Digitide Q1 FY27 Revenue Up 5.3%, PAT Turns Positive

Date: July 27, 2026

Q1 FY27 Performance:

Revenue: ₹775.1 Cr, up 5.3% YoY from ₹735.8 Cr in Q1 FY26, but down 3.1% QoQ from ₹800.0 Cr in Q4 FY26
EBITDA: ₹76.9 Cr (9.9% margin), compared to ₹82.6 Cr (11.2%) in Q1 FY26 and ₹87.9 Cr (11.0%) in Q4 FY26
EBITDA margin declined 107 bps QoQ and 131 bps YoY due to lower revenue and impact of minimum wage revisions across states
Reported PAT: ₹2.9 Cr (0.4% margin), turning positive after two consecutive quarters of losses (Q1 FY26: ₹9.7 Cr, Q4 FY26: -₹5.0 Cr)
Depreciation & amortization: ₹55.2 Cr (Q1 FY26: ₹46.1 Cr, Q4 FY26: ₹66.4 Cr)
Finance Cost: ₹15.1 Cr (Q1 FY26: ₹11.2 Cr, Q4 FY26: ₹14.7 Cr)
Other Income: -₹4.3 Cr (Q1 FY26: -₹3.6 Cr, Q4 FY26: -₹5.2 Cr)
Tax: ₹8.0 Cr (Q1 FY26: ₹10.3 Cr, Q4 FY26: ₹0.9 Cr)

Segment Performance:

BPM Revenue: ₹537.7 Cr (69.4% of total), down 0.2% YoY from ₹538.6 Cr and down 2.4% QoQ from ₹550.8 Cr
BPM EBITDA: ₹72.8 Cr (13.5% margin), down from ₹89.9 Cr (16.7%) in Q1 FY26 and ₹89.7 Cr (16.3%) in Q4 FY26
Tech & Digital Revenue: ₹237.4 Cr (30.6% of total), up 20.3% YoY from ₹197.2 Cr but down 4.7% QoQ from ₹249.2 Cr
Tech & Digital EBITDA: ₹18.9 Cr (8.0% margin), compared to ₹18.8 Cr (9.5%) in Q1 FY26 and ₹30.1 Cr (12.1%) in Q4 FY26
International Revenue: ₹295.6 Cr (38.1% of total), grew 10.2% YoY
Domestic Revenue: ₹479.5 Cr (61.9% of total)

Additional Financial Highlights:

AI-Led Revenue reached approximately ₹15 Cr+ in Q1 FY27
Adjusted PAT*: ₹2.9 Cr (0.4% margin), compared to ₹18.6 Cr (2.5%) in Q1 FY26 and ₹11.2 Cr (1.4%) in Q4 FY26

*Excludes exceptional items including demerger-related expenses in Q1FY26 and labour code impact in Q4FY26

Operational Highlights:

Expanded partnerships: Added Adobe as a new Global Silver Partnership
AI hiring bot "Neil" enabled 16,000+ hires
AI-assisted onboarding bot "Nina" supports new joiners
Digital workforce bot "Nikki" engages 30,000+ employees on pulse and feedback, helping reduce attrition

Strategic Direction - Four Moves:

1. Focus over breadth: Concentrate on core; treat low margin and non-profitable areas with discipline

2. Value over volume: Drive margin accretive growth rather than revenue growth alone

3. One firm over silos: Account is the currency; interlock replaces standalone P&L silos

4. Performance over comfort: Right person, right role; full backing for performers

Operating Model Restructuring:

Transitioning to one enterprise operating model with Business Units, Service Lines, GTM Markets, and Corporate Functions
Designed to solve parallel structures, enable depth where company grows, ensure clear accountability, and provide career roadmap

Market Strategy:

Strengthen core India market work (contact centers, transaction processing, payroll, collections)
Go West, Go Digital: Compete as challenger in international markets with AI at core
Fill white spaces organically and through M&A with discipline: every deal must deepen core thesis, be margin and EPS accretive

Industry Focus:

Banking & Financial Services: Intelligent customer engagement, credit risk scoring, fraud detection, collections optimization
Insurance: Underwriting automation, claims intelligence, bordereaux processing
Healthcare: Claims processing automation, clinical decision support, medical document summarization

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