Allied Digital Services delivered its highest-ever annual revenue of ₹968 crore in FY26, marking a 20% year-on-year increase as the company closed the fiscal year at an exit run rate of ₹1,000 crore. The Mumbai-based IT infrastructure and managed services provider posted a consolidated profit after tax (PAT) of ₹36 crore, up 10% from ₹32 crore in the previous year. The growth was supported by broad-based momentum across India and international markets, with significant wins in enterprise and government segments. However, the standalone entity reported a loss of ₹81 lakh due to one-time provisions and accounting adjustments.

The Board of Directors recommended a final dividend of ₹1.50 per equity share, subject to shareholder approval at the 32nd Annual General Meeting scheduled for September 01, 2026. The dividend payout will absorb approximately ₹847.71 lakh in cash outflow. The company’s statutory auditors, Singhi & Co., issued a qualified opinion on the standalone financial statements, citing non-compliance with Section 186(7) of the Companies Act regarding interest-free loans to subsidiaries, although these loans were converted into equity during the year.

Financial Performance

Consolidated revenue from operations surged to ₹96,791 lakh (₹968 crore) in FY26, compared to ₹80,707 lakh (₹807 crore) in FY25. EBITDA before one-time additional expected credit loss (ECL) provisions increased by 14% to ₹112 crore, maintaining a resilient margin of 11%. Profit before tax (PBT) on a consolidated basis jumped 32.68% to ₹806.3 million.

In contrast, the standalone segment faced margin pressure. Standalone revenue grew modestly by 5.92% to ₹38,782 lakh (₹388 crore). Standalone EBITDA rose slightly by 1.92% to ₹551.1 million, but PAT swung to a loss of ₹81 lakh from a profit of ₹107.3 million in FY25. This decline was largely attributed to non-recurring provisions related to expected credit losses and asset verification exercises undertaken to strengthen balance sheet quality.

*EBITDA excludes one-time additional ECL provision.

Governance and Strategic Shifts

The company addressed several governance observations raised by auditors in the previous year, leading to the withdrawal of qualifications in the current audit report. A comprehensive review of financial statements and internal controls was conducted following the appointment of new statutory auditors. Additionally, the Board approved the re-appointment of Independent Directors Shakti Kumar Leekha and Anup Kumar Mahapatra for a second five-year term. Nehal Shah was elevated to Joint Managing Director effective July 01, 2026.

Strategically, Allied Digital is transitioning from traditional IT services to AI-enabled managed services and digital engineering. Approximately 20% of revenue was generated from smart city projects, including significant safe-city contracts in Maharashtra. The company secured orders worth approximately ₹166 crore in Q4FY26 alone, reinforcing its pipeline for FY27.

What the Numbers Show

The divergence between consolidated and standalone performance highlights the increasing contribution of international subsidiaries, particularly Allied Digital Services LLC in the USA. While the Indian parent entity absorbed one-time costs and margin pressures, the global group maintained healthy profitability through diversified enterprise engagements. The shift toward recurring managed services, which offer stronger customer retention and better operating leverage, is beginning to stabilize earnings quality despite volatile macroeconomic conditions.

Allied Digital Services will host its earnings conference call for investors and analysts on Friday, August 07, 2026, at 12:00 PM IST. The session aims to provide stakeholders with an overview of the company’s operational and financial performance for the quarter ended June 30, 2026. This disclosure is made pursuant to Regulation 30 read with Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The conference call will commence with a brief discussion by management regarding the unaudited financial results for Q1FY27. Following the presentation, participants will have the opportunity to engage in an interactive Question & Answer session. The details of the call are available on the company’s website at https://www.allieddigital.net/in/investors-meet/ .

Management Representatives

The following executives will represent Allied Digital Services during the call:

• Nitin D Shah – Founder & CMD
• Nehal Shah – Jt. Managing Director
• Paresh Shah – Chief Innovation Officer
• Gopal Tiwari – Chief Financial Officer

Dial-in Details

Participants can join the conference call using the numbers listed below. Pre-registration is recommended to avoid waiting for an operator.

To connect without delay, investors are advised to register via the provided ExpressJoin link. Upon registration, a passcode and PIN will be sent to the registered email address. Participants must use these credentials to access the call on the scheduled date.