Digitide Solutions Reports Q3FY26 Loss of ₹20.50 Crores Despite Revenue Growth
Digitide Solutions Limited reported a consolidated net loss of ₹20.50 crores for Q3FY26 versus a profit of ₹290.74 crores in Q3FY25, despite revenue growth of 6.51% to ₹7,803.03 crores. Exceptional items of ₹258.59 crores, primarily from new Labour Code compliance, significantly impacted profitability. The Board approved ESOS 2026 for 49,65,568 stock options representing 3.33% of paid-up capital, subject to shareholder approval.
*this image is generated using AI for illustrative purposes only.
Digitide Solutions Limited announced its unaudited financial results for the third quarter ended December 31, 2025, revealing a challenging period marked by profitability pressures despite revenue growth. The company's Board of Directors, meeting on January 29, 2026, approved both the quarterly results and a significant employee stock option scheme.
Financial Performance Overview
The company's consolidated financial performance showed mixed results for Q3FY26:
| Metric | Q3FY26 | Q3FY25 | Change |
|---|---|---|---|
| Revenue from Operations | ₹7,803.03 crores | ₹7,326.30 crores | +6.51% |
| Total Income | ₹7,836.94 crores | ₹7,379.30 crores | +6.20% |
| Net Loss/Profit | (₹20.50) crores | ₹290.74 crores | Loss |
| Basic EPS | (₹0.51) | ₹1.60 | Negative |
The company's revenue growth of 6.51% demonstrates operational resilience, but exceptional items totaling ₹258.59 crores severely impacted bottom-line performance. These exceptional costs primarily stemmed from compliance with India's new Labour Codes, which became effective November 21, 2025.
Segment-wise Performance
Digitide Solutions operates through two primary business segments, both showing revenue growth:
| Segment | Q3FY26 Revenue | Q3FY25 Revenue | Growth |
|---|---|---|---|
| Business Process Management | ₹5,448.19 crores | ₹5,340.39 crores | +2.02% |
| Tech and Digital | ₹2,354.84 crores | ₹1,985.91 crores | +18.58% |
The Tech and Digital segment demonstrated particularly strong performance with 18.58% growth, while the larger Business Process Management segment showed steady 2.02% expansion.
Nine-Month Performance
For the nine months ended December 31, 2025, the company maintained profitability despite quarterly challenges:
| Parameter | 9M FY26 | 9M FY25 | Change |
|---|---|---|---|
| Revenue | ₹22,802.29 crores | ₹21,429.54 crores | +6.41% |
| Net Profit | ₹105.50 crores | ₹1,092.27 crores | -90.34% |
| Basic EPS | (₹0.25) | ₹5.96 | Negative |
Employee Stock Option Scheme 2026
The Board approved the formulation and implementation of ESOS 2026, subject to shareholder approval:
| ESOS Details | Specifications |
|---|---|
| Total Options | 49,65,568 stock options |
| Percentage of Capital | 3.33% of paid-up share capital |
| Exercise Price | Face value of shares (minimum) |
| Vesting Period | 1-4 years from grant date |
| Exercise Period | Maximum 3 years from vesting |
The scheme will be implemented through a Trust route, with shares acquired via primary issuance and/or secondary acquisition. The Nomination and Remuneration Committee will administer the scheme and determine specific vesting schedules.
Exceptional Items Impact
Exceptional items significantly affected quarterly performance, totaling ₹258.59 crores in Q3FY26. The major components included:
- ₹253.76 crores impact from new Labour Code compliance
- ₹4.83 crores in demerger-related expenses
The Government of India's notification of four new Labour Codes, replacing 29 existing labour laws, required the company to reassess employee benefit liabilities based on available guidance from regulatory authorities.
Operational Highlights
Despite profitability challenges, the company demonstrated operational strength with total expenses of ₹7,538.21 crores in Q3FY26 compared to ₹6,791.97 crores in Q3FY25. Employee benefits expense increased to ₹5,754.84 crores from ₹5,088.84 crores, reflecting business expansion and regulatory compliance costs.
The company maintains its listing on both BSE (Scrip Code: 544413) and NSE (Symbol: DIGITIDE) since June 11, 2025, with results available on the company website at www.digitide.com .
Historical Stock Returns for Digitide Solutions
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.33% | -3.09% | -18.04% | -53.04% | -51.94% | -51.94% |
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