UPDATER SERVICES LIMITED

Recommendation history

• 2025-08-12HoldHold: Q1 FY26 revenue rose 7% YoY to INR7,053 million, EBITDA was INR444 million at a 6.3% margin, and PAT increased 13% to INR290 million. IFM remains the core bull case, growing 10% with a 13%-15% FY26 target, but BSS was broadly flat at INR2,374 million and management acknowledged that Athena, EBGC and Denave face material near-term pressure; its confidence in 15% full-year profit growth was challenged by analysts and is not formal guidance.
• Q4 2025HoldHold: FY25 ended strongly, with revenue up 12% to INR27,717 million, EBITDA up 28% to INR2,022 million and PAT up 80% to INR1,190 million; Q4 revenue grew 14% and reported EBITDA margin reached 7.2%. The FY26 setup is constructive—management expects over 15% organic BSS growth and roughly 15% IFM growth, with 20–30 bps annual operating-leverage expansion—but AI disruption at Denave and Athena remains insufficiently proven, while the growth targets are explicitly soft rather than formal guidance.
• 2025-02-25No clear callThis filing only announces Updater Services’ participation in an Investec investor group meeting on March 4, 2025; it provides no earnings, guidance, operating, or valuation information. The call read is therefore too thin to support a buy, hold, or sell verdict.
• FY 2024HoldHold: FY25 was strong on reported numbers—revenue of Rs 27,718 million (+12%), EBITDA of Rs 2,020 million (+28%) at a 7.3% margin, and PAT of Rs 1,190 million (+80%)—but the AGM did not provide a sufficiently concrete forward plan. Management offered only soft expectations of roughly 15% normalized growth and an aspirational goal to double the business in three years, while the stock remains more than 50% below its IPO price and shareholder concerns were answered largely with calls for patience.
• Q2 2024HoldHOLD: UDS delivered a strong H1, with revenue up 14% to INR13,456 million, EBITDA up 44% to INR980 million, EBITDA margin improving 160 bps to 7.3%, and PAT up 149% to INR537 million. The margin reset appears operationally real, but IFM growth is only 7% H1, Athena has not fully recovered, Denave faces AI-led disruption, and the growth outlook remains largely informal rather than formal guidance.
• Q1 2025HoldHold: Q1 FY25 showed solid earnings momentum—revenue rose 14% to Rs. 6,587 million, EBITDA grew 33% to Rs. 474 million at a 7.2% margin, and PAT more than doubled to Rs. 256 million—but the outlook is less aggressive than before. Management now frames consolidated growth at 15%-16% versus the earlier 20% aspiration, while IFM remains a low-growth, margin-repair story and EBGC faces continued IT-hiring weakness.
• Q4 2024HoldHold: FY24 revenue grew 16% to INR24.56bn and adjusted EBITDA rose 12% to INR1.67bn, but adjusted margin fell to 6.8%; Q4 adjusted EBITDA declined 23% with a 6.0% margin. Management is targeting 15–18% FY25 top-line and reported-PAT growth, but the outlook depends on Denave margin recovery, IFM project ramp-up and airport ground-handling breakeven, leaving execution risk too high for a clean buy.