Digitide Solutions Limited Q3FY26 Concall Decoded: ₹662 crore TCV lands, but margins still playing hard to get

1. Opening Hook

Another quarter, another IT services CEO promising AI will save margins, boost growth, and maybe even world peace.

But to be fair, Digitide isn’t just name-dropping AI like it’s a LinkedIn buzzword of the week. They’ve clocked ₹780 crore revenue, posted a record ₹662 crore TCV, and trained 6,000 employees in AI. That’s not small talk.

Seven straight years of “Great Place to Work” certification? Impressive. Though investors might prefer “Great Place to Compound.”

Still, between a demerger hangover, labour code adjustments, and a billion-dollar dream by FY31, this quarter feels like the base camp before the real climb.

Is this the start of sustained double-digit growth, or just another IT mid-cap pep talk?

Read on. The numbers — and the tone — get more interesting.

---

2. At a Glance

• Revenue ₹780 crore, up 6.5% YoY – Respectable jog, not yet a sprint.
• Tech & Digital up 19% YoY – Finally the cool cousin is earning more.
• EBITDA ₹88 crore – Margins up 7 bps QoQ, baby steps count too.
• Adjusted PAT ₹24 crore, up 43% QoQ – Once you ignore the labour code surprise.
• TCV ₹662 crore – Record high; sales team earned their bonuses.
• DSO down to 79 days – Collections team deserves applause.
• Net cash ₹125 crore – War chest ready for shopping.

---

3. Management’s Key Commentary

“FY26 is proving to be a defining year of transformation for Digitide.”
(Translation: Demerger chaos is over, please judge us now on execution.) 😏

“Tripling revenues to USD 1 billion by FY31.”
(Big dreams. Roughly $650 million more to go. Clock is ticking.)

“Tech and digital revenues surged 19% YoY.”
(That’s the growth engine. BPM is steady, but tech pays the bills tomorrow.)

“Our TCV hit ₹662 crores, a record high.”
(Pipeline looks solid. Now comes the boring part: converting it.)

“Adjusted PAT hit a 3-quarter high of ₹24 crores.”
(After carving out ₹25.4 crore of labour code pain. Technical knockout avoided.)

“Over 6,000 digitiders have now been reskilled through our AI Learning Academy.”
(AI won’t replace us. We’ve already hired it internally.) 🤖

“We are very confident that in FY27, we will be doing double-digit revenue growth.”
(Finally. The number investors wanted to hear.)

---

4. Numbers Decoded

Metric	Q3FY26	Commentary
Revenue	₹780 crore	6.5% YoY growth; steady, not spectacular
Tech & Digital Revenue	₹236 crore	30.2% mix; inching toward higher-margin future
BPM Revenue	₹545 crore	70% annuity-heavy backbone
EBITDA	₹88 crore	11% margin; expansion plan promised
Adjusted PAT	₹24 crore