Allied Digital FY26 results: revenue up 20% to ₹968 crore

Earnings call audio released after board approval

Allied Digital Services said it has released the audio recording of its Q4FY26 earnings call held on May 22, 2026. The company’s results for the year ended March 31, 2026 were approved by its Board on May 21, 2026. The update comes with a FY26 performance summary that highlighted record annual revenue for the company. Management also reiterated that FY26 was marked by increased customer focus on AI-led transformation. The company linked this shift to higher demand across digital transformation, infrastructure modernisation, managed services and related offerings.

FY26 ends with record revenue and double-digit profit growth

For FY26, Allied Digital reported consolidated revenue of ₹968 crore, a 20% increase from ₹807 crore in FY25. Profit before tax (PBT) for the full year grew 33% to ₹81 crore. Profit after tax (PAT) rose 10% to ₹36 crore from ₹32 crore in FY25. The company said FY26 represented its highest-ever annual revenues. It also noted that profitability during the year was impacted by certain one-time charges and provisions. In the call commentary, management referenced an aspiration communicated earlier to cross a ₹1,000 crore topline milestone, stating it came “very close” in FY26 and that the Q4 revenue run-rate would surpass the mark on an annualised basis.

Q4FY26: strong revenue growth, adjustment for one-time provision

In Q4FY26, consolidated revenue was ₹268 crore, up 31% year-on-year from ₹204 crore in Q4FY25. The company disclosed a one-time provision of ₹36 crore in Q4FY26. Excluding this one-time item, adjusted PBT for the quarter rose 111% to ₹23 crore. The quarter also saw a pickup in domestic performance, with management stating that India revenues in Q4 were up 37% year-on-year. Allied Digital described Q4 as delivering the highest quarterly results revenue in its history.

EBITDA up 14% and margins reported at 11%

Allied Digital reported FY26 EBITDA of ₹112 crore, up 14% year-on-year. Management stated that EBITDA margins were resilient at 11%. The company also said that EBITDA and PBT were presented after adjusting for the impact of the one-time additional ECL provision undertaken during the year, citing improved comparability and transparency. It added that the impact of the one-time provision was partially offset by the recognition of deferred tax assets. On the bottom line, the company maintained that underlying profitability remained healthy excluding non-recurring items.

Working capital: debtor days reduced to 62

Operational efficiency was highlighted through improved collections. Allied Digital reported that debtor days reduced to 62 in FY26 from 76 in FY25. The reduction in debtor days can matter for cash conversion, particularly in IT services and solutions businesses where receivables can be a swing factor. Management linked the year’s profitability improvement to stronger operational performance, improved scale and better operating leverage. While no cash flow statement details were provided in the update, the debtor-days metric was a key operational datapoint shared alongside earnings.

Segment performance: Services leads, Solutions steady

Revenue growth in FY26 was driven by both Services and Solutions. Services segment revenue grew 21% year-on-year for the full year. Solutions segment revenue rose 17% year-on-year over the same period. In earlier commentary within the provided material for Q3FY26, Services remained the primary growth driver, with Q3 Services revenue at ₹195 crore versus ₹169 crore a year ago. The company positioned its current demand environment around digital transformation, infrastructure modernisation, managed services and AI-led solutions.

Geographic mix: ROW at ₹616 crore, India at ₹352 crore

Geographically, Rest of World (ROW) revenue grew 22% to ₹616 crore in FY26. India revenue increased 17% to ₹352 crore. Management stated both domestic and international business delivered healthy double-digit growth in FY26. It also highlighted that enterprise customer revenues grew 31% year-on-year during FY26, while government revenues were lower by 6% in the year. These mix shifts can influence margins and working capital cycles, though the company did not provide segment margin detail in the shared update.

Order wins and renewals: over ₹166 crore in Q4

During Q4FY26, Allied Digital secured new orders and renewals worth over ₹166 crore. The company said wins were broad-based across domestic and international markets. It cited a multi-region workplace services engagement from a global deepwater oil and gas drilling company as one of the key wins. Another highlighted order was for a city-wide Integrated Command & Control Centre solution. Management also referenced healthy traction in multi-year renewals, which can improve near-term revenue visibility, without specifying the duration or revenue recognition schedule.

Key financial snapshot

Recognition and management commentary

The company said it received several leadership awards, including recognitions for Nehal Shah (Whole-time Director) and Nitin Shah (Chairman and Managing Director). In the management commentary included in the material, Allied Digital described FY26 as a defining phase in enterprise AI adoption, with customers aligning technology investments around AI-led transformation priorities. Separately, the provided text also references an earlier earnings call held on February 5, 2026 for Q3 and nine months ended December 31, 2025, where Q3 revenue was reported at ₹247 crore and new orders were stated at over ₹250 crore. Those references provide context on the company’s quarterly momentum leading into Q4.

Market impact and why these numbers matter

Allied Digital’s FY26 update provides investors a clearer picture of growth, profitability and working-capital movement. The headline growth rate of 20% in annual revenue, coupled with EBITDA rising 14% to ₹112 crore, points to scale benefits even as the company flagged one-time items affecting comparability. The disclosure of a ₹36 crore one-time provision in Q4, and the corresponding adjusted PBT of ₹23 crore for the quarter, offers an additional lens on underlying quarterly profitability. Operationally, the move in debtor days from 76 to 62 is a measurable improvement that can support balance-sheet efficiency. On the demand side, the split between Services (up 21%) and Solutions (up 17%), and the geographic mix led by ROW at ₹616 crore, outlines where growth is currently concentrated.

Conclusion

Allied Digital Services’ release of its Q4FY26 earnings call audio on May 22, 2026 follows board approval of FY26 results on May 21, 2026, with FY26 revenue at ₹968 crore and improved profitability metrics. The company also reported stronger Q4 revenue, disclosed a one-time provision and shared adjusted quarterly PBT to improve comparability. Order wins worth over ₹166 crore in Q4 and a reduction in debtor days to 62 were key operational highlights. Any further detail on the one-time items, segment profitability, and the revenue conversion timeline from new deals would typically come through subsequent disclosures and filings following the earnings communication.