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Earnings Call Transcript

Digitide Solutions Earnings Call Transcript: Key Takeaways

Digitide delivered a resilient quarter with record contract bookings (TCV) and improved operational efficiency. Despite one-time labor code impacts on Net Profit, the core Tech & Digital segment and international business are driving structural momentum.

Guidance and delivery
Management target Revenue 10.0% FY27
Highlights
Revenue growth6.5% YoY to 780 Cr; Tech & Digital grew 19%.
MarginsModest EBITDA margin expansion; targeting 200-300 bps long-term uptick.
Order bookRecord TCV of 662 Cr, up 20% sequentially.
Demand visibilityStrong; record TCV of 662 Cr with 34 new logos.
Management confidenceHigh; emphasizing 3x3x3 strategy and record order pipeline.

Growth

Consolidated revenue grew 6.5% YoY to 780 Cr. Tech and Digital revenue surged 19% YoY, now comprising over 30% of total mix.

Outlook

Management projects double-digit revenue growth for FY27 and 200-300 bps EBITDA margin expansion by FY31.

Risks

BFSI segment remains under cost pressure; Net Profit was hit by a 25.4 Cr one-time labor code adjustment.

Last quarter's promises, checked

Delivered

  • Guided 3x revenue growth by FY31 → 6.5% YoY growth to 780 Cr (= BEAT)
  • Guided international revenue to grow faster → 11% YoY growth (= BEAT)
  • Guided 5-7% DSO improvement → DSO reduced by 6 days to 70 days (= BEAT)

Partly delivered

  • Guided cleanup optimization by Q2 → 25.4 Cr labor code hit in current Q (= PARTIAL)

Missed

  • Guided 100-150 bps EBITDA margin dip → FY25 margin down 153 bps (= MISS)
Source

Earnings Call Transcript filed with BSE, NSE: DIGITIDE. Summary written with AI assistance from the document.

Read the document ↗

Digitide Solutions Ltd: key numbers

Share price
₹78.57
Market cap
₹1,172 Cr
Revenue (annual)
₹3,080 Cr
Net profit (annual)
₹-16.35 Cr
P/E (TTM)
-48.3×Sector 22.1×
Promoter holding
57.33%-0.04% QoQ
FII holding
7.08%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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