Loading…
Digitide Solutions Ltd
NSE: DIGITIDE BSE: 544413 INE0U4701011 Information Technology IT Enabled Services 🔎 Screen
₹1,545 Cr
Market Cap
151.5
P/E
151.53
PEG
10.9%
ROCE
1.2%
ROE
0.63
D/E
11.1%
OPM
-52.7%
% from 52W High
19
α RS
⚖️ Compare 🔒 Generate Report 📚 Guides
📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
Shareholding
About

Incorporated in 2025, Digitide Solutions Ltd is in the business of providing AI-led digital solutions, data intelligence, and business process services

✓ Strengths

No strengths data yet.

! Concerns 1
  • Though the company is reporting repeated profits, it is not paying out dividend
Key Ratios Snapshot
📊 Sector Averages
📈 Growth Pattern
📊 Quick Scorecard
Loading…
🔒
Premium Feature
AI-generated 10-section company profile — business model, financials, strengths, risks & management quality
Upgrade to Premium
Already a member? Log in
📐
3-Statement Financial Model
Bear / Base / Bull projections · DCF fair value · Reverse-DCF
Open Model →
Mixed: Revenue grew 9.2% YoY to ₹800 Cr with strong T&D mix improvement (440bps), but EBITDA margin contracted 24bps and adjusted PAT plunged 60.8% YoY, weighed by wage costs and exceptional items. quarter Investor Presentation One-Pager? Mar 2026
Revenue
₹800 Cr
+9.2% YoY, +2.5% QoQ
EBITDA Margin
11.0%
-24bps YoY, impacted by ₹4 Cr wage code cost
Adjusted PAT
₹11 Cr
-60.8% YoY, margin 1.4% (-249bps)
TCV Bookings
₹620 Cr
29 new logos; FY26 TCV ₹2,355 Cr
What Went Right
  • Revenue growth of 9.2% YoY to ₹800 Cr, led by Tech & Digital which surged 27.2% YoY to ₹249 Cr (31.1% of mix, +440bps YoY).
  • International revenue rose 16.4% YoY to ₹304 Cr, now 38.1% of total (+238bps YoY).
  • Operating cash flow robust at ₹145 Cr, 165% of EBITDA; net cash strengthened to ₹182 Cr vs ₹125 Cr in Q3.
  • Revenue per FTE improved 11.4% YoY to ~₹584K, signalling productivity gains.
  • Segment EBITDA margins expanded both in BPM (+187bps YoY to 16.3%) and T&D (+289bps YoY to 12.1%), before unallocated costs.
What to Watch
  • Adjusted PAT collapsed 60.8% YoY to only ₹11 Cr (1.4% margin), despite revenue growth and higher T&D mix.
  • EBITDA margin contracted 24bps YoY to 11.0%, absorbing a ~₹4 Cr wage code cost; margin remains well below the 18%+ ROE target.
  • BPM business grew only 2.6% YoY (to ₹551 Cr), indicating core legacy operations are stagnating.
  • Employee count dropped 4.3% QoQ from 55,900 to 53,500 – likely reflecting attrition or restructuring, not yet offset by productivity gains.
  • Exceptional items (₹15.9 Cr gratuity/leave encashment) continued to distort reported profitability, though adjusted for them, PAT still fell sharply.
Management Guidance
  • Aiming for $1B revenue by FY31, growing 2x faster than market.
  • Targeting 200-300 bps EBITDA margin improvement and 2x improvement in billing realization per FTE.
  • Planned inorganic contribution of ~$200M via 2-3 acquisitions between FY27-FY30.
  • Explicit FY29P revenue target $285-295M and FY31P $415-435M (at ₹84/USD base).
Investor Lens
The pivot to higher-margin Tech & Digital (now 31.1% of revenue) is real and tracking well, but the deterioration in adjusted PAT to ₹11 Cr raises execution risk. The 11.0% EBITDA margin is still far from the 18%+ ROE promise, and wage cost pressures suggest management's cost control may be lagging revenue growth. The drop in headcount QoQ could signal efficiency measures or talent churn – resolution is key. Net cash and strong OCF provide cushion, but investors should watch Q1 FY27 for sustained T&D momentum, margin recovery, and whether the 2-3 point headwind from wage costs abates. Guidance remains ambitious; any delay would weaken the thesis.
From investor presentation · AI-generated analysis · Not investment advice
🔒
Premium Feature
Investor Presentation One-Pager — quarterly highlights, what went right/wrong & management guidance
Upgrade to Premium
Already a member? Log in
📉 WEAK Revenue up 9.2% YoY but net loss of ₹5 Cr, profitability weak.
Revenue
Revenue grew 9.2% YoY to ₹800 Cr, and 2.5% sequentially, indicating steady top-line expansion despite challenging IT sector conditions.
Profitability
Net profit plunged to a loss of ₹5 Cr, down 260.4% YoY and 144.4% QoQ. EPS turned negative at ₹-0.85, reflecting sharp deterioration in bottom-line performance.
Margins
Operating profit margin slipped to 10.99% from 11.18% YoY and 11.22% QoQ, impacted by higher costs. Other income was negative ₹10.9 Cr, further denting profitability.
Cash Flow
No cash flow data provided; unable to assess cash generation quality relative to reported profit.
Balance Sheet
Borrowings stood at ₹531 Cr against reserves of ₹689 Cr, giving a debt-to-equity of 0.63. Total assets of ₹2,036 Cr suggest moderate leverage, but low ROE of 1.23% indicates poor capital efficiency.
Key Risks
Negative other income of ₹10.9 Cr and high interest burden of ₹14.7 Cr erode profits. Low ROCE of 10.9% and ROE of 1.23% signal weak returns. PE of 128x appears stretched given earnings decline.
Outlook
Revenue growth is positive, but the swing to net loss and margin compression raise concerns. Sustained improvement in operating efficiency and cost control will be critical to restore profitability.
Generated by AI · Mar 2026 results · Not investment advice
🔒
Free Account Required

Create a free Finmagine account to access Finmagine™ Scorecard.

See how this company scores across 5 dimensions — Financial Health, Growth Prospects, Competitive Position, Management Quality, and Valuation — powered by 30+ computed ratios.

Create Free AccountLog In
🔒
Premium Feature

Upgrade to Finmagine Premium to unlock Ask AI.

Get 25 expert AI analysis templates — Business KPIs, Comprehensive, Forensic Governance, Peer Comparison, Risk-Reward, Full Research Report, IPO Decoder, Red Flag Detector, and more — ready to paste into ChatGPT, Claude, Gemini, or Perplexity.

Upgrade to PremiumCreate Free Account
🔒
Premium Feature

Upgrade to Finmagine Premium to unlock Peer Comparison.

Compare this company side-by-side against its sector peers with financial metrics, ratio benchmarking, and relative performance across all key dimensions.

Upgrade to PremiumCreate Free Account
🔒
Premium Feature

Upgrade to Finmagine Premium to unlock Documents.

Access concall transcripts, annual reports, credit ratings, and investor presentations.

Upgrade to PremiumCreate Free Account

Revenue by Segment

Segment Q3FY26 Q4FY26 Trend
Business Process Management
545
EBIT 86
551
EBIT 90
Tech and Digital
235
EBIT 23
249
EBIT 30
Total 780 800

Source: NSE Integrated Filing XBRL (Reg. 33 Ind AS). Values in ₹ Crore.

📊 Sector KPIs

Industry-specific KPIs with historical trend — AI-extracted from investor presentations
🔒
Premium Feature
Industry-specific KPIs with historical trend across quarters — AI-extracted from investor presentations
Upgrade to Premium
Already a member? Log in
🔒
Premium Feature

Upgrade to Finmagine Premium to unlock Full Report.

Read the complete Finmagine™ investment research report — comprehensive fundamental analysis, business model assessment, competitive positioning, and investment recommendation.

Upgrade to PremiumCreate Free Account

📊 Analysis Methodology

This comprehensive investment analysis was conducted using The Finmagine™ Stock Analysis & Ranking Methodology, a proprietary framework that systematically evaluates stocks across five critical dimensions: Financial Health, Growth Prospects, Competitive Positioning, Management Quality, and Valuation.

🎯
Discover Our Proven Investment Framework Learn how we analyze and rank stocks using advanced quantitative models, multi-dimensional scoring systems, and dynamic discriminatory ranking techniques that have guided successful investment decisions across market cycles.
📊 Explore The Finmagine™ Methodology

A comprehensive, bias-free framework for analyzing and ranking stocks by Financial Strength, Growth Potential, Competitive Edge, Management Quality, and Value.

⚠️ Important Disclaimers — Please read without fail.

Investment Risk:
Investing in securities, including equities and mutual funds, involves inherent risks, including the potential loss of principal. All investments are subject to market fluctuations, regulatory changes, and other risks that may affect their value. Past performance is not indicative of future results. This report is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This report does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a SEBI-registered investment adviser or other qualified financial professional before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

Conflict of Interest Disclosure:
The author and/or analyst may currently hold or have previously held positions in the securities or financial instruments discussed in this report. Any such positions, if material, are disclosed to the best of the author's knowledge and are not intended to influence the objectivity or independence of the analysis. This research is produced independently and is not sponsored, endorsed, or commissioned by any company, institution, or third party.

Information Sources:
The analysis and opinions expressed herein are based on publicly available information, including but not limited to company filings with the BSE/NSE, annual reports, management commentary, investor presentations, data from the Reserve Bank of India (RBI), SEBI, industry publications, and other reliable financial data sources. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

Forward-Looking Statements:
This report may contain forward-looking statements, forecasts, or projections that are inherently subject to risks, uncertainties, and assumptions. Actual results may differ materially from those expressed or implied. The author does not undertake any obligation to update such statements in the future.

Regulatory Compliance:
This report is intended to comply with the Securities and Exchange Board of India (Research Analysts) Regulations, 2014, as amended, and other applicable Indian laws and regulations.

Limitation of Liability:
The content of this report is provided "as is" without any warranties, express or implied, including accuracy, completeness, merchantability, or fitness for a particular purpose. The author and publisher expressly disclaim any liability for errors, omissions, or any losses incurred as a result of reliance on the information provided. Readers assume full responsibility for their investment decisions.