Detailed Narrative
Strong Financial Performance in FY25
Alldigi Tech achieved robust financial performance in FY25, with revenue from operations crossing the INR 500 crores milestone to reach INR 546 crores, representing a 23% year-on-year growth (adjusted for divested compliance business). EBITDA for the full year stood at INR 130 crores, up 12% year-on-year. The company's PAT grew significantly by 30.2% to INR 83.3 crores, with PAT percentage expanding to 15.2%, up 150 basis points year-on-year.
Demerger and New Strategic Direction
A significant milestone for the company was the transfer of its shareholding from Quess Corp to Digitide Solutions, effective April 1, 2025, as part of a 3-way demerger. Alldigi Tech is now positioned as a global provider of AI-driven digital transformation and business process solutions under Digitide. This new chapter emphasizes deepening client relationships, expanding global reach, driving efficiencies through technology and AI, and building high-performance teams.
CXM Segment Drives Growth and International Expansion
The CXM segment continued its strong growth momentum, with revenue reaching INR 404 crores in FY25, a 29% year-on-year increase. International business now contributes 74.5% of total CXM revenues, up from 72% last year, leading to a 100 basis point margin expansion for FY25. In Q4 FY25, CXM revenue grew 21.9% year-on-year to INR 108.6 crores, with international CXM revenue growing 24.5% year-on-year.
EXM Segment Growth and Product Development
The EXM payroll business reported a 10.3% growth for the full year, adding a record 63 new logos in FY25 with an ACV of INR 30 crores, a 50% increase from FY24. International ACV for EXM grew 47% to INR 14.4 crores, increasing international contribution to 30% of EXM revenues. The company is progressing with its Smart Pay Version 4 platform, having onboarded 130+ customers (25% of payroll revenues), and has seen positive market feedback for Smart HR Buzzily, winning INR 5 crores out of a INR 27 crores funnel.
Investments and Margin Impact
The company made significant growth investments during the year, including client-specific initiatives, operational leadership, and sales resources, particularly in Manila, where seats expanded from 600 to nearly 2,000. These investments marginally depressed EBITDA margins. Additionally, the divestment of Aparajitha contributed a significant profit on sale, boosting PBT and PAT, though some unplanned transition costs impacted EBITDA.
Outlook and Future Strategy
Alldigi Tech aims for continued high-teens revenue growth in the CXM segment and mid-to-high teens growth in the EXM business for FY26, seeking to recover from muted EXM growth in FY25. The company plans to complete the Smart Pay 4 migration by July-August 2025, which is expected to be EBITDA accretive over time⏳. New contracts in the PSU and government sectors, signed in Q4 FY25, are expected to contribute revenue in FY26.