Digitide Solutions Limited (BSE: 544413 | NSE: DIGITIDE) – Q4 FY26 Results & FY27 Outlook

Date of announcement: 18 May 2026

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Introduction

Digitide Solutions Limited (BSE: 544413 | NSE: DIGITIDE) reported its audited financial results for the fourth quarter (Q4) and the full fiscal year ended 31 March 2026. The press release highlights record quarterly revenue, strong cash generation, and a strategic focus on scaling AI‑first services in FY27.

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Q4 FY26 Highlights (Quarter‑on‑Quarter)

Metric	Q4 FY26	QoQ Change
Revenue	₹800 Cr	+2.5 %
EBITDA	₹88 Cr	≈0 %
EBITDA margin	11.0 %	–23 bps
Adjusted PAT	₹11 Cr	–53.1 %
Net cash	₹182 Cr	+46 %
Operating cash flow	₹145 Cr (165 % of EBITDA)	–
Days Sales Outstanding (DSO)	75 days (improved)	–
Total Contract Value (TCV) bookings	₹620 Cr	–
New logos added	29 (including 8 international)	–

• Revenue mix: Tech & Digital contributed ₹249 Cr (31.1 % of total), up 5.8 % QoQ and 27.2 % YoY. International revenue rose 4.3 % QoQ to ₹304 Cr, representing 38.1 % of total revenue.
• Balance‑sheet strength: Net cash of ₹182 Cr provides an “unencumbered runway” for growth initiatives.

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Full‑Year FY26 Performance

Metric	FY26	YoY Change
Revenue	₹3,080 Cr	+7.1 %
Tech & Digital revenue	₹910 Cr (29.6 % of business)	–
EBITDA	₹343 Cr	–14.4 %
EBITDA margin	11.1 %	–280 bps
Adjusted PAT	₹70 Cr	–47.1 %
PAT	₹6 Cr (0.2 % of revenue)	–

• Segment contribution: Business Process Management (BPM) remained the largest segment at ₹2,170 Cr (70.4 % of FY26 revenue).
• Geography: Domestic revenue was ₹1,931 Cr (62.7 %); International revenue reached ₹1,149 Cr (37.3 %).

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Strategic Business Developments

High‑Value AI Wins & Commercial Moats

• Secured a dual‑hub Enterprise AI Center of Excellence (CoE) for a global Property & Casualty (P&C) insurance major, located in Bengaluru and Coimbatore.
• The CoE leverages Digitide’s proprietary Pulse.Nerve agentic framework (Model Context Protocol), delivering >40 % productivity gains and up to 3× faster deployment.
• Expanded hyperscaler alliances with AWS, Microsoft Azure, and Google Cloud, establishing formal co‑sell pipelines for cloud transformation and advanced analytics.

Talent & Workplace Recognition

• Ranked 3rd among India’s Best Workplaces™ in Health & Wellness 2026 (Great Place to Work India).
• Celebrated seven consecutive years of Great Place to Work certification, reinforcing talent retention and execution capability.

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Management Commentary

• CEO Gurmeet Chahal: Emphasized the company’s “fifth consecutive quarter of sequential revenue growth” and the strategic importance of the AI CoE win, tier‑2/3 hub model, and FY27 growth priorities.
• CFO Suraj Prasad: Highlighted the “extraordinary operating cash flow of ₹145 Cr (165 % of EBITDA)”, the reduction of DSO to 75 days, and the solid liquidity position after absorbing wage‑code and demerger transitional items.

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FY27 Strategic Outlook

Digitide outlines four high‑impact vectors for FY27:

1. Monetising Enterprise AI at Scale – Replicate the multi‑location CoE model across additional Tier‑2/3 delivery hubs to optimise cost and talent utilisation.
2. Partnership‑Led International Growth – Leverage hyperscaler alliances to drive double‑digit revenue growth, focusing on North America and verticals such as P&C insurance and healthcare.
3. Margin Expansion – Target a 100 bps improvement in EBITDA margin by tightening sales governance, delivery discipline, and working‑capital management.
4. Talent Excellence – Continue upskilling programmes and maintain top‑10 workplace rankings to sustain execution predictability.

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Key Takeaways for Investors

• Record quarterly revenue of ₹800 Cr and a five‑quarter streak of growth demonstrate resilient demand.
• Strong cash conversion (operating cash flow at 165 % of EBITDA) and a net cash position of ₹182 Cr provide ample flexibility for FY27 initiatives.
• AI‑first positioning is being operationalised through large‑scale CoE deployments and proprietary IP, creating a defensible competitive moat.
• Margin expansion is a stated priority, with a concrete 100 bps target for FY27.
• Talent and workplace accolades support the company’s ability to attract and retain the specialised engineering resources needed for AI‑driven digital transformation.

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All figures are taken directly from Digitide Solutions Limited’s Q4 FY26 press release dated 18 May 2026.