GTT Data Solutions Ltd (530457)
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, GTT Data's revenue was ₹33.0 Cr (+29.9% year on year, +14.0% on the previous quarter), and net profit ₹-3.0 Cr (a smaller loss than a year earlier); the operating margin was -3.2%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹33.0 | +29.9% | +14.0% |
| Operating profit | ₹-1.1 | loss narrowed | loss narrowed |
| Net profit | ₹-3.0 | loss narrowed | loss narrowed |
| EPS (₹) | -0.11 | loss narrowed | loss narrowed |
| Operating margin | -3.2% | — | — |
📢 Recent Corporate Announcements
BSE Limited has imposed an aggregate fine of Rs 4,10,000 (plus applicable GST) on GTT Data Solutions for non-compliance with Regulation 19(1)/19(2) of SEBI LODR Regulations regarding Nomination and Remuneration Committee (NRC) composition. The non-compliance spans three quarters: December 2025, March 2026, and June 2026. The company confirmed that the issue was administrative and has been remediated via committee reconstitution on June 7, 2026. The financial impact is negligible relative to the company's TTM revenue of Rs 34 crore.
- BSE imposed aggregate fines of Rs 4,10,000 (plus applicable GST) under SEBI Standard Operating Procedure.
- Non-compliance pertained to NRC composition under Regulation 19(1)/19(2) across three quarters: Dec 2025, Mar 2026, and Jun 2026.
- The board reconstituted the NRC effective June 7, 2026, with three members to restore compliance.
- Intimations of the penalty were received from BSE Limited on August 25, 2026.
GTT Data Solutions has released its FY26 Annual Report and AGM Notice for September 12, 2026. Key shareholder resolutions include the acquisition of a 47.47% stake (77.55 lakh shares) in Antworks Solutions India Pvt Ltd for ₹38.00 crore via a share swap of up to 77.55 lakh company shares at ₹49 per share. The company also rescinded its earlier February 2026 acquisition resolution due to restructured deal terms. Additionally, the notice covers the appointment of M/s N A M M & Associates as statutory auditors following the resignation of M/s Mehta and Mehta on August 13, 2026, alongside corporate governance notes regarding board composition non-compliances.
- Proposed acquisition of 47.47% stake (77,54,506 shares) in Antworks Solutions India Pvt Ltd for ₹37.997 crore.
- Consideration discharged via issuance of up to 77,54,506 equity shares of GTT Data Solutions at ₹49 per share (face value ₹10 + premium ₹39).
- Rescission of earlier EGM resolution from February 12, 2026 due to restructuring and renegotiation of the acquisition terms.
- M/s N A M M & Associates proposed as statutory auditors for 5 years after M/s Mehta and Mehta resigned on August 13, 2026.
- 40th AGM scheduled for Saturday, September 12, 2026 via video conferencing.
GTT Data Solutions Ltd has scheduled its 40th Annual General Meeting (AGM) for September 12, 2026, via video conferencing. A key special business item is the rescission of the earlier approved acquisition of 1,63,35,593 equity shares of Antworks Solutions India Private Limited due to ongoing deal renegotiation and restructuring. Additionally, shareholders will vote on appointing M/s N A M M & Associates as Statutory Auditors for 5 years to fill a casual vacancy, and the re-designation of Dr. Ganesh Natarajan to Non-Executive Director.
- 40th AGM scheduled for September 12, 2026; e-voting cut-off date set as September 05, 2026.
- Rescission of Special Resolution for acquiring 1,63,35,593 shares of Antworks Solutions India due to deal restructuring.
- Appointment of M/s N A M M & Associates as Statutory Auditors for a 5-year term after previous auditor resigned on August 13, 2026.
- Re-designation of Dr. Ganesh Natarajan from Whole-time Director to Non-Executive Non-Independent Director w.e.f. July 1, 2026.
GTT Data Solutions has approved a massive acquisition strategy involving three entities: ASIPL (47.47% for ₹37.99 cr), IAL UK (48.95% for ₹9.33 cr), and STRATIS Hungary (100% for ~₹91 cr). The deals are primarily structured via share swaps at ₹49 per share, alongside a cash component of up to €9 million for the STRATIS acquisition. This follows the rescission of previous deal terms due to re-negotiation. Concurrently, the company announced the resignation of its Statutory Auditor, Mehta & Mehta, citing resource realignment.
- Acquisition of 47.47% of ASIPL for ₹37.99 cr via issuance of 77.54 lakh shares at ₹49 each
- Acquisition of 48.95% of Insurants AI Limited (UK) for ₹9.33 cr via issuance of 19.04 lakh shares
- Acquisition of 100% of STRATIS (Hungary) involving a ₹10.42 cr share swap and up to €9 million in cash
- Total proposed acquisition value of ~₹138 cr represents approximately 552% of TTM revenue (₹25 cr)
- Resignation of Statutory Auditor Mehta & Mehta and Internal Auditor DND & Associates announced simultaneously
GTT Data Solutions has accepted the resignation of its statutory auditor, M/s. Mehta & Mehta, effective August 13, 2026. The outgoing auditor cited internal capacity and resource realignment as the reason for stepping down, explicitly stating there were no concerns regarding management conduct. To fill the vacancy, the Board has appointed M/s. N A M M & Associates for a five-year term, subject to shareholder approval. This administrative change occurs against a backdrop of weak financials, with the company reporting a TTM net loss of ‡26 Cr on revenue of ‡25 Cr.
- M/s. Mehta & Mehta resigned effective August 13, 2026, after completing the Q1 FY27 limited review.
- M/s. N A M M & Associates appointed for a 5-year term until the conclusion of the 45th AGM.
- Outgoing auditor was originally appointed on September 23, 2024, with a term intended until 2029.
- Company reported a TTM operating profit margin of -84.0% and a net loss of ‡26 Cr.
- The new auditor is a peer-reviewed firm with offices in Udaipur, Chennai, and Pune.
GTT Data Solutions has accepted the resignation of its statutory auditor, M/s. Mehta & Mehta, effective August 13, 2026. The auditor cited internal 'capacity and resource realignment' as the primary reason, explicitly stating there are no concerns regarding management conduct or company affairs. To fill the vacancy, the board has appointed M/s. N A M M & Associates for a five-year term, subject to shareholder approval. This transition occurs while the company is navigating significant financial stress, with a TTM net loss of ₹26 Cr against a revenue of ₹25 Cr.
- Statutory Auditor M/s. Mehta & Mehta resigned effective August 13, 2026, despite an original term lasting until 2029.
- The outgoing auditor completed the Limited Review Report for the quarter ended June 30, 2026, before departing.
- M/s. N A M M & Associates appointed as new auditors for a 5-year term up to the 45th Annual General Meeting.
- Company reported a significant operating profit margin of -84.0% and a net loss of ₹26 Cr for FY26.
- The outgoing auditor was originally appointed on September 23, 2024, making this a mid-term resignation.
GTT Data Solutions has approved restructured acquisitions of ASIPL (47.47% for ₹37.99 cr) and IAL (48.95% for ₹9.33 cr) via share swaps at ₹49/share. It also plans to acquire 100% of STRATIS (Hungary) for approximately ₹91 cr, combining a ₹10.42 cr share swap with up to EUR 9 million in cash. These deals are highly material, totaling ~80% of the company's ₹172 cr market cap. Concurrently, the statutory auditor resigned, citing resource realignment.
- Acquisition of 47.47% of ASIPL for ₹37.99 cr via issuance of 77.54 lakh shares at ₹49 each
- Acquisition of 48.95% of IAL (UK) for ₹9.33 cr via issuance of 19.04 lakh shares at ₹49 each
- Acquisition of 100% of STRATIS (Hungary) for up to EUR 9 million cash plus ₹10.42 cr in shares
- Statutory Auditor Mehta & Mehta resigned effective August 13, 2026, following the Q1 review
- Total acquisition value of ~₹138 cr is approximately 5.5x the company's TTM revenue of ₹25 cr
GTT Data Solutions (Market Cap: ₹172 Cr) has approved a massive acquisition plan involving three entities across India, UK, and Hungary. The company will acquire 47.47% of ASIPL for ₹37.99 Cr and 48.95% of IAL for ₹9.33 Cr via share swaps at ₹49/share. It also plans to acquire 100% of STRATIS (Hungary) for approximately ₹93 Cr (₹10.42 Cr swap + EUR 9m cash). Total deal value is nearly 80% of its current market cap, representing a significant scale-up attempt despite current TTM losses of ₹26 Cr.
- Acquisition of 47.47% of ASIPL for ₹37.99 Cr via issuance of 77.54 lakh shares at ₹49 each
- Acquisition of 48.95% of IAL (UK) for ₹9.33 Cr via issuance of 19.04 lakh shares at ₹49 each
- 100% acquisition of STRATIS (Hungary) involving a ₹10.42 Cr share swap and up to EUR 9 million in cash
- Statutory Auditor (Mehta & Mehta) resigned effective Aug 13, 2026, citing resource realignment
- Preferential issue price of ₹49 is a ~10% premium to the current market price of ₹44.6
GTT Data Solutions has approved a major restructuring of its acquisition pipeline, involving three entities: ASIPL (47.47% for ₹37.99 Cr), IAL UK (48.95% for ₹9.33 Cr), and STRATIS Hungary (100% for approx. ₹94 Cr). The deals involve a significant share swap at ₹49 per share and a cash component of up to EUR 9 million for the Hungarian acquisition. This total deal value of ~₹141 Cr is massive compared to the company's TTM revenue of ₹25 Cr. Simultaneously, the company announced the resignation of its statutory auditors, Mehta & Mehta, citing resource realignment.
- Acquisition of 47.47% of ASIPL for ₹37.99 Cr through the issuance of 77.54 lakh shares at ₹49 each
- Acquisition of 48.95% of IAL (UK) for ₹9.33 Cr through the issuance of 19.04 lakh shares at ₹49 each
- Acquisition of 100% of STRATIS (Hungary) for ₹10.42 Cr swap plus up to EUR 9 million in cash
- Total proposed equity dilution involves issuing approximately 1.17 crore new shares
- Statutory Auditors Mehta & Mehta resigned effective August 13, 2026, replaced by N A M M & Associates
GTT Data Solutions has scheduled a board meeting for Aug ust 13, 2026, to approve unaudited financial results for the quarter ended June 30, 2026. Critically, the board will also con sider fund raising through a preferential issue of securities. This comes after a difficult FY26 where the company reported a net loss of Rs 26 Cr on revenue of Rs 26 Cr. With a market cap of Rs 174 Cr and debt of Rs 25 Cr, the quantum of this fund raise will be vital for liquidity and growth execution.
- Board meeting scheduled for Aug ust 13, 2026, to review Q1 FY27 performance.
- Proposal for fund raising via preferential issue to be deliberated.
- Trading window remains closed for insiders until Aug ust 16, 2026.
- Company reported a significant net loss of Rs 20 Cr in the immediate preceding quarter (Mar 2026).
Financial Performance
Revenue Growth by Segment
The company reported steady revenue growth driven by Consulting and AI-led Transformation, which witnessed strong traction and contributed a significant share of overall revenue. Training & Workforce Development also made notable progress through SAP and AI/Cloud upskilling programs.
Geographic Revenue Split
Not disclosed in available documents, though the company operates in international markets across sectors like BFSI, healthcare, manufacturing, and retail.
Profitability Margins
The Net Profit Ratio improved by 81.11% YoY, moving from -4.01% in FY24 to -1.98% in FY25 due to higher revenue and cost optimization. However, Return on Equity (ROE) worsened by 1631% to -0.29 due to an increase in absolute net loss and a rise in shareholders' funds.
EBITDA Margin
Return on Capital Employed (ROCE) was -0.13% in FY25 compared to -0.01% in FY24, a variance of 965.35% reflecting deeper operating losses relative to the capital base.
Capital Expenditure
Not disclosed in absolute INR Cr; however, the company is investing in AI R&D, industry accelerators, and expanding its delivery footprint through a hub-and-spoke model in tier-2/3 locations.
Credit Rating & Borrowing
The company introduced external debt in FY25, resulting in a Debt-Equity ratio of 0.62. Borrowing costs led to a negative Debt Service Coverage Ratio (DSCR) of -0.31, as operating cash flows were insufficient to meet interest and principal repayment obligations.
Operational Drivers
Raw Materials
Human Capital/Talent (specifically AI, Cloud, and SAP skills) represents the primary input cost for the company's service-based model.
Import Sources
Not applicable as the company is a service provider; however, it sources talent from tier-2/3 locations in India to leverage cost efficiencies.
Key Suppliers
Not applicable; the company relies on technology partners like SAP and GAIN for its service delivery and training divisions.
Capacity Expansion
The company is scaling its delivery footprint using a hub-and-spoke model leveraging tier-2/3 locations and establishing Centers of Excellence to handle increased demand for digital transformation.
Raw Material Costs
Not disclosed as a specific percentage of revenue, but the company noted that rising demand for AI/cloud skills is increasing wage costs and attrition rates.
Manufacturing Efficiency
Capacity utilization improvement is a key priority to drive profitable growth and leverage synergies across subsidiaries.
Logistics & Distribution
Not applicable; services are delivered digitally or through onsite consulting.
Strategic Growth
Growth Strategy
Growth will be achieved through a 'Dual Intelligence' model (AI + Human Intelligence), deepening client relationships via outcome-based models, and expanding SAP training services. The company is also integrating recent acquisitions and expanding into tier-2/3 locations to optimize costs while scaling delivery.
Products & Services
Consulting and Digital Transformation, Data Engineering, Enterprise AI, DevOps/ITSM, ERP/CRM (SAP), Managed Services, and Workforce Development/Upskilling programs.
Brand Portfolio
GTT Data Solutions (formerly Cinerad Communications), GAIN partnerships, and Dual Intelligence (AI + HI) operating model.
New Products/Services
New offerings include AI model development, RAG/agentic workflows, and expanded SAP training services as a strategic extension of workforce upskilling.
Market Expansion
Targeting broader international presence in BFSI, healthcare, manufacturing, and retail sectors, supported by geographic expansion of delivery centers.
Strategic Alliances
Strategic GAIN partnerships to bring best-of-breed AI tools into client environments and SAP partnerships for training services.
External Factors
Industry Trends
The IT services industry is rapidly evolving toward AI-led transformation and cloud computing. GTT is positioning itself by combining AI with human intelligence to help clients implement data-first strategies.
Competitive Landscape
Faces intense competition from large IT majors and niche digital firms, leading to pricing pressure and a war for specialized AI talent.
Competitive Moat
The moat is built on the 'Dual Intelligence' framework and a strategic emphasis on SAP training, which creates a specialized talent pipeline that is difficult for competitors to replicate quickly.
Macro Economic Sensitivity
Sensitive to global macroeconomic headwinds which may lead to client budget cuts or delays in decision-making.
Consumer Behavior
Enterprise clients are increasingly shifting toward data-first, AI-enabled strategies and outcome-based service models.
Geopolitical Risks
US tariffs affecting IT exports and evolving data privacy laws in international markets pose significant risks to the global delivery model.
Regulatory & Governance
Industry Regulations
Subject to data privacy laws, AI governance rules, and international trade regulations including US tariffs on IT exports.
Legal Contingencies
Not disclosed in available documents; however, the Audit Committee is tasked with reviewing any substantial defaults in payments to creditors or statutory dues.
Risk Analysis
Key Uncertainties
Talent acquisition and retention (high impact), cybersecurity risks (increasing digital exposure), and potential client budget cuts due to a slow economy.
Geographic Concentration Risk
The company identifies dependency on specific geographies as a risk, though the exact percentage split is not provided.
Third Party Dependencies
Dependency on key clients and technology partners like SAP for the training segment.
Technology Obsolescence Risk
High risk if the company fails to keep pace with rapid AI and cloud technology shifts; mitigated by investments in AI R&D.
Credit & Counterparty Risk
Trade Receivable Turnover Ratio is 26.41, indicating active credit sales management, though the emergence of trade receivables is a new development for the company.
