Allied Digital reports FY26 revenue of Rs 968 crore, resolves audit issues
Allied Digital Services Limited reported a record revenue of Rs 968 crore for FY26, driven by a 20% year-on-year growth, while profit after tax increased by 10% to Rs 36 crore. The company successfully resolved all audit qualifications related to loans and compliance, strengthening its governance framework. Management has provided a revenue growth guidance of 20-25% for FY27, supported by a strong order book and strategic focus on AI-led transformation.

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Allied Digital Services Limited reported its highest annual revenue of Rs 968 crore for the financial year ended March 31, 2026, representing a 20% year-on-year increase from Rs 807 crore in FY25. The company achieved an annualized revenue run rate of Rs 1,000 crore in Q4FY26, supported by strong momentum in both domestic and international markets. Profit after tax for the year stood at Rs 36 crore, a 10% increase from the previous year, while adjusted EBITDA rose 14% to Rs 112 crore with margins resilient at 11%.
Financial Performance and Governance
The Board of Directors maintained the dividend at 30%, equivalent to Rs 1.50 per equity share. Profitability was impacted by one-time charges and provisions, including an additional expected credit loss (ECL) provision. However, the company strengthened its governance framework by addressing all audit qualifications raised by its newly appointed auditor. Key resolutions included converting Rs 112 crore of non-interest-bearing loans to equity and addressing GST input tax credit differences, leading to the withdrawal of prior qualifications.
Operational Highlights and Order Wins
During the quarter, the company secured new orders and renewals worth around Rs 166 crore. Revenues from Enterprise customers grew 31% year-on-year, while Government revenues declined 6% due to project delays and cost fluctuations. The Services business grew 21%, and Solutions revenue increased 17%. Management attributed the performance to deeper customer engagement and the execution of large transformation programs.
Strategic Outlook
Looking ahead, Allied Digital targets a revenue growth of 20% to 25% for FY27, with a long-term aspiration to scale the business 10x over the next decade. The company aims to improve EBITDA margins to the range of 13% to 15% over the long term, driven by AI adoption and operational efficiencies. The management highlighted a strong pipeline, including large government contracts in Maharashtra and international opportunities.
Key Financial Metrics
| Metric | FY26 | FY25 | Change |
|---|---|---|---|
| Consolidated Revenue | Rs 968 crore | Rs 807 crore | 20% YoY |
| Profit After Tax | Rs 36 crore | Rs 32 crore | 10% YoY |
| Adjusted EBITDA | Rs 112 crore | - | 14% YoY |
| EBITDA Margin | 11% | - | - |
Historical Stock Returns for Allied Digital Services
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.29% | +3.60% | -3.50% | -20.91% | -34.07% | +94.06% |
What specific AI initiatives is the company prioritizing to bridge the gap between current 11% EBITDA margins and the 13-15% target?
How does the company plan to mitigate the project delays and cost fluctuations that caused the 6% decline in Government revenues?
What is the expected timeline for finalizing the large government contracts in Maharashtra mentioned in the pipeline?
























