Digitide Solutions , an AI-first digital transformation partner for global enterprises, has reported a one-time exceptional loss of ₹139 million in its Q2 results. This loss stems from a scheme of arrangement and business transfer involving demerged entities Bluspring Enterprises and other resulting companies.

Financial Highlights

Despite the exceptional loss, Digitide Solutions demonstrated resilience in its core operations:

• Revenue Growth: Q2 revenue increased by 4.00% quarter-on-quarter (QoQ) and 7.00% year-on-year (YoY) to ₹764.00 crore.
• EBITDA: Stood at ₹85.00 crore, up 3.10% QoQ but down 17.60% YoY.
• Adjusted PAT: Reported at ₹17.00 crore, with a margin of 2.20%.

Segment Performance

The company's performance was marked by strong growth in its Tech & Digital segment:

• Tech & Digital: Revenue surged 16.00% QoQ and 23.00% YoY, driven by AI-led transformation initiatives.
• Business Process Management (BPM): Remained the larger segment, contributing 70.00% to the total revenue.

Operational Achievements

Digitide Solutions reported several operational milestones:

• Client Acquisition: Added 24 new logos, reinforcing sales momentum.
• Global Expansion: International business grew by 6.00% QoQ and 4.00% YoY.
• Total Contract Value (TCV): Bookings reached ₹550.00 crore, marking the third consecutive quarter above ₹500.00 crore.

Strategic Initiatives

The company has been actively pursuing its AI-first strategy:

• Expanded the AI Center of Excellence in Bengaluru.
• Achieved Tier 1 partner status with AWS and Microsoft Azure.
• Launched industry solution accelerators with key ISVs, enhancing vertical offerings.

Management Commentary

Gurmeet Chahal, Chief Executive Officer, stated, "Q2 marks a pivotal step in our transformation journey. Our AI-first strategy, strengthened partnerships, and focus on high-value segments are driving sustained growth and a robust, international pipeline."

Suraj Prasad, Chief Financial Officer, added, "This quarter reflects disciplined execution and financial resilience. Our strong balance sheet enables strategic investments in AI, automation, and talent, laying the foundation for sustainable growth."

Future Outlook

Digitide Solutions enters H2 with a strong order book and sustained demand for AI-led digital transformation. The company aims to maintain its growth momentum by scaling global programs, deepening strategic partnerships, and driving profitability through operational excellence.

Corporate Restructuring Impact

The reported exceptional loss of ₹139.00 million is attributed to corporate restructuring activities, specifically related to a scheme of arrangement and business transfer. This one-time expense, while impacting the quarter's bottom line, is not indicative of the company's regular business operations.

As Digitide Solutions continues to navigate its post-demerger landscape, the focus remains on leveraging its AI capabilities and expanding its global footprint in the rapidly evolving digital transformation market.

Digitide Solutions Limited, an AI-first digital transformation partner for global enterprises, has reported a mixed financial performance for the second quarter of fiscal year 2026. The company experienced revenue growth but faced challenges in profitability.

Revenue Growth Amidst Challenges

Digitide Solutions reported a 7% year-over-year increase in revenue, reaching ₹7,641.89 crore for Q2 FY26. This growth was primarily driven by the company's Tech & Digital segment, which saw a significant 23% year-over-year surge in revenue. The company's international business also showed positive momentum, growing by 6% quarter-on-quarter and 4% year-on-year.

Profitability Pressures

Despite the revenue growth, Digitide Solutions faced profitability challenges. The company reported a net loss of ₹17.80 crore in Q2 FY26, compared to a profit of ₹214.00 crore in the same period last year. This decline in profitability can be attributed to several factors:

1. Increased Expenses: Employee benefits expense rose to ₹5,551.95 crore, up from ₹5,147.05 crore in the same quarter last year.
2. EBITDA Compression: EBITDA declined to ₹851.00 crore from ₹1,030.00 crore year-over-year, with the EBITDA margin compressing to 11.14% from 14.47%.
3. Exceptional Items: The company incurred demerger expenses of ₹139.17 crore for professional services and stamp duty, which were included under exceptional items.

Segment Performance

Digitide Solutions operates in two main segments:

1. Business Process Management (BPM): This segment contributed 70% of the total revenue in Q2 FY26.
2. Tech & Digital: This segment accounted for 30% of the total revenue and showed strong growth, increasing by 16% quarter-on-quarter and 23% year-on-year.

Strategic Initiatives and Future Outlook

Despite the current challenges, Digitide Solutions is focusing on strategic initiatives to drive future growth:

1. AI-First Strategy: The company is expanding its AI Center of Excellence in Bengaluru and accelerating proprietary platform development.
2. Partnership Expansion: Digitide has achieved Tier 1 partner status with AWS and Microsoft Azure, unlocking deeper collaboration opportunities.
3. Industry Solutions: The company has launched industry solution accelerators with key ISVs, enhancing vertical offerings and AI-powered automation.

Gurmeet Chahal, Chief Executive Officer of Digitide Solutions, commented on the results: "Q2 FY26 marks a pivotal step in our transformation journey. Our AI-first strategy, strengthened partnerships, and focus on high-value segments are driving sustained growth and a robust, international pipeline."

Financial Position

As of September 30, 2025, Digitide Solutions maintained a strong balance sheet with a net cash position of ₹28.00 crore. The company's total contract value (TCV) bookings stood at ₹550.00 crore, marking the third consecutive quarter above ₹500.00 crore.

While Digitide Solutions faces near-term profitability challenges, its focus on AI-led growth, strategic partnerships, and a strong order book position the company for potential improvement in the coming quarters. Investors and stakeholders will be closely watching how the company navigates these challenges and capitalizes on its growth initiatives.