Alldigi Tech Q3 FY26 results: net profit up 4.6% to ₹20.84 crore, revenue up 9.5%

How did Alldigi Tech perform in Q3 FY26?

Alldigi Tech reported consolidated revenue of ₹152.68 crore in Q3 FY26, up ₹13.22 crore or 9.5% from ₹139.46 crore in Q3 FY25 and ₹5.26 crore or 3.6% from ₹147.42 crore in Q2 FY26. Total income was ₹155.02 crore, against ₹143.04 crore a year earlier and ₹149.32 crore in the previous quarter.

EBITDA rose to ₹45.88 crore from ₹32.44 crore in Q3 FY25 and ₹36.03 crore in Q2 FY26. The EBITDA margin increased from 23.3% to 30.0% year on year and from 24.4% sequentially, changes of 6.7 percentage points and 5.6 percentage points, respectively.

Profit before tax was ₹27.80 crore, up ₹3.33 crore or 13.6% year on year and ₹6.81 crore or 32.4% sequentially. Net profit was ₹20.84 crore, compared with ₹19.92 crore in Q3 FY25 and ₹17.62 crore in Q2 FY26, while basic EPS was ₹13.68 against ₹13.07 and ₹11.56.

On the standalone basis, revenue was ₹87.02 crore and profit after tax was ₹21.57 crore. Revenue growth was 5.5%, while profit before tax was ₹9.72 crore.

What changed in Alldigi Tech's costs and profit?

Total expenses were ₹123.20 crore in Q3 FY26, up ₹4.63 crore or 3.9% from ₹118.57 crore in Q3 FY25. Employee cost increased ₹0.93 crore or 1.2% to ₹80.20 crore, depreciation rose ₹3.82 crore or 36.1% to ₹14.40 crore, and finance costs rose ₹1.03 crore or 106.2% to ₹2 crore. Other expenses declined ₹1.15 crore or 4.1% to ₹26.60 crore.

Other income fell ₹1.24 crore or 34.6% to ₹2.34 crore from ₹3.58 crore in Q3 FY25. The quarter included an exceptional charge of ₹4.02 crore, while Q3 FY25 had no exceptional item. Tax expense increased ₹2.41 crore or 53.0% to ₹6.96 crore.

Against Q2 FY26, total expenses fell ₹5.13 crore or 4.0%, with employee cost down ₹2.87 crore and other expenses down ₹1.72 crore. Other income rose ₹0.44 crore, while tax expense increased ₹3.59 crore; Q2 FY26 had no exceptional item.

How did the first nine months of FY26 go?

For the first nine months of FY26, consolidated revenue was ₹444.01 crore, up ₹43.80 crore or 10.9% from ₹400.21 crore in 9M FY25. Total income rose ₹44.80 crore or 11.0% to ₹451.18 crore.

Profit before tax fell ₹11.77 crore or 13.9% to ₹72.94 crore, while net profit declined ₹10.66 crore or 16.7% to ₹53.35 crore. Basic EPS was ₹35.01, down from ₹42.0 in 9M FY25. Management said the lower PAT reflected a one-off gain from the prior-year LLC divestment, which affected the comparison base.

How has Alldigi Tech done over the last 8 quarters?

Revenue rose year on year in each of the last eight quarters. Across the reported series, revenue was highest in Q3 FY26 at ₹152.68 crore and lowest in Q1 FY25 at ₹129.32 crore, with the current quarter extending the upward revenue direction from Q2 FY26.

Profit increased year on year in each of the last two quarters. In the reported series, PAT was highest in Q1 FY25 at ₹31.95 crore and lowest in Q2 FY26 at ₹17.62 crore; Q3 FY26 then rose to ₹20.84 crore.

The EBITDA margin reached 30.0% in Q3 FY26, the highest point in the reported series, compared with 23.3% in Q3 FY25. It was lowest at 23.4% in Q2 FY25 and improved to 24.4% in Q2 FY26 before rising further in the latest quarter.

Which businesses drove the quarter?

Business Process Management reported revenue of ₹113.97 crore and EBIT of ₹19.67 crore for Q3 FY26, with an EBIT margin of 17.3%. The company did not provide year-ago revenue, EBIT or growth figures for this segment.

Technology & Digital reported revenue of ₹38.71 crore and EBIT of ₹16.70 crore, with an EBIT margin of 43.1%. The company also did not provide year-ago revenue, EBIT or growth figures for this segment.

What else did the company announce?

At its meeting on 27 January 2026, the Board approved the unaudited standalone and consolidated financial results for the third quarter and nine months ended 31 December 2025, along with the statutory auditors’ limited review report.

The Board declared a second interim dividend of INR 30 per equity share of face value INR 10 each for FY26. The record date is 4 February 2026, and payment is to be made on or before 20 February 2026. The company also filed an investor presentation covering its financial performance.

What did Alldigi Tech's management say?

Management said the sequential EBITDA increase was linked to a better revenue mix and savings in IT. It also said cash and liquid funds were higher because of margin accruals and improved collections, operating cash flow rose on improved collections, and DSO improved by 7 days sequentially.

Management said international revenue rose 14.1% year on year and accounted for 67% of Q3 FY26 revenue, compared with 64% in Q3 FY25. The SP4 migration covered 239 customers and 99% of India revenue, with the balance targeted by the end of April payroll.

Management identified continued technology and AI investment through PulseHR.ai and HRMS V2, a PulseHR.ai proof of concept completed by Digitide AI CoE in December 2025, and Manila positioned as a multilingual hub offering more than 12 international languages.

Management said BPM growth was led by the Healthcare vertical and international BPM revenue rose 13.8% year on year. It also reported an exceptional item of ₹4.0 crore in Q3 FY26 from gratuity and leave impact under the new labour code, BPM full-time-equivalent headcount declining 7.8% year on year and 5.9% sequentially, and domestic Technology & Digital quarterly revenue of ₹26.0 crore remaining flat to soft sequentially.

The presentation gave no explicit revenue or profit guidance. It reported operating cash flow conversion of 87.2% in Q3 FY26 and stated that cash and liquid funds were higher due to improved margins and collections.

How did Alldigi Tech shares react?

After the filing, the stock was up 0.6% after five minutes and down 0.5% after 15 minutes, while it was unchanged after 30 minutes. On the reaction day, it closed up 3.9% from the pre-results close, compared with a 1.0% median rise for the other stocks in the BPO/KPO industry.

By the next day’s close, the stock was up 10.6% from its pre-results close, exceeding the industry median by 9.1 percentage points. By the fifth session’s close, it was up 9.8%, compared with a 0.6% industry median move and a 9.2 percentage-point excess move.

Earlier reaction-day moves were mixed: the stock fell 9.6% on 22 January 2025 and 5.2% on 30 July 2025, but rose 14.1% on 6 May 2024. The most recent prior result before Q3 FY26 produced a reaction-day move of -0.1% on 30 October 2025.

How did other Business Process Outsourcing (BPO)/ Knowledge Process Outsourcing (KPO) companies do?

Eight other BPO/KPO companies that had filed for the quarter were compared with Alldigi Tech. Their median revenue growth was 14.3%. Six peers grew faster than Alldigi Tech, while two grew slower than the company.

Five of the eight peers reported higher profit. Alldigi Tech’s revenue growth of 9.5% was below the peer median revenue growth of 14.3% for the quarter.