Alldigi Tech profit jumps 50.9% to 26.6 crore rupees; proposes share buyback
Key Facts
Results came as revenue grew much more slowly than profit, rising 4% year over year to 153.3 crore rupees. Earnings before interest, taxes, depreciation and amortization (EBITDA) were 46.3 crore rupees, up 28.5% year over year. The company said the EBITDA margin widened to 30.2%, up 576 basis points from the corresponding quarter. The proposed buyback remains subject to shareholder approval through a special resolution put to a postal ballot.
The quarter-on-quarter comparison shows profit growth accelerating in the second quarter. Net profit rose from 18.1 crore rupees in the first quarter to 26.6 crore, while operating profit increased from 41.4 crore to 46.3 crore. Revenue rose from 150.3 crore to 153.3 crore, or 2% quarter on quarter. Year over year, net profit increased from 17.6 crore rupees, EBITDA from 36 crore and revenue from 147.4 crore. The figures show a widening gap between revenue growth and profit growth, as the company said improved margins were linked to AI-enabled efficiencies and a better revenue mix.
For the first half of the financial year, revenue was 303.6 crore rupees, up 4.2% from the corresponding period. EBITDA reached 87.7 crore rupees, up 20.8%, while net profit was 44.7 crore, up 37.5%. The six-month results therefore show profitability growing faster than revenue, mirroring the gap recorded in the second quarter. In the first quarter, the company reported revenue of 150.28 crore rupees, up 4.43% year over year, and net profit of 18.12 crore, up 21.69%. This comparison is consistent with second-quarter net profit rising from its level in the previous quarter.
In the BPM segment, revenue was 111.6 crore rupees, up 1% year over year. That total reflected a clear divergence between markets: international revenue rose 12.6% to 92.8 crore rupees, while domestic revenue fell 33% to 18.8 crore. The CEO said international business accounts for about 70% of the company's revenue and that it continues to rationalize low-margin domestic BPM activities. This means most revenue now comes from international business, alongside a contraction in domestic activity. By contrast, technology and digitalization segment revenue grew 12.9% to 41.7 crore rupees, and the segment margin was 43.9%, compared with 39.7% in the corresponding quarter.
According to the company statement, the wider EBITDA margin reflects the impact of AI-enabled efficiencies and an improved revenue mix. The CEO said, "We continue to invest in AI across delivery operations and HR and payroll products, and have strengthened our sales leadership in the U.S. and Southeast Asia." The company said in its investor presentation that Buzzily 2.0, which combines HR, employee self-service and payroll, was launched in May 2026. Alldigi 360 and Alldigi 360 Analytics were also launched in October 2026. These products are part of the investment path described by the CEO, alongside stronger sales leadership in the U.S. and Southeast Asian markets.
The proposed buyback will take the form of a tender offer on a proportionate basis and will become effective only after shareholder approval through a special resolution by postal ballot. The company said details of the record date, timelines and execution documents would be announced later. The disclosure on the board meeting outcome says a committee formed by the board will oversee the process. In share trading, the closing price rose from 810.10 rupees on October 29 to 833.65 rupees on October 30, a daily increase of 2.91% in the following session. The price move came a day after the results announcement, while the proposal's next step remains tied to shareholder approval and subsequent execution disclosures.