Cigniti Technologies Q2 FY26 Earnings Results

Cigniti Technologies Ltd, founded in 1998 and headquartered in Hyderabad, is a leading provider of quality engineering and software testing services for global clients across multiple industries.

Q2 FY26 Earnings Summary 

• Revenue: Cigniti reported consolidated revenues of ₹567 crore, up 13.6% from ₹499 crore in Q2 FY25, supported by strong execution in digital assurance and cybersecurity segments.
• Total Expenses: Expenses climbed 7.7% year-on-year to ₹478 crore from ₹444 crore, kept in check by disciplined cost management and operational leverage.
• Net Profit: Profit after tax jumped 56.6% to ₹83 crore, compared to ₹53 crore last year, reflecting both higher revenues and improved operating margins.
• Earnings per Share (EPS): EPS increased 55.2% to ₹30.08 versus ₹19.38 in Q2 FY25.

Operational Highlights

• Operating margins improved to 16.96%, driven by higher-value digital transformation work and controlled expense growth.
• EBITDA for the quarter was ₹96 crore, reflecting year-on-year growth of 48%.
• Profit before tax (PBT) stood at ₹110 crore, up 52% compared to the previous year’s same quarter.
• The company continues to secure significant new projects in the US and Europe, strengthening its position as a global software quality assurance leader.

Financial Position and Outlook

• Management noted sustained large enterprise client wins, expanded engagements, and broadening digital assurance offerings as key growth drivers.
• Cash flow and balance sheet position remain robust, enabling planned investments in AI-powered testing solutions and global delivery capacity.
• The outlook for FY26 remains positive, with management expecting double-digit revenue growth and expansion in operating margins based on the strong H1 performance and robust deal pipeline.

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