Alldigi Tech LimitedQ2 FY27 Results & Financial Update
Alldigi Tech Limited: Q2 FY27 consolidated results and company financials – revenue ₹153.31 Cr, PAT ₹26.58 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
Find an answer
Ask this result
Chart · Market context
Alldigi Tech price & chart
Quarter overview
Quarterly earnings analysis
Profitability expanded notably during the quarter, driven by operational efficiencies, portfolio realignments, and favorable tax outlays. Profit before tax (PBT) advanced 21.01% sequentially to ₹29.84 crore from ₹24.66 crore. Profit after tax (PAT) grew 46.69% sequentially to ₹26.58 crore compared to ₹18.12 crore in Q1 FY27, resulting in an improved PAT margin of 17.34% versus 12.06% in the previous quarter.
Earnings per share (EPS) for Q2 FY27 rose to ₹17.44 from ₹11.89 in Q1 FY27. Financial performance was underpinned by disciplined cost management, which saw employee benefits expenses decline sequentially to ₹77.30 crore while other expenses moved to ₹29.70 crore.
The company's investor disclosures highlight a strategic emphasis on expanding international revenue streams—which accounted for nearly 70% of total turnover—while intentionally exiting low-margin domestic BPM accounts. Concurrently, the T&D segment maintained robust margins above 43%, supported by stable full-time equivalent (FTE) headcounts and rising employee record processing volumes.
Cash generation remained resilient, with operating cash flow reaching ₹37.10 crore during the half year / quarter context as reported in investor disclosures, accompanied by a 3-day improvement in days sales outstanding (DSO) down to 74 days. Cash and liquid funds stood at ₹127.20 crore after accounting for dividend payouts during the period.
To enhance shareholder returns, the board of directors approved a share buyback of up to ₹48 crore at ₹1,000 per share via the tender offer route. Strategic initiatives during the period also featured the launch of Alldigi 360 and analytics platforms, aimed at scaling technology-led revenue streams across India, the Philippines, and upcoming Middle Eastern markets.
01 · Business model
What does Alldigi Tech do?
Alldigi Tech Limited operates as a global provider of outsourcing, business process management (BPM), and tech-enabled human resources and payroll services. Backed by Digitide Solutions and Fairfax Holdings (Canada), the company has established a delivery footprint spanning approximately 4,000 seats across India (Chennai, Bangalore, Noida), around 1,750 seats in Manila, Philippines, and a presence in New Jersey, USA.
The business is structured around two primary operating segments: Business Process Management (BPM) and Tech & Digital (T&D) services. The BPM division delivers customer experience management, debt collections, insurance and healthcare back-office operations, transaction processing, and compliance services, increasingly embedding artificial intelligence and outcome-based pricing models.
The Tech & Digital division provides human resources outsourcing (HRO) and payroll solutions, processing millions of employee records monthly through proprietary platforms including Alldigi 360, Buzzily, Smart Pay, and PRISM. The company serves global clients across sectors such as banking and financial services, healthcare, manufacturing, energy and utilities, communication media and telecom, and fast-growth technology.
02 · Historical context
What shaped the business before this quarter
Alldigi Tech has built 25 years of global BPO service excellence, transitioning from traditional operations to digital and AI-infused business solutions.
03 · Financial snapshot
Current quarter vs the available comparable
| Metric | Q2 FY27 | Previous quarter |
|---|---|---|
| Revenue from operations | ₹153.31 Cr | ₹150.28 Cr |
| Total income | ₹155.59 Cr | ₹153.33 Cr |
| Profit before tax | ₹29.84 Cr | ₹24.66 Cr |
| Profit after tax | ₹26.58 Cr | ₹18.12 Cr |
| EPS | ₹17.44 | ₹11.89 |
04 · Why it moved
Why the quarter looked the way it did
What drove revenue
International BPM revenue reached ₹92.80 crore, growing 12.6% year-on-year and representing 83% of total BPM revenue, driven by key BFSI and healthcare accounts.
Tech & Digital revenue rose 12.9% year-on-year to ₹41.70 crore, supported by increased employee record processing volumes which reached 51.1 lakh records in Q2 FY27.
New sales ACV reached ₹37.20 crore in Q2 FY27, up 86% year-on-year, propelled by major contract wins across BPM and T&D divisions, bringing H1 ACV to ₹82.60 crore.
What drove margins
Management actively exited low-margin domestic BPM contracts to improve overall portfolio profitability, resulting in a 33% year-on-year decline in domestic BPM revenue while segment margins expanded.
T&D segment margins sustained high levels at 43.9% (generating ₹18.30 crore in segment margin) as employee record processing grew 7.2% year-on-year while FTE counts remained flat.
BPM average FTE count was optimized by 14.2% year-on-year to 4,272 through automation and efficiency gains, lifting BPM segment margin to 15.6%.
05 · Demand, customers & order book
Where demand is coming from
H1 FY27 new sales ACV reached ₹82.60 crore, representing a 107% year-on-year increase, driven by wins in US healthcare, consumer lending, and e-commerce sectors.
06 · Segments, products & geography
Which parts of the business are doing the work
Segments and products
BPM revenue stood at ₹111.60 crore (72.8% of total revenue), generating a segment margin of ₹17.50 crore (15.6% margin), up 407 bps year-on-year.
Tech & Digital revenue reached ₹41.70 crore (27.2% of total revenue), delivering a segment margin of ₹18.30 crore (43.9% margin), up 416 bps year-on-year.
Geography and market mix
International markets accounted for 69.8% (₹107.00 crore) of total revenue, while domestic business contributed 30.2% (₹46.30 crore).
Operations span ~4,000 seats across Indian hubs in Chennai, Bangalore, and Noida; ~1,750 seats in Manila offering 12+ international languages; and a facility in New Jersey, USA.
07 · Capacity, projects & execution
What is being built, commissioned or delivered
Capacity, production and utilisation
Processed ~51.1 lakh employee records per month in Q2 FY27, reflecting a 7.2% year-on-year and 1.8% sequential volume increase.
Projects, capex and execution
Continued investments in Alldigi 360, Buzzily 2.0, PRISM AI payroll automation, and analytics suites to support platform-led growth across India, the Philippines, and the Middle East.
08 · Strategy & new businesses
How the company is trying to change its growth mix
Launched Alldigi 360 in India in October 2026 as a comprehensive AI-powered HR and payroll suite, with planned expansion to the Philippines and Middle East in FY28.
Initiated an assisted captive model for a global e-commerce client in Manila to build, operate, transform, and transfer an AI-enabled customs-coding centre.
09 · Reported developments
What changed operationally
EBITDA increased 28.5% year-on-year to ₹46.30 crore with margins expanding 576 bps to 30.2%, driven by a superior revenue mix and operational efficiencies.
The board approved a share buyback of up to ₹48 crore at ₹1,000 per share through the tender offer route.
10 · Cash flow & balance sheet
Profit is one thing. Cash and funding tell another part of the story.
Operating cash flow reached ₹37.10 crore in Q2 FY27 (80% of EBITDA conversion). Days Sales Outstanding (DSO) improved by 3 days year-on-year to 74 days.
Cash and liquid funds stood at ₹127.20 crore as of September 30, 2026, following dividend payouts during the quarter.
Capital allocation & funding
The company maintains zero long-term and short-term debt borrowings, with lease liabilities of ₹128.50 crore (non-current) and ₹24.80 crore (current) recorded on the balance sheet.
11 · Beyond the numbers
What changed beyond the numbers
Industry recognition
Alldigi was named in the Everest Group PEAK Matrix for Multi-Country Payroll 2026.
Leadership appointments
Appointed a new Chief Business Officer for BPM, established separate Enterprise and SMB sales teams for T&D, and placed dedicated sales executives for the US and Southeast Asia.
12 · Previous-quarter changes
What changed since the previous quarter
Revenue rose from ₹150.28 crore in Q1 FY27 to ₹153.31 crore in Q2 FY27.
PAT grew from ₹18.12 crore in Q1 FY27 to ₹26.58 crore in Q2 FY27.
13 · Key Q&A
The quarter, answered directly
What does Alldigi Tech do?
Alldigi Tech Limited operates as a global provider of outsourcing, business process management (BPM), and tech-enabled human resources and payroll services. Backed by Digitide Solutions and Fairfax Holdings (Canada), the company has established a delivery footprint spanning approximately 4,000 seats across India (Chennai, Bangalore, Noida), around 1,750 seats in Manila, Philippines, and a presence in New Jersey, USA.
What is the clearest takeaway from Q2 FY27?
Profitability expanded notably during the quarter, driven by operational efficiencies, portfolio realignments, and favorable tax outlays. Profit before tax (PBT) advanced 21.01% sequentially to ₹29.84 crore from ₹24.66 crore. Profit after tax (PAT) grew 46.69% sequentially to ₹26.58 crore compared to ₹18.12 crore in Q1 FY27, resulting in an improved PAT margin of 17.34% versus 12.06% in the previous quarter.
What drove revenue or demand?
International BPM revenue reached ₹92.80 crore, growing 12.6% year-on-year and representing 83% of total BPM revenue, driven by key BFSI and healthcare accounts.
What mattered most for margins or profitability?
Management actively exited low-margin domestic BPM contracts to improve overall portfolio profitability, resulting in a 33% year-on-year decline in domestic BPM revenue while segment margins expanded.
What changed operationally beyond the headline numbers?
Processed ~51.1 lakh employee records per month in Q2 FY27, reflecting a 7.2% year-on-year and 1.8% sequential volume increase.
What should the next disclosure help confirm?
Monitor client adoption and scaling of the newly launched Alldigi 360 HR and analytics suite across SMB and enterprise tiers.
14 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
Build your own next-quarter scenario
Reported values are prefilled where a comparable basis is available. Otherwise, the field starts at 0. You can overwrite every field.
Example: enter 10 for 10% revenue growth. Enter -100 for a 1 percentage-point margin decline.
The calculator holds the selected margin basis constant except for the basis-point adjustment you enter. It does not estimate tax, finance cost, dilution, working capital, valuation or share price.
15 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Alldigi 360 adoption: Monitor client adoption and scaling of the newly launched Alldigi 360 HR and analytics suite across SMB and enterprise tiers.
- 02
International market expansion: Track execution progress on planned FY28 market entries in the Philippines and the Middle East for HR platforms.
- 03
Buyback execution: Observe the completion and capital allocation impact of the approved ₹48 crore share buyback tender offer.
Learn the metrics
Need the concepts first?
Use Nivata’s plain-English guides to understand the accounting terms used in this brief before interpreting them.
