Alldigi Tech delivered robust financial performance for Q2 and H1 FY26, with strong revenue and EBITDA growth. International business expansion and platform upgrades were key highlights. While growth investments led to marginally lower EBITDA margins, H1 PAT saw a decline due to a prior-year divestment. The company remains confident in achieving mid-to-high teens revenue growth and improving EBITDA margins going forward.
vs Q4 FY26
| Metric | Value | YoY |
|---|---|---|
| Revenue (H1 FY26) | ₹291 Cr | +12.0% YoY |
| EBITDA (H1 FY26) | ₹73 Cr | +17.0% YoY |
| PAT (H1 FY26) | ₹32.5 Cr | -26.3% YoY |
| Revenue (Q2 FY26) | ₹147 Cr | +12.0% YoY |
| EBITDA (Q2 FY26) | ₹36 Cr | +17.0% YoY |
| PAT (Q2 FY26) | ₹17.6 Cr | +45.5% YoY |
Segment Breakdown
Share of Revenue (Q2 FY26)
| Category | Headline | |
|---|---|---|
Capex | Capex disclosed | |
Liquidity | Cash ₹137 crores |
| Category | Target | Priority |
|---|---|---|
| Revenue | Full year revenue growth→mid-to high teens | High |
| Profitability | EBITDA margin improvement→100 and 150 basis points | High |
| Profitability | Tech & Digital segment margins→41% to 42% | High |
| Volume | EXM business growth→double | Medium |
| # | Metric | |
|---|---|---|
| 01 | Tech & Digital segment margins recovery | |
| 02 | Philippines RCM business revenue generation | |
| 03 | Tax assessment status resolution | |
| 04 | Progress on Chennai and Noida infra facility upgrades | |
| 05 | Overall EBITDA margin improvement |
| Severity | Risk |
|---|---|
medium | EBITDA margin compression due to growth investments EBITDA margins were marginally lower due to investments in leadership and sales resources, but expected to recover to 41-42% in Q3 FY26. Management |
medium | Uncertainty in tax assessment status and potential refunds One financial year is under scrutiny, and a transfer pricing audit is near finalization, with resolution for one order expected in 3-4 months. Analyst |
medium | Competition and profitability challenges in the MSME segment The MSME segment has higher competition and lower revenue per pay slip, requiring a measured approach to ensure profitability and avoid dragging down overall EBITDA. Management |
low | Pacing of growth dependent on external economic and competitive factors The pace of doubling EXM business in 4-5 years depends on the economy and competitive landscape, though management remains confident in high-teens CAGR. Management |
Alldigi Tech reported its tenth consecutive quarter of robust financial performance. For the half-year FY26, revenue from operations reached INR291 crore, marking a 12% year-on-year growth. EBITDA for H1 stood at INR73 crore, up 17% year-on-year. For Q2 FY26, revenue from operations was INR147 crore, a 12% year-on-year and 2.4% quarter-on-quarter increase, with EBITDA at INR36 crore, up 17% year-on-year but down 1% quarter-on-quarter. PAT for Q2 was INR17.6 crore, a significant 45.5% year-on-year and 18.1% quarter-on-quarter increase.
The company's strategic focus on international markets continued to yield results, with the overall share of international business increasing from 62% to 64% in H1 FY26. The BPM segment saw its international revenue grow 16.1% year-on-year in Q2, now contributing 76% of total BPM revenues. The Tech & Digital business also demonstrated strong growth, with H1 revenue up 16.9% year-on-year and INR18 crore in new ACV, double the previous year's figure.
Alldigi Tech successfully completed the migration of its India-based customers onto the Smart Pay 4 platform, aiming for improved turnaround times. For Smart HR (Buzzily), the company secured INR9 crore in ACV to date, with INR2.4 crore specifically from the SME segment. Efforts are ongoing to infuse artificial intelligence into customer landscapes and enhance the UI/UX of HRMS, filling gaps in performance and learning modules. These initiatives are expected to contribute to operational efficiencies and better cost absorption.
While EBITDA margins for H1 FY26 were marginally lower due to strategic growth investments in leadership and sales resources, management expects a recovery. Specifically, Tech & Digital segment margins are projected to return to the 41-42% range in Q3 FY26. The company aims for an overall EBITDA margin improvement of 100-150 basis points year-on-year, driven by increased international revenues, operational efficiencies, and tighter cost control.
The company incurred capex for infra upgrades for a large client and consolidated its Bangalore facilities. Similar infra facility upgrades are planned for Chennai and Noida in the coming quarters. Alldigi Tech continues to explore new acquisitions that align with its strategy of expanding CXM presence or strengthening its footprint in BFSI and healthcare verticals. The company's cash position stood at INR137 crore as of September 25, 2025, with H1 cash collections at INR304 crore.
Alldigi Tech reiterated its confidence in achieving full-year revenue growth in the 'mid-to high teens'. The company also targets to double its EXM business over the next 4-5 years. For the MSME segment, a measured approach focusing on direct channels and strict cost control is being adopted to ensure profitability. Management believes that with platform scalability, expanded sales channels, and an intact execution culture, FY26 will be another strong year.