At a Glance
Alldigi Tech (formerly Allsec Tech) just served Q1 FY26 results with a ₹30 interim dividend, ROE of 27%, and margins that scream efficiency. Revenue was ₹144 Cr, PAT ₹15 Cr, and the stock jumped 3.3% to ₹1,047. Promoter Quess Corp (73.4% holding) keeps the company tightly controlled, while investors enjoy a 4.3% dividend yield and healthy payouts (84%). Growth slowed this quarter (-19% PAT YoY), but the balance sheet remains solid.
Introduction
Some companies shout about AI, cloud, and buzzwords. Alldigi? It just quietly runs payrolls, manages customer interactions, and mints money. With operations in India, the US, and the Philippines, the company handles over a million customer contacts daily, all while paying investors fat dividends.
Q1 FY26 saw a dip in profit growth (₹15 Cr vs ₹19 Cr Q4FY25), but the ₹30/share dividend keeps investors smiling. It’s a rare BPO stock that behaves like a dividend aristocrat – stable, lean, and rewarding.
Business Model (WTF Do They Even Do?)
Alldigi Tech is a BPO/KPO company offering:
- HR & Payroll Outsourcing (their bread and butter)
- Customer Support & Call Center Ops
- Data Verification & Processing
Clients include Fortune 100 companies. Parent Quess Corp (backed by Fairfax) brings deep client relationships. The business is asset-light, scalable, and thrives on recurring revenues.
Financials Overview
- Revenue (Q1 FY26): ₹144 Cr (YoY +11%)
- EBITDA: ₹37 Cr (OPM 25%)
- PAT: ₹15 Cr (YoY -19%)
- EPS (Q1): ₹9.8
- TTM Revenue: ₹561 Cr, PAT ₹66 Cr
- Dividend: ₹30 interim (Payout 82%)
- ROE: 27%, ROCE: 31%
Verdict: Slight profit dip, but return ratios and dividend strength make up for it.
Valuation
Current Price: ₹1,047
Book Value: ₹170 → P/B 6.15x
EPS (TTM): ₹43.5 → P/E 24x
🔹 Fair Value Estimates
- P/E Method: Sector avg ~30x → FV = ₹1,305
- EV/EBITDA: Assume 18x EBITDA ₹135 Cr → EV ₹2,430 Cr → FV ≈ ₹1,200
- DCF: Modest growth 10%, discount 12% → FV ≈ ₹1,150
Fair Value Range: ₹1,150 – ₹1,300 (stock slightly undervalued if growth recovers).
What’s Cooking – News, Triggers, Drama
- ₹30 interim dividend (record date soon).
- Segment reclassification hints at strategic focus.
- Parent Quess may drive new client wins.
- Weak Q1 profit – needs monitoring.
Balance Sheet
| (₹ Cr) | Mar 2024 | Mar 2025 |
|---|---|---|
| Assets | 368 | 419 |
| Liabilities | 368 | 419 |
| Borrowings | 45 | 63 |
| Net Worth | 245 | 259 |
Auditor Roast: Borrowings tiny, net worth strong. A clean sheet any auditor would kiss.
Cash Flow – Sab Number Game Hai
| (₹ Cr) | FY24 | FY25 |
|---|---|---|
| Ops | 91 | 118 |
| Investing | -28 | -22 |
| Financing | -71 | -97 |
| Net Cash | -8 | 0 |
Auditor Roast: Ops cash covers everything. Financing outflows = dividend party.
Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROE | 27.3% |
| ROCE | 31.4% |
| P/E | 24x |
| PAT Margin | 24% |
| D/E | 0.24 |
Auditor Roast: Ratios so clean they could be on a skincare ad.
P&L Breakdown – Show Me the Money
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 390 | 469 | 546 |
| EBITDA | 89 | 116 | 130 |
| PAT | 49 | 64 | 83 |
Auditor Roast: Revenue grows like a disciplined student, PAT like a topper.
Peer Comparison
| Peer | Revenue (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| Firstsource | 8,407 | 622 | 38x |
| eClerx | 3,519 | 570 | 32x |
| RPSG Ventures | 9,608 | 161 | 20x |
| Alldigi Tech | 561 | 66 | 24x |
Auditor Roast: Alldigi’s size is small, but margins and returns punch above weight.
Miscellaneous – Shareholding, Promoters
- Promoter (Quess Corp): 73.4%
- FII: 1.3%, DII: 1.4%, Public: 23.9%
- Buzz: Regular dividends, strong parent backing, and global delivery capability.
EduInvesting Verdict™ (500 words)
Alldigi Tech is the underdog BPO that blends growth with dividends. From call centers to payroll processing, it operates a lean, cash-generating model. The Quess/Fairfax backing ensures financial discipline and client access.
Q1 FY26 showed a profit dip due to higher tax and expenses, but margins remain robust. The interim dividend of ₹30 reaffirms management’s shareholder-friendly stance. Long-term, demand for HR outsourcing and customer support remains solid, supporting steady revenue growth.
SWOT Analysis
- Strengths: High ROE/ROCE, asset-light model, strong promoter.
- Weaknesses: Small scale compared to peers, profit volatility.
- Opportunities: Global BPO demand, AI-enabled service expansion.
- Threats: Rising attrition costs, automation disrupting traditional BPO.
Final Word: For investors who want a mix of moderate growth and consistent dividends, Alldigi is a sweet spot. It’s not the fastest-growing tech stock, but it’s a dependable compounder with cash returns that keep you hooked.
Written by EduInvesting Team | 31 July 2025
SEO Tags: Alldigi Tech, BPO Stocks, Quess Corp, Dividend Stocks, HR Outsourcing
