Bengaluru-based Digitide Solutions Limited reported a sharp improvement in profitability during the second quarter of FY27, with its reported profit after tax (PAT) increasing 204% quarter-on-quarter to ₹8.9 crore. The company also recorded a 2.5% sequential rise in EBITDA, while its AI-led revenue doubled as it continued shifting its business towards technology-driven services.
For the quarter ended September 30, 2026, Digitide reported revenue of ₹759.6 crore, down 2% from ₹775.1 crore in the preceding quarter. The company attributed the decline to its disciplined approach to deal selection, including repricing contracts and exiting low-margin business.
Digitide Reports Strong Improvement in Profitability
Digitide’s EBITDA increased to ₹78.8 crore in Q2 FY27 from ₹76.9 crore in Q1 FY27. Its EBITDA margin expanded by 45 basis points sequentially to 10.4%, indicating an improvement in operating profitability despite the moderation in revenue.
Reported PAT rose from ₹2.9 crore in the previous quarter to ₹8.9 crore. PAT margin also improved by 80 basis points to 1.2%.
For the first half of FY27, revenue stood at ₹1,534.7 crore, representing 2.3% year-on-year growth. However, EBITDA declined 7.2% to ₹155.7 crore, while reported PAT decreased 4.8% to ₹11.9 crore.
Tech and Digital Business Strengthens Its Contribution
The company’s Tech and Digital (T&D) segment continued to expand, generating ₹243.6 crore in Q2 FY27, up 6.6% year-on-year and 2.6% sequentially. The segment contributed 32.1% of total revenue, compared with 29.9% in the year-ago quarter.
In contrast, the Business Process Management (BPM) segment reported revenue of ₹516.1 crore, declining 3.7% year-on-year and 4% quarter-on-quarter.
The changing revenue mix highlights Digitide’s efforts to increase its exposure to technology-led services, including data, artificial intelligence and cloud solutions.
AI Revenue Doubles as International Business Expands
One of the quarter’s key developments was the doubling of AI-led revenue to ₹30.5 crore from ₹15.3 crore in Q1 FY27. AI-led services accounted for 4.1% of total revenue, compared with 1.9% in the previous quarter.
Geographically, international revenue increased 13.5% year-on-year to ₹322.8 crore, contributing 42.5% of overall revenue. Domestic revenue, meanwhile, declined 8.9% year-on-year to ₹436.8 crore.
Digitide also reported nearly doubled sequential total contract value (TCV) bookings of approximately ₹400 crore, supported by 34 key logo wins.
Strategic Partnerships and Growth Priorities
During the quarter, Digitide signed strategic alliances with Amazon Web Services (AWS) and Anthropic. It is also scaling its Global Capability Centre (GCC) offering through the Build-Operate-Transfer model.
The company has unified its operations under one operating model, strengthened leadership across business units and established dedicated domestic and international sales teams.
Commenting on the results, Group CEO and Executive Director Sameer Ahluwalia said the company was progressing on its priorities, including improving revenue quality, strengthening margins and accelerating AI-led transformation.
Outlook
Digitide ended Q2 FY27 with net cash of ₹76 crore. According to Group CFO Harigovind Krishnasamy, the company’s priorities for the second half include converting bookings into revenue, improving collections and working capital, and increasing the contribution of higher-growth technology, international and AI-led businesses.
With improving sequential profitability, stronger contract bookings and growing AI revenue, Digitide is focusing on building a more technology-oriented business while maintaining financial discipline.