IT stock skyrockets 17% after reporting strong Q3 results, Announces 300% dividend

Synopsis: Alldigi Tech jumped sharply after the company reported that its revenue, EBITDA and net profit jumped by 9.5%, 42% and 5% YoY respectively. Additionally, the board surprised investors by declaring an interim dividend of Rs 30 per share.

The shares of this IT company, engaged in outsourcing solutions, offering future-ready, resilient business transformation services to industry heavyweights, Fortune 100 companies, and growth-focused organisations, are in focus after it reported its financial results for this quarter. In this article, we will dive deeper into the details.

With a market capitalisation of Rs 1,300 crore, the shares of Alldigi Tech Ltd reached a day high of Rs 949.95 per share, up 17 percent from its previous day’s closing price of Rs 810.75 per share. Over the past five years, the stock has delivered a robust 201 percent return, outperforming NIFTY 50’s return of 85 percent.

Q3 Highlights

The revenue from operations for Alldigi Tech stands at Rs 153 crores in Q3 FY26 compared to Q3 FY25 revenue of Rs 139 crores, up by 9.5 per cent YoY. Additionally, on a QoQ basis, it reported a slight growth of 4 percent from Rs 147 crore. 

Also, EBITDA stood at Rs 45.9 crore in Q3 FY26, a robust growth of 42 percent as compared to Rs 32.4 crore in Q3 FY25. Additionally, on a QoQ basis, it reported a growth of 28 percent from Rs 36 crore. Also, coming to the margins front, EBITDA margins increased by a staggering 680 bps YoY and by 560 bps QoQ, reaching 30.1 percent in Q3 FY26.

Coming down to its profitability, the company’s net profit stood at Rs 21 crore in Q3 FY26, a minor growth of 5 percent as compared to Rs 20 crore in Q3 FY25. Additionally, on a QoQ basis, it reported a growth of 17 percent from Rs 18 crore.

Segmental and other highlights

The company derives its revenue from two segments, namely BPM (Business Process Management) and Tech & Digital. The company derived Rs 114 crore of its revenue from the BPM segment, which grew by 7.4 percent YoY and 3.2 percent QoQ from Rs 106.1 crore in Q3 FY25 and Rs 110.5 crore in Q2 FY26 respectively. Also, in this segment, the margins grew by 540 bps YoY and 570 bps QoQ reaching 17.3 percent in Q3 FY26.

Also, the company derived the remaining Rs 38.7 crore from its Tech & Digital segment, which grew by 16.2 percent YoY and 4.9 percent QoQ from Rs 33.3 crore in Q3 FY25 and Rs 36.9 crore in Q2 FY26 respectively. Also, in this segment, the margins grew by 510 bps YoY and 340 bps QoQ reaching 43.2 percent in Q3 FY26.

Additionally, the board of directors has declared a second interim dividend of Rs 30 per equity share over the face value of Rs 10 (300 percent payout) and has fixed February 04, 2026, as the record date.

Alldigi Tech began in 1998 in Chennai and has expanded into a global leader in digital business services. Their main focus is on Employee Experience Management and Customer Experience Management, essentially, helping organisations improve how they support both their employees and their customers and serves over 600 clients across more than 60 countries, including several major Fortune 100 companies. 

With a workforce of over 6,500 employees, Alldigi develops AI-driven solutions for payroll, HR technology, customer engagement, automation, and analytics. Their mission is to help businesses operate more efficiently, deliver better experiences, and achieve sustainable growth.

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