ALLDIGI - Alldigi Tech
📢 Recent Corporate Announcements
Alldigi Tech reported a strong Q3 FY26 with revenue growing 9.5% YoY to ₹152.7 crore, driven by a 16.2% growth in the Tech & Digital segment. EBITDA margins expanded significantly by 680 bps YoY to 30.1%, resulting in a 41.7% YoY increase in EBITDA. The company declared a substantial interim dividend of ₹30 per share, supported by an 87.2% YoY growth in Operating Cash Flow. While 9M PAT is down 16.6% due to a high base from a previous divestment, core operational metrics like DSO and employee record volumes showed marked improvement.
- Revenue from operations grew 9.5% YoY to ₹152.7 Cr, with International revenue now making up 67% of the mix.
- EBITDA increased 41.7% YoY to ₹45.9 Cr, with margins reaching a high of 30.1% due to better revenue mix and IT savings.
- Declared a significant interim dividend of ₹30 per equity share following the board meeting on January 27, 2026.
- Employee records processed grew 10% YoY to 48.5 lacs for the quarter, maintaining market leadership in HRO services.
- Working capital efficiency improved as DSO (Billed & Unbilled) reduced by 7 days QoQ to 70 days.
Alldigi Tech reported a strong Q3 FY26 with revenue growing 9.5% YoY to ₹152.7 crore and EBITDA surging 41.7% to ₹45.9 crore. The EBITDA margin expanded significantly by 680 bps YoY to reach 30.1%, driven by growth in international BPM and Tech & Digital segments. The company declared a substantial interim dividend of ₹30 per share. While Q3 PAT grew 4.5% YoY, the 9-month PAT remains down 16.6% compared to the previous year, suggesting a recovery trend in the current quarter.
- Revenue from operations grew 9.5% YoY to ₹152.7 crore, with EBITDA margins expanding to 30.1%.
- International BPM revenue increased by 13.8% YoY, now contributing 67% of total revenues.
- Tech & Digital segment revenue rose 16.2% YoY, processing 48.5 lakh employee records.
- Board declared an interim dividend of ₹30 per equity share.
- Operating Cash Flow (OCF) for the quarter stood at ₹45.3 crore, up 87.2% YoY.
Alldigi Tech Limited has declared a substantial second interim dividend of INR 30 per equity share for the financial year 2025-26, representing a 300% payout on its face value of INR 10. The company has established February 04, 2026, as the record date to identify eligible shareholders for this distribution. The dividend is scheduled to be paid to shareholders on or before February 20, 2026. This announcement was made alongside the approval of the company's unaudited financial results for the quarter and nine months ended December 31, 2025.
- Declared 2nd Interim Dividend of INR 30 per equity share of face value INR 10
- Record date for determining shareholder eligibility is February 04, 2026
- Dividend payment to be completed on or before February 20, 2026
- Board approved Q3 and nine-month financial results ended December 31, 2025
- Meeting concluded at 7:50 P.M. IST following the dividend and results approval
Alldigi Tech Limited has declared a significant second interim dividend of ₹30 per equity share for the financial year 2025-26. The dividend is based on a face value of ₹10 per share, representing a 300% payout. The company has fixed February 04, 2026, as the record date to determine shareholder eligibility. This announcement was made alongside the approval of the company's unaudited financial results for the quarter and nine months ended December 31, 2025.
- Declared 2nd Interim Dividend of ₹30 per equity share for the financial year 2025-26
- Record date for dividend eligibility is set for February 04, 2026
- Dividend payment to be completed on or before February 20, 2026
- Approved unaudited standalone and consolidated financial results for Q3 FY26
- Dividend payout represents 300% of the face value of ₹10 per share
Alldigi Tech Limited has declared a significant second interim dividend of INR 30 per equity share for the financial year 2025-26, representing 300% of the face value. The announcement follows the board meeting held on January 27, 2026, where the company also approved its Q3 and nine-month financial results. The record date for dividend eligibility is set for February 04, 2026, with payments to be completed by February 20, 2026. This high payout reflects the company's commitment to returning capital to shareholders.
- Declared 2nd Interim Dividend of INR 30 per equity share of face value INR 10
- Record date for dividend eligibility is fixed as February 04, 2026
- Dividend payment to be completed on or before February 20, 2026
- Board approved unaudited financial results for Q3 and nine months ended December 31, 2025
Alldigi Tech Limited has declared a substantial second interim dividend of ₹30 per equity share for the financial year 2025-26. This announcement accompanied the approval of the company's unaudited financial results for the third quarter and nine months ended December 31, 2025. The company has established February 04, 2026, as the record date to identify eligible shareholders. The dividend is scheduled to be paid out to shareholders on or before February 20, 2026.
- Declared 2nd interim dividend of ₹30 per equity share with a face value of ₹10 each
- Record date for dividend entitlement is fixed as February 04, 2026
- Dividend payment to be completed on or before February 20, 2026
- Board approved unaudited standalone and consolidated financial results for Q3 and 9M FY26
Alldigi Tech Limited reported a steady performance for Q3 FY26 with consolidated revenue from operations growing 9.5% YoY to ₹152.7 crore. Consolidated Profit After Tax (PAT) increased to ₹20.8 crore, up from ₹19.9 crore in the previous year's corresponding quarter, despite an exceptional loss of ₹4.02 crore. A major highlight for shareholders is the declaration of a second interim dividend of ₹30 per share, representing a 300% payout on the face value. Standalone results were significantly boosted by a sharp rise in other income, which reached ₹12.86 crore for the quarter.
- Consolidated Revenue from Operations grew 9.5% YoY to ₹152.7 crore compared to ₹139.5 crore in Q3 FY25.
- Consolidated PAT stood at ₹20.8 crore for the quarter, reflecting a 4.6% YoY growth.
- Declared a significant 2nd Interim Dividend of ₹30 per equity share with a record date of February 04, 2026.
- Standalone Other Income surged to ₹12.86 crore, up from ₹1.81 crore in the same quarter last year.
- The company recorded an exceptional loss of ₹4.02 crore during the quarter, impacting the bottom line.
Alldigi Tech Limited has submitted its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by KFin Technologies Limited (the company's Registrar and Share Transfer Agent), confirms that all dematerialization and rematerialization requests for the quarter ended December 31, 2025, have been processed. These details have been duly furnished to the National Stock Exchange (NSE) and BSE Limited. This is a standard administrative filing to ensure the integrity of electronic shareholding records.
- Compliance certificate submitted for the quarter ended December 31, 2025.
- Issued by KFin Technologies Limited, the authorized Registrar and Share Transfer Agent (RTA).
- Confirms adherence to Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018.
- Verification that dematerialized and rematerialized security details were reported to NSE and BSE.
Alldigi Tech Limited has received a GST assessment order from the Office of Commissioner of GST & Central Excise, Chennai, for the period April 2018 to March 2023. The order includes a tax demand of Rs. 9.31 Crores and an equivalent penalty of Rs. 9.30 Crores, totaling approximately Rs. 18.61 Crores. The dispute centers on Input Tax Credit (ITC) regarding cross-charge services and other technical compliance issues. The company maintains that the demand is legally untenable and intends to contest it through the appropriate appellate authorities.
- Total financial demand of Rs. 18.61 Crores, including a penalty of Rs. 9.30 Crores.
- Assessment period covers five fiscal years from April 2018 to March 2023.
- Primary issues involve ineligible ITC on cross-charge services and non-payment of GST under RCM.
- Company plans to file an appeal or prefer a writ jurisdiction to defend its position.
- Management states the order currently has no significant impact on operations.
Alldigi Tech Limited has announced the closure of its trading window for all designated persons and their relatives starting January 1, 2026. This action is in compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015, ahead of the Q3 FY2025-26 financial results. The window will remain closed until 48 hours after the unaudited standalone and consolidated financial results for the quarter ending December 31, 2025, are declared. This is a standard regulatory procedure to prevent insider trading during the period when sensitive financial information is being finalized.
- Trading window closure begins on Thursday, January 1, 2026.
- Closure is related to the upcoming Q3 and nine-month financial results ending December 31, 2025.
- The restriction applies to Designated Persons, Connected persons, and their immediate relatives.
- Trading window will reopen 48 hours after the results are officially submitted to BSE and NSE.
Alldigi Tech Limited has announced the superannuation of its CEO, Mr. Naozer Dalal, effective December 31, 2025. The transition follows the company's internal retirement policy, and a formal search for a successor has already been initiated. Alldigi is a significant player in the payroll space, processing over 4.0 million pay slips per quarter for 600+ global clients. The company aims to ensure operational continuity and stability during this leadership transition period.
- CEO Mr. Naozer Dalal to step down on December 31, 2025, due to superannuation policy.
- Company has initiated a formal succession planning process to identify the next CEO.
- Alldigi processes approximately 4.0 million pay slips each quarter for over 600 global clients.
- The firm maintains a workforce of around 6,500 employees across India, Philippines, and the US.
- Operations span 46 countries within the Payroll (T&D) and International BPO/BPM sectors.
Alldigi Tech Limited has announced that its Chief Executive Officer, Mr. Naozer Dalal, will retire from his position effective December 31, 2025. This transition is due to him reaching the age of superannuation as per the company's internal policy. Mr. Dalal also serves as a Key Managerial Personnel (KMP) for the firm. The company has provided this advance notice in compliance with SEBI Listing Regulations, allowing for a planned leadership transition.
- Mr. Naozer Dalal to step down as CEO and Key Managerial Personnel on December 31, 2025
- The cessation is categorized as superannuation (retirement) based on company policy
- The announcement was made on December 17, 2025, providing a two-week notice period before the effective date
- Alldigi Tech (formerly Allsec Technologies) is listed on both BSE (532633) and NSE (ALLDIGI)
Financial Performance
Revenue Growth by Segment
Q2 FY26 revenue from operations grew 12.2% YoY, driven by growth in both Tech & Digital (T&D) and Business Process Management (BPM). For FY25, consolidated revenue reached INR 546.31 Cr, a 16.4% increase from FY24's INR 469.37 Cr.
Geographic Revenue Split
Approximately 30% of standalone revenue is derived from exports. The company operates in 46 countries with delivery centers in India, Philippines, and the US.
Profitability Margins
FY25 Basic and Diluted EPS grew 30.1% to INR 54.66 from INR 42.00 in FY24. Q2 FY26 operating cash flow (OCF) to EBITDA conversion remained strong at 92.8%.
EBITDA Margin
Q2 FY26 EBITDA grew 16.9% YoY, outpacing the 12.2% revenue growth, indicating margin expansion despite a dip in T&D segment profitability due to sales team investments.
Capital Expenditure
Not disclosed in absolute INR Cr for future periods, but H1 FY26 OCF of INR 53.5 Cr (up 9.2% YoY) supports a robust cash position for technology and M&A investments.
Credit Rating & Borrowing
Financial profile is characterized as healthy with a comfortable capital structure; specific interest rate percentages are not disclosed, but cash-rich status limits external borrowing needs.
Operational Drivers
Raw Materials
Human Capital (6,500+ employees) and Technology Infrastructure (SmartHR platform) represent the primary operational inputs.
Import Sources
Talent and operational hubs are primarily located in India, Philippines, and the USA.
Capacity Expansion
Current capacity involves processing 4.0 million pay slips per quarter for over 600 clients. Expansion includes the new Revenue Cycle Management (RCM) billing service in the Philippines.
Raw Material Costs
Employee benefit expenses are the primary cost driver; technology and AI integration are used to drive operational efficiencies and support the 16.9% YoY EBITDA growth in Q2 FY26.
Manufacturing Efficiency
Demonstrated by a 92.8% OCF to EBITDA conversion rate in Q2 FY26 and a 41.5% YoY growth in quarterly OCF to INR 33.4 Cr.
Strategic Growth
Expected Growth Rate
15-19%
Growth Strategy
Achieving mid-to-high teens growth through deepening client relationships, launching RCM billing in the Philippines (revenue expected in Q3 FY26), AI-driven efficiency gains, and M&A targeting BFSI and Healthcare verticals.
Products & Services
Payroll Services, SmartHR platform, Customer Experience Management (CXM), and Revenue Cycle Management (RCM) billing.
Brand Portfolio
Alldigi, SmartHR, Digitide Solutions (Parent).
New Products/Services
Revenue Cycle Management (RCM) billing launched in the Philippines, with revenue contribution expected to begin in Q3 FY26.
Market Expansion
Expanding global footprint in 46 countries with a strategic focus on increasing presence in BFSI and Healthcare verticals.
Market Share & Ranking
Recognized as a 'Star Performer' and 'Major Contender' in Everest Group’s PEAK Matrix Assessment 2025 for Multi-Country Payroll (MCP) Solutions.
Strategic Alliances
Acquired by Digitide Solutions Limited; utilizes partnership models in domestic markets to balance acquisition costs and reach.
External Factors
Industry Trends
The industry is shifting toward integrated digital platforms and Multi-Country Payroll (MCP); Alldigi is positioned as a high-growth 'Star Performer' in this evolving landscape.
Competitive Landscape
Competes in the global BPM and MCP space; differentiated by its 'Star Performer' status and multi-country delivery capabilities.
Competitive Moat
Moat is built on the proprietary SmartHR platform, industry recognition from Everest Group, and long-term associations with 600+ clients; sustainability is driven by AI integration and global delivery scale.
Macro Economic Sensitivity
Sensitive to global corporate outsourcing demand and USD/INR exchange rate fluctuations.
Consumer Behavior
Increasing corporate demand for digital-first HR solutions and outsourced revenue cycle management in healthcare.
Geopolitical Risks
Operations across 46 countries expose the company to varied regulatory environments and trade barriers, particularly in the US and Philippines.
Regulatory & Governance
Industry Regulations
Compliance with global payroll standards, data privacy laws (GDPR), and labor regulations across 46 countries of operation.
Taxation Policy Impact
One financial year is currently under transfer pricing audit; refunds for two assessment years were received in Q4 FY25.
Legal Contingencies
Pending transfer pricing audit for one assessment year; resolution is expected within 3-4 months.
Risk Analysis
Key Uncertainties
Forex risk on 30% of revenue and potential volatility in US-based segments as seen in historical AML segment declines.
Geographic Concentration Risk
Significant delivery concentration in India and the Philippines; US market previously accounted for high revenue volatility.
Third Party Dependencies
Dependent on technology infrastructure stability and global sales leadership for new vertical growth like RCM.
Technology Obsolescence Risk
Mitigated by ongoing digital transformation and AI-driven efficiency status as an Everest Group 'Star Performer'.
Credit & Counterparty Risk
Strong receivable quality evidenced by a 92.8% OCF to EBITDA conversion rate and a diverse base of 600+ global clients.