Digitide Solutions Limited — Q1 FY26
Digitide Solutions reported Q1 FY26 consolidated revenue of ₹736 crore, up 6% YoY, with EBITDA of ₹83 crore (11.2% margin).
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✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
71%Questions answered1Evaded / deflected12Questions auditedConsistentNumbers vs filing
Partial answer
High priority
Why did total contract value fall from 568 to 523 cr?
Asked by Sanjay, KSA Security Private Limited
Acknowledged decline but attributed to normal variation without specifics on which deals shifted.
no specific reason for declineattributed to normal quarter shiftno breakdown of deals
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Question
my question was to just understand about this CV uh total contract value which has fallen from 568 to 523 cr so how How how we can read that?
Guri (CEO)
the TCB in quarter 1 is at 523 versus 568. That's a very marginal difference... the momentum continues... we've had two back-to-back quarters where our EN plus NN has been above 500 KES.
Partial answer
High priority
Why did core digit margin shrink to 11.5% and when will it recover?
Asked by Sanjay, KSA Security Private Limited
Explained dip due to investments and restructuring but gave no specific margin target for Q2 or H2.
no specific timeline for recoveryno quantification of margin improvement
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Question
our core business of digit the margin has come down uh to 11 11 and a half%. ... from Q2 onwards how we see this rising margin and coming back to the 14 15% digitized margin.
Guri (CEO)
we did say that versus the last financial year we should expect 150 to 100 basis points dip... from the second half we will start to claw back... we are committed and confident about that.
Answered
Medium priority
What are the competitive moats in IT BPM services?
Asked by Sanjay, KSA Security Private Limited
Provided specific examples of moats: platform stickiness, AI embedding, and bundling tech with services.
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Question
we have a competitive position and mode in IT BPM services. can you highlight upon competitiveness and even mode how you see that how competitive we are?
Guri (CEO)
the mode that I had referred to was in our BPM business... majority of our business is platform which gives us stickiness... we are embedding AI... bundling technology with services.
Answered
High priority
What growth can we expect in FY27 given FY26 is a consolidation year?
Asked by Dil Shiri, Crown Capital
Gave specific growth guidance: upper quartile for FY26, 16-17% organic CAGR long-term.
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Question
how do we see everything going FY27 like what kind of growth can we expect next year I'm assuming this year will be a very flattish year compared to last year.
Guri (CEO)
In the current financial year I don't believe we'll be flat. We will definitely be in the upper quartile of the industry growth... organic growth should be in the 16 to 17% CAGR.
Partial answer
High priority
Will PAT margins improve in H2 due to operating leverage?
Asked by Dil Shiri, Crown Capital
Confirmed margin improvement in H2 but did not quantify the expected margin level.
no specific margin percentage givenno quantification of improvement
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Question
with a higher operating leverage and maybe a lesser exceptional costs... overall you can have better pat margins going forward because H2 can be significantly better in terms of margins compared to H1.
Guri (CEO)
we expect our margins to start climbing from the second half of this year... we are both committed and confident of a margin extension in the second half of the year.
Answered
Medium priority
What is the macro environment and competitive intensity?
Asked by Dil Shiri, Crown Capital
Provided detailed color on macro environment by geography and segment, with specific growth data.
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Question
how is the macro environment right now like in both domestic and export market... what's the competitive intensity any kind of color on how the businesses are going?
Guri (CEO)
from the India lens perspective the market is still strong... on the international side... we have still clocked both sequential and year-on-year growth... we've been very clearly focused on the industry segments that are growing faster.
Answered
Medium priority
How are you derisking vertical concentration in BFSI?
Asked by Joti Singh, Aryan Capital Markets Limited
Listed three specific derisking strategies with examples.
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Question
44% of revenue from BFS and insurance so how are you derisking vertical concentration amid macro uncertainty in financial services?
Guri (CEO)
derisking is from three perspectives: geography, platform embedment, and the kind of services... we've got exposure to both India and US... significant part of our business is collections which is platform driven.
Partial answer
High priority
Can you share details on the AWS transformation deal?
Asked by Joti Singh, Aryan Capital Markets Limited
Provided duration and nature but did not disclose deal size or revenue impact.
no deal size disclosedno revenue contribution mentioned
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Question
if you can share more on the AWS transformation deal it size and it group and duration does this indicate a shift toward larger and multi-year digital transformation mandates?
Guri (CEO)
The deal that we have picked up is a multi-year three-year deal. In that deal, we are actually helping them migrate, modernize, and we will also manage the assets on an ongoing basis.
Answered
Medium priority
Are there any one-off costs besides the 9 crore demerger cost?
Asked by Garvita, Seven Islands CMS
Clearly distinguished one-time costs from ongoing investments, confirming no other one-offs.
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Question
apart from 9 crores of one time cost which we have incurred because of demerger is there any one-off cost in the expenses because I can see that in the unallocated corporate expenses there is a huge jump.
CFO (name not stated)
there are one timers which are primarily related to the listing and the merger per se. But the remaining expenses are increased mostly due to the normal group which we had already guided to which is the independent list entity cost.
Evasive
High priority
What are key drivers for margin expansion and steady-state margins?
Asked by Ankit, RN Capital
Refused to provide steady-state margins for each segment despite being asked directly.
declined to give segment margin guidancereferred to overall guidance only
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Question
what are the key drivers for the 100 basis plus expansion across BPM and 60 basis expansion across tech and digital and what is the steady state margin which is going to be sustainable for both the verticals?
Guri (CEO) and CFO
the margin expansion in the segments is attributed to the operational rigor... we have given an overall guidance for the long-term... I wouldn't want to give a specific guidance of the number of margin for each of the segment.
Partial answer
Medium priority
Will DSO improve by end of FY26 as previously guided?
Asked by Ankit, RN Capital
Attributed increase to one-time contract migration but did not reaffirm the 5-7% improvement target.
no specific DSO target givenno quantification of improvement
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Question
the DSO that we told that have increased to 91 days... are we sticking with the same guidance that by the end of FY 26 DSO will be better?
CFO (name not stated)
in this quarter it's an exception... we believe this is a one-time impact because of the contractations from the long-term we are committed to be driving improvement in our DSO so from next quarter you should see the movement already shown.
Answered
High priority
Are you confident of achieving 12-14% growth guidance for FY26?
Asked by Zaki, Individual Investor
Reaffirmed double-digit growth guidance with confidence, citing sales momentum and pipeline.
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Question
last time you had said that you'll end the year at around 12ish to 14ish% decrease in your overall growth... Do you see this happening sir?
Guri (CEO)
by the time we exit the year we will be in the upper quartile of the industry growth early double digits... we are fairly confident that we will be in that cohort of growth.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Q1 revenue grew 6% year on year | 6% | 6% | Matches filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.