Allied Digital Services Ltd

Dates for AGM, book closure and dividend

• Book closure: Aug 25, 2026 to Sep 01, 2026 (inclusive).
• Cut-off for remote e-voting: Aug 25, 2026.
• Record date for Final Dividend eligibility: Aug 28, 2026.
• e-Voting period: Aug 28, 2026, 09:00 to Aug 31, 2026, 17:00 IST.
• AGM: Sep 01, 2026 at 03:00 PM IST, in-person plus VC/OAVM.
• Dividend contingent on declaration at AGM.

Financial Performance

• Quarter revenue: Rs 260 crore; up 19% YoY.
• EBITDA: Rs 25 crore; EBITDA margin 10%.
• PBT: Rs 17 crore; up 19% YoY.
• PAT: Rs 12 crore; tax Rs 4.5 crore this quarter.
• Trailing 12 months revenue: Rs 1,009 crore.
• Audit report unmodified; all prior observations resolved.
• U.S. subsidiary balances reclassified from debt to equity.

Operational Update and Wins

• Orders booked: Rs 120+ crore; new and renewals.
• NYSE-listed electronics firm: Enterprise App Services; ServiceNow, Jitterbit, Boomi.
• Australia mutual bank: Workspace Service Management; Melbourne, Sydney, Adelaide.
• Punjab Govt/DoE: Integrated Command & Control Center SI.
• Ministry of Commerce: IT managed services engagement.
• IT asset management with international property consultant.
• IT infrastructure support with leading FMCG company.
• Renewed engagements across pharma, chemicals, real estate, BFSI, medical devices, retail design.
• Renewals across multiple verticals reinforce execution strength.

Governance and Financial Controls

• Auditors' observations fully addressed; audit report unmodified.
• Trailing 12 months revenue remains Rs 1,009 crore (contextual note).
• Funds deployed in U.S. subsidiary reclassified from debt to equity; FX gains reclassification.

Guidance and Outlook

• Aspirations: scale business 10x in 10 years; ~20% per year.
• FY27 EBITDA margin seen around 10-11%; potential 12-13% in a couple of quarters.
• Long-term growth trajectory remains achievable; AI-led offerings to drive value.

Q&A Highlights

• Question on margins; management cites competitive pressures and investment in people/AI; pipeline to improve.
• AI viewed as opportunity; margins to improve as AI matures.
• Revenue deflation due to hardware price changes; cautious bidding on railways; some deals delayed.
• Margin trajectory: 10-11% EBITDA now; 12-13% in upcoming quarters expected.
• Guidance reiterated: 10x growth over 10 years (~20% annual).
• FY28 guidance not explicitly quantified; emphasis on AI-led growth.

AGM details

• 32nd AGM scheduled for 1 September 2026 at 3:00 PM IST.
• Hybrid mode with physical venue in Mumbai and VC option.
• Venue: Walchand Hirachand Hall, IMC Building, Churchgate.
• Also accessible via video conference/AV means.

Annual Report access

• Web-link to Annual Report FY2025-26: https://www.allieddigital.net/in/annual-reports-all/.
• Exact path: Investor > Financial-information > Annual Report > Year 2025-2026.
• Cut-off date for sending web-link: 31 July 2026.

KYC / shareholding updates

• Reminder to update KYC details per SEBI circular; physical holders to dematerialise securities.
• Electronic payments require updated PAN, address, and bank details for physical folios.

AGM Details

• Date and time: 01 September 2026 at 3:00 PM IST.
• Mode: Physical AGM with VC/OAVM attendance and e-voting.
• Venue: Walchand Hirachand Hall, IMC Building, Churchgate, Mumbai.
• Record date: 28 August 2026.
• Remote e-voting via NSDL; VC/OAVM attendance available.

Ordinary Business

• Adopt standalone and consolidated financial statements for FY2025-26.
• Declare dividend on equity shares for FY2025-26.
• Re-appoint Nehal Shah as Director, retiring by rotation.

Special Business

• Re-appoint Shakti Kumar Leekha as Independent Director for 2027-2032.
• Re-appoint Anup Kumar Mahapatra as Independent Director for 2027-2032.
• Re-appoint Sunil Bhatt as Executive Director for 2027-2032.
• Appoint Nehal Shah as Joint Managing Director for 2026-2031.
• Approve related party transactions with Allied Digital Services LLC, USA for 2026-27.
• RPT threshold: services up to ₹200 crore; goods up to ₹50 crore.
• RPTs to be at arm's length; Audit Committee approvals.

Dividend Details

• Dividend: ₹1.50 per equity share, subject to AGM approval.

Related Party Transactions

• RPT with Allied Digital Services LLC, USA up to INR 200 crore for services.
• RPT with Allied Digital Services LLC, USA up to INR 50 crore for goods.
• Related party cannot vote on Item 8.

Financial snapshot

• Standalone FY26 revenue ₹968 crore; up ~20% YoY; exit run rate ₹1,000 crore.
• Standalone EBITDA ₹112 crore; margin 11% (before one-time ECL).
• Standalone PAT ₹36 crore; up 10% YoY.
• Consolidated revenue ₹96,791 lakh; up 19.9% YoY.
• Consolidated EBITDA ₹11,234 lakh; Consolidated PAT ₹3,552 lakh.
• Consolidated cash ₹13,407 lakh; net debt ₹10,121 lakh; debt/equity 0.15x.
• CRISIL long-term BBB+/Stable; short-term A2.
• Dividend proposed ₹1.50 per share; total ₹848 lakh; record date 28 Aug 2026; payout window 7 Sep–6 Oct 2026.
• Major orders: Pune Smart City ~₹500 crore; European pharma contract ~₹500 crore; Q4 orders ₹166 crore; strong pipeline.

Growth, strategy & operations

• AI-first strategy with agentic AI; 100+ staff trained.
• Digital Desk handles over 6 million tickets annually; ~87% first-time resolution.
• Pursuing 10x growth in 10 years; expanding global delivery and partnerships.
• Geographic momentum in US/Europe; pursuing Japan, Mauritius; strong India govt opportunities.
• Recurring revenue mix rising; annuity-based managed services improving visibility.

Capital structure & liquidity

• Total borrowings ₹11,676 lakh; current ₹6,575 lakh; non-current ₹5,100 lakh.
• Cash and cash equivalents ₹13,407 lakh; net debt ₹10,121 lakh; adjusted debt/ equity 0.15x.
• Equity capital ₹2,826 lakh; total equity ₹67,124 lakh.
• Credit rating maintained: CRISIL BBB+/Stable; outlook Stable.
• Revenue by geography: India ₹31,580 lakh; Others ₹65,211 lakh.

Dividends & shareholder returns

• Dividend ₹1.50 per equity share; ~₹848 lakh payout.
• Record date 28 Aug 2026; payment window Sept 7–Oct 6, 2026.

Governance, audit & risk

• Statutory auditors: Singhi & Co; Secretarial: Parikh & Associates; CEO/CFO certification provided.
• FY26 audit flagged: standalone qualified opinion; internal control weaknesses; FEMA reporting pending.
• Board of 10 directors; 5 independent; governance improvements ongoing.
• Key risks: macro volatility, pricing/currency pressures, regulatory shifts (DPDP Act); AI governance focus.

Related party transactions

• RPT with Allied Digital Services LLC approved; aggregate cap ₹200 crore for services; ₹50 crore for goods; arm's length; annual approval via AGM.

CSR & ESG initiatives

• CSR spend ₹49.13 lakh; 2 CSR committee meetings; focus on education, healthcare, rural development.
• CSR policy available on company website; two-year compliance and impact reporting continued.

Meeting Details

• Conference call for Q1 FY27 results (quarter ended June 30, 2026) held on August 7, 2026.
• Mode: audio conference call.
• Key participant: Company Secretary.
• Purpose: discuss financial results.
• Recording available (audio recording).