Alldigi Tech reported a strong Q2 FY27 with a 51% surge in profit to INR 26.6 crore, driven by a strategic pivot toward higher-margin international business. Revenue grew 4% to INR 153.3 crore, while margins expanded to 30.2%. Shareholders stand to benefit from a board-approved buyback of up to 4.8 lakh shares at INR 1,000 per share, supported by the company’s debt-free balance sheet.
Alldigi Tech Q2 Profits Soar 51% with Buyback Announcement
Revenue grew 4% year-on-year to INR 153.3 crore, while Net Profit rose 51% to INR 26.6 crore.
Reader Takeaway: Margin expansion through international business focus drives profitability, though top-line growth remains moderate due to domestic exits.
What just happened
Alldigi Tech has delivered strong profitability metrics for Q2 FY27, signaling a successful shift toward high-margin technology services. The company reported an EBITDA margin of 30.2%, a significant improvement from 24.4% in the previous year. Alongside these results, the board approved a share buyback program of up to 4.8 lakh shares at a price of INR 1,000 per share, totaling an outflow of INR 48 crore.
Why this matters
The company is aggressively pivoting away from low-margin domestic Business Process Management (BPM) contracts in favor of international markets. This strategy is now showing clear results, with the international segment contributing 83% of total BPM revenue. By sacrificing low-value revenue, management is prioritizing sustainable, high-margin growth, which has allowed the company to maintain a debt-free status and return cash to investors.
What changes now
Investors should note the firm's focus on AI-led efficiency, which is intended to reduce manual costs and improve customer outcomes. The company secured INR 37.2 crore in new Annual Contract Value (ACV) during the quarter, an 86.5% jump from last year. This new pipeline, coupled with the exit from underperforming domestic legacy projects, forms the core of the current growth strategy.
Risks to watch
While profitability is scaling, the headline revenue growth of 4% suggests that the transition is still in its early stages. There is execution risk involved in converting the new ACV wins into revenue, as this depends heavily on client-side implementation timelines. Additionally, investors should monitor the Days Sales Outstanding (DSO), which currently sits at 74 days.
Context metrics
- Cash and liquid funds stand at INR 127.2 crore as of September 2026.
- Tech & Digital segment margins are robust at 43.9%.
- International BPM revenue share improved to 83%, up from 75% in the prior year period.