1. Opening Hook
In a world where everyone wants to be “AI-first,” Digitide just wentAI-all-in. While the CEO pitched a USD 1 billion dream with a 3×3×3 plan, investors quietly calculated how many quarters that actually means. 🤖 The company claims it’s in “transition,” but to the market, that’s code forplease ignore margins for now. Still, between AWS tie-ups, hackathon wins, and 24 shiny new logos, it seems Digitide’s future is writing itself—possibly in Python. Stick around; things get algorithmically interesting later.
2. At a Glance
- Revenue up 7% YoY:Growth so stable it could be a BPM script.
- EBITDA ₹85 cr, up 3% QoQ:Margins stayed polite but unimpressive.
- PAT ₹17 cr (adjusted):Because “adjusted” is the new profitable.
- Tech & Digital up 23% YoY:AI clearly writes better cheques than humans.
- International revenue 37% mix:Dollar billing therapy in full swing.
- Gross debt ₹49 cr, cash ₹77 cr:Liquidity yoga—balanced and flexible.
3. Management’s Key Commentary
“We are laying foundations for a $1 billion future.”(Translation: We’re still under construction, please wear a hard hat.)
“Our tech and digital segment surged 23% YoY.”(Because AI-led anything gets you applause, even if margins don’t show it.)
“Demerger-related costs are now behind us.”(Until the next “one-off” decides to visit.)
“We booked ₹550 cr TCV—third straight quarter above ₹500 cr.”(Repetition = reassurance; repetition = reassurance.)
“50% of new deals are AI-infused.”(Apparently, every PowerPoint now runs on ChatGPT.)😏
“We will triple revenue by FY31.”(Math says that’s 22% CAGR; reality says—good luck, champs.)
“Most corporate costs are behind us.”(A CFO’s version of ‘the worst is over,’ uttered before Q3 hits.)
4. Numbers Decoded
| Metric | Q2 FY26 | QoQ | YoY | Remark |
|---|---|---|---|---|
| Revenue | ₹764 cr | +4% | +7% | Modest, but “strategic” |
| EBITDA | ₹85 cr | +3% | – | Margin stable at 11.1%—barely |
| PAT (Adj.) | ₹17 cr | – | – | Adjusted = selective optimism |
| Tech & Digital Revenue | ₹228 cr | +16% | +23% | AI rode shotgun |
| BPM Revenue | ₹536 cr | Flat | Flat | Still the dependable cousin |
| Cash | ₹77 cr | – | – | Rainy-day funds for cloud dreams |
| Debt | ₹49 cr | – | – | Light, like their PAT |
🧮 Numbers show progress—but “AI-led transformation” hasn’t yet transformed profits.
5. Analyst Questions
Q:Margin expansion when?A:“By Q4FY26.”(Translation: The quarter that keeps moving.)
Q:Why the BFSI softness?A:“Floods in North India.”(Apparently, monsoons beat macros.)
Q:AWS partnership impact?A:“Early access to AI innovation.”(And possibly a bigger cloud bill.)
Q:Billing mix breakdown?A:“40% T&M, 30% fixed, 20% transaction, 10% outcome.”(Basically—whatever works.)
Q:Will $1 billion target need acquisitions?A:“Yes, about one-third inorganic.”(Because spreadsheets love shortcuts.)
6. Guidance & Outlook
Management swears FY26 is a “transition year”—the corporate synonym for “please don’t judge us yet.” Margins should recover
