Allied Digital Services has submitted a revised investor presentation for its audited consolidated financial results for the quarter and financial year ended March 31, 2026. The company reported its highest ever annual revenues, achieving ₹968 crore in FY26, a 20% increase from ₹807 crore in the previous year. The Board of Directors has recommended a dividend of 30% for FY26, which equates to ₹1.50 per share of face value of ₹5 each.

Financial Performance

On a consolidated basis, Q4 revenue stood at ₹268 crore, up 31% year-on-year from ₹204 crore in the same period last year. Profit after tax (PAT) for the year increased by 10% to ₹36 crore. However, the company recorded a net loss of ₹3 crore for the quarter ended March 31, 2026, compared to a loss of ₹7 crore in the corresponding period of the previous year.

The following table summarises key consolidated financial metrics:

*Excluding one-time provision of ₹36 Cr in Q4 FY26.

Operational Highlights

Revenue growth was driven by both Services and Solutions segments. Geographically, Rest of World (ROW) revenue constituted 60% of Q4 revenue, while India revenue accounted for 40%. During the quarter, Allied Digital Services secured new orders and renewals worth over ₹166 crore. Key wins included a multi-region workplace services engagement from a global deepwater oil and gas drilling company and an order for a city-wide Integrated Command & Control Centre solution.

Auditor Observations

The statutory auditors, Singhi & Co., issued a qualified opinion on the financial results. The auditors drew attention to non-compliance with Section 186(7) of the Companies Act, 2013 regarding interest-free loans granted to subsidiaries in earlier years. During the current year, loans aggregating to ₹116 crore were converted into equity shares of a subsidiary, while other outstanding loan balances were repaid or had interest charged from April 1, 2025. The company is yet to complete certain FEMA-related reporting requirements regarding the conversion of the loan into equity.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE102I01027/dd1f7f5358c94637.pdf

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