ALLDIGI - Alldigi Tech

📊 NSE: ALLDIGI 🏢 Computers - Software - Medium / Small 📅 Last Updated: 12/13/2025 18:10

💰 Financial Performance

Revenue Growth by Segment

Q2 FY26 revenue from operations grew 12.2% YoY, driven by growth in both Tech & Digital (T&D) and Business Process Management (BPM). For FY25, consolidated revenue reached INR 546.31 Cr, a 16.4% increase from FY24's INR 469.37 Cr.

Geographic Revenue Split

Approximately 30% of standalone revenue is derived from exports. The company operates in 46 countries with delivery centers in India, Philippines, and the US.

Profitability Margins

FY25 Basic and Diluted EPS grew 30.1% to INR 54.66 from INR 42.00 in FY24. Q2 FY26 operating cash flow (OCF) to EBITDA conversion remained strong at 92.8%.

EBITDA Margin

Q2 FY26 EBITDA grew 16.9% YoY, outpacing the 12.2% revenue growth, indicating margin expansion despite a dip in T&D segment profitability due to sales team investments.

Capital Expenditure

Not disclosed in absolute INR Cr for future periods, but H1 FY26 OCF of INR 53.5 Cr (up 9.2% YoY) supports a robust cash position for technology and M&A investments.

Credit Rating & Borrowing

Financial profile is characterized as healthy with a comfortable capital structure; specific interest rate percentages are not disclosed, but cash-rich status limits external borrowing needs.

⚙️ Operational Drivers

Raw Materials

Human Capital (6,500+ employees) and Technology Infrastructure (SmartHR platform) represent the primary operational inputs.

Import Sources

Talent and operational hubs are primarily located in India, Philippines, and the USA.

Key Suppliers

Not applicable for service-based BPM and T&D operations.

Capacity Expansion

Current capacity involves processing 4.0 million pay slips per quarter for over 600 clients. Expansion includes the new Revenue Cycle Management (RCM) billing service in the Philippines.

Raw Material Costs

Employee benefit expenses are the primary cost driver; technology and AI integration are used to drive operational efficiencies and support the 16.9% YoY EBITDA growth in Q2 FY26.

Manufacturing Efficiency

Demonstrated by a 92.8% OCF to EBITDA conversion rate in Q2 FY26 and a 41.5% YoY growth in quarterly OCF to INR 33.4 Cr.

Logistics & Distribution

Not applicable for digital and tech-enabled services.

📈 Strategic Growth

Expected Growth Rate

15-19%

Growth Strategy

Achieving mid-to-high teens growth through deepening client relationships, launching RCM billing in the Philippines (revenue expected in Q3 FY26), AI-driven efficiency gains, and M&A targeting BFSI and Healthcare verticals.

Products & Services

Payroll Services, SmartHR platform, Customer Experience Management (CXM), and Revenue Cycle Management (RCM) billing.

Brand Portfolio

Alldigi, SmartHR, Digitide Solutions (Parent).

New Products/Services

Revenue Cycle Management (RCM) billing launched in the Philippines, with revenue contribution expected to begin in Q3 FY26.

Market Expansion

Expanding global footprint in 46 countries with a strategic focus on increasing presence in BFSI and Healthcare verticals.

Market Share & Ranking

Recognized as a 'Star Performer' and 'Major Contender' in Everest Group’s PEAK Matrix Assessment 2025 for Multi-Country Payroll (MCP) Solutions.

Strategic Alliances

Acquired by Digitide Solutions Limited; utilizes partnership models in domestic markets to balance acquisition costs and reach.

🌍 External Factors

Industry Trends

The industry is shifting toward integrated digital platforms and Multi-Country Payroll (MCP); Alldigi is positioned as a high-growth 'Star Performer' in this evolving landscape.

Competitive Landscape

Competes in the global BPM and MCP space; differentiated by its 'Star Performer' status and multi-country delivery capabilities.

Competitive Moat

Moat is built on the proprietary SmartHR platform, industry recognition from Everest Group, and long-term associations with 600+ clients; sustainability is driven by AI integration and global delivery scale.