Digitide Solutio Q1 FY27 Results (NSE: DIGITIDE)
Signal: Slipped to loss
The read
Digitide's Q1FY27 consolidated revenue grew 5.4% YoY but fell 3.1% QoQ; EBITDA margin contracted to 9.92% from 11.22% a year ago, as employee costs and other expenses grew faster than revenue. The company reported a net loss attributable to owners of INR 18.91 million vs profit of INR 57.32 million last year, driven by margin compression in both segments. Standalone loss was even steeper at INR 105.81 million. The absence of exceptional items this quarter did not offset operational weakness.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹775.07 Cr | 5.35% | -3.11% |
| EBIT | ₹21.71 Cr | -40.5% | |
| Net profit | ₹-1.89 Cr | -133.0% | |
| EPS | ₹-0.13 | -134.2% | |
| EBIT margin | 2.80% |
P&L walk
Revenue grew modestly YoY but employee costs and other expenses outpaced revenue, compressing EBITDA margin to 9.92% from 11.22% a year ago. Finance costs surged 34.8% YoY. The net loss attributable to owners of ₹18.91 mn reflects margin pressure in both segments, partly offset by non-controlling interest profit of ₹48.24 mn.
Segments
Both segments saw revenue decline sequentially; Tech and Digital segment result dropped 37% QoQ, while Business Process Management segment result declined 15% QoQ, dragging consolidated profitability.
Key positives
- Revenue grew 5.4% YoY, driven by Tech and Digital segment (+20.5% YoY).
- EBITDA margin stabilised sequentially at 9.92% vs 10.99% in Q4, a modest improvement from the prior quarter's steep decline.
Key concerns
- Net loss attributable to owners of INR 18.91 million, deteriorating from profit of INR 57.32 million a year ago.
- EBITDA margin contracted 130 bps YoY, with employee costs (+6.2% YoY) and other expenses (+10.6% YoY) outpacing revenue growth.
- Tech and Digital segment result declined 37% QoQ, indicating sharp margin pressure in the digital business.
- Finance costs surged 34.8% YoY, adding to cost pressure.
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