Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Alldigi Tech Ltd (NSE: ALLDIGI) Q4 2026 Earnings Call dated May. 08, 2026
Corporate Participants:
Rajesh Lachani — Investor Relations
Natarajan Lakshmanan — Chief Executive Officer
Avinash Jain — Chief Financial Officer
Analysts:
Harsh Kundnani — Analyst
Keshav Garg — Analyst
Raghuram N.S. — Analyst
Unidentified Participant
Maitre Shah — Analyst
Shreya Lonkar — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to The All DigiTech Limited Q4 and FY26 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 touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Rajesh Lachani, Head of Investor Relations and MNE.
Thank you. And over to you sir.
Rajesh Lachani — Investor Relations
Thank you, Sapnali. Good morning everyone and welcome to our Q4 and FY26 earnings call. I’m pleased to introduce our newly appointed CEO Mr. Natarajan Lakshmanan whom we fondly call Nat. Nat brings deep industry experience and strong strategic vision that will guide all digits 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. But 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 uncertainty. Actual results may differ from these statements. With that, I now hand over the call to Nat. Over to you, Nat.
Natarajan Lakshmanan — Chief Executive Officer
Thank you, Rajesh. Good morning everyone. Thank you for joining the Q4 and FY26 earnings call. I start by appreciating your interest, support and participation for all Digi tech. Along with Mr. Avinash Jain. We look forward to walking you through our performance and responding to your questions. And since this is my first interaction with all of you, I will start by giving a brief introduction of myself. As Rajesh mentioned, my name is Natarajan Lakshmanan. I’m called as Nat. I bring about 25 years of experience in the industry.
About 15 years of which has been in the HR and payroll outsourcing industry and about 10 years in the international VPN. So 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 Accentsure, Allied Solutions, NGA hr, also known as Northgate, Arinco, Scitel, Wipro and Steam Global Services. Prior to joining as CEO of altogether, I was the Chief Operations Officer for the Digitize 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, FY26 revenue from operations stood at 598.7 crores up by 9.6% year on year while EBITDA was at 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 to 67%. EBITDA margins improved to 27.1% in FY26 compared to 23.7% in FY25. This is driven by our operations leverage and scale benefits. For the quarter, revenue from Operations stood at 154.7 crores up by 5.9% year on year and 1.3% quarter on quarter. EBITDA was at 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 147.7 crores while collections for the full year increased to 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 156.2 crores.
We posted good additions to our managed employee records base and continue to lead India’s managed services segment. We processed 49.9 lakh employee records in Q4, taking the full year to 191.5 lakh records reflecting strong operational momentum. We added 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 continue to improve year on year setting new benchmarks Moving to the DPM segment the DPM segment delivered stable performance with Q4 revenue at 110.4 crores, up by 0.4% year on year.
For the full year, DPM revenue grew by 7.3% year on year to 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 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 3 crore per annum. On our tech and digital business. Diversity and inclusion increased by 1.2 percentage at 47.9. We’ve set ourselves a target of 50% and we’re 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 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 a 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, FY26 has further strengthened our foundation as all digital tech under digitized 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 scale 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. Thanks
Avinash Jain — Chief Financial Officer
Nat. Greetings everyone and thank you for your interest in all Digi Tech. Let me begin with our performance on the operational revenue front. Revenue for the quarter stood at 154.7 crores reflecting a growth of 5.9% year over year and 1.3% quarter over quarter. For the full year FY26 our revenue reached INR 598.7 crores representing a growth of 9.6% over FY25. Both business verticals, BPM and TND have contributed to this growth. In the BPM segment, Q4 revenues stood at 110.4 crores. Broadly flat YoY International BPM revenue grew 8.7% YoY 18 Q4 for the full year BPM revenue 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 TND 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, TND revenue grew by 16.5% YoY to INR 156.2 crores. Our employee reports volumes have increased to 191.5 lakhs for FY26 reflecting continued strong operational momentum. Now moving on to margins, EBITDA for Q4 in at INR 43.7 crores growing 24.2% yoyo for the full year EBITDA was at INR 162 crores reflecting a strong 25% yy growth with EBITDA margins improving to 27.1% in the BPM segment.
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 TND segment. Segment margin for Q 4 stood at INR 19.5 crores with margins remaining strong at 44% for the full year. Segment Margin was 66.6 crores reflecting our 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 QQ basis 30 38.6%.
For the full year FY26 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 generation with conversion at 88.9%. With this I conclude the financial highlights and now hand over the session to the moderator for taking up your questions.
Questions and Answers:
Operator
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 the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants, you are requested to use hand tips while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. A reminder to all you may press star and one to ask a question. We will take the first question from the line of Harsh Kundani from AONES Alpha.
Please go ahead.
Harsh Kundnani
Yeah, hi, thanks for the opportunity. Couple of questions from my end. First is if we look at the payroll processed in the HRO business, this number has been growing at 10%/Y over the last few quarters and revenue growth has been in line. But this quarter revenue growth is significantly higher than the payroll process number. So is this because of our foray into the international markets where the realization is higher and can this divergence continue over the next few quarters?
Natarajan Lakshmanan
Thanks for the question Sash. You’re right. Our payroll process has been growing year on year. So the revenue, if you have to look at it, not exactly directly proportional to growth of the number of employees because there are revenue streams on the payroll side which comes from our one time change requests as well. And also so there are configuration changes, there are tax proof vouching, there’s the new wage code implementation. So there are revenue streams that come from those one time activities as well.
And also our increase in international business also gives us the benefit from the currency fluctuation. So it’s a combination of all these factors. While we will not be able to comment on the currency fluctuations which could be a windfall gain that we would get, definitely 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. So there will be the one time configuration changes and one time onboarding charges that will continue to come through.
Harsh Kundnani
Understood. So just double click on that. So does that mean a realization in margin in the international HRO business is similar to the domestic one?
Avinash Jain
So harsh. International margins typically tend to be slightly higher but as you would note our domestic margin itself are pretty decent. So yeah, both domestic and international margins remain reasonably good.
Harsh Kundnani
Understood, Understood. Moving on to the BPO business, there was a headcount decline in this quarter and I think that has been the that has led to, you know, revenue decline also. So is there is this client specific or anything to call out in this particular segment?
Natarajan Lakshmanan
So you’re right in your observation, Harsh. Yes, there’s been a headcount decline and 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. So this headcount decline is a reflection of that intent.
Harsh Kundnani
Understood. And so is this rationalization exercise, will this continue for a few quarters or was this just a 1/4 impact?
Natarajan Lakshmanan
We should anticipate this probably not on a quarter time line but for the FY27 we would continue to exercise this intent of moving away from low margin business. Even as of today from our portfolio we still carry about 10% of our business into this segment. So we’ll continue to move away from this business based on the macro conditions of the business.
Harsh Kundnani
Understood? Understood. And lastly Natajan 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.
Natarajan Lakshmanan
Thanks for the question Kash. Yes, it’s still early, just about a month old but the direction is very clear. We want to grow both the segments of the business and more move towards technology enablement rather than just an FTE business. On the DTM side and on the payroll side continue to enhance our platforms and there is a number of plans that we have. There is a HRMS version 2 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.
So you will see more and more AI based offering which is aimed at helping us from an efficiency perspective, from an internal or digitech perspective, from an external customer aspect we are looking at the end employees, my employees of my customer getting the benefit of AI features and also from a customer stakeholder perspective we’ll get more value add from the business in terms of analytics and business insights that can get so this is on the tech and digital business. Similarly on the DPM business we’ve already started infusing AI into our existing operations, some of it which is already customer facing.
So going forward definitely there’s going to be a growth which will be enabled by technology and AI assets. So 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.
Harsh Kundnani
Understood, Thanks a lot for this. I have a couple of more questions, but I’ll just come back in the queue. Thank you.
Operator
Thank you. We will take the next question from the line of Keshav Garg from Countercyclical pms. Please go ahead.
Keshav Garg
I wanted to understand that which part of our business is most at risk from the AI?
Natarajan Lakshmanan
Thanks for that question, Keshav. I wouldn’t call it a risk. You know, it’s both a challenge and an opportunity. So it’s not overall at risk. And this is something which we’ve identified now and that is the reason why you see a lot of AI enhancements that is coming in and AI infusion that is coming in. And if you noted clearly we’re looking at AI across our business end to end internal operations, which is going to result in efficiency, accuracy and turnaround times. And from an external perspective, customers and the customers and employees, both on the DPM and the tech and digital side, get to experience the AI features and take advantage of them and also enhance the value addition in terms of the outsourcing business through our AI analytics.
So while there is one way of looking at it as a risk, it’s also an opportunity for us and we are already seeing this interest from all of our existing customers as well as for our new customers that we are onboarding that they are looking at AI based solutions, AI based offerings. And that’s something which we are already in the competition. So I would say we are net to net 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.
Keshav Garg
Right. And 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. So basically what has been the constant currency growth in the revenue, if at all for FY26?
Avinash Jain
Yeah. Thanks Keshav for your question. So 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.
Keshav Garg
Okay, understood. And 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?
Avinash Jain
See, we expect the margins to remain robust like in our previous call. Also we have guided that we typically target one to one and a half percent kind of margin growth year on year basis. And we will continue to derive that, focus on that. And as of now I do not foresee any significant challenges in terms of currency fluctuation affecting our revenues on a negative side.
Keshav Garg
Understood. So we can expect around 29% full year. FY27 OPM
Avinash Jain
Keshav like you know, typically we do not give a particular number in terms of a future guidance. But yes, as you rightly pointed out, as currency depreciates, that typically adds up margin. So yes, margin is expected to increase, but we cannot give you a ballpark number.
Keshav Garg
Understood. So for the current year, what kind of revenue growth? I mean in the past we were talking about roughly 15% kind of revenue CAGR. But last year clearly it was far below that. So what was the reason for that? And now what is the outlook?
Natarajan Lakshmanan
Okay, so I’ll answer the first part 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 so we’re looking at more international and high margin business that comes into the business. And that is something which we’ve already initiated. So that’s one reflection that you see. And also there are other industry factors. So if we compare ourselves with the industry growth on both the segments, we are slightly above the industry growth that we’ve seen for the last year.
So from that perspective, yes, ideally we would like to be far better so again this year while we’re looking at the mid teens again. So we should see you know, the mid teen growth for this year as well in terms of revenue.
Keshav Garg
Understood sir. Thank you very much and best of luck.
Operator
Thank you. We will take the next question from the line of Raghuram from Euri India Ventures. Please go ahead.
Raghuram N.S.
Hi Nat, am I here? Am I audible? Yes, you’re
Operator
Audible.
Raghuram N.S.
Okay. So I had a couple of questions on the HRO and a couple of questions on the VPM side on the hr. Obviously we are seeing as Harsh also pointed out you’re seeing significantly faster growth on a quarter on quarter basis as well as on a year on year basis. So is this something that you also mentioned that revenue growth will continue to be higher than the employee basis growth. So is this something that is now built in from a sales. We have a pretty strong sales team is what I have been able to at least understand from various calls that I have had before.
And you coming from HRO and international HRO kind of perspective, I would imagine this is something that, that is right up your alley. So 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. Abhinath mentioned that the EBITDA margin for both HRO Domestic and HRO International are anyway pretty significantly high. So this is something that, how is that compared to how you have seen in your previous companies and how do you see it going forward in Aldi 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. The BPM is not really a year on year gradual growth. It’s a step growth. 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 all DIGI has been from the large healthcare client 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 onboarded. How do you see and what is the time frame and how do you see Aldegi breaking that kind of a barrier that has been, has been holding back its growth on vpn? And the second one is obviously you mentioned that we are moving out of the low margin, some domestic clients, but overall margin outlook after this move out, there is, there is obviously something that you have in mind from an EBITDA margin perspective.
If you can please share that, that would be great. So two questions on hro, two questions on bpm. Thank you so much.
Natarajan Lakshmanan
Sure. I’ll answer the questions one by one. The first question on the HRO outlook, we should continue to see growth, Raghu. And yes, margin wise, if I compare it with my previous experience, we are pretty much there. In some cases we are slightly higher. Our team has been very strong and we continue to make sure that they remain strong. And we’ve strategically made a decision of now focusing our efforts higher on the international mix. So even on the HRO side we would continue to see considerable growth on the international side along with our domestic side as well.
So 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 really have a sweet spot in terms of where we play compared to the competitors that are available in that particular market. So HRO definitely you will see the number of employee records constantly going up and 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 and compare it with the previous experience or the other competition in the market.
Definitely we are very competitive and in some cases I would say probably we are above the other competition because of various reasons from an operational leverage that we bring in. So 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. Business on the international side on the HRO aspect as well. I hope I answered both your questions on the HRO side.
Raghuram N.S.
Yes. Yes, please.
Natarajan Lakshmanan
I’ll move to the bpm. 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 very strong, satisfied client that we have which continues to expand even today and we are expanding that client even into FY27. When do we see one more client like that? 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 FY26 as well. But when you look at the global macroeconomic conditions with the war coming in, there are certain decisions that were actually put on hold by the customers because they wanted to move away from that uncertainty, especially this help. I mean impacted the health care clients with that big bill of health that was expected to come. So with those things past us now, we should anticipate that at least we get one big break.
We have it in the pipeline so we know we have our target clear. We’ve been engaging in keeping these clients warm. So we should see something soon. But I don’t want to put a time frame because there are conditions that it’s not easy to speculate. So that’s. And on the margin part, Raghuram, I think I already Avinash addressed it. We should look at about 1 to 2% improvement for FY27 as well. That’s our endeavor and we are positive we’ll be able to deliver that.
Raghuram N.S.
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, some RCM business initially would start to come in with maybe some 40 seats, 45 seats, kind of. But there were also some indications that previously had been given to us that if we don’t really get into 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?
Natarajan Lakshmanan
So RCM is definitely one of our focus areas or area of interest for us going for FY27. And as you rightly mentioned, we’ve already entered into the RCM4A. So we’ve been processing the RCM BPM part for almost a quarter now. And the good news is it is scaled up, it’s doubled up now. So from where we started today we have double in terms of FTEs and there is more growth that we are talking to the clients with this extra existing client itself. So for FY27 there are three major industry segments on the BPM side that we are looking at.
Healthcare and rcf, International Insurance and international collections. And 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 from that we have in terms of our performance. So these are three specific industries that we’re going to target from a BPM perspective.
Raghuram N.S.
Okay. So 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. So we look forward to that. Thank you so much Nat and wish you all the very best in leading all DIGI as mentioned into a much, much stronger and different level of growth itself. Thank you so much. Thank you Raghuram.
Operator
Thank you. We will take the next question from the line of Web of Chechani from tcgnc. Please go ahead.
Unidentified Participant
Hi. Thank you for the opportunity. Congratulations on the decent set of numbers. So my first question is regarding the margins. So when I see the margins reported in our investor PPT which is for the full year at around 162 crore rupees versus when I look at the segmental margins which is for the full year FY26 at around 129 odd crore rupees. So what I’m missing in there and what is the, what is leading to this gap? If you can help me with that.
Avinash Jain
Sure Weber. So the segment margins are reported at a PBT level while reported EBITDA margins are at EBITDA level. So basically Your depreciation, finance costs, etc. They are also considered while arriving at segment margins.
Unidentified Participant
Okay. But then when I look at the segment margin, the finance cost has generally been treated after your segment total segmented results. Right. And even when I consider depreciation, then also if I I find a different of around 100 to 200 basis point. So yeah,
Avinash Jain
No, so basically only the unallocable costs are out and there might be an impact of other income and expenses also because for segment margin these things get eliminated and overall if you want to understand more about in detail, maybe we can connect offline.
Unidentified Participant
Sure, I’ll do the same. Thank you. That’s all from my side.
Avinash Jain
Thanks.
Operator
Thank you. We will take the next question from the line of Maitre Shah from Sapphire Capital. Please go ahead.
Maitre Shah
Yeah, hello.
Operator
Hello.
Maitre Shah
Yeah, good morning. A few questions again on the margins. So you mentioned that we have kind of rationalized our business on the BPM side. We’re getting away with the low margin business and kind of moving to more international clients. So where do you see these margins on the BPM side growing? Because you’ve targeted a 1 to 2% growth, what sort of growth drivers are we expecting will be more from the BPM side, more from the HR side? A bit more color on that if possible.
Natarajan Lakshmanan
So from a BPM margin perspective we should continue to see the margins, if you look at our Q4 remain at 13.66% and we expect these margins to be maintained given that BPO and whereas we should see that around that 13 14% margin continuing on the BPM segment as we move away from the low margin business. This is something which should anticipate but 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. There’ll be some miners so we should be able to see these margins maintained going forward.
Maitre Shah
Okay. But we’ve seen a bit of a degrowth on the margin. So like QOQ especially any sort of one off that happens because of that there was a degrowth.
Avinash Jain
So QQ de growth in second margin is one of the things. There was some one time leave policy alignment which we did with our holding company and subsequent with there was certain reversals. So. So you can treat that quarter as aberration if otherwise. If you see from Q3 25 onwards we have been in that 11 to 14% range and which pretty much we currently continue and would target to further enhance this going forward as communicated by Nat
Maitre Shah
And on the T and D side the segment Revolutions reach close to 44%. So you see them sustaining with more international clients coming in. And how do you see the split of the international clients coming in the T and D side? What proportion would they contribute going forward?
Avinash Jain
Yeah, so see we have seen good growth in international markets especially. You see quarter four has been good growth. We have been consistently having about 60% plus of our ACV wins from international clients. So we do expect that international business in the TND 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, 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.
So all those things should help us to maintain and probably even perform better going forward.
Maitre Shah
And the mid teens growth, which segment do you expect to contribute more? Will it be the TNB or the bpm? How do you see the split between those two changing? Because once we have a higher proportion of the HR segment, margins will kind of improve a lot to a much more healthier number. So how do you see this proportion changing in the next two to three years?
Natarajan Lakshmanan
See from an overall proportion perspective, you know, we should see the tech and digital business growing. But if you look at both the segments, definitely there will be growth on both the segments. But the growth rate on the tech and digital is expected to be slightly higher compared to the BPM business.
Maitre Shah
Okay, that is great. Any inorganic acquisitions in the timeline in the lookout? Maybe next year. Next. Next year.
Natarajan Lakshmanan
We constantly are evaluating opportunities that would align with our strategy measuring, but nothing that you know, I’ll be able to openly disclose now in terms of something that’s to going. Going to close. But constantly we are evaluating on both the sites of the businesses in terms of something which will be good, which will allow us from a strategic perspective. Once we have something which is finalized, you know, we’ll. We’ll make those announcements and make it public.
Operator
That
Maitre Shah
Is great. Thank you. All the best.
Natarajan Lakshmanan
Thank you Maitre. Thank you.
Operator
Thank you. We will take the next question from the line of Shreya Lunkar from one of financial consultants. Please go ahead.
Shreya Lonkar
Hi, good morning. Thanks for this Mr. Natarajan. Your experience spans over Accenture also where you’ve seen all DG as a client also. And then 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 what how do you size this HRO opportunity and what do you think is the right to win? Where are the gaps and how should we kind of see all DG evolve? That is the starting point. Maybe I’ll follow up with a few more.
Natarajan Lakshmanan
Sure. Okay. So if I look at all Digi and all said, even prior to my Accenture tenure, I always have kept Allsec in my radar from 2010 onwards because Allsec used to be one of my competition at that point of time. The strength of Allsec comes basically from two prospects. One is the platform. The platform is 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, we have both a robust performance as well as the cloud flexibility which makes it very interesting for clients and especially for large clients who want to have a global solution. But at the same time the flexibility of the local countries, that’s a very sweet spot that ALSEC is pretty strong on and we’re continuing to strengthen that with the AI interventions that we are bringing in.
The second part is the operations from an operational performance perspective. While usually it’s mentioned in a fleeting statement that we are continuing to improve year on year, if you look at the last five years or close to a decade, our performance has been consistently in the top most bucket on accuracy and turnaround time. Especially in the TND business on the payroll. Accuracy and timeliness are very, very critical and it is always expected as a given. And that’s a very solid performance that we’ve been able to manage.
And 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 operational efficiency that we have. So 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. So this is where our evaluation is. Usually whenever a client looks at us from an all digitized perspective on the TNB side, both these things will stand out.
We are a subject matter expert and we have our product to support us. Answer the question.
Shreya Lonkar
Yeah, that helps. But 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 the kind of pricing that we can give because of our scale is that one of the advantages that is on the domestic side and on the international side? If you can just help us understand how has the international sales engine presence has changed because 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. So if you can just understand what is it that working for us? Is it just pricing is the largest lever that works for us or is customization? And the other point is from a sales perspective today, how much of the sales get concluded at our CFO and a CEO level and how much gets concluded at a HR department level?
Natarajan Lakshmanan
Okay, so the first part from an evaluation perspective, you know, it’s a combination. Price definitely is one of it. We are very competitive when it comes to price and as you rightly pointed out, it’s our scale that helps us get 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 10 years plus and some of our accounts have been for more than 20 years and very large, about 3.5 lakh employees per month plus is something which we handle.
So that 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. And when you look at a global solution, we’ll be able to plug in. So domestically it’s the flexibility and the configuration aspect. It’s easier to configure our product and quick in terms of turnaround time. Our customizations are more specific and we are more open for flexible customizations from a client perspective. So that makes it more attractive.
Price definitely is one of the factors. Stability is another factor. So 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 they have different payroll platforms in each of the countries and then plugging into a global HRMS system, global time and attendance system. So what is critical here is the compatibility in terms of the integration through APIs, the data flowing through automatically without having to do manual reconciliation.
So that’s a sweet spot that we have in terms of our international business as such. So that’s the competition from and from a sales perspective our sales team has been pretty good and more and they’ve been able to show that in terms of the conversion and the expansion of the business. So now we, as I told you within the sales team we’ve structured in such a way that no there are specific parts of the team which is concentrating on the international market. So we kind of creating a center of excellence kind of an arrangement.
There are specific people who are looking at specific geographies so they’re more effective. They’ll be able to relate to it more rather than spreading thin. So 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 technology partners in those specific region. That’s also additional channel that we have from a sales perspective. So that’s how. And I think the third question was at which level do we conclude the deals at this is going to be a high level percentage that I can give you about 50, 60%.
It more depends on the size of the deal. Right. The smaller size of the deals, 560 less than 1,000 employees kind of a client are usually closed at an HR level with the larger one. Especially when we are looking at about 5,000 plus employees multi country. Those ones we have the CEO CFO levels. CEO is very limited. Mostly it is the CFO and Chro that we deal with and close that. That is what we are seeing. So if I have to give you a ballpark percent, about 30% of our deals will be with the levels of CHROs and CFOs.
And rarely we see CEO coming into the picture in terms of evaluating. But it’s more a decision maker from that perspective.
Shreya Lonkar
Sure. That’s very helpful. And if you can, you know in the same breath, the order book that is outstanding for the HR object business as of March 31, how much of that order book is international?
Natarajan Lakshmanan
Okay. As of March 31st
Shreya Lonkar
It’s
Natarajan Lakshmanan
About. It’s about 48% of my, you know, order book is on the international side.
Shreya Lonkar
Sure. You know, just from a volumetric basis we’ve grown the volume of payrolls processed at a very healthy clip for this year. If is there a way you can help us break into how much of the. How much of this growth was new customer led and how much was the same customer adding more employees there
Natarajan Lakshmanan
On the tech and Digital side, predominantly the growth would be of new customers. If you actually look at it, the expansion in terms of our existing clients has been 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 midst of clients, it’s kind of more or less plateaued. So pretty much 90% of our growth has come from new customers that we started.
Shreya Lonkar
Mr. Natarajan, 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, should we. Is there a. 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 as an overall company level?
Natarajan Lakshmanan
Okay, see, I think, I don’t want to speculate on two, three years, but one year is something which we have always constantly keeping a watch on because this also would impact our revenues if it goes on the negative side. So we are constantly in discussion with our clients in terms of their projection for the year. For FY27. We are not seeing any significant decline from our existing customer base employee headcount. So unless we going to lose clients, I think I don’t see this number of employees coming down for any of the strategic decisions from a client perspective impacting us.
And that’s something which we have a clear visibility of FY27 because constantly we evaluate what is the threat of AI like if our clients are implementing AI, is it going to 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. But overall from an all digitech business perspective, our existing headcount is more or less similar. So we’re not anticipating any negative growth, but at the same time we’re not anticipating any major positive growth also for this year in terms of employee records.
But as I mentioned, our revenue stream is not only from the employee records. We have one time cost configurations, 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. And now we’re bringing in analytics. So that’s also a special scheme that will come up. We’re looking at a revenue stream that will come from the analytics as well. So those will be extra or additional revenue, revenue streams apart from the per employee per month in terms of employee records that we have.
Shreya Lonkar
Excellent. That is very detailed. Thank you so much. The other bit was, you know these new initiatives that you highlighted, pulse HR AI, HRMSB2, these two specifically, if you can help us understand how should we as investors see as outcomes on implementation of these two products.
Natarajan Lakshmanan
So the HRMS version 2 is basically a integrated console. So today we have our HRMS system which is separate and then we have our payroll system which is separate. With the HRMS version 2 it is going to be an integrated solution that will come in. So the data movement between both these platforms is going to be smooth. So from a customer perspective, so there’s going to be an effort reduction in terms of data reconciliation between these two systems because it will be seamless. From an Ordigi tech perspective, again, this is efficiency that will be gained.
I already mentioned we are looking at about 3 crore of efficiency gains. This will be one of the major contributors that will come in from that perspective. PulseHR.com AI again is predominantly internally focused from an all digitized perspective. So these are AI that comes in in terms of how we handle the inputs coming in from our various channels. So that is something which is now going to be technology enabled. So the manual interventions will go away. So which means efforts are going to come down.
It’s going to increase my efficiency accurately and as well as it is going to reduce my turnaround time. So that also will contribute to the efficiency. So both these put together will directly result in efficiency, which means we are going to 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. So it’s a positive and also it’s something which is needed as far as the market demand is concerned.
So this is overall a positive. This should help us land more clients will become more attractive to some of the clients who are not able to accommodate us in the past because of separate systems.
Shreya Lonkar
Excellent. I have two more questions. Should I fall back in the queue or can I continue?
Rajesh Lachani
We have just room for one more question. We are already behind time.
Shreya Lonkar
All right, so 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 and over the last five years we’ve seen all dg 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.
Avinash Jain
Sure Shrey. So 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. So for Chennai we have identified our facility where currently we are building our new office. So that will of course lead to some investments to June of 20cr and otherwise we remain pretty much, I would say consistent in terms of our admin and facility. Capex is typically in the range of 20 to 25 cr for a year. So I don’t foresee any significant changes to the depreciation part other than probably the the office which we are building.
So that may add a couple of crores for the year.
Shreya Lonkar
So essentially our depreciation run the full year depreciation next year should not be more than 10 15% higher than current year.
Avinash Jain
Yeah, yeah.
Shreya Lonkar
I mean actually much lower actually sub 10% actually.
Avinash Jain
Yes. So currently we are standing at about 58.6%. So of course depending upon what finally the CAPEX projects are approved and implemented we may be somewhere in that range which you mentioned.
Shreya Lonkar
Got it. Yeah. That will be all. Thank you so much.
Avinash Jain
Thanks Sh.
Operator
Thank you very much ladies and gentlemen. That was the last question and with that concludes the question and answer session. I now hand the conference over to Mr. Natarajan Lakshmanand for the closing comments.
Natarajan Lakshmanan
Thank you very much all of you for the time today. It was a very interactive session and the kind of questions gives us an insight of how deeply involved you are in all Digi Tech. So thank you very much for the support and the interest that you’re showing in all Digi Tech and we’ll definitely ensure that we meet up to your expectations and continue to exit on the back of a strong performance in FY26 across all parameters. We’re looking for a best year ahead in FY27. 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 you interacting with you again in the future. Thank you very much.
Operator
Thank you members of the management, on behalf of all DigiTech Limited that concludes this conference. Thank you all for joining with us today. And you may now disconnect your lines thank you.