1. At a Glance – Blink and You’ll Miss the Cash
Alldigi Tech Ltd is that rare Indian smallcap which doesn’t scream for attention, doesn’t promise AI moonshots every quarter, and yet quietly prints money like an obedient RBI printer on caffeine. Market cap sits around ₹1,237 Cr, current price near ₹812, and the stock has politely disappointed momentum chasers with a –8.5% one-year return, while calmly rewarding patient adults with a 3.69% dividend yield.
Q3 FY26 numbers? Revenue ₹153 Cr, PAT ₹21 Cr, operating margin a spicy 30%, and EPS of ₹13.68 for the quarter. ROCE at 31%, ROE at 27%, debt still behaving at ₹82 Cr, and promoter holding a no-nonsense 73.39%.
This is not a startup. This is not a turnaround story. This is a payroll-and-BPO veteran that behaves like your strict CA uncle: boring, predictable, dividend-loving, and secretly very rich. The real question is not “why is it cheap?” but “why does the market keep ignoring this cash cow?”
2. Introduction – The Most Uncool IT Stock You’ll Ever Like
Alldigi Tech (earlier Allsec Tech) has been around since 1998, which already disqualifies it from being “new-age.” It doesn’t talk about metaverse, doesn’t cry about hiring freezes, and doesn’t post inspirational LinkedIn reels. Instead, it processes payrolls, manages CX operations, handles compliance, and answers customer calls — the digital plumbing of corporate India and global enterprises.
Owned by Quess Corp / Digitide Solutions, backed by Fairfax, Alldigi sits in that rare sweet spot:
- Too small for large IT funds
- Too boring for retail momentum junkies
- Too profitable to ignore forever
Over the last decade, the company has transitioned from losses to consistent profitability, steadily improved margins, cleaned up working capital, and now operates like a disciplined annuity business. Revenues have grown at ~20% CAGR over 3 years, profits at ~27% CAGR, while dividends have become almost aggressive.
The market, however, treats it like an outsourced cousin at a wedding — present, useful, but not invited
to the dance floor. Let’s break down whether that neglect is justified or lazy.
3. Business Model – WTF Do They Even Do?
Imagine you’re a Fortune 500 company. You don’t want to run payroll across 12 countries, manage leave policies, answer 1 million customer calls a day, or deal with compliance paperwork that gives lawyers nightmares. You outsource. Enter Alldigi.
Two Main Engines:
1. EXM – Employer Experience Management (HR & Payroll)
This is the HR backbone: payroll processing, leave & attendance, reimbursements, labour law compliance, retirement benefits. Segment margin: ~15%. Not sexy, but sticky. Clients don’t switch payroll vendors every Diwali.
2. CXM – Customer Experience Management
This is the high-margin star: transaction processing, customer support, compliance, credit risk, insurance and healthcare services. Segment margin: ~38%. This is where Alldigi flexes operational efficiency.
They operate across India, Philippines, and the US, handle 1 million+ customer contacts daily, and employ 4,000+ FTEs. This is a scale business where utilisation and cost control matter more than buzzwords.
In FY24–25, management smartly exited the Labour Law Compliance (LLC) business via a ₹27 Cr slump sale, pruning low-focus operations. Less clutter, better margins. Sometimes the best strategy is subtraction.
4. Financials Overview – Numbers That Don’t Shout, They Whisper Riches
Quarterly Comparison Table (₹ Cr)
| Metric | Latest Qtr (Dec 25) | YoY Qtr (Dec 24) | Prev Qtr (Sep 25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 153 | 139 | 147 | 10.1% | 4.1% |
| EBITDA | 46 | 32 | 36 | 43.8% | 27.8% |
| PAT | 21 | 20 | 18 | 5.0% | 16.7% |
| EPS (₹) | 13.68 | 13.07 | 11.56 | 4.7% | 18.3% |
