News Earnings Allied Digital Services Q3FY26: 12% Revenue Growth with EBITDA at Rs. 26.20 CroresAllied Digital Services Q3FY26: 12% Revenue Growth with EBITDA at Rs. 26.20 Crores
Allied Digital Services delivered strong Q3FY26 results with 12% revenue growth to Rs. 247 crores and EBITDA of Rs. 26.20 crores, though EBITDA margin compressed to 10.57% from 11.36% in Q3FY25. The company secured new orders worth over Rs. 250 crores and reported nine-month revenue of Rs. 700 crores, up 16% year-on-year, driven primarily by its Services segment which grew 16% in Q3FY26.
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Allied Digital Services Limited announced its financial results for the third quarter and nine months ended December 31, 2025, demonstrating sustained growth momentum across key business segments. The Board of Directors approved the unaudited standalone and consolidated financial results at their meeting held on February 04, 2026.
Financial Performance Overview
The company delivered robust consolidated financial results for Q3FY26, with revenue reaching Rs. 247 crores compared to Rs. 221 crores in Q3FY25, marking a 12% year-on-year increase. Net profit for Q3FY26 stood at Rs. 12.40 crores compared to Rs. 16.70 crores in the previous year. EBITDA for Q3FY26 was Rs. 26.20 crores versus Rs. 25.00 crores in Q3FY25, while EBITDA margin compressed to 10.57% from 11.36% in the previous year. For the nine-month period ended December 31, 2025, consolidated revenue stood at Rs. 700 crores, up 16% from Rs. 603 crores in the corresponding period of the previous year.
| Metric: | Q3 FY26 | Q3 FY25 | YoY Growth | 9M FY26 | 9M FY25 | YoY Growth |
|---|---|---|---|---|---|---|
| Revenue (Rs. Cr): | 247 | 221 | 12% | 700 | 603 | 16% |
| Net Profit (Rs. Cr): | 12.40 | 16.70 | -26% | 45 | 40 | 13% |
| EBITDA (Rs. Cr): | 26.20 | 25.00 | 4.80% | 65 | 63 | 3% |
| EBITDA Margin (%): | 10.57 | 11.36 | -79 bps | - | - | - |
| PBT (Rs. Cr): | 23 | 20 | 13% | 57 | 50 | 15% |
Segment-wise Performance
The Services segment continued to be the primary growth driver, generating Rs. 195 crores in Q3FY26 compared to Rs. 169 crores in Q3FY25, representing a 16% year-on-year growth. For the nine-month period, Services revenue reached Rs. 537 crores, up 26% from Rs. 428 crores in the previous year. The Solutions segment maintained steady performance with Rs. 52 crores in Q3FY26, while nine-month Solutions revenue was Rs. 163 crores.
| Segment: | Q3 FY26 | Q3 FY25 | YoY Growth | 9M FY26 | 9M FY25 | YoY Growth |
|---|---|---|---|---|---|---|
| Services (Rs. Cr): | 195 | 169 | 16% | 537 | 428 | 26% |
| Solutions (Rs. Cr): | 52 | 52 | 0% | 163 | 175 | -7% |
Major Order Wins and Business Developments
During Q3FY26, Allied Digital secured new orders worth over Rs. 250 crores across multiple sectors. Key contract wins included engagements with a leading Indian private sector insurance company for supporting retail and corporate insurance operations, and a state-level healthcare authority project involving AI-based WhatsApp chatbot solutions for 35 Government Medical Colleges.
The company also secured contracts from a global energy company for AI/ML-based intelligent video analytics solutions, a U.S.-based beverage alcohol company for end-user support services, and a global agricultural processing company for IMACD services and technology refresh initiatives. Additionally, Allied Digital won a contract with a Midwest-based U.S. retail chain for comprehensive IT infrastructure transformation and 24x7 Global Service Desk support in English and Spanish.
Standalone Financial Results
On a standalone basis, Allied Digital reported revenue from operations of Rs. 94.78 crores for Q3FY26 compared to Rs. 100.19 crores in Q3FY25. For the nine-month period, standalone revenue reached Rs. 290.82 crores versus Rs. 266.21 crores in the previous year. Standalone profit after tax for Q3FY26 was Rs. 3.88 crores, while nine-month PAT stood at Rs. 18.10 crores.
| Parameter: | Q3 FY26 | Q3 FY25 | 9M FY26 | 9M FY25 |
|---|---|---|---|---|
| Revenue (Rs. Cr): | 94.78 | 100.19 | 290.82 | 266.21 |
| PAT (Rs. Cr): | 3.88 | 5.94 | 18.10 | 15.07 |
| EPS (Rs.): | 0.69 | 1.06 | 3.21 | 2.71 |
Board Meeting Outcomes and Corporate Actions
The Board of Directors meeting commenced at 01:15 P.M. and concluded at 07:30 P.M. on February 04, 2026. Key decisions included approval of unaudited financial results and authorization for management to explore potential restructuring options for Allied Digital Inc., the company's wholly-owned overseas subsidiary. These discussions may include share issuance by Allied Inc in lieu of loans and a possible merger with Allied Digital Services LLC, another overseas subsidiary.
During the quarter and nine months ended December 31, 2025, the company allotted 86,325 and 1,31,875 fresh equity shares respectively of face value Rs. 5 each, pursuant to exercise of stock options under the ESOP plan.
Strategic Initiatives and Recognition
Allied Digital received notable recognition during the quarter, winning the "Best Use of Social Media in Marketing" award at the 12th World Marketing Excellence Awards and being recognized as one of the ET Now Best Brands of 2025. The company also strengthened its leadership team by appointing Mr. Ali Rizvi as Executive Vice President and Chief Revenue Officer.
Outlook and Management Commentary
Chairman and Managing Director Nitin D. Shah highlighted the company's sustained momentum amid an evolving global business environment, noting increased customer demand for integrated, AI-powered transformation solutions across Data, Cloud, Cybersecurity, and enterprise platforms. The company continues to focus on deepening capabilities in next-generation technologies while strengthening its global talent base to support customers through their digital and AI transformation journeys.
Historical Stock Returns for Allied Digital Services
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.01% | +13.64% | -14.18% | -15.21% | -51.44% | +217.27% |
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