Transcript of the Earnings Conference Call

November 05, 2026 Listing Department, Listing Department, BSE Ltd., National Stock Exchange of India Limited, Phiroze Jeejeebhoy Towers, “Exchange Plaza”, Dalal Street, Bandra-Kurla Complex, Bandra (East), Mumbai-400 001 Mumbai-400 051 Scrip Code: 532633 Symbol: ALLDIGI Dear Sir / Madam, Sub: Transcript of the Earnings Conference Call Pursuant to Regulation 46(2) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform that the Transcript of the Earnings Conference call, conducted through digital means on October 30, 2026, has been uploaded on the website of the Company under the link: https://www.alldigitech.com/investorrelations/ (Corporate Governance /Investor Call Tab). This is for your information and records. Yours faithfully, For Alldigi Tech Limited Shivani Sharma Company Secretary and Compliance Officer ACS - 39590 Alldigi Tech Limited Ground Floor (Block 9A & 9B) and First Floor (Block 9B), 1/124 Shivaji Gardens, DLF Cyber City, Moonlight Stop, Manapakkam, Chennai – 600089 Tel: 044-42997070 | E-mail: investorcontact@alldigitech.com | CIN: L72300TN1998PLC041033 www.alldigitech.com “Alldigi Tech Limited Q2 FY '27 Earnings Conference Call” October 30, 2026 MANAGEMENT: MR. NATARAJAN LAXSMANAN – CHIEF EXECUTIVE OFFICER – ALLDIGI TECH LIMITED MR. MANISH AGARWAL – CHIEF FINANCIAL OFFICER – ALLDIGI TECH LIMITED Page 1 of 15 Alldigi Tech Limited October 30, 2026 Moderator: Ladies and gentlemen, good day, and welcome to Alldigi Tech Q2 FY '27 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Natarajan Laxsmanan. Thank you, and over to you, sir. Natarajan Laxsmanan: Thank you very much. Good morning, everyone. Thank you for joining Alldigi Tech Q2 FY '27 Earnings Call. I'd like to start by thanking all the shareholders for the trust, confidence and the continued support that you give to Alldigi Tech. It keeps us motivated to continue to perform. Today, I'm joined by our CFO, Mr. Manish Agarwal. We'll begin with an overview of our business performance, operational highlights and strategic priorities, followed by a detailed review of our financial performance. We will then be happy to take your questions. I'm pleased to report another quarter of strong financial performance with steady revenue growth, significant improvement in profitability, healthy cash generation and meaningful progress on our strategic priorities. Beyond the financial results, we continue to strengthen our international business, improve our revenue mix, expand our sales capabilities and accelerate our technology-led transformation. I'll take you through some of the key highlights. On the financial performance for the first half of FY '27, we reported revenue of INR 303.6 crores, growing 4.2% year-on-year, while EBITDA increased by 20.8% to INR87.7 crores. Our EBITDA margin improved to 28.9% for the H1 FY '27 compared with 24.9% in the corresponding period last year. For Q2, revenue stood at INR153.3 crores, growing 4% year-on- year and 2% quarter-on-quarter. EBITDA grew approximately 29% year-on-year to INR46.3 crores with margins expanding to 30.2%. PAT increased by approximately 51% year-on-year. Our cash position remains healthy at INR127.2 crores as of September '26, while collections for the first half increased by 4.3% year-on-year to INR316.9 crores. One of the key highlights has been improving quality of our revenue. International business now contributes approximately 70% of our consolidated revenue compared with around 63% last year. While revenue growth remains moderate, our profitability continues to grow significantly faster than revenue, reflecting operating leverage and improved business mix and disciplined cost management. Manish will take you through the detailed financials shortly. On the business performance, I'll start with our Tech & Digital business. Our Tech & Digital business continued its growth momentum, delivering 12.9% year-on-year revenue growth in Q2, with segment margin improving to 43.9%. For the first half, T&D revenue grew 12.4% on a year-on-year basis to INR82.3 crores. We continue to strengthen our position in the HR and payroll managed services market. During Q2, we processed 51.1 lakh employee records, taking the total for the first half to 101.3 lakh records. We have also added INR16.1 crores in new annual contract value during H1 through new customer acquisitions and expansion of services within existing accounts. Our key service Page 2 of 15 Alldigi Tech Limited October 30, 2026 delivery metrics, including payroll accuracy, on-time delivery and query turnaround times continue to improve year-on-year. On the BPM segment, the segment delivered stable performance with Q2 revenue at INR111.6 crores, growing approximately 1% year-on-year. For the first half, BPM revenue stood at INR221.3 crores, growing 1.4% year-on-year. International BPM continues to be a key growth driver, growing 12.6% year-on-year in Q2 and now contributing approximately 83% of the BPM revenue compared to 75% in the corresponding quarter last year. During H1, we secured INR66.5 crores in new ACV across new customers and existing customers. Our service delivery performance continued to remain strong, supported by the initiatives we've taken to improve productivity and embed AI into existing customer operations. At the same time, we continue to take deliberate actions to improve the profitability of our domestic BPM portfolio, including exiting structurally low-margin businesses. Our focus remains on profitable and sustainable growth rather than pursuing revenue at the expense of margins. Coming to the growth engine, an important priority during the first half has been strengthening our sales organization and go-to-market capabilities. We've appointed a new Chief Business Officer for the BPM business. We've expanded our international sales team, and we now have experienced sales leaders from the BPM industry leading the U.S. sales team. And there is an established SMB sales team and an enterprise sales team within the Tech & Digital. We've also expanded our sales capability on the BPM side into Southeast Asia. We also have incorporated a dedicated practice team to strengthen solutioning, presales and product capabilities. During Q2, we secured new business with an annual contract value of INR37.2 crores, growing 86.5% year-on-year. For H1, our new business ACV reached INR82.6 crores, more than doubling compared to the last year. This includes INR66.5 crores from BPM and INR16.1 crores from Tech & Digital. Our immediate priority is converting these wins into revenue over the coming quarters. Moving on to AI and technology-led transformation. Across BPM, we are now moving beyond the traditional delivery, embedding AI across all of our BPM delivery to improve productivity, quality and customer outcomes. On Tech & Digital, we continue to invest in our AI and automation strategy led by technology. Our products, our internal operations and our end employees of the customers, all of them enjoy the benefits of AI. Moving on to the product strategy. We have -- in the month of May 2026, we launched Buzzily 2.0. And recently, in October, we launched 2 more products, Alldigi 360 and Alldigi 360 Analytics. Just to clarify, in the last meeting, I have called this as Aeonox and Meridian. We've now changed the name to reflect the company family group name as such. And so going forward, we'll refer to these products as Alldigi 360 and Alldigi 360 Analytics. On Alldigi 360, this is an entire HCM suite, including Payroll and it has the capabilities in terms of managi [Showing first 8,000 characters — download PDF for full document]