OVERVIEW
Xchanging Solutions Limited was incorporated on February 1, 2002 with operations in India and an international presence established through subsidiaries in several countries.
DXC Technology Company, ultimate holding company, is listed on New York Stock Exchange and through its indirect subsidiaries Xchanging (Mauritius) Limited, Xchanging Technology Services India Private Limited & DXC Technology India Private Limited, owns 75% of the outstanding share capital of the Company.
INDUSTRY STRUCTURE, OUTLOOK AND DEVELOPMENTS Global Overview
The global technology services industry continued to operate in an environment of macroeconomic, geopolitical and technological uncertainty during FY 2025-26. Enterprise technology spending remained focused on digital transformation, cloud adoption, cybersecurity and productivity-enhancing solutions.
Technology service providers are increasingly expected to support clients in modernising, securing and operating complex technology environments. Artificial Intelligence ("AI"), Generative AI ("GenAI") and automation continued to gain prominence, with enterprises evaluating and implementing technology-led solutions to improve efficiency, enhance customer experience, strengthen decision-making and drive measurable business outcomes.
Indian Economy and Technology Sector
The Indian IT industry continues to be a cornerstone of the global digital economy, driven by strong innovation capabilities, a large skilled workforce and the increasing adoption of advanced technologies such as AI, cloud computing and digital platforms. India?s economy is expected to continue expanding, supported by domestic demand and sustained public investment, notwithstanding challenges in the external environment.
India continues to strengthen its position as a global technology and innovation hub, supported by increasing digital adoption, growth of Global Capability Centres (GCCs) and continued investments in emerging technologies. The Indian technology sector remains well-positioned to benefit from growing demand for digital, cloud and AI-led solutions, providing a favourable environment for long-term growth.
OPPORTUNITIES
The global technology sector witnessed accelerated structural change during 2025, driven by geopolitical uncertainty, rapid innovation cycles and increasing enterprise focus on technology-led productivity, automation and AI-enabled transformation. Organisations across industries continued to prioritise investments in cloud, cybersecurity, digital transformation and operational resilience to improve efficiency and business outcomes.
In India, the technology sector is expected to surpass USD 315 billion in FY26, reflecting continued growth in digital services, engineering research and development (ER&D), cloud adoption and AI-led solutions. Direct employment in the sector is projected to reach approximately 6 million, representing 2.3% year-on-year growth and a net addition of around 1,35,000 employees, even as hiring priorities continue to shift from volume to specialized skill profiles.
ER&D has emerged as a key strategic growth lever, supported by global ER&D spending, which is projected to reach USD 2.5 trillion by 2030. Indian providers are increasingly adopting full-stack delivery models and sustained platform ownership, while enterprises embed AI across core operations. India?s growing role as a global data-center hub further strengthens its ability to meet enterprise-scale capacity and compliance requirements.
The rapid adoption of Artificial Intelligence ("AI"), Generative AI ("GenAI") and emerging agentic AI capabilities presents significant opportunities for technology service providers. Enterprises are increasingly moving from experimentation towards scaled deployment of AI across technology operations, business processes, customer experience, application development and decision-making.
THREATS:
Geopolitical tensions and regional conflicts, including developments in the Middle East, could adversely affect global economic activity, commodity prices, inflation and financial markets. Over the past year, the adverse effects of rising trade barriers and heightened economic uncertainty have been largely offset by robust technology-driven investments, accommodative financial conditions, and supportive fiscal and monetary policies. However, the conflict in the Middle East poses a substantial downside risk, with the potential to disrupt commodity markets, fuel inflationary pressures, and tighten financial conditions, thereby undermining the global economic recovery. The ability to attract, retain and upskill skilled talent in emerging technologies remains critical in a rapidly evolving technology landscape.
The technology services industry remains highly competitive, with large global IT service providers, Indian IT companies, technology platforms, specialist firms and emerging AI-focused companies competing for enterprise technology spending.
Increasing dependence on cloud platforms, digital technologies, AI and interconnected systems has heightened exposure to cybersecurity incidents, data breaches and privacy-related risks. Any significant security incident involving the Company or its clients could adversely affect reputation, client relationships, operating costs and financial performance.
References
IMF WORLD ECONOMIC OUTLOOK UPDATE, APR 2026
NASSCOM TECHNOLOGY SECTOR IN INDIA, STRATEGIC REVIEW 2026
RISKS AND CONCERNS
The Company analyse the nature and extent of risks and consider their likelihood of occurrence and impact; both on an inherent and residual basis, after taking into account mitigating and compensating controls. This allows us to determine how we should manage each risk in order to achieve our strategic objectives.
HOW WE MANAGE RISK
In managing risk, we analyse the nature and extent of risks and consider their likelihood and impact, both on an inherent and a residual basis, after taking account of mitigating controls. This allows us to determine how we should manage each risk in order to achieve our strategic objectives.
• Strategic risks reflect the potential for a signicant strategic action or a failure to react to developing trends in the market, to have a financial impact on the economic value of our business.
• Commercial risks reflect the potential to enter into a critical contract or commercial arrangement which may have an adverse impact on the business.
• Operational risks reflect the potential for the failure of a critical process or procedure to have an adverse impact on the business.
OVERVIEW OF RISK MANAGEMENT FRAMEWORK
STRATEGIC RISKS
| Risk | Mitigating Actions |
| Failure to utilise and exploit technology enablement for growth | The rapidly changing nature and impact of technology means that we need to respond to technology trends. Injecting technology enablement into our services and products is core to our growth strategy as we continue to: |
| • Develop innovative value adding customer solutions. | |
| • Utilise our skilled knowledgeable resources. | |
| • Review our existing services and products to ensure that they meet our customers? requirements. | |
| Market and Customer Demand Risk | The Company operates in a dynamic and highly competitive technology services industry. Economic uncertainty, changes in customer spending patterns, delays in technology investments and evolving market requirements may impact business growth and profitability. Mitigating Actions: |
| • Maintaining a customer-centric approach and high service quality standards. | |
| • Leveraging technology and domain capabilities to meet changing customer requirements. | |
| • Monitoring market developments and emerging business opportunities. | |
| • Driving operational excellence and cost efficiency. | |
| • Strengthening workforce capabilities through continuous learning and upskilling programmes. |
COMMERCIAL RISKS
| Risk | Mitigating Actions |
| We have a concentration of material contracts with customers in key markets, which may have a signicant impact on the Group?s performance. | Our commercial risks continue to be well managed through legal review, delegated authorities and contract monitoring processes. |
| We have a structured service management programme, with dedicated account managers who work closely with our customers utilising performance metrics in order to identify issues early and trigger corrective actions. |
OPERATIONAL RISKS
OPERATIONAL RISKS
| Risk | Mitigating Actions |
| The Groups financial results may be subject to volatility arising from movements in interest rates, foreign exchange rates, liquidity and changes in taxation legislation, policy or tax rates | We continue to manage our financial risks through our established budgeting, forecasting and working capital and treasury controls. This reduces the volatility of our financial results, giving the Board greater medium-term visibility. |
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Compliance Certification from CEO and CFO provided in Annual Report confirms the adequacy of our internal control system and procedures.
DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:
A. OVERVIEW
The financial statements of the Company have been prepared in accordance with the Indian Accounting Standards (Ind AS) and comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with rule 7 of the Companies (Accounts) Rules, 2014.
B. RESULTS OF OPERATIONS
1. Review of Operations
During the financial year ended March 31, 2026, the revenue from operations of the Company amounted to Rs. 20,292 Lakhs compaired to Rs. 18,490 Lakhs during the previous year ended March 31, 2025. Other income of the Company for the current year amounted to Rs.1,359 Lakhs compaired to Rs 1,701 Lakhs in the previous year.
The Company has only one primary segment viz, Information Technology (IT) services and accordingly the financials relate to this segment.
2. Performance
The table below summarizes the Standalone and consolidated financial performance of the Company during the year:
(Rs. in lakhs)
| Particulars | Standalone | Consolidated | ||
| For the Financial year ended March 31, 2026 | For the Financial year ended March 31, 2025 | For the Financial year ended March 31, 2026 | For the Financial year ended March 31, 2025 | |
| USA | 16,690 | 82.25% | 15,325 | 82.88% |
| Total Income | 7084 | 5,498 | 21651 | 20,191 |
| Total Expenditure | 3036 | 3,106 | 13440 | 13,185 |
| Profit before Finance Costs, Depreciation, | ||||
| Tax and exceptional item | 4048 | 2,392 | 8211 | 7,006 |
| Depreciation & Amortization | 1 | 29 | 1 | 29 |
| Finance Costs | 2 | 4 | 540 | 636 |
| Profit before Tax | 4045 | 2,359 | 7670 | 6,341 |
| Income Tax (including deferred tax) | 348 | 400 | 1725 | 1,383 |
| Net Profit / (Loss) after Tax | 3697 | 1,959 | 5945 | 4,958 |
| Other Comprehensive Income/(Expenditure) | 14 | 40 | 22 | -29 |
| Total Comprehensive Income/(Expenditure) | 3711 | 1,999 | 5967 | 4929 |
| Earnings / (Loss) per share | 3.32 | 1.76 | 5.34 | 4.45 |
3. Geographic Profile (Rs. in lakhs)
The table below summarises the Companys standalone geographical presence and revenue distribution during the financial year.
| Geography | March 31, 2026 | March 31, 2025 | ||
| Revenue | % | Revenue | % | |
| Europe | 310 | 1.53% | 305 | 1.65% |
| USA | 16,690 | 82.25% | 15,325 | 82.88% |
| India | 1,322 | 6.51% | 1,166 | 6.31% |
| Singapore | 1,757 | 8.66% | 1,588 | 8.59% |
| Rest of the World | 213 | 1.05% | 106 | 0.57% |
| Total | 20,292 | 100% | 18,490 | 100% |
4. Key Financial Ratios
The key analytical ratios derived from the Companys standalone financial statements for the financial years ended March 31, 2026 and March 31, 2025 are set out below:
| Particulars | March 31, 2026 | March 31, 2025 | Variance | Reason for variation beyond 25% |
| Debtor Turnover Ratio | 12.44 | 6.96 | 79% | Mainly due to increase in revenue and reduction in trade receivable |
| Interest Coverage Ratio | 2024 | 591 | 243% | Mainly due to higher earnings before interest & tax in current year due to dividend income from subsidiary Rs. 1,706 Lakhs and increase in revenue |
| Current Ratio | 8.83 | 7.54 | 17% | NA |
| Debt-Equity Ratio | - | - | NA | NA |
| Operating Profit Margin (%) | 26% | 19% | 37% | Mainly due to improved operating performance during the year |
| Net Profit Margin (%) | 90% | 51% | 78% | Mainly due to higher profit in current year due to dividend income from subsidiary Rs. 1,706 Lakhs and increase in revenue |
| Return on equity | 0.12 | 0.06 | 92% | Mainly due to higher profit in current year due to dividend income from subsidiary Rs. 1,706 Lakhs, increase in revenue and increase in average Shareholders? equity |
MATERIAL DEVELOPMENTS IN HUMAN RESOURCES AND EMPLOYEE RELATIONS Developing Talent
Managing human resources effectively and efficiently plays a critical role in ensuring that a satisfied, motivated work force delivers quality services. It also plays an important role in increasing staff performance and productivity, enhancing an organization?s competitive advantage, and contributing directly to the organizational goals. Satisfied, highly-motivated and loyal employees represent the basis of competitive company. The growth of satisfaction is to be reflected in the increase of productivity, improvement of the products? quality or rendered services and higher number of innovations.
The Company is highly employee oriented, and the focus is on the development of employees.
Employee Diversity
The Company believes in promoting and nurturing work environment which is conducive to the development and growth of an individual employee, by employing the best HR practices such as performance management, reward and recognition policy, leadership development program, open work culture and effective employee communication.
We are committed to embedding a culture of diversity and inclusion across our Group. This includes ensuring opportunity for all and embraces the positive effect that our diverse workforce brings.
We do not tolerate any form of discrimination, and our employment policies and practices focus on ensuring that all our employment processes are free from unlawful discrimination on any grounds.
Xchanging Solutions Limited has a total of 86 employees on its rolls as of March 31, 2026.
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