Alldigi Tech Q2 FY27 results: net profit up 50.9% to ₹26.58 crore, revenue up 4.0%

How did Alldigi Tech perform in Q2 FY27?

Alldigi Tech reported consolidated revenue of ₹153.31 crore in Q2 FY27, up 4.0% from ₹147.42 crore in Q2 FY26 and 2.0% from ₹150.28 crore in Q1 FY27. EBITDA was ₹46.30 crore, up 28.5% year on year and 12.0% sequentially, while the margin rose from 24.4% to 30.2% against the year-ago quarter and from 27.5% in the previous quarter.

Profit before tax increased 42.2% to ₹29.84 crore from ₹20.99 crore, and net profit rose 50.9% to ₹26.58 crore from ₹17.62 crore. Basic EPS was ₹17.44, up from ₹11.56 a year earlier and ₹11.89 in Q1 FY27. On the standalone basis, revenue was ₹88.36 crore and net profit was ₹11.05 crore, with profit before tax of ₹10.53 crore.

What changed in Alldigi Tech's costs and profit?

Employee cost fell 7.0% to ₹77.29 crore from ₹83.07 crore, and total expenses declined 2.0% to ₹125.75 crore from ₹128.33 crore. Other income increased 20.0% to ₹2.28 crore from ₹1.90 crore, while tax was ₹3.26 crore, down 3.3% from ₹3.37 crore. There was no exceptional item.

Against Q1 FY27, employee cost fell 6.5% to ₹77.29 crore and finance costs fell 8.4% to ₹3.39 crore, while other expenses rose 13.1% to ₹29.72 crore. Other income fell 25.2% to ₹2.28 crore, but tax declined 50.2% to ₹3.26 crore. Total expenses were down 2.3% at ₹125.75 crore. Management said quarterly margin may be influenced by business mix, currency movements and the timing of client trends.

How did the first half of FY27 go?

In H1 FY27, consolidated revenue rose 4.2% to ₹303.59 crore from ₹291.33 crore in H1 FY26, while total income increased 4.3% to ₹308.92 crore. Profit before tax rose 20.7% to ₹54.50 crore from ₹45.14 crore.

Net profit for the first half increased 37.5% to ₹44.70 crore from ₹32.51 crore, and EPS rose 37.5% to ₹29.33 from ₹21.33. Management said H1 EBITDA increased 20.8% to INR87.7 crores and the margin improved to 28.9% from 24.9% in the year-ago period.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹501.30 crore, down from ₹519.14 crore at 31 March 2026, while total equity rose to ₹253.10 crore from ₹250.98 crore. Cash increased to ₹97.14 crore from ₹84.71 crore, and the company reported no borrowings at either date.

Trade receivables rose to ₹79.54 crore from ₹69.26 crore, while trade payables were ₹58.31 crore against ₹58.03 crore. H1 operating cash flow increased to ₹70.20 crore from ₹53.46 crore, investing cash flow was ₹7.41 crore against negative ₹23.97 crore, and financing cash flow was negative ₹65.19 crore against negative ₹62.61 crore. Capital expenditure was ₹26.96 crore, compared with ₹20.66 crore.

How has Alldigi Tech done over the last 8 quarters?

Revenue increased year on year in each of the last eight quarters. It reached ₹154.67 crore in Q4 FY26 before easing to ₹150.28 crore in Q1 FY27 and rising to ₹153.31 crore in Q2 FY27; the lowest revenue in the period shown was ₹139.46 crore in Q3 FY25.

Net profit bottomed at ₹14.89 crore in Q1 FY26 and reached its highest level at ₹28.88 crore in Q4 FY26. It fell to ₹18.12 crore in Q1 FY27 before rising to ₹26.58 crore in Q2 FY27, while the EBITDA margin moved from 30.0% in Q3 FY26 to 27.5% in Q1 FY27 and 30.2% in Q2 FY27. Profit rose year on year in each of the last five quarters.

Which businesses drove the quarter?

Business Process Management reported revenue of ₹111.62 crore, up 1.0% from ₹110.48 crore in Q2 FY26, and segment EBIT of ₹17.46 crore against ₹12.79 crore. Its reported EBIT margin was 15.6%. Management said international BPM revenue grew 12.6% year on year and represented approximately 83% of BPM revenue, compared with 75% in the year-ago quarter.

Technology & Digital reported revenue of ₹41.69 crore, up 12.9% from ₹36.94 crore in Q2 FY26, and segment EBIT of ₹18.30 crore against ₹14.67 crore. Its reported EBIT margin was 43.9%. Management said the segment processed 51.1 lakh employee records during the quarter.

What else did the company announce?

On 29 October 2026, the board approved a proposal to buy back up to 4,80,000 equity shares at ₹1,000 per share through the tender offer route, for an aggregate amount not exceeding ₹48 crore, excluding expenses. The shares represent 3.15% of the paid-up equity capital as on 31 March 2026, and the proposal requires shareholders’ approval by special resolution through postal ballot; the promoter has stated an intention to participate.

The board also identified Alok Kumar Chaubey, Vice President – Sales (Tech and Digital), as Senior Management Personnel with immediate effect, following a recommendation from the Nomination and Remuneration Committee. The same-day investor presentation reported Q2 FY27 PAT up 51% as margins widened and low-margin domestic work was exited.

What did Alldigi Tech's management say?

Management maintained its target of early double-digit Tech & Digital revenue growth over the next three years and said BPM margins should continue improving as low-margin domestic work is rationalised. It expects the employee cost-to-revenue ratio to decline over the next few quarters, while current lease commitments should remain near the FY26 base of INR35 crore, with growth-related new leases as an exception. No consolidated revenue guidance was provided.

Management said BPM bookings typically convert into revenue in three to four months, while Tech & Digital can take two to four quarters. Q2 new-business ACV was INR37.2 crores, up 86.5% year on year, and international revenue reached approximately 70% of consolidated revenue, compared with roughly 63% a year earlier. Management said AI was not expected to lift the growth percentage immediately and that ACV conversion remained dependent on client implementation and go-live timing.

CEO Natarajan Laxsmanan said, “The technological embedding and AI infusion is not going to immediately help us in terms of growth percentage. However, it puts us on par with competition in terms of the market.” CFO Manish Agarwal said, “While quarterly margin may be influenced by business mix, currency movements and the timing of the client trends, the structural drivers of the margin improvement are intact.”

How did Alldigi Tech shares react?

The filing was released after market hours. From the price when the filing appeared, the stock fell 0.7% after five minutes, 1.3% after 15 minutes and 1.0% after 30 minutes. It closed 2.6% above the previous close on the reaction day, and by the next day’s close it was up 2.7% from the pre-results close.

The industry median fell 2.3% on the reaction day and 4.2% by the next day’s close, while the Nifty Microcap 250 fell 2.5% and 1.1%, respectively. Alldigi Tech therefore exceeded the industry median by 5.0 percentage points on the reaction day and 7.0 percentage points by the next day’s close. Earlier reaction-day moves included gains of 5.4%, 0.6% and 3.9% and declines of 0.1%, 5.2%, 0.8%, 9.6% and 4.7%.