Digitide Solutions Q2 FY26 results: net profit ₹2.91 crore

How did Digitide Solutions perform in Q2 FY26?

Digitide Solutions reported consolidated revenue of ₹764.19 crore in Q2 FY26, compared with ₹735.74 crore in Q1 FY26, an increase of ₹28.45 crore or 3.9%. EBITDA rose by ₹2.58 crore or 3.1% to ₹85.15 crore, while EBITDA margin was 11.1%, compared with 11.2% in the previous quarter. The company also reported other income of ₹4.19 crore and total expenses of ₹742.81 crore for the quarter.

Profit before tax fell from ₹19.99 crore in Q1 FY26 to ₹11.65 crore, while net profit declined from ₹9.69 crore to ₹2.91 crore. Profit attributable to owners moved from ₹5.73 crore to a loss of ₹1.78 crore, and basic EPS moved from ₹0.38 to negative ₹0.12. The quarter included an exceptional charge of ₹13.92 crore. The corresponding standalone revenue was ₹476.48 crore and standalone profit after tax was ₹18.87 crore.

The investor presentation reported year-on-year revenue growth of 7%, Tech and Digital revenue growth of 23%, international business revenue growth of 4% and TCV bookings of ₹550 crore. It also stated that H1 FY26 revenue crossed ₹1,500 crore for the first time. The presentation reported H1 FY26 revenue of ₹1,500 crore, EBITDA of ₹168 crore with an 11.2% margin and PAT of ₹12 crore.

What do the balance sheet and cash flow show?

At 30 September 2025, total assets were ₹1,864.54 crore, compared with ₹1,721.80 crore at 31 March 2025. Total equity was ₹920.55 crore, compared with ₹912.24 crore, while borrowings fell from ₹63.01 crore to ₹49.22 crore and cash fell from ₹183.56 crore to ₹76.06 crore. Trade receivables were ₹689.65 crore, compared with ₹554.62 crore, and trade payables were ₹66.02 crore, compared with ₹74.15 crore.

For H1 FY26, operating cash flow was ₹39.95 crore and investing cash flow was negative ₹39.07 crore. Financing cash flow was negative ₹108.38 crore and capital expenditure was ₹44.14 crore. A year-earlier cash-flow comparison was not provided. Total equity of ₹920.55 crore included an exceptional-item charge of ₹13.92 crore in the quarter’s profit and loss account.

Which businesses drove the quarter?

Business Process Management reported revenue of ₹535.72 crore and EBIT of ₹82.32 crore in Q2 FY26, with an EBIT margin of 15.4%. Tech and Digital reported revenue of ₹228.47 crore and EBIT of ₹21.38 crore, with an EBIT margin of 9.4%. The investor presentation showed Tech and Digital revenue rising 16% from Q1 FY26 and 23% from the year-ago quarter.

Tech and Digital accounted for 30% of Q2 FY26 revenue, up from 27% in Q1 FY26. The presentation attributed the year-on-year increase to demand for AI-led transformation and digital solutions. Segment EBIT comparisons for the year-ago quarter and sequential changes were not provided in the available data.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results, together with the statutory auditors’ limited review report, for the quarter and half year ended 30 September 2025. The results were filed with the BSE and NSE on 4 November 2025, and the company also submitted its Q2 FY26 and H1 FY26 investors’ presentation.

The board approved shifting the registered office within Bengaluru from the Bellandur Gate address to New Municipal No. 1, Sri Subramanya Plaza, 29th Main Road, BTM Layout 1st stage, Ring Road, Bengaluru 560068, effective from 5 November 2025. The company said the move was intended to provide better administrative convenience and effective coordination after its demerger from Quess Corp Limited. No dividend, fund raise or appointment was reported in the same-day filings.

What did Digitide Solutions' management say?

Management maintained its FY31 targets of USD 1 billion in revenue, 200–300 basis points of EBITDA margin expansion from an FY25 base of approximately 14.8%, and a 2x improvement in revenue per FTE. It said the incremental revenue required would be sourced two-thirds organically and one-third through M&A, with organic growth of 15–16% CAGR needed through FY31. Management did not provide interim FY27 guidance and expected margin expansion to become evident from Q4 FY26 onwards.

CEO and Executive Director Gurmeet Chahal said FY26 was a transition and transformation year and that investments in establishing Digitide as a standalone company, adding leadership and building advanced capabilities were deliberate and necessary. He said the company was embedding AI across delivery models and had achieved Tier-1 partner status with both AWS and Azure. Management also said 10,000 professionals were being upskilled through DigiAIWave.

CFO Suraj Prasad said corporate-related costs that would arise as an independent company were not present in the previous year’s results and that, after normalisation, the company was on track. Management identified BFSI softness in domestic BPM, US macroeconomic headwinds, H1 margin compression of approximately 360 basis points year on year, and 6–9 month sales cycles for hyperscaler-led transformation deals as risks. It said TCV bookings were ₹550 crore, international business represented 37% of revenue and demerger costs were largely behind the company.

How did Digitide Solutions shares react?

Earlier results-day moves were negative, with the stock down 3.7% on 1 August 2025 and down 6.2% on 26 June 2025. These figures describe the company’s past trading reactions and do not indicate a future share-price movement.

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