Allied Digital Services Limited reported consolidated revenues of ₹260 crore for the first quarter of fiscal year 2027, marking a 19% year-on-year (YoY) increase. The IT services firm also recorded an EBITDA growth of 18% YoY to ₹25 crore, reflecting steady top-line momentum despite a challenging operating environment.

The company’s profit before tax (PBT) grew by 19% YoY to ₹17 crore. However, profit after tax (PAT) declined by 14% YoY to ₹12 crore, primarily driven by higher tax expenses compared to the previous year’s quarter. The basic earnings per share (EPS) stood at ₹2.19, down from ₹2.34 in Q1FY26.

Segment and Geographic Performance

Revenue composition shifted significantly in Q1FY27 compared to the same period last year. The Services segment, which offers recurring revenue streams, accounted for 83% of total revenue, up from 75% in Q1FY26. Conversely, the Solutions segment, characterized by one-time project implementations, contributed 17% of revenue, down from 25%.

Geographically, the Rest of World region dominated the revenue mix, contributing ₹189 crore or 73% of the total, up from 63% in Q1FY26. India’s contribution fell to ₹71 crore, representing 27% of total revenue, compared to 37% in the corresponding quarter last year.

What the Numbers Show

A distinct divergence is visible between operational growth and bottom-line performance. While revenue and EBITDA expanded by nearly 20%, PAT contracted by 14% YoY. This decline was not due to operational weakness but rather a significant swing in tax expenses, which moved from a negligible amount in Q1FY26 to ₹5 crore in Q1FY27. Additionally, the shift in revenue mix toward the Services segment (recurring) and away from Solutions (projects) suggests a strategic pivot toward stable, long-term engagements, although this typically comes with lower initial margins compared to project-based work.

Leadership and Strategic Updates

The company announced recent leadership changes aimed at aligning with emerging technology trends. Nehal Shah has been elevated as Joint Managing Director, while Paresh Shah transitioned to the newly created role of Chief Innovation Officer. Arun Pathak joined as CEO for Cloud and Infrastructure Services for India and the Middle East.

Allied Digital highlighted its focus on AI-driven capabilities, cloud cybersecurity, and managed services. The company remains net debt-free with a cash reserve of ₹134 crore as per FY26 data. Recent order wins include engagements with a leading NYSE-listed electronic design company, a mutual bank in Australia, and government projects in Punjab and under the Ministry of Commerce.

Allied Digital Services has accepted the resignation of Raghuvir Kamat from his position as Assistant Vice President - Projects. The company confirmed that Kamat will be relieved of his duties effective September 7, 2026.

Kamat, designated as Senior Management Personnel under Regulation 16(1)(d) of the SEBI Listing Regulations, 2015, submitted his resignation to pursue new professional opportunities and explore a different career direction.

The disclosure was made pursuant to Regulation 30 and Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company also referenced SEBI Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026, in its filing to the stock exchanges.

Resignation Details

Kamat formally submitted his resignation on June 8, 2026. Jawahar Ali, CEO of Digital Engineering Services at Allied Digital Services, approved the resignation on July 2, 2026. Ali acknowledged Kamat’s contributions to managing the project team and maintaining client relationships during his tenure.

According to the exchange filing, Kamat’s cessation date is September 7, 2026, at close of business hours. The company stated that Kamat committed to ensuring a smooth transition of responsibilities during his notice period.

Regulatory Compliance

The company filed the necessary disclosures with both the Bombay Stock Exchange and the National Stock Exchange of India Limited. The filing included Annexure I detailing the reason for change and cessation date, along with Annexure II containing a copy of the resignation email correspondence between Kamat and Ali.