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View Claim Ledger →Digitide Solutions Limited — Q3 FY26
Digitide delivered a resilient Q3 with consolidated revenue of ₹780 crore (+6.5% YoY), driven by tech & digital revenue surging 19% YoY to 30.2% of mix.
bullish
high
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Digitide delivered a resilient Q3 with consolidated revenue of ₹780 crore (+6.5% YoY), driven by tech & digital revenue surging 19% YoY to 30.2% of mix. EBITDA of ₹88 crore improved 3% QoQ, with margins up 7 bps QoQ to 11.3%. Adjusted PAT hit a three-quarter high of ₹24 crore (+43% QoQ), despite a one-time ₹25.4 crore labor code charge. Record TCV of ₹662 crore (+20% QoQ) and 34 new logos signal strong pipeline conversion. Management guided for double-digit revenue growth in FY27 and reiterated 200-300 bps margin expansion by FY31 via mix shift, AI automation, and international growth. Risk: BFSI pricing pressure and slower-than-expected margin improvement in domestic BPM.
डिजिटाइड ने तीसरी तिमाही में अच्छा प्रदर्शन किया। कुल कमाई 780 करोड़ रुपये रही, जो पिछले साल से 6.5% ज्यादा है। टेक और डिजिटल सेवाओं से कमाई 19% बढ़ी, जो अब कुल कमाई का 30.2% है। कंपनी का मुनाफा (EBITDA) 88 करोड़ रुपये रहा, जो पिछली तिमाही से 3% ज्यादा है। शुद्ध मुनाफा (PAT) 24 करोड़ रुपये रहा, जो पिछली तिमाही से 43% ज्यादा है। कंपनी ने 662 करोड़ रुपये के नए ऑर्डर जीते और 34 नए ग्राहक जोड़े। प्रबंधन का कहना है कि अगले साल कमाई दो अंकों में बढ़ेगी और 2031 तक मुनाफा 2-3% और बढ़ेगा। जोखिम: बैंकिंग सेक्टर में दबाव और घरेलू कारोबार में मुनाफा धीमी गति से बढ़ सकता है।
Promises0 met · 1 missedRisks4 trackedTranscriptfull text
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Promises
1 promise
Promise Tracker
0 delivered, 0 close, 1 missed.
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Risks
4 risks
Risk Intelligence
BFSI pricing pressure
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Transcript
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Read Transcript →Quarter Snapshot
Total Contract Value (TCV)
₹662 Cr
+20% QoQ
Record high TCV, reflecting strong sales momentum and enterprise demand.
Tech & Digital Revenue Share
30.2%
+30 bps QoQ
Mix shift towards higher-margin tech & digital, up 19% YoY.
New Logos Added
34
N/A
34 new logos added in Q3, indicating strong market acceptance.
Automated Transactions (Agentic AI)
3.6M
N/A
3.6 million automated transactions via agentic AI deployed in platforms.
What Changed vs Last Quarter
NEW
Double-digit revenue growth in FY27
Management expressed high confidence in achieving double-digit revenue growth in FY27, supported by record TCV and strong pipeline.
NEW
200-300 bps margin expansion by FY31
Reiterated long-term margin expansion target of 200-300 basis points by FY31, driven by mix shift, AI, and international growth.
NEW
Inorganic growth to contribute ~$200M by FY31
Expects about one-third of the $650M incremental revenue target to come from acquisitions, targeting 2-3 deals adding $150-160M.
NEW
DSO to stabilize further
DSO improved to 79 days, expected to stabilize further with improved collection rigor and revenue assurance.
DROPPED
FY26 revenue growth in upper quartile of industry, early double digits
Management expects to exit FY26 with early double-digit revenue growth, driven by strong sales momentum and pipeline.
DROPPED
Margin expansion from H2 FY26
Management expects EBITDA margins to start climbing from the second half of FY26, driven by operating leverage and cost initiatives.
DROPPED
Portfolio realignment completion by Q2 FY26
Exit of non-core and low-margin contracts is on track to complete by Q2 FY26.
DROPPED
Long-term organic growth of 16-17% CAGR to reach $1B revenue by FY31
Management reiterated target of tripling revenue by FY31, with organic growth of 16-17% and incremental growth from acquisitions.
NEW RISK
BFSI pricing pressure
BFSI segment facing cost optimization pressures, which could impact vendor spend and margins.
NEW RISK
Margin convergence in tech & digital
Tech & digital margins at 9.6% remain well below BPM's 15.4%, with convergence timeline uncertain.
NEW RISK
One-time labor code impact
Exceptional loss of ₹25.4 crore due to new labor code adjustments, though management considers it a one-off.
NEW RISK
Group structure complexity
Analyst raised concerns about subsidiary AllDigi's separate listing and potential simplification; management was non-committal.
RISK GONE
Elevated DSO due to demerger-related contract novations
DSO increased to 91 days from historical levels due to GST re-registrations and contract novations post-demerger. Management expects normalization from Q2.
RISK GONE
Softness in BFSI vertical impacting BPM segment
Management acknowledged continued softness in the BFSI segment, which is a key vertical for the BPM business.
RISK GONE
Margin pressure from investments and one-time costs
Investments in leadership, offerings, and demerger-related costs are impacting margins in H1. Management expects recovery only from H2.
RISK GONE
Macroeconomic headwinds in international markets
International markets face stronger macroeconomic pressures, though management believes focused industry segments mitigate impact.
Fast read
Guidance and risk preview
Management expressed high confidence in achieving double-digit revenue growth in FY27, supported by record TCV and strong pipeline.
BFSI segment facing cost optimization pressures, which could impact vendor spend and margins.
View Risks →