Digitide Solutions Reports Strong Q2 FY26 Growth, Targets $1B Revenue by FY31
Digitide Solutions reported robust Q2 FY26 results with revenue up 7% YoY to ₹7,641.89 crore. The Tech & Digital segment showed strong 23% YoY growth. The company added 24 new logos and achieved ₹550 crore in TCV bookings. Digitide outlined a '3x3x3' strategy aiming for $1 billion revenue by FY31, focusing on AI-first digital transformation. The company has strengthened partnerships with AWS and Microsoft Azure, and is investing heavily in AI capabilities with over 50 AI accelerators in production.
*this image is generated using AI for illustrative purposes only.
Digitide Solutions , an AI-first digital transformation partner for global enterprises, has reported robust growth in its Q2 FY26 financial results, while also unveiling ambitious plans for future expansion.
Q2 FY26 Financial Highlights
| Metric | Value | Change |
|---|---|---|
| Revenue | ₹7,641.89 crore | Up 7% YoY, 4% QoQ |
| EBITDA | ₹85.00 crore | Margin of 11.1% |
| Adjusted PAT | ₹17.00 crore | Margin of 2.2% |
The company's Tech & Digital segment showed particularly strong performance, with revenue increasing by 23% YoY and 16% QoQ. This segment now accounts for 30% of the company's total revenue.
Key Business Developments
- Total Contract Value (TCV) bookings reached ₹550 crore, marking the third consecutive quarter above ₹500 crore
- 24 new logos were added during the quarter, indicating sustained sales momentum
- International business grew by 4% YoY and 6% QoQ, now contributing 37% of total revenue
Strategic Partnerships and Recognition
Digitide Solutions has strengthened its market position through key partnerships and industry recognition:
- Achieved Tier 1 partnership status with AWS and Microsoft Azure
- Named a Major Contender in six Everest PEAK metrics across Insurance, Customer Experience Management, and Payroll services
AI-First Strategy and Future Outlook
The company has outlined an ambitious growth strategy, aiming to reach $1 billion in revenue by FY31. This "3x3x3" strategy focuses on:
- 3x Growth: Targeting revenue growth from ~$342 million to $1 billion, with 200-300 basis points improvement in EBITDA margin
- 3x Service Lines: Focusing on Digital and AI Engineering, Data Analytics and AI, and BPM & BPaaS
- 3x Verticals: Emphasizing BFSI, Fast Growth Tech, and Manufacturing, Energy & Utilities
Digitide Solutions is heavily investing in AI capabilities, with over 50 AI accelerators already in production. The company's AI Centre of Excellence, Pulse.AI, is developing solutions across various domains including intelligent customer experience, enhanced employee experience, and AI-powered adaptive tech.
Management Commentary
Gurmeet Chahal, Chief Executive Officer of Digitide Solutions, stated, "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."
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."
Conclusion
Digitide Solutions' Q2 FY26 results demonstrate the company's strong growth trajectory and its commitment to AI-led digital transformation. With a clear strategy for expansion and a focus on high-growth areas, the company appears well-positioned to achieve its ambitious $1 billion revenue target by FY31. However, investors should note that future performance may be subject to market conditions and successful execution of the company's growth strategy.
Historical Stock Returns for Digitide Solutions
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -3.36% | -10.35% | -16.95% | -35.90% | -35.90% | -35.90% |
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