Ladies and gentlemen, good day, and welcome to the Alldigi Tech Limited Q4 and FY 2026 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 this 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. Rajesh Lachhani, Head of Investor Relations and M&A. Thank you, and over to you, sir.
Thank you, Sapnali. Good morning, everyone, and welcome to our Q4 and FY 2026 earnings call. I'm pleased to introduce our newly appointed CEO, Mr. Natarajan Laxsmanan , whom we fondly call Nat. Nat brings deep industry experience and strong strategic vision that will guide Alldigi Tech's next phase of growth. Joining him on the call is our CFO, Avinash Jain. We will begin with opening remarks from management, followed by a Q and A session where we'll address your questions. Before we proceed, I would like to provide a standard safe harbor statement. This call may contain certain forward-looking statements which are subject to risk and uncertainties. Actual results may differ from these statements. With that, I now hand over the call to Nat. Over to you, Nat.
Thank you, Rajesh. Good morning, everyone. Thank you for joining the Q4 and FY 2026 earnings call. I start by appreciating your interest, support, and participation to Alldigi Tech. Along with Mr. Avinash Jain, we look forward to walking you through our performance and responding to your questions. Since this is my first interaction with all of you, I'll start by giving a brief introduction of myself. As Rajesh mentioned, my name is Natarajan Laxsmanan . I'm called as Nat. I bring about 25 years of experience in the industry, about 15 years of which have been in the HR and payroll outsourcing industry and about 10 years in the international BPM. I come with a combination of international BPM outsourcing and HR and payroll outsourcing. I've handled 500 million-plus portfolios across the globe in my past career.
I have been associated with brands like Accenture, Alight Solutions , NGA HR , also known as NorthgateArinso, Sitel, Wipro, and Stream Global Services. Prior to joining as CEO of Alldigi Tech, I was the chief operations officer for Digitide Solutions, the group company. With that, I'll move towards the agenda for today. We'll initially give you a business overview covering our lines of business and follow it up with detailed financial performance. Post that, we'll open up for questions. I'm pleased to report continued strong financial performance. Operationally, we have achieved steady revenue growth with a healthy EBITDA margin while continuing to expand our offerings and capabilities.
On the financial performance for the full year FY 2026, revenue from operations stood at INR 598.7 crores, up by 9.6% year-on-year, while EBITDA was at INR 162 crores, up 25% year-on-year. The growth has been broad-based across both the verticals, our BPM as well as the Tech and Digital businesses. In line with our strategic intent, the overall share of our international business has increased by 3%, up from 64%-67%. EBITDA margins improved to 27.1% in FY 2026 compared to 23.7% in FY 2025. This is driven by our operations leverage and scale assets. For the quarter, revenue from operations stood at INR 154.7 crores, up by 5.9% year-on-year and 1.3% quarter-on-quarter.
EBITDA was at INR 43.7 crores, up by 24.2% year-on-year. Our cash collections continue to be robust. Our cash position at the end of year stood at INR 147.7 crores, while collections for the full year increased to INR 626.1 crores, up by 9% year-on-year. I'm now moving to the operational performance. On the operational performance, I'll cover the Tech and Digital business to start with. The Tech and Digital business reported a strong growth with the Q4 revenue growing 22.3% year-on-year and 14.5% quarter-on-quarter. For the full year, the Tech and Digital revenue grew by 16.5% year-on-year to INR 156.2 crores.
We posted good additions to our managed employee records base and continue to lead India's managed services segment. We processed INR 49.9 lakh employee records in Q4, taking the full year to INR 191.5 lakh records, reflecting strong operational momentum. We added INR 40.1 crores of new ACV across both new customer and existing customer expansions. Our key service delivery metrics of payroll accuracy, on-time delivery, and query turnaround time continued to improve year-on-year, setting new benchmarks. I'll move to the BPM segment. The BPM segment delivered stable performance with Q4 revenue at INR 110.4 crores, up by 0.4% year-on-year.
For the full year, BPM revenue grew by 7.3% year-on-year to INR 442.4 crores, supported by continued strength in the international business, which now contributes 78% of the total CXM revenue. The CXM is the BPM segment on a full year basis, up from 73% last year. We added INR 54.1 crore of new ACV across both new customers and existing customer expansions. Our service delivery continues to remain green, and we continue to make efforts to infuse AI into our current customer landscape. We've successfully completed migration for our India-based customers to our SP4 platform. By deployment of these platforms, we are looking at an efficiency of INR 3 crore per annum on our Tech & Digital business. Diversity and inclusion increased by 1.2% at 47.9%. We've set ourselves a target of 50%.
I am confident we'll be able to achieve this number. We continue to receive high ratings, and increasing feedback on social media platforms. This is reflected in our, the Great Place To Work standing as well as our internal measurements. We are at target of 4.5 against 5. A direct outcome of our continued focus on employee engagement is driving these results. We continue to encourage our employees to participate in the CSR activities of the company. Looking ahead, FY 2026 has further strengthened our foundation as Alldigi Tech under Digitide Solutions. Our strategy remains crystal clear: deepening client relationship, expanding our global reach, driving efficiency through technology and AI, and building a future-ready, high-performing team. With our platform scaled, sales channels expanded, and execution discipline intact, we are confident of sustaining our growth momentum going forward.
With this, I hand over to Avinash to walk us through the detailed financials. Post that, we'll open up for questions. Thank you. Avinash, over to you.
Thanks, Nat. Greetings, everyone, thank you for your interest in Alldigi Tech. Let me begin with our performance on the operational revenue front. Revenue for the quarter stood at INR 154.7 crores, reflecting a growth of 5.9% year-over-year and 1.3% quarter-over-quarter. For the full year, FY 2026, our revenue reached INR 598.7 crores, representing a growth of 9.6% over FY 2025. Both business verticals, BPM and T&D, have contributed to this growth. In the BPM segment, Q4 revenues stood at INR 110.4 crores, broadly flat YoY. International BPM revenues grew 8.7% YoY in Q4.
For the full year, BPM revenues grew 7.3% YoY to INR 442.4 crores, with growth continuing to be driven by international markets, which remain the dominant contributor to BPM revenues. In the T&D business, revenue for Q4 stood at INR 44.3 crores, marking a strong 22.3% YoY growth and 14.5% QoQ growth. On a yearly basis, T&D revenue grew by 16.5% YoY to INR 156.2 crores. Our employee reports volumes have increased to INR 191.5 lakhs for FY 2026, reflecting continued strong operational momentum. Moving on to margins. EBITDA for Q4 in at INR 43.7 crores, growing 24.2% YoY.
For the full year, EBITDA was at INR 162 crores, reflecting a strong 25% YoY growth, with margins improving to 27.1%. In the BPM segment margin for Q4 stood at INR 15 crores. For the full year, segment margin was INR 62.3 crores, reflecting a growth of 16.8% YoY. In the T&D segment margin for Q4 stood at INR 19.5 crores, with margins remaining strong at 44%. For the full year, segment margin was INR 66.6 crores, reflecting a robust growth of 28.9% YoY, driven by higher volumes and improved operating leverage. Now, coming to the bottom line. PAT for the quarter stood at INR 28.9 crores, reflecting a strong increase both on YoY basis, 49.7%, and on QoQ basis, 38.6%.
For the full year, FY 2026, PAT stood at INR 82.2 crores, largely stable compared to last year, with PAT margins at 13.7%, flat YoY. On cash flows, our operating cash flow for the quarter was INR 45.3 crores, with OCF to EBITDA conversion remaining strong at 103.8%. For the full year, OCF stood at INR 144.1 crores, reflecting healthy cash generations with conversion at 88.9%. With this, I conclude the financial highlight and now hand over the session to the moderator for taking up your questions.
Thank you very much. We will now begin the question- and- answer session. Anyone who wishes to ask a question may press star and then one on their touchtone telephone. If you wish to remove yourself from the question queue you may press star and two. Participant you are requested to use handset while asking question. Ladies and gentlemen you may wait a moment while the question queue assemble. I remained you all if you may press star one to ask a question. We will take the first question from the line of Harsh Kundnani from Aionios Alpha . Please go a head.
Hi. Thanks for the opportunity. Couple questions from my end. First is, if we look at the payroll processed in the HRO business, this number has been growing at, you know, 10% plus YoY over the last few quarters, and revenue growth has been in line. This quarter, you know, revenue growth is significantly higher than the payroll processed number. Is this because of, you know, our foray into the international markets where the realization is higher, and can this divergence continue over the next few quarters?
Thanks for the question, Harsh. You're right, our payroll process has been growing year-over-year. So the revenue, if you have to look at it not exactly directly proportional to the growth of the number of employees because there are revenue streams from the payroll side which comes from our one-time change requests, as well and also the year-end. There are configuration changes, there are tax proof vouching, there's the new wage code implementation. There are revenue streams that come from those one-time activities as well. Also our increase in international business also gives us the benefit from the currency fluctuation. It's a combination of all these factors.
While we'll not be able to comment on the currency fluctuations which could be a windfall gain that we would get, d efinitely we should look at the revenue which will be slightly higher than a direct proportion to the number of employees given that we are adding a number of customers on. There will be the one-time configuration changes and one-time onboarding charges that will continue to come through.
Understood. Just to double-click on that, does that mean our realization and margin in the international HRO business is similar to the domestic one?
Harsh, international margins typically tend to be slightly higher, but, as you would note, our domestic margin itself are pretty decent. Yeah, both domestic and international margins remain reasonably good.
Understood. Understood. Moving on to the BPO business. There was a headcount decline in this quarter and I think that has led to, you know, revenue decline also. Is this client specific or anything to call out in this particular segment?
Yeah. You're right in your observation, Harsh. Yes, there has been a headcount decline. This is a strategic move that we've done of moving away from some of our low-margin business and also a strategic intent of increasing our international business compared to the domestic one. This headcount decline is a reflection of that intent.
Understood. Is this rationalization exercise, will this continue for a few quarters or was this just a one quarter impact?
We should anticipate this, probably not on a quarter timeline, but you know over the FY 2027 we would continue to exercise this intent of moving away from low-margin business. Even, you know, as of today from our portfolio we still carry about, you know 10% of our business into this, you know, segment. We'll continue to move away from this business, based on the, you know, macro conditions of the business.
Understood. Understood. Lastly, Nat, sir, I know early days but, you know, what has been the focus areas in the company since you've joined and, you know, where do you see this company two, three years from now from a, you know, segmental aspect? What happens to the HRO business, the BPM business, so on and so forth?
Thanks for that question, Harsh. Yeah, it's still early, just about a month old, but the direction is very clear. We wanna grow both the segments of the business and, you know, more move towards technology enablement rather than just an FTE business on the BPM side. On the payroll side, continue to enhance our platforms and, you know, there is a number of plans that we have. There is a HRMS V2 that we'll be releasing this year which is an AI-enabled platform. We are also looking at coming up with a payroll analytical module which is an AI-based analytical module. You'll see more and more AI-based offerings which is aimed at helping us from an efficiency perspective, from an internal quality tech perspective.
From an external customer aspects we are looking at the end employees, my employees of my customer getting the benefit of AI features. Also from a customer stakeholder perspective they'll get more value add from the business in terms of analytics and business insights they can get. This is on the tech and digital business. Similarly on the BPM business we've already started infusing AI into our existing operations, some of it, which is already customer-facing. Going forward definitely there's going to be a growth which will be enabled by technology and AI assets. That's the mandate that we're looking at and we are already seeing initial shoots because some of it is already in the user acceptance testing. We should release this in the market soon.
Understood. Thanks a lot for this. I have a couple of more questions but I'll just come back in the queue. Thank you.
Thanks.
Thanks, Harsh.
Thank you. We will take the next question from the line of Keshav Garg from Countercyclical PMS. Please go ahead.
Sir, I wanted to understand that which part of our business is most at risk from the AI?
Thanks for that question, Keshav. I wouldn't call it a risk, Keshav. You know, it's both, you know, a challenge and an opportunity. You know, it's not overall a risk, you know. This is something which we've identified, you know, now, and that is the reason why you see a lot of AI and, you know, enhancements that is coming in and AI infusion that is coming in. If you note it clearly, we are looking at AI across our business end-to-end. Internal operations, which is gonna result in efficiency, accuracy and turnaround times. From an external perspective, customers and employees both on the BPM and the Tech and Digital side get to experience the AI features and take advantage of them.
Also enhance the value addition in terms of the outsourcing business through our AI analytics. While, you know, there's one way of looking at it as a risk, it's also an opportunity for us. We are already, you know, seeing this interest from all of our existing customers as well as for our new customers that we are onboarding. That, you know, we are looking at AI-based solutions, AI-based offerings, and that's something which we are already in the competition. I would say we are neck to neck in terms of market from any other competitors, but probably in some areas we are a little ahead of the curve, and that's the feedback that we've been getting from our customers.
Right. Also, our full year revenue went up by roughly 10%, and I believe the Indian currency itself has depreciated by more than that or around the similar magnitude in the past one year. What has been the constant currency growth in the revenue, if at all, for FY 2026?
Yeah. Thanks, Keshav, for your question. 3.3% is the growth attributable to the currency depreciation, and 6.3% is the growth attributable to the various efforts which the company has been making.
Okay, understood. So can we expect these margins that we did in the last quarter of around 28% to sustain going forward, or is there any one-time effect of currency depreciation and so on?
See, we expect the margins to remain robust. Like in our previous calls also, we have guided that we typically target 1% to 1.5% kind of margin growth, year-over-year basis. We'll continue to derive that focus on that. As of now, I do not foresee any significant challenges in terms of currency fluctuation affecting our revenues on a negative side.
Understood. We can expect around 29% full year FY 2027 OPM?
See, Keshav, like, you know, typically we do not give a particular number in terms of a future guidance. Yes, as you rightly pointed out, as currency depreciates, that typically adds up margin. Yes, margin is expected to increase, but we cannot give you a ballpark number.
Understood. For the current year, what kind of revenue growth? I mean, in the past, we were talking about roughly 15% kind of revenue CAGR, last year clearly it was far below that. What was the reason for that, and now what is the outlook?
Yeah. Okay. I'll answer the first part. You know, in terms of why, you know, our growth has been, you know, below that mid-teens is because of the strategic intent I already answered. We're moving away from some of our low-margin business. We're looking at more international and high-margin business that comes into the business. That is something which we've already initiated. That's one reflection that you see. Also, you know, there are other industry factors. If we compare ourselves with the industry growth on both the segments, you know, we are slightly above the industry growth that we've seen for the last year. From that perspective, yes, ideally, we would like to be far better. Again, this year, you know, while we're looking at the mid-teens again.
We should see, you know, the mid-teen growth for this year as well in terms of revenue.
Understood, sir. Thank you very much, and best of luck.
Thanks, Keshav.
Thank you. We will take the next question from the line of Raghu Ram from Eurindia Ventures . Please go ahead.
Hi. Nat, am I audible?
Yes, Raghu.
Yes, you're audible.
Okay. I had two questions on the HRO and two questions on the BPM side. On the HRO, obviously, we are seeing, as Harsh also pointed out, we're seeing significantly faster growth on a quarter-on-quarter basis as well as on a year-on-year basis. Is this something that you also mentioned that revenue growth will continue to be higher than the employee-based risk growth. Is this something that is now built in from sales? You have a pretty strong sales team is what I have been able to at least understand, from various calls that I have had before. You coming from HRO and international HRO kind of perspective, I would imagine this is something that is right up your alley.
That will be my first question, first outlook. Not really an outlook, but in terms of how you see HRO going forward. The second is on the EBITDA margin. Avinash mentioned that the EBITDA margin for both HRO domestic and HRO international are anyway pretty significantly high. This is something that is, h ow is that as compared to how you have seen in your previous in your previous companies? How do you see it going forward in Alldigi Tech itself? That will be my two questions on HRO. On BPM, the observation that I had is that the last burst of growth, as you can well imagine, you have been on the international BPO side for a significant amount of time. BPM is not really a year-over-year gradual growth, it's a step growth.
Where if you get a large client, you get a burst of growth, and you go into the next step. The last burst of growth that came in for Alldigi Tech has been from the large healthcare clients that we onboarded about 18 months back or nearly 24 months back. That is something that is missing in the last about 12 months, in terms of one large one or two large clients getting onboard. How do you see and what is the timeframe, and how do you see Alldigi Tech breaking that kind of a barrier that has been holding back its growth on BPM? The second one is, obviously, you mentioned that we are moving out of the low margin, some domestic clients.
Overall margin outlook after this move out, there is obviously something that you have in mind from an EBITDA margin perspective. If you can please share that will be great. Two questions on HRO, two questions on BPM, please. Thank you so much.
Sure. Sure, Raghu. I'll answer the questions one by one. The first question on the HRO outlook. We should continue to see the growth, Raghu. Yes, margin-wise, you know, if I compare it with my previous experience, we are pretty much there. In some cases, we are slightly higher. Our system has been very strong, and we continue to make sure that, you know, they remain strong. We've strategically made a decision of now focusing our efforts higher on the international mix. Even on the HRO side, we would continue to see a considerable growth on the international side, along with our domestic side as well. The mix of international business, we expect it to continue to grow.
Quite obviously, because that is going to give us a better margin, and also those are markets that, you know, we have a sweet spot in terms of where we play compared to the competitors that are available in that particular market. HRO, definitely you will see the number of employee records constantly going up. Also from a revenue profile, the revenues should be higher in terms of a proportionate factor on the number of employees that we'll be managing because of the international mix that will come into picture. Compare it with the previous experience or the other competition in the market, definitely we are very competitive. In some cases, I would say probably we are above the other competition, because of, you know, various reasons from an operational leverage that we bring in.
On I answered your outlook as well as the EBITDA margin. EBITDA margin is pretty strong for our domestic. It will be higher than our domestic business on the international side on the HRO aspect as well. I hope I've answered both your questions on the HRO side.
Yes. Yes, please. Yeah.
I'll move to the BPM. Yeah, you're absolutely right in terms of the prediction of a behavior. Yeah, BPM growth is more depending on the client size and when it comes on board. Yeah. Our last big client has been the healthcare client, and that has been a good journey. We've been constantly growing with that particular client, and it's, you know, very strong, satisfied client that we have, which continues to expand, you know, even today. We are expanding that client even into FY 2027. When do we see one more client like that? You know, I'm not giving you a timeline, but I can give you an insight in terms of our pipeline. From a pipeline perspective, we do have some pretty big names that brands that we are actually targeting.
In fact, we've been in discussion with them in FY 2026 as well. When you look at, you know, the global macroeconomic conditions with the war coming in, there are certain decisions, you know, that were actually put on hold by the customers because, you know, they wanted to move away from that uncertainty, especially this health. I mean, impacted the healthcare clients with that One Big Beautiful Bill that was expected to come. With those things past us now, we should anticipate that, you know, at least we get one big break. We have it in the pipeline, we know we have our target clear. We've been engaging in keeping these clients warm. We should see something soon, but, I don't want to put a timeframe because there are conditions that, you know, it's not easy to speculate. That's on the BPM.
Understand. Sure.
On the margin part, Raghu, I think, already Avinash addressed it. We should look at about 1% to 2% improvement for FY 2027 as well. That's our endeavor, and we are positive we'll be able to deliver that.
Okay. Just a follow-up on that BPM side, Nat. Essentially, we have been trying to get into the RCM business. There has been obviously some, last quarter, there was a hint that some RCM business initially would start to come in with maybe some 40 seats, 45 seats kind of a thing. There were also some indications that previously had been given to us that if we don't really—Are getting to it in an organic way. We would also consider an inorganic way of entering that business. How is the outlook for that? How is the thinking going for that?
RCM is definitely one of our, you know, focus areas or the area of interest for us going, you know, for FY 2027. As you rightly mentioned, we've already entered into the RCM for it. We've been processing the RCM BPM part for almost a quarter now. The good news is it is scaled up. It's doubled up now. From where we started, you know, today we are double in terms of FTEs, and there is more growth that we are talking to the client with this existing client itself. For FY 2027, there are three major industry segments on the BPM side that we are looking at: healthcare and RCM, international insurance, and international collections.
In all these three aspects, you know, we are very well experienced, and we are considered one of the industry experts having the number of years that we have and especially the client support and the client feedback that we have in terms of our performance. These are three specific, you know, industries that we're gonna target from a BPM perspective.
Okay. On the collection side, that is something that we have been expecting growth because of our strongest and longest lasting, longest-standing clients, having gone through a significant expansion. We look forward to that. Thank you so much, Nat, and wish you all the very best in leading all Alldigi Tech as mentioned into a much stronger and different level of growth itself. Thank you so much.
Thank you, Raghu.
Thank you. We will take the next question from the line of Vaibhav Chechani from TCG AMC . Please go ahead.
Hi. Thank you for the opportunity. Congratulations on the decent set of numbers. My first question is regarding the margins. When I see the margins reported in our investor BPT, which is for the full year at around INR 162 crore rupees, versus, when I look at the segmental margins, which is for the full year FY 2026 at around INR 129 odd crore rupees. What I'm missing in there, and what is leading to this gap? If you can help me with that.
Sure, Vaibhav. The segment margins are reported at a BPT level, while reported EBITDA margins are at EBITDA level. Basically your depreciation, finance costs, et cetera, they are also considered while arriving at segment margins.
Okay. When I look at the segment margins, the finance cost has generally been treated after your segment, total segmental results, right? Even when I consider depreciation then also I find a difference of around 100 to 200 basis point.
Yeah. No. Vaibhav, basically, only the unallocable costs are taken out. There might be an impact of other income and expenses also. For a segment margin, these things get eliminated. Overall, if you want to understand more about in detail, maybe we can connect offline.
Sure, I'll do the same. Thank you.
Yeah.
That's all from my side.
Thanks a lot.
Thank you. We will take the next question from the line of Maitri Shah from Sapphire Capital. Please go ahead.
Yeah. Hello. Am I audible?
Yes.
Hello. Yeah, good morning. A few questions again on the margins. You mentioned that we have kind of rationalized our business on the BPM side, getting away with the low-margin business and kind of moving to more international clients. Where do you see these margins on the BPM side growing? Because you've targeted a 1%-2% growth. What sort of growth drivers are we expecting? Will it be more from the BPM side, more from the HRO side? A bit more color on that, if possible.
From a BPM margins perspective, we should continue to see these margins. If you look at our Q4, we've been at 13.6%, and we expect these margins to be maintained given that, you know, BPO and whereas, you know. We should see that, you know, around that 13%-14% margin continuing on the BPM segment. This, as we move away from the low-margin business, you know, this is something which should anticipate. Again, as I said, our low-margin business currently is just about 10% of the portfolio, so it should not make much of an impact. We should be able to see these margins maintain going forward.
Okay. We've seen a bit of a degrowth on the margins. Like QoQ especially. Any sort of one-off that happens because of that there was a degrowth?
See QoQ degrowth in segment margin is a one-off thing, I think.
Okay.
There was some one-time leave policy alignment which we did with our holding company. Subsequent to that there was certain reversals. You can treat that quarter as a aberration. Otherwise, if you see from Q3 2025 onwards, we have been in that 11%-14% range, and which pretty much we currently continue and would target to further enhance this going forward as communicated by Nat.
Okay. On the T&D side, the segment margins reached close to 44%. You see them sustaining with the more international clients coming in? How do you see the split of the international clients coming in the T&D side? What proportion would they contribute going forward?
See, we have seen good growth in international markets, especially, you see, quarter four has been a good growth. We have been consistently having about 60% plus of our ACV wins from international clients. We do expect that international business in the T&D segment will also pick up. Having said that, as I mentioned, the focus overall is to further enhance the segment margins of this business, and there are multiple activities from projects which are currently going on, not just relating to diversification into different geographies, by virtue of our international presence, but also by way of infusion of AI in our operations, by way of focus on the product which Nat mentioned some time back.
All those things should help us to maintain and probably even perform better going forward.
The mid-teens growth, which segment do you expect to contribute more? Will it be the T&D or the BPM? How do you see the split between those two changing? 'Cause once we have a higher proportion of the HRO segment, our margins will kind of improve a lot, to a much more healthier number. How do you see this proportion changing in the next two to three years?
See, from an overall proportion perspective, you know, we should see the tech and digital business growing. If you look at both the segments, definitely there will be growth on both the segments. The growth rate on the tech and digital is expected to be slightly higher compared to the BPM business.
Okay. That is great. Any inorganic acquisitions in the timeline, in the lookout, maybe next year or next to next year?
We constantly are evaluating opportunities that would align with our strategy, Maitri.
Sure
You know, nothing that, you know, I'll be able to openly disclose now in terms of something that's gonna close. Constantly we are evaluating on both the sides of the businesses. In t erms of something which will be, good, which will align us from a strategic perspective. Once we have something which is finalized, you know, we'll make those announcements and make it public.
Okay. That's great. Thank you. All the best.
Thank you, Maitri.
Thank you.
Thank you. We will take the next question from the line of Shrey Lunkar from Vana Financial Consultants. Please go ahead.
Hi, good morning. Thanks for this. Mr. Nat, your experience spans over Accenture also, where you've seen Alldigi as a client also. As part of Digitide, you've had a chance to see it outside in, and then now you're inside out. If you can just make us understand how do you size this HRO opportunity, and what do you think is the right to win? Where are the gaps, how should we kind of see Alldigi evolve? That is the start, you know, starting point. Maybe I'll follow up with a few more.
Sure. Okay. If I look at Alldigi Tech and Allsec, even prior to my Accenture tenure, I always, you know, have kept Allsec in my radar from 2010 onwards because, you know, Allsec used to be one of my competition at that point of time. The strength of Allsec comes basically from two prospects, Shrey. One is the platform. The platform is a 100% owned IP, and also it's one of the strongest platforms. If you look at, compared to the competition and the various platforms that I have personally experienced with, this is one of the very strong platforms with flexibility.
While there are a lot of global platforms that is available which claims to cater to the countries or the regions that we support, while it can be robust, but it might not be having the flexibility. With our case, you know, we have both a robust performance as well as the flexibility, which makes it very interesting for clients, and especially for large clients, you know, who want to have a global solution, but at the same time the flexibility of the local country. That's a very sweet spot that Allsec is pretty strong on, and we're continuing to strengthen that with the AI interventions that we're bringing in. The second part is the operations. From an operational performance perspective, while, you know, usually it's mentioned in a fleeting statement that, you know, we are continuing to improve year-on-year.
If you look at the last, you know, five years or close to a decade, you know, our performance has been consistently in the topmost bucket on accuracy and turnaround time. Especially in the T&D business, on the payroll, accuracy and timeliness are very, very critical, and it is always expected as a given. That's a very solid performance that we've been able to manage. Also from an efficiency and productivity perspective, we are one amongst the best in the industry, or I would say probably we are leading the chart in terms of productivity and, you know, operational efficiency that we have. We have a combination of a very strong service delivery operations team and also backed up by a very strong technology product which has combination of strength, robustness, and flexibility.
This is where our evaluation is usually. Whenever, you know, a client looks at us from an Alldigi Tech perspective on the T&D side, both these things will stand out. We are a subject matter expert, and we have our product to support us.
Sure.
Did that answer the question?
Yeah, that helps. you know, if you can just also help us understand that, you know, when a client is looking at us, is it that what really is that one or two things which helps us win? What is the right to win? In the sense, are we easier to customize? Is that one of the reasons? Or maybe, you know, the kind of pricing that we can give because of our scale, is that one of the advantages? That is on the domestic side. on the international side, you know, if you can just help us understand, how has the international sales engine presence has changed?
We are seeing a decisive shift towards international, even on the order book side, even on the revenue side, and you're guiding for an enhancement from there from such a high level itself. If you can just understand, y ou know, what is it that working for us? Is it just pricing is the largest lever that works for us, or is customization? The other point is, from a sales perspective today, how much of the sales get concluded at a CFO and a CEO level, and how much gets concluded at a HR department level?
Okay. The first part, from a evaluation perspective, you know, it's a combination. Price definitely is one of it. You know, we are very competitive when it comes to price. As you rightly pointed out, it's our scale that helps us give that kind of a price point. I told you, flexibility and stability. We've been handling a number of large clients, pretty big brands for more than, you know, 10 years plus, and some of our accounts have been for more than 20 years. Very large, you know, about 3 to 3.5 lakh employees per month plus is something which we handle. The stability gives the confidence in terms of performance, and the flexibility gives the employee satisfaction that they look at, especially, you know, for each of the local.
When you look at a global solution, we'll be able to plug in. Domestically, it's the flexibility and the configuration aspect. It's easier to configure our product, and we're quick in terms of turnaround time. Our customizations are, you know, more specific, and we are more open for flexible, you know, customizations from a client perspective. That makes it more attractive. Price definitely is one of the factors. Stability is another factor. These are the factors that the domestic looks at. From an international client portfolio perspective, along with these three, our product is also very compatible with the global solutions. When you look at these international companies, they're usually multi-country opportunities and, you know, they have different payroll platforms in each of the countries, and then plugging into a global HRMS system, global time and attendance system.
What is critical here is the compatibility, you know, in terms of the integration through APIs, the data flowing through automatically without having to do manual reconciliation. That's a sweet spot that we have in terms of our international business as such. That's the competition from that check. From a sales perspective, yes, our sales team has been pretty good and they've been able to show that in terms of the conversion and the expansion of the business. Now we, as I told you, within the sales team, we've structured in such a way that, you know, there are specific parts of the team which is concentrating on the international market. We're kind of creating a center of excellence kind of an arrangement. There are specific people who are looking at specific geographies.
They're more effective. They'll be able to relate to it more rather than, you know, spreading thin. That's something which we have done, and that's something which is effective. We've also tied up with a number of partners, both rainmakers as well as, you know, technology partners in those specific regions. That's also a additional channel that we have from a sales perspective. That's all. I think the third question was at which level do we conclude the deals at? See, I mean, this is going to be a very high level percentage that I can give you. About 50%-60%. But it more depends on the size of the deal, right?
The smaller size of the deals, you know, 500, 600, less than 1,000 employees, kind of a client are usually closed at an HR level. With the larger ones, especially when we are looking at about, you know, 5,000 plus employees, multi-country, those ones, you know, we have the CEO, CFO levels. CEO is very, you know, limited. Mostly it is the CFO and CHRO that we, you know, deal with and close. That is what we are seeing. If I have to give you a ballpark %, it's somewhere about 30% of our deals will be with the levels of CHROs and CFOs. Rarely we see CEO coming into the, you know, picture in terms of evaluating, but it's more a decision maker from that perspective.
Sure. Sure, that's very helpful. If you can, you know, in the same breath, the order book that is outstanding for the HRO business as of March 31st, how much of that order book is international?
Okay. As of March 31st.
Yeah
Give me one second. It's about, 48% of my, you know, order book is on the international side.
Sure. You know, just from a volumetric basis, you've grown the volumes of payrolls processed at a very healthy clip for this year. Is there a way you can help us break into how much of this growth was new customer led, and how much was the same customer adding more employees there?
On the Tech and Digital side, you know, predominantly the growth would be of new customers. You know, if you actually look at it, you know, the expansion in terms of our existing clients is being in the same range as the previous years. We've not seen any. In fact, actually, our existing customers have more or less plateaued. While there are some positives and negatives in the, you know, t he mix of clients, it's kind of more or less plateaued. Pretty much, 90% of our growth has come from new customers that we've added.
Mr. Nat, correct me if I'm wrong. In the past, typically 50%, 60% of your growth would have come from your existing customers, and the rest you would have been hunting for new growth. Given that last year everywhere there has been downsizing or, you know, most of the sectors, is it a fair statement to say that in the next two years or three years or next year, the same customer growth will kind of augment this volumetric growth for us at a overall company level?
Okay. See, I think, you know, I don't wanna speculate on two, three years, but one year is something which we have already constantly keeping a watch on because this also would impact our revenues if it goes on the negative side. We are constantly in discussion with our clients in terms of their projection for the year. For FY 2027, we are not seeing any significant decline from our existing customer base employee, you know, headcount. Unless, you know, we're gonna lose clients, I don't see this number of employees coming down for, you know, any of the strategic decisions from a client perspective impacting us. That's something which we have a clear visibility of FY 2027 because constantly we evaluate what is the threat of AI.
If our clients are implementing AI, is it gonna result in downsizing? We have positives and negatives. While some of the clients have grown in the headcount and some of them have come down, overall, from an Alldigi Tech business perspective, our existing headcount is more or less, you know, similar. We're not anticipating any negative growth. At the same time, you know, we're not anticipating any major positive growth also for this year in terms of employee records. As I mentioned, our revenue stream is not only from the employee records. We have one-time configurations, you know, yearly activities, the new wage code implementation that is still ongoing for some of our customers, and certain customizations that they come up with beyond the payroll engine as well, you know.
Now, you know, we're bringing in analytics, that's also a special, you know, stream that will come up. We're looking at a revenue stream that will come from the analytics as well. Those will be extra or additional revenue streams apart from the per employee per month in terms of employee records that we have.
Excellent. That was very detailed. Thank you so much. The other bit was, you know, these new initiatives that you highlighted, PulseHR.ai, HRMS V2. These two specifically, if you can help us understand how should we as investors see as outcomes, on implementation of these two products?
The HRMS version two is basically an integrated console. Today we have our HRMS system, which is separate, and then, you know, we have our payroll system, which is separate. With this HRMS version two, you know, it is going to be an integrated solution that will come in where the data movement between both these platforms is gonna be smooth. From a customer perspective, there's gonna be an effort reduction in terms of data reconciliation between these two systems, you know, because it'll be seamless. From an Alldigi Tech perspective, again, this is efficiency that will be gained. I already, you know, mentioned we are looking at about INR 3 crore of efficiency gains. This will be one of the major contributors that will come in from that perspective.
PulseHR.ai again, is predominantly internally focused from an Alldigi Tech perspective. These are AI that comes in terms of how we handle the inputs coming in from our various channels. That is something which is now going to be technology-enabled, the manual interventions will go away. Which means efforts are gonna come down. It's gonna increase my efficiency, accuracy, and as well as it is gonna reduce my turnaround time. That also will contribute to the efficiency. Both these put together will directly result in efficiency, which means, you know, we're gonna be more attractive to our customers. The effort or contribution that is needed from our client HR teams will come down, and this will improve the performance in terms of accuracy and turnaround times.
It's a positive, and also it's something which is needed as far as the market demand is concerned. This is overall a positive. This should help us land more clients. We'll become more attractive to some of the clients who were not able to accommodate us in the past because of separate systems.
Excellent. Can I have two more questions? Should I fall back in the queue, or can I continue?
We have just room for one more question. We are already behind time.
All right, I'll just restrict it to one then. You know, if you can give us some CapEx outlook, because, you know, over the last three years, your depreciation, you know, has gone up double. Your depreciation run rate has doubled. Over the last five years, we've seen Alldigi really upgrade itself and, you know, do a lot of CapEx around it. If you can give us some idea around the CapEx outlook and the depreciation outlook for next year, given that we are very conservative on depreciation and accounting, that would probably be helpful.
Sure, Shrey. See, as you would have seen, we had updated in our previous calls that we are in process of upgrading our offices in Chennai and Noida . For Chennai, we have identified a facility where currently we are building our new office. That will, of course, lead to some investments to the tune of INR 20 CR. And otherwise we remain pretty much, I would say consistent in terms of our admin and facility CapEx is typically in the range of INR 20-25 CR for a year. I don't foresee any significant changes to the depreciation part other than probably the office which we are building. That may add INR couple of crores for the year.
Essentially the full year depreciation next year should not be more than 10%-15% higher than current year.
Yeah.
I mean, actually much lower, actually. Sub 10% actually it will be.
Yes. Currently we are standing at about 58.6%. Of course, depending upon what finally the CapEx projects are approved and implemented, we may be somewhere in that range which you mentioned.
Got it. That will be all. Thank you so much.
Thanks, Shrey.
Thank you very much. Ladies and gentlemen, that was the last question. With that concludes the question- and- answer session. I now hand the conference over to Mr. Natarajan Lakshmanan for the closing comments.
Thank you. Thank you very much, all of you for the time today. It was a very interactive session. The kind of questions gives us an insight of how deeply involved you are in Alldigi Tech. Thank you very much for the support and the interest that you're showing in Alldigi Tech. We'll definitely ensure that we meet up to your expectations and continue to excel. On the back of a strong performance in FY 2026 across all parameters, we are looking for a best year ahead in FY 2027. Our investments and core business drivers continue to support us. We are very well poised to capitalize on the opportunities and continue to deliver superior financial and operational performance. With that, we would like to close the call and look forward to interacting with you again in the future.
Thank you very much.
Thank you, members of the management. On behalf of Alldigi Tech Limited, that concludes this conference. Thank you all for joining with us today. You may now disconnect your lines. Thank you.