Digitide Solutions Reports 6% Revenue Growth in Q1, Eyes Margin Expansion
By ScanX News Team
Digitide Solutions, newly independent after demerging from Quess Corp, reported Q1 consolidated revenue of INR 736.00 crores, up 6% year-on-year. EBITDA stood at INR 83.00 crores with an 11.2% margin, while PAT was INR 10.00 crores. The company secured 27 new clients and launched 15 AI-led pilots. CEO Gurmeet Chahal outlined a 3x3x3 strategy to triple revenues by FY31, focusing on high-potential verticals and integrated service lines. Digitide aims to grow its tech and digital business to 40% of overall revenues by FY31, betting on application and infrastructure modernization.
*this image is generated using AI for illustrative purposes only.
Digitide Solutions , a newly independent listed entity following its demerger from Quess Corp, has reported a consolidated revenue of INR 736.00 crores for the first quarter, marking a 6% year-on-year increase. The company, which completed its demerger on June 11, 2025, is now focusing on strengthening its position in the tech-enabled business solutions market.
Financial Highlights
| Metric | Value | Notes |
|---|---|---|
| Revenue | INR 736.00 crores | Up 6% year-on-year |
| EBITDA | INR 83.00 crores | 11.2% margin |
| PAT | INR 10.00 crores | 1.3% margin, after absorbing INR 9.00 crores in one-time listing costs |
Segment Performance
| Segment | Revenue | EBITDA Margin |
|---|---|---|
| BPM | INR 539.00 crores | 17% |
| Tech and digital | INR 197.00 crores | 9.8% |
Operational Highlights
Digitide Solutions secured 27 new client logos and launched 15 AI-led pilots during the quarter. The company's total contract value for Q1 stood at INR 523.00 crores, indicating strong future revenue visibility. Notably, the domestic market contributed 64% of revenue, while international markets accounted for 36%.
Strategic Focus
CEO Gurmeet Chahal outlined the company's 3x3x3 strategy, aiming to triple revenues by FY31. The strategy focuses on three high-potential verticals in each geography, powered by three integrated service lines. Chahal stated, "We are not just building for growth. We are building to lead."
The company is implementing five strategic levers to drive margin expansion and stronger return on equity:
- Elevating service mix with more tech and digital offerings
- Expanding international presence for premium pricing
- Driving operational excellence through automation and process rigor
- Applying disciplined deal qualification and structured pricing
- Strengthening revenue assurance and cash conversion
Market Outlook
Despite macroeconomic challenges, Digitide Solutions remains optimistic about its growth trajectory. The company expects to maintain growth momentum in the domestic market, particularly in the financial services sector. In the international market, Digitide is focusing on industry segments growing faster than the overall industry, such as insurance and data analytics.
Future Prospects
Digitide Solutions aims to grow its tech and digital business to 40% of overall revenues by FY31. The company is betting big on application and infrastructure modernization, with a focus on hyperscaler-led deals. A recent multi-year AWS transformation deal showcases the company's capabilities in this area.
CFO Suraj Prasad addressed the temporary increase in Days Sales Outstanding (DSO) to 91 days, attributing it to the transition process following the demerger. He assured that DSO is expected to normalize in the coming quarters.
As Digitide Solutions navigates its first year as an independent entity, the company remains committed to its long-term growth strategy and margin expansion goals. With a strong focus on AI-led delivery and strategic investments in leadership and innovation, Digitide Solutions is positioning itself as a key player in the evolving tech-enabled business solutions landscape.
Historical Stock Returns for Digitide Solutions
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -4.25% | -8.92% | -12.91% | -12.84% | -12.84% | -12.84% |
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