Allied Digital Services Limited — Q3 FY26
Allied Digital reported Q3 FY26 revenue of ₹247 crore (+12% YoY), its highest ever quarterly revenue, just shy of the ₹250 crore target.
bullish
high
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
67%Questions answered2Evaded / deflected12Questions auditedMixedNumbers vs filing
Partial answer
High priority
Why no government order wins in order book?
Asked by Kunal Bajaj, Choice Institutional Equities
Explained delays but gave no concrete numbers or committed order wins.
no specific timelineno quantified pipeline
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Question
So when we see the order book of around 250 K... it is mostly from the enterprise side. We don't see any major order wins from the government spending side. So how do we see this going forward?
Nihal (likely management, role not stated)
Government orders are typically large and take time... Maharashtra underwent elections... lot of bids submitted and waiting for bids to open... we see a lot of progress happening there and the next two months are going to be crucial.
Answered
High priority
Will margin uptick from services mix cool off?
Asked by Kunal Bajaj, Choice Institutional Equities
Confirmed the margin mix will cool off when solutions revenue picks up.
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Question
Is it safe to say that this is because of the higher exposure of the services mix and it is a one-time thing going forward when we have some traction in the solutions business... the mix might cool off?
Nihal (likely management, role not stated)
Oh yeah absolutely. So once we have this solution business coming in we will have that mix getting cooled off... services revenue will always be higher because solution revenue will be only for the year where we deploy solution and that terminates into services revenue.
Evasive
High priority
What is the outlook for growth and margins?
Asked by Kunal Bajaj, Choice Institutional Equities
Did not provide any quantitative outlook on growth or margins.
no specific numbersgeneric growth commentary
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Question
We have given a outlook on the quarterly run rate of around 250 KS... going forward we see this growth rate to sustain and mostly on the margins front as well. Is there any outlook we see going forward on that front?
Management (likely senior executive, role not stated)
Our strategy is bearing fruit... tremendous focus on AI enabled infrastructure services, smart cities... we are in a sweet spot... ADSL is well positioned to leverage and capitalize on the demand from the market and be able to grow in a significant manner over the next couple of years.
Answered
Medium priority
What exactly are we doing in data center space?
Asked by Kunal Bajaj, Choice Institutional Equities
Explained the three areas of data center opportunity and their role.
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Question
Over the press release we see that you have mentioned about data centers. So what exactly are we doing in the data center space?
Management (multiple speakers, including Nihal and Mr. Nithisha)
There are three areas... growth of data centers in India... edge AI applications... AI based services... we have been building data center for almost last 30 years... we are into the build of data centers, operate and manage data centers.
Answered
High priority
What margins do we make in smart city business?
Asked by Joti Singh, Ahan Capital Markets
Provided specific margin range (double digits, upwards of 20% gross margin).
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Question
One big player in the IT... not seeing the kind of margin we make in other segment... what kind of margin we make in this business?
Nihal (likely management, role not stated)
When you are in an implementation phase... margins are pretty low... but when you are in the implementation and the wear phase that's when the margins shoot up... a solution provider like ours... will have improved margins overall to the tune of double digits upwards of 20% overall when we complete the whole project.
Answered
High priority
What growth rate expected for FY27?
Asked by Joti Singh, Ahan Capital Markets
Gave a specific growth guidance (mid-teens).
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Question
In 9 months we have given around 700 K. So what kind of growth should we expect going forward in FY27? It will be low teens or mid teens kind of.
Nihal (likely management, role not stated)
We are looking at mid-teens to be a little conservative.
Evasive
Medium priority
What percentage of revenue is AI influenced?
Asked by Joti Singh, Ahan Capital Markets
Refused to give a percentage, only qualitative statements.
no percentage givenvague quantification
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Question
What percentage of 26 revenue are AI influenced for us versus AI native and how is monetization structured?
Management (likely senior executive, role not stated)
I cannot exactly give you any percentage but it has become now ingrained into every services... definitely there will be a portion of AI... we have one few deals this quarter... at least three deals of them are already leveraging AI.
Answered
High priority
Explain audit qualifications on inventory and revenue.
Asked by Janice Jeda, Kemin family office
Explained the nature of qualifications and steps being taken.
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Question
I want to draw your attention to the audit qualifications... can you just give us some light on what is happening with respect to inventory receivables and the unbuilt revenue part.
Management (CFO or finance head, role not stated) and Nihal
These points are not new... we are seriously working on that to rectify... physical verification of fixed assets and inventory... we are contemplating to complete that entire process by 31st March.
Partial answer
High priority
Will audit issues impact P&L again at year-end?
Asked by Janice Jeda, Kemin family office
Acknowledged possible impact but did not quantify it.
no quantification of potential impact
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Question
Will all of these things lead to an impact in the P&L once again for the year end because the same thing happened last year also in Q4?
Management (CFO or finance head, role not stated)
Not exactly not. Last year was some unusual... these are not going to be of that scale but definitely whatever impact will be there it will not be of that level.
Answered
High priority
Will Q3 election impact affect top line guidance?
Asked by Janice Jeda, Kemin family office
Confirmed guidance maintained and impact limited to Q3.
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Question
You are speaking that this Q3 has been impacted because of the elections. So will that lead to any impact in the top line in the near run or you still maintain your 250 plus for guidance by end of the year?
Nihal (likely management, role not stated)
No, the impact is already done in Q3... we are seeing a lot of progress happening there and a lot of billing which is supposed to be happening would happen by March 30 31st. So I don't see that impacting any of our top line.
Partial answer
High priority
Are we on track for 1000 cr revenue target?
Asked by Disha, Safire Capital
Indicated 1000 cr may not be achieved this year but next year.
deferred to next yearno firm commitment for current year
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Question
Coming on to the guidance I think this year we're targeting thousand K. So are we on track for that?
Nihal (likely management, role not stated)
We should be able to do it in the last quarter if not in the first and second... we at 247 we should be able to do 250 from next quarter onwards... you might not see a thousand cr in the top line for the whole year but we are progressing towards it. So in the next year for sure.
Partial answer
Medium priority
What is revenue visibility and margins from European pharma order?
Asked by Disha, Safire Capital
Gave revenue visibility but not specific margin numbers.
margins not specifieddeferred to later
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Question
For this order that we won for this pharma company in Europe what's the revenue visibility from that and what's the margins there?
Nihal (likely management, role not stated)
We are looking at a revenue top line of about 1 million a month about 12 million a year for four years that's close to about 50 odd billion margins would be in the teams however I will have to come back to you with the exact numbers.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| 9 months revenue around 700 K (crore) | ₹700 cr | ₹247 cr | Overstated vs filing |
| Revenue run rate 247 crore this quarter | ₹247 cr | ₹247 cr | Matches filing |
| Gross margin upwards of 20% on smart city projects | 20% | 10.53% | Overstated vs filing |
| Mid-teens growth guidance for FY27 | 15% | 12% | Overstated vs filing |
| European pharma order: 1 million USD per month | 1 | 247 | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.