Allied Digital reports Q2 and H1 FY26 growth, new contracts

Allied Digital Services Limited reported a 15% year-on-year increase in consolidated revenue for Q2 FY26, reaching INR 234 crore, with H1 FY26 revenue increasing by 18% to INR 453 crore. Consolidated EBITDA for Q2 FY26 grew by 23% to INR 28 crore, contributing to a 15% increase for H1 FY26, totaling INR 50 crore. Profit After Tax (PAT) saw a significant rise of 33% in Q2 FY26 to INR 15 crore, and 36% in H1 FY26 to INR 30 crore. The company’s growth was primarily driven by its solutions business and smart city projects, with India operations leading geographical expansion.

The company secured new orders and multi-year contract renewals totaling INR 698+ crores during the quarter, including managed services for a European pharmaceuticals and healthcare company and digital workplace support for an American apparel conglomerate. Allied Digital was also recognized with the AsiaOne Greatest Leader of the Millennium 2025 award for its chairman & managing director, Mr. Nitin Shah, and as UAE's Fastest Growing Technology Brand 2025 by AsiaOne Magazine. Additionally, the Command and Control Centre "Drishti" developed by Allied Digital Services Limited for Pune City Surveillance was unveiled.

However, the auditor's opinion included modified statements regarding interest-free loans to subsidiaries aggregating to Rs. 11,553 lakhs, non-compliance with Section 186(7) of the Companies Act, 2013, and concerns about physical verification of PPE, intangible assets, and inventory. The auditor also noted issues with trade receivables and unbilled revenue, where additional provisioning was deemed necessary.