to say that with the current customer base in the US mainly there is a lot of scope for the wallet sharing creation?
Ankush Akar
Absolutely, absolutely.
Yatin Shah
Which can, which can give, which can, you know, let us sustain it a good amount of growth for the coming years?
Ankush Akar
Yes, absolutely. You know, these are large enterprises and to keep, you know, we need to mine them, we need to build more, stronger relationships with them and that’s what the strategies and we are gearing up. We have already geared up ourselves. Last year we launched it and, and we are seeing fruits of that.
Rahil Mehta
Right? Correct. Secondly, so the Q3, this is impacted by the labor for changes. Now you think it’s going to taper down and settle in the next. From the next quarter on versus quarter four, profitability will be inch up. Right. And.
Ankush Akar
So as highlighted, this is a one time impact of the past liability which was there because of change in the definition of wages. So that impact impact is a one time impact going forward we don’t see any material impact. There will be minimal increase which will be there. But we don’t expect any material impact of this now.
Rahul L. Kanodia
It was just a one time legacy impact. That’s the impact of the whole industries.
Rahil Mehta
So if I had to say the EBITDA margins of course not related to this labor co impact, but I’m just in general asking the EBITDA margins are sustainable because on quote unquote we have been growing by a few basis points and you close with 19. So is this sustainable for quarters ahead?
Ankush Akar
Yeah, we will be sustaining the EBITDA margins we continue to look at in terms of how we can, we can keep our cost in control and keep growing. That’s basically the key thing that we are looking at. So EBITDA will, will maintain the EBITDA margin and keep improving.
Rahil Mehta
Okay, you’re confident of that. And lastly, you said FY27. You know, you see high single digits growth now. Are you being conservative there? Because in the last three quarters, year on year you have grown around 18 to 20%. So why as a company we are not still guiding, coming ahead and guiding with a strong 20, 20% plus growth for consolidated level?
Rahul L. Kanodia
No. So the growth that you see includes some degree of an acquisition and therefore you see a bump up. We rather be conservative because there’s still a lot of uncertainty, partly thanks to the political situation, partly thanks to the disruption that AI can have. And therefore there’s some degree of grayness there. And therefore, you know, this is the current outlook. Of course as every quarter passes we’ll get better clarity and I’m sure we’ll have those conversations to see whether we need to change our estimations of future growth. But right now this is what we’re looking at. It is a little conservative, but it does include an M and A in the last. Yes, but the sequential sequential growth that you see we’ve had for two quarters. 4%, 4%. So it’s been a very healthy organic sequential growth.
Rahil Mehta
Oh, okay. Okay. Thank you so much and all the best.
Rahul L. Kanodia
Thank you.
operator
Thank you. The next question is from the line of Srinivasu from tia. Please proceed.
Srinivasu Kedarasetti
Hi sir, thanks for the opportunity and congratulations for the great set of Q3 numbers. Is Datamatics clients asking you to build A agents on top of the existing platforms like Microsoft, Google, Salesforce. Are you have any A accelerators that you built by yourself which is actually driving this?
Rahul L. Kanodia
So we have a few accelerators that we are deploying. I earlier talked about agentic underwriting for logistics, for banking, for insurance. We build solutions around Microsoft Copilot. So yes, we have built on top of existing platform because we don’t build a foundation model. The foundation model is from these large tech companies like Google and Microsoft. Right. So we’ve taken those as a platform. Now when you build it on the customer’s environment, you have to integrate it into the core systems. You can’t, it cannot be a bolt on sitting on top. So therefore customers are still testing that.
They’re not quite clear how to do that because there’s a fear of data going outside the enterprise. So that’s the biggest fear. So our solutions are delivering good. Now when it comes to building solutions for the customer that is still sporadic because not every customer will allow you to touch the core systems and AI will really work only when you can directly access data in their systems. So there we. But the point I made earlier was that customers are now maturing and coming to the terms of the fact that it’s a good solution, it’s a good thing to do and therefore more and more customers, customers are sort of going down the path of putting into the main systems.
Srinivasu Kedarasetti
So compared to other IT service companies peers in India. So what Data matrix actually having a differentiation in terms of identity workflow orchestration or do you have AI based automation or AI based DX personalization where exactly the strength.
Rahul L. Kanodia
So we have got an agentic AI workflow built, we have a whole platform, we’ve trained several people. I think the key to this market is how fast you can move in the market. And we’ve had a good start, we’ve moved in fast, we’ve got a few very good customers. So that’s really the key. Also the benefit that we’ve been able to deliver is because we understand understand the business process services as well as the technology services. We’re able to put them together very well and deliver the end result. Ultimately the customer is looking at better parts or cheaper and we have successfully delivered return on investment to the customer. So it’s really an integrated IT and operations story that goes very well and the ability to deliver roi.
Srinivasu Kedarasetti
Okay, thank you.
operator
Thank you. Before we take the next question. We would like to remind participants that you may press star and one to ask a question. The next question is from the line of Sanjo’s an investor. Please proceed.
Unidentified Participant
Hello, Good evening. Am I audible?
Rahul L. Kanodia
Yes, yes.
Unidentified Participant
Congratulations on a good set of operational numbers in the tough market. I have two questions. One is like Q4 is generally a good quarter for Datamatics and you mentioned that digital experience is going to have some impact on the quarter. Is it going to be kind of overall it’s going to be kind of a muted quarter compared to Q4 generally. Q4 and second question is. Yeah, you can answer first one. Please go ahead.
Rahul L. Kanodia
No, go ahead, please ask your second question.
Unidentified Participant
Yeah, the second. Second question is about there is on a employee side like on a headcount side in a Q3, have you added or any number of employees, what is the current employee count and on a wage hike, is it already done for this financial year or is it going to be happening in Q4?
Rahul L. Kanodia
So on the employee count we’ve not added too much more. It’s more about augmenting it with AI and improving productivity and not really increasing headcount. Now in terms of wage hike for this year, it’s done. There’s nothing happening this year. We already did a mid year increment cycle this. The next cycle will be probably next financial year, April, May time frame. On your first question, if you just jog my memory as the first one, digital experiences will have a little muted thing, but that I think it will pick up in Q1 of next year. So Q4 might be a little soft, but Q1 will pick up.
Unidentified Participant
Digital experience business will pick up from the Q1 but in the Q4 it will be having some impact and Overall the way Q4 generally is a higher quarter, it will be having a little impact on Q4 but other two businesses will be doing well.
Rahul L. Kanodia
Yeah. Q. Yes, Q4. So we have some cyclical business and because of the growth in the non cyclical business and the acquisition that we made, both Becerra as well as gnq, the ratio of cyclicality has reduced. So we will see a spike in Q4 but it will not be as prominent as it has been in the past because the other businesses which are sort of larger and more stable have grown. So yes we will see a spike, but not as steep a spike because the others are more stable.
Unidentified Participant
All right, thank you and all the best.
operator
Thank you. Participants who wishes to ask a question may press star and one now. Participants who wishes to ask a question may press Star and one. Now. The next question is from the line of Pimal from Suniti. Please proceed.
Bimal Parekh
Hello again, sir. Just wanted to understand which, which industry is best as far as adopting AI, in your opinion and what is your experience?
Rahul L. Kanodia
So the industry, the industries that are very heavy with information processing are the more likely one. So banking, finance, insurance, adopting it quite well. They have a concern on data security and data privacy. But outside of that concern, they are very, very open to the idea of using AI. They have issues with compliance, but compliance when you use it internally, that’s a very important area to explore, AI because AI can automate a lot of the manual paperwork that goes on in compliance. But since these industries are regulated, they need to be a little cautious. Industries that have been laggards, I would say is publishing, because they are very concerned about the IP rights of the authors and they’re concerned about AI violating the intellectual property rights of authors.
So that’s been a little slow. Technology industry has been good. Manufacturing more so so because a lot of manufacturing goes into core brick and mortar kind of stuff where AI is a very different use case. So it’s really BFSI and technology, which have been large ones. Education, publishing has been a little slow. Manufacturing has been kind of average. So this has been our experience so far. Logistics also is doing what a decent amount because logistics has a lot of information that they process and that’s where they use AI.
Bimal Parekh
Thank you. Thank you, sir.
operator
Thank you. Participants who wishes to ask a question may Press Star in 1 Now, As there are no further questions from the participants, I now hand the conference over to the management for the closing comments. Over to you, sir.
Rahul L. Kanodia
Thank you everyone for being on this call with us and thank you for your confidence in Datamatics. I think we’ve had a good interaction today and I look forward to meeting all of you in the next quarter. Wishing you once again a very happy new year and we’ll see you soon. Thank you again.
operator
Thank you on behalf of Datamatics Global Services Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.