Alldigi Tech Limited: Navigating Growth with Digital Prowess in Q3 FY26

Alldigi Tech Limited, a prominent player in the outsourcing and digital services landscape, has once again demonstrated robust financial performance in the third quarter of Fiscal Year 2026. The company, formerly known as Allsec Technologies Limited, reported a strong consolidated revenue from operations of 152.7 crore rupees, marking a significant 9.5% year-on-year growth and a healthy 3.6% sequential increase. This impressive top-line expansion was complemented by an exceptional surge in EBITDA, which soared by 41.7% year-on-year to 45.9 crore rupees. The EBITDA margin consequently expanded by a remarkable 680 basis points year-on-year, reaching 30.1%, reflecting enhanced operational efficiencies and a favorable revenue mix. The company's Profit After Tax (PAT) also saw a respectable 4.5% year-on-year increase, closing the quarter at 20.8 crore rupees.

Segmental Performance and Strategic Drivers

Alldigi Tech's business is primarily segmented into Business Process Management (BPM) and Technology & Digital (T&D) services. In Q3 FY26, the BPM segment contributed 113.97 crore rupees to the total revenue, while the T&D segment added 38.71 crore rupees. The international business proved to be a significant growth engine, with international revenue climbing by 14.1% year-on-year and now accounting for a substantial 67% of the total revenue mix, up from 64% in Q3 FY25. This growing international footprint underscores the company's global competitiveness and diversified revenue streams.

However, the domestic BPM segment experienced a decline, with revenue down by 10.4% year-on-year and 10.7% quarter-on-quarter. Correspondingly, the Full-Time Equivalent (FTE) count for BPM also saw a reduction of 7.8% year-on-year. In contrast, the T&D segment demonstrated strong growth, with revenue up by 16.2% year-on-year and 4.9% quarter-on-quarter, and its FTE count increasing by 3.0% year-on-year.

Operational Excellence and Digital Initiatives

Alldigi Tech's operational efficiency was a key highlight, with the company successfully processing 16.2 lakh employee records in December 2025, contributing to 48.5 lakh records for Q3 FY26, marking a 10% year-on-year increase. The company's payroll accuracy stood at an impressive 99.82%, with on-time delivery at 99.61%. A significant milestone achieved during the quarter was the migration of 239 customers, representing 99% of India revenues, to the new SP4 platform, with the remaining balance expected to be completed by April payroll. This transition is crucial for streamlining operations and enhancing service delivery for its Indian client base.

In its pursuit of digital leadership, Alldigi Tech onboarded four new clients onto its HRMS V2 platform. Furthermore, the Digitide AI Centre of Excellence successfully completed a four-week Proof of Concept (POC) for PulseHR.ai, an AI-driven solution for payroll input consolidation, in December 2025. These initiatives underscore the company's commitment to leveraging technology and artificial intelligence to drive efficiency and innovation in its service offerings. The healthcare sector continues to be a significant contributor to the BPM segment's growth, indicating successful vertical-specific strategies.

Financial Health and Shareholder Returns

The company's balance sheet reflects improved liquidity, with Cash & Liquid Funds increasing due to better margin accruals and enhanced collections. Operating Cash Flow (OCF) witnessed a substantial increase of 87.2% year-on-year and 35.6% quarter-on-quarter, reaching 45.3 crore rupees. The Days Sales Outstanding (DSO) improved by 7 days quarter-on-quarter, indicating efficient working capital management. In a move to reward shareholders, the Board declared a second interim dividend of Rs. 30 per equity share for the financial year 2025-26, payable on or before February 20, 2026. This decision reflects the management's confidence in the company's sustained profitability and strong cash generation capabilities.

Despite the positive performance, the company recorded an exceptional item of 4.0 crore rupees in Q3 FY26, primarily due to an increase in gratuity liability and provision for compensated absences, driven by the enactment of new Labour Codes. This regulatory-driven impact highlights the dynamic operating environment for Indian companies. However, the company's proactive hedging efforts for foreign exchange exposures, as noted in its financial statements, demonstrate a disciplined approach to risk management.

Alldigi Tech Limited’s Q3 FY26 results paint a picture of strategic clarity and disciplined execution. The company's focus on digital transformation, international expansion, and operational efficiencies has yielded strong financial outcomes. With continued investments in technology and a commitment to shareholder returns, Alldigi Tech appears well-positioned to sustain its growth trajectory in the evolving digital business services landscape.