Digitide Solutio H1FY27 Results (NSE: DIGITIDE)
Signal: Growth decelerated
The read
The trajectory improved in Tech & Digital but not yet at group level: H1 revenue grew 2.3% to 15,346.91 ₹ million, while EBIT margin compressed 24bps to 2.98% and PAT fell 6.0% to 118.43 ₹ million. This extends the recent margin-contraction arc, with employee costs growing 4.3% versus revenue growth of 2.3% and BPM weakening despite Tech & Digital growth.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,534.69 Cr | +2.3% | N/A |
| EBIT | ₹45.82 Cr | -5.0% | |
| Net profit | ₹11.84 Cr | -6.0% | |
| EPS | ₹0.01 | -96.2% | |
| EBIT margin | 2.98% |
P&L walk
Revenue increased 2.3% YoY to 15,346.91 ₹ million, but EBIT declined 5.0% to 458.17 ₹ million as employee costs rose 4.3% and BPM segment result fell 15.9%; PAT declined 6.0% to 118.43 ₹ million, while owner-attributable profit turned negative at -0.49 ₹ million.
Segments
Tech & Digital was the growth and profit bright spot, with revenue up 12.9% YoY to 4,809.22 ₹ million and segment result up 13.1% to 460.21 ₹ million, while BPM revenue fell 1.9% and its result dropped 15.9% to 1,461.64 ₹ million.
Key positives
- Tech & Digital revenue increased 12.9% YoY to 4,809.22 ₹ million and its segment result rose 13.1% to 460.21 ₹ million, making it the clear growth engine.
- Operating cash flow improved 27.7% YoY to 510.23 ₹ million, exceeding reported H1 PAT of 118.43 ₹ million.
- PPE plus CWIP increased to 2,084.74 ₹ million while depreciation rose 13.6% to 1,098.39 ₹ million, indicating that the higher depreciation charge is accompanied by a rising asset base.
Key concerns
- EBIT declined 5.0% YoY to 458.17 ₹ million and EBIT margin compressed 24bps to 2.98%, continuing the recent margin-contraction trend.
- Employee benefits expense rose 4.3% YoY to 11,518.78 ₹ million against 2.3% revenue growth, raising employee-cost intensity to 75.05% of revenue.
- BPM segment result fell 15.9% YoY to 1,461.64 ₹ million even as Tech & Digital grew, leaving consolidated earnings dependent on a still-smaller business line.
- Owner-attributable profit was -0.49 ₹ million versus 39.51 ₹ million in the year-ago half year, causing EPS to fall 96.2% to ₹0.01 despite total PAT of 118.43 ₹ million.
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