Alldigi Tech Limited reported a strong financial performance for the second quarter of FY27, with profit after tax (PAT) increasing 50.9% year-on-year to ₹26.6 crore. The Chennai-headquartered business services and technology company also recorded a 28.5% rise in EBITDA, supported by AI-led operational efficiencies and an improved revenue mix.
For the quarter ended September 30, 2026, the company reported revenue of ₹153.3 crore, up 4% from ₹147.4 crore in the corresponding quarter last year. Its EBITDA reached ₹46.3 crore, compared with ₹36 crore a year earlier.
EBITDA Margin Expands to 30.2%
One of the key highlights of Alldigi’s Q2 FY27 performance was the expansion in profitability. EBITDA margin increased to 30.2%, compared with 24.4% in Q2 FY26, marking an improvement of 576 basis points.
PAT margin also improved to 17.3% from 12% in the year-ago quarter. Operating cash flow increased 11% year-on-year to ₹37.1 crore, indicating stronger cash generation during the period.
For the first half of FY27, revenue stood at ₹303.6 crore, representing 4.2% annual growth. EBITDA increased 20.8% to ₹87.7 crore, while PAT rose 37.5% to ₹44.7 crore.
Tech and Digital Business Drives Growth
Alldigi’s Tech & Digital segment continued to emerge as an important growth contributor. Revenue from the segment increased 12.9% year-on-year to ₹41.7 crore in Q2 FY27, compared with ₹36.9 crore in the corresponding quarter last year.
The segment reported a margin of 43.9%, up from 39.7% a year earlier. Its international business recorded 34.5% growth, generating ₹14.2 crore during the quarter.
Meanwhile, the Business Process Management (BPM) segment generated ₹111.6 crore in revenue, growing 1% year-on-year. International BPM revenue increased 12.6% to ₹92.8 crore, while domestic BPM revenue declined 33% to ₹18.8 crore.
The performance reflects the company’s focus on expanding international operations and moving towards higher-value technology-led services.
AI Adoption and Payroll Operations Gain Momentum
Alldigi continues to integrate artificial intelligence across its delivery operations and HR and payroll platforms. During Q2 FY27, the company processed more than 51 lakh employee payslips, representing 7.2% growth year-on-year.
The company is also focusing on premium accounts, strengthening sales leadership in the US and Southeast Asia, and deepening relationships with existing customers.
Headquartered in Chennai, Alldigi operates across India, the Philippines and the US, with approximately 5,000 employees. Its services include payroll processing, customer experience, collections, insurance, healthcare and transaction processing.
Board Approves ₹48 Crore Share Buyback
Alongside its quarterly results, Alldigi’s board approved a share buyback worth ₹48 crore at ₹1,000 per share through the tender offer route, subject to shareholder approval.
The proposed buyback comes as the company reports improved profitability and stronger operating cash flow, while continuing to invest in AI capabilities and technology-led business services.
Outlook
Alldigi’s Q2 FY27 performance highlights its efforts to improve margins while expanding its technology and international businesses. With growing contributions from Tech & Digital services, increasing AI adoption and stronger international BPM revenue, the company is focusing on sustainable and profitable growth.
The coming quarters will indicate how effectively Alldigi can maintain its margin improvement while scaling its higher-value services and strengthening its global client base.