Allied Digital Services Limited (ADSL) has reported a strong financial performance for the second quarter of fiscal year 2026, demonstrating consistent growth and strategic expansion. The company's results showcase its resilience in a challenging global business environment and its commitment to technological innovation.

Financial Highlights

ADSL delivered impressive financial results for Q2 FY26:

This marks the fifth consecutive quarter where ADSL's revenues have surpassed the ₹200 crore mark, underlining the company's sustained growth trajectory.

Key Business Developments

• Order Book Expansion: ADSL secured new orders worth ₹169.80 crore during the quarter, including multi-year managed services contracts with European pharmaceutical companies and American apparel conglomerates.
• Geographical Performance: India operations led the growth, with standalone revenues increasing by 10% year-on-year.
• Smart City Project: The company completed the AI-enabled Integrated Command and Control Center for Pune city surveillance, making it the first city in India to launch such a system.
• Industry Recognition:
  • Chairman and Managing Director Nitin D. Shah received the Asia One Greatest Leader of the Millennium 2025 award.
  • ADSL was recognized as UAE's Fastest Growing Technology Brand 2025.

Segment-wise Performance

The company's growth was primarily driven by its Solutions business, which saw robust traction through Smart City project executions and enterprise transformation engagements. These engagements leveraged ADSL's capabilities in infrastructure management, Cloud, Cybersecurity, and AI.

Future Outlook

ADSL remains committed to investing in new and emerging technologies to unlock future growth opportunities. A key focus area is the optimization and full-scale integration of AI across operations, which is expected to enhance operational agility, customer value delivery, and innovation capacity.

Management Commentary

Nitin D. Shah, Chairman & Managing Director of ADSL, commented on the performance: "We are pleased to report that ADSL continues to perform well despite persistent challenges across the global business landscape. Our growth was primarily driven by the Solutions business, which continues to witness robust traction through the execution of multiple Smart City projects currently underway."

He further added, "As we look ahead, we remain firmly committed to investing in new and emerging technologies and capabilities to unlock future growth opportunities. A key focus area for us is the optimisation and full-scale integration of AI across our operations — an initiative that the entire organisation is actively geared up to complete."

Allied Digital Services Limited's strong Q2 FY26 performance, coupled with its strategic focus on emerging technologies and global expansion, positions the company well for continued growth in the evolving IT services landscape.

Allied Digital Services Limited (ADSL), a global leader in IT services and solutions, has announced its financial results for the second quarter of fiscal year 2026, showcasing robust growth across key financial metrics.

Financial Highlights

ADSL reported a significant increase in its consolidated net profit for Q2 FY26, with PAT rising to ₹15.40 crore, marking a 33% year-on-year growth from ₹11.60 crore in Q2 FY25. The company's revenue also saw a healthy uptick, increasing to ₹234.00 crore from ₹203.00 crore in the same period last year, representing a 15% year-on-year growth.

Here's a breakdown of the key financial metrics:

The company's EBITDA showed a notable improvement, rising to ₹28.00 crore from ₹23.00 crore year-over-year, representing a 23% increase. The EBITDA margin improved slightly from 11% to 12% in Q2 FY26.

Segment-wise Performance

ADSL's growth was driven by strong performances across various segments:

• Services: Revenue from services grew by 17% year-on-year to ₹177.00 crore in Q2 FY26.
• Solutions: The solutions segment saw an 8% increase, reaching ₹57.00 crore.
• Geographic Split: India operations grew by 12% to ₹84.00 crore, while the Rest of World (ROW) segment expanded by 17% to ₹150.00 crore.

Key Business Developments

During the quarter, ADSL secured new orders and renewals worth over ₹698.00 crore. Notable wins include:

• A multi-year managed services contract with a leading European pharmaceuticals company.
• Partnership with a major American apparel conglomerate for digital workplace and retail store infrastructure support.
• Engagement with a global leader in fire, flame, and gas detection systems for digital workplace services across North America and Europe.
• Collaboration with an Indian plotted land development company for CCTV and networking solutions.
• Contract renewal with a key government agency in Jaipur for infrastructure development support.

Management Commentary

Mr. Nitin D. Shah, Chairman & Managing Director of ADSL, commented on the company's performance: "We are pleased to report that ADSL continues to perform well despite persistent challenges across the global business landscape. This has been a strong quarter characterized by revenue expansion, margin stabilization, continued order wins from global clients, and further strengthening of our balance sheet."

He also highlighted the company's focus on emerging technologies: "As we look ahead, we remain firmly committed to investing in new and emerging technologies and capabilities to unlock future growth opportunities. A key focus area for us is the optimisation and full-scale integration of AI across our operations."

Future Outlook

ADSL remains optimistic about its growth trajectory, particularly in Europe and the Middle East. The company is also anticipating a recovery in North America, expecting increased customer spending due to greater economic stability.

The management emphasized its commitment to upskilling its global talent base and leveraging emerging technologies to enhance operational agility, customer value delivery, and innovation capacity.

As Allied Digital Services continues to expand its global footprint and diversify its service offerings, the company appears well-positioned to capitalize on the growing demand for IT services and solutions across various industries and geographies.