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.

Digitide Solutions Limited (NSE: DIGITIDE, BSE: 544413) has announced that recent changes to H-1B visa regulations are not expected to have any material impact on its operations or financial performance. The company, a global technology-enabled business services provider, issued a press release to address concerns and provide clarity on the situation.

Key Points

• Minimal Reliance on H-1B Visas: Digitide emphasized that its business model incorporates a diverse mix of onshore and offshore professionals, with limited dependence on H-1B visas.

• No Impact on Existing Visa Holders: The company clarified that the additional fees associated with the new H-1B visa regulations do not apply to current employees who already possess valid H-1B visas or to visa renewals and extensions.

• Strong Indian Revenue Base: Digitide highlighted that India accounts for 65.00% of its consolidated revenues, indicating a robust domestic market presence.

• Commitment to US Clients: The company reaffirmed its dedication to serving US-based clients through a combination of local and offshore talent.

Company Statement

Neeraj Manchanda, Company Secretary & Compliance Officer of Digitide Solutions, stated in the press release, "Based on our current assessment, we do not foresee these regulatory changes to have any material impact on Digitide's operations or financial performance."

Ongoing Monitoring

Digitide assured stakeholders that it is actively monitoring the situation and will continue to evaluate any further developments related to the H-1B visa program. This proactive approach demonstrates the company's commitment to staying ahead of regulatory changes that could affect its business model.

About Digitide Solutions Limited

Digitide Solutions Limited specializes in digital transformation, AI-driven solutions, and business process management. The company serves clients across various industries, including BFSI, technology, healthcare, automotive, manufacturing, retail, telecommunications, and the public sector. Digitide's platforms cover areas such as insurance, customer experience, collections, HR and payroll, talent acquisition, and finance and accounting.

Investors and analysts seeking more information can contact Suraj Prasad, Chief Financial Officer, or Rajesh Lachhani, Head of Investor Relations, through the company's investor relations email.

As global businesses navigate changing regulatory landscapes, Digitide's proactive communication and diversified operational strategy appear to position the company well to manage potential challenges in the evolving international workforce environment.