Employee Costs Surge 16% as Data Intelligence Firm Reports ₹3 Crore Quarterly Loss
Data intelligence platform Tracxn reported a weak start to FY27, posting a marginal decline in revenue while slipping into losses during the first quarter. Rising employee expenses weighed on profitability despite stable subscription income.
According to the company’s financial statements filed with the National Stock Exchange (NSE), Tracxn’s revenue from operations stood at ₹21.08 crore in Q1 FY27, compared to ₹21.20 crore in the corresponding quarter of the previous fiscal, reflecting a marginal 0.6% year-on-year decline.
Subscription Business Remains Stable
Tracxn continued to derive its entire operating revenue from subscription sales that provide customers access to its data intelligence platform and software products. The company did not disclose a detailed revenue breakup for the quarter.
Including ₹1.52 crore in non-operating income, Tracxn’s total income reached ₹22.60 crore during the quarter.
Higher Employee Costs Impact Profitability
Employee benefit expenses remained the company’s largest cost component, rising 16% year-on-year to ₹21.98 crore. The expense accounted for 86.64% of Tracxn’s total expenditure during the quarter.
Overall expenses increased 18.4% to ₹25.37 crore, compared to ₹21.43 crore in Q1 FY26.
As a result, Tracxn reported a net loss of ₹3.01 crore in Q1 FY27, reversing from a profit of ₹1.12 crore recorded in the same quarter last year.
Sequential Performance
On a sequential basis, operating revenue grew 2.9% from ₹20.49 crore in Q4 FY26 to ₹21.08 crore in Q1 FY27.
However, losses widened 14.4% quarter-on-quarter, increasing from ₹2.63 crore in the previous quarter to ₹3.01 crore.
Outlook
Tracxn’s latest quarterly performance highlights the pressure on profitability despite stable subscription revenue. Going forward, the company’s focus is expected to remain on expanding its subscriber base while improving operating efficiency and managing employee costs to restore profitability.
