Data intelligence platform Tracxn Technologies made a return to profitability in the first quarter of the financial year 2025-26 (Q1 FY26), after posting a net loss in the previous quarter. The Bengaluru-based SaaS company reported a profit after tax (PAT) of INR 1.1 crore, reversing its INR 7.6 crore loss in Q4 FY25, which was primarily driven by a sharp rise in tax expenses.
However, the Q1 FY26 PAT marked a 15% decline year-on-year (YoY) compared to INR 1.3 crore recorded in Q1 FY25, reflecting some pressure on margins despite operational stability.
Revenue Growth Remains Muted
Tracxn’s operating revenue for Q1 FY26 stood at INR 21.2 crore, up only 3% YoY from INR 20.5 crore in the corresponding quarter of the previous year. Sequentially, the revenue showed minimal growth, rising just 0.5% from INR 21.1 crore in Q4 FY25.
The modest revenue growth highlights a period of subdued demand or slower client acquisition, which is not uncommon in the highly competitive SaaS and data analytics space.
Adding other income of INR 1.7 crore, Tracxn’s total income for the quarter came in at INR 22.9 crore. The other income component continues to play a vital role in supporting the company’s bottom line during phases of limited operational revenue expansion.
EBITDA Turns Negative
While Tracxn returned to profitability, its earnings before interest, tax, depreciation, and amortisation (EBITDA) turned negative during the quarter. The company reported an EBITDA loss of INR 20 lakh in Q1 FY26, a significant shift from the INR 30 lakh EBITDA profit reported in Q1 FY25.
The negative EBITDA indicates rising operational costs or increased spending on sales, marketing, or R&D — common for SaaS companies aiming to scale. It may also reflect strategic investments being made for long-term growth.
Navigating Market Headwinds
Tracxn’s mixed performance in Q1 FY26 — a return to net profit but declining EBITDA and flat revenue — suggests a period of transition and recalibration. After the one-time tax-driven loss in the previous quarter, the company appears to be stabilizing its financials, albeit cautiously.
As a player in the data intelligence and startup research sector, Tracxn provides valuable insights to venture capital firms, corporations, and investment banks. The company continues to face competitive pressures, but its deep data capabilities and global client base remain core strengths.
Looking Ahead
To sustain profitability and drive revenue growth, Tracxn will likely need to focus on improving operating efficiency, expanding its client base, and enhancing its product offerings. The company’s performance in the coming quarters will be closely watched, especially with regard to margin recovery and topline acceleration.
Conclusion
Tracxn’s Q1 FY26 results reflect a partial recovery, with the company returning to profit after a tax-related setback in the previous quarter. While revenue growth remained flat and EBITDA turned negative, the positive PAT indicates underlying resilience. Going forward, Tracxn’s ability to control costs and scale efficiently will be key to maintaining momentum in a challenging SaaS landscape.
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