Allied Digital cash reaches Rs 185 crore as debt rises

Allied Digital Services Limited held Rs 185.16 crore of cash and cash equivalents on 30 September 2026, versus Rs 134.07 crore on 31 March 2026, while total reported borrowings rose Rs 50.43 crore to Rs 167.18 crore. The cash movement included Rs 16.37 crore of operating inflow, Rs 29.35 crore of financing inflow and a Rs 9.12 crore exchange-rate effect.

Why did Allied Digital's cash rise to Rs 185.16 crore?

Allied Digital's cash and cash equivalents increased by Rs 51.09 crore to Rs 185.16 crore at 30 September 2026 from Rs 134.07 crore at 31 March 2026. Its cash-flow statement records a Rs 41.97 crore net increase in cash and cash equivalents, with a further Rs 9.12 crore effect from exchange-rate changes, reconciling to the movement in the closing balance.

Operating activities generated Rs 16.37 crore of net cash at 30 September 2026, financing activities added Rs 29.35 crore and investing activities used Rs 3.75 crore. The financing inflow was therefore the largest stated cash-flow contributor, ahead of the operating inflow, while the investing outflow was limited to Rs 3.75 crore.

Profit before tax in the 30 September 2026 cash-flow column was Rs 33.96 crore, and adjustments for non-operating items were Rs 18.48 crore, producing Rs 52.44 crore of operating profit before working-capital changes. Working-capital changes then used Rs 31.17 crore, reducing cash generated from operations to Rs 21.27 crore before direct taxes of Rs 4.90 crore.

How much did Allied Digital's borrowings increase?

Allied Digital's long- and short-term borrowings increased by Rs 50.43 crore to Rs 167.18 crore at 30 September 2026, from Rs 116.75 crore at 31 March 2026. Long-term borrowings rose Rs 21.49 crore to Rs 72.49 crore, while short-term borrowings increased Rs 28.94 crore to Rs 94.69 crore.

Short-term borrowings were the larger component at both balance-sheet dates, standing at Rs 94.69 crore at 30 September 2026 compared with Rs 72.49 crore of long-term borrowings. At 31 March 2026, short-term borrowings were Rs 65.75 crore and long-term borrowings were Rs 51.00 crore, showing that the increase was concentrated more heavily in the current funding category.

Cash exceeded the reported borrowing total by Rs 17.98 crore at 30 September 2026, compared with Rs 17.32 crore at 31 March 2026. This arithmetic gap changed by Rs 0.66 crore because the Rs 51.09 crore increase in cash was close to the Rs 50.43 crore increase in borrowings.

What changed in Allied Digital's working capital?

Allied Digital reported a Rs 31.17 crore cash use from working-capital changes in the 30 September 2026 cash-flow column, compared with a Rs 1.10 crore use in the 31 March 2026 column. That movement reduced Rs 52.44 crore of operating profit before working-capital changes to Rs 21.27 crore of cash generated from operations.

Total current assets rose Rs 57.71 crore to Rs 841.00 crore at 30 September 2026, while current liabilities increased Rs 16.96 crore to Rs 328.06 crore. On this basis, current assets less current liabilities increased to Rs 512.94 crore from Rs 472.19 crore over the two balance-sheet dates.

Other current assets rose Rs 110.72 crore to Rs 525.78 crore, the largest movement among the listed current-asset categories. This increase more than offset a Rs 56.27 crore reduction in receivables to Rs 264.09 crore, while inventory rose Rs 3.26 crore to Rs 51.13 crore.

What do Allied Digital's earnings show about finance costs?

Allied Digital reported finance costs of Rs 7.70 crore in H1 FY27, up Rs 2.49 crore from Rs 5.21 crore in H1 FY26, while profit before tax declined Rs 0.78 crore to Rs 33.95 crore. The presentation shows both the H1 FY27 finance-cost increase and the rise in borrowings between 31 March and 30 September 2026, but it does not state that one caused the other.

Net revenue from operations increased Rs 73.09 crore to Rs 525.81 crore in H1 FY27 from Rs 452.72 crore in H1 FY26. Earnings before interest, tax, depreciation and amortisation, excluding other income, rose to Rs 47.13 crore from Rs 40.15 crore, while its reported margin remained 9% in both half years.

Other income fell to Rs 4.72 crore in H1 FY27 from Rs 9.65 crore in H1 FY26. Including other income, earnings before interest, tax, depreciation and amortisation increased to Rs 51.84 crore from Rs 49.81 crore, but profit after tax declined to Rs 24.97 crore from Rs 29.87 crore and the reported margin moved to 5% from 6%.

Do Allied Digital's cash-flow figures need clarification?

Allied Digital's 30 September 2026 operating-cash figures reconcile using the displayed line items. Cash generated from operations of Rs 21.27 crore less direct taxes of Rs 4.90 crore equals Rs 16.37 crore of net operating cash flow, and Rs 52.44 crore before working-capital changes less the Rs 31.17 crore working-capital use equals Rs 21.27 crore.

The 31 March 2026 comparative cash-flow column does not reconcile from the line items shown: Rs 129.67 crore of operating profit before working-capital changes and a negative Rs 1.10 crore working-capital change do not produce negative Rs 128.57 crore of cash generated from operations. The presentation also labels its columns by balance-sheet dates rather than equivalent reporting periods, and provides no note explaining the displayed March 2026 signs or period coverage.

Conclusion

Allied Digital ended 30 September 2026 with Rs 185.16 crore of cash, but the cash balance rose alongside a Rs 50.43 crore increase in borrowings to Rs 167.18 crore. The balance-sheet movement occurred with a Rs 110.72 crore increase in other current assets, a Rs 56.27 crore decline in receivables and a Rs 31.17 crore working-capital cash use.

The next disclosure should show whether the Rs 29.35 crore financing inflow changes the mix of long- and short-term borrowings and clarify the March 2026 cash-flow presentation. Chairman and Managing Director Nitin D. Shah said Allied Digital intends to pursue larger, more complex and multi-year engagements while improving operations, but the presentation gives no borrowing-repayment target or scheduled debt-reduction plan.