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1 — At a Glance
Allied Digital Services sells IT support, infrastructure work and systems integration to companies and governments. Revenue for the three months to June 2026 was ₹260 crore. That is 18.9% more than the ₹219 crore of a year earlier. Operating profit was ₹23 crore, against ₹19 crore in the same quarter last year. Profit after tax was ₹12.4 crore, against ₹14.4 crore.
Management explains the direction of profit by the tax line. The year-ago quarter carried a tax benefit of about ₹0.3 crore from deferred tax asset recognition. A deferred tax asset is past tax relief a company may set against future profit. This quarter carried a tax provision of about ₹4.5 crore instead.
Revenue over the trailing twelve months was ₹1,009 crore. Management flagged the crossing of ₹1,000 crore as a milestone set roughly three years earlier. It described the figure as a base rather than a finish line.
Three leadership changes took effect in July. Order bookings in the quarter came to more than ₹120 crore. Management says the audit report carries no qualifications or observations for the first time. On management’s telling, 42 years in IT services have produced one clean sheet of paper.
The market pays ₹16.40 for every ₹1 of yearly profit. The industry figure is ₹26.10 for every ₹1 of yearly profit.
2 — Introduction
Allied Digital began in 1984 as an IT hardware support outfit. In the India of that year, the work meant keeping machines alive rather than transforming anything. Software support and networking followed in 1988. The firm incorporated as a private limited company in 1995. It became a Microsoft Solution Provider Partner in 1997. It converted to a public limited company and listed on BSE and NSE in 2007.
In 2008 it acquired EnPointe Global Services LLC. That is how a Mumbai company ended up with a Los Angeles office. The American subsidiary structure would later require its own paragraph in the audit report. Cloud computing management and security services launched in 2009. In 2015 the company executed the Pune City Surveillance project, which it describes as India’s first Smart City project. The automation platform ADiTaaS launched in 2018 and was rebranded Digital Desk in 2024.
The past year has been busy at the top of the organisation chart. On 18 June 2026 the board appointed Nehal Shah Joint Managing Director, effective 1 July. Paresh Shah ceased as chief executive on 30 June. He was appointed Chief Innovation Officer from 1 July. Arun Pathak joined as chief executive for cloud and infrastructure services in India and the Middle East. His appointment took effect on 3 July. He arrived from NTT DATA after 19 years there.
In August 2025 the company announced a five-year IT services contract from a European pharmaceutical company. The contract was valued at ₹420 crore. In March 2026 Allied Digital Inc converted a loan of USD 12.89 million into 6,868 shares. In February 2026 the board approved third-quarter results alongside auditor qualifications. Those qualifications concerned roughly ₹136.98 crore of property, plant and equipment. A qualification is the auditor formally recording something it could not verify or agree with.
The company counts 42 years of operation and more than 3,500 employees. It reports 20 offices and a presence in more than 70 countries. The 32nd annual general meeting is on 1 September 2026.
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3 — Business Model: WTF Do They Even Do?
Allied Digital describes itself as a global IT consulting and services provider and Master Systems Integrator. A systems integrator assembles hardware, software and networks from several suppliers into one working set-up. The work splits two ways, and the company is explicit about which is which.
Services is the recurring half: long-term support, service desks, endpoint management and infrastructure operations. The company states that the initial margin profile here is lower than in Solutions. It says the segment offers greater margin potential and stability over time, with strong retention. In the three months to June 2026, Services were 83% of revenue, at ₹215 crore.
Solutions is the project half, billed once rather than month after month. It covers system upgrades, new-site infrastructure and transformative initiatives. The company says this work carries a higher margin profile, and that successful projects lead to further engagements. In the same quarter Solutions were 17% of revenue, at ₹45 crore. A year earlier the split was 75 to 25.
The portfolio is grouped into five named buckets. Three of them are cloud infrastructure services, cyber security and networking, and software services. The other two are AI operations and automation, and digital workplace services. Underneath sit the items that actually get billed. They include password resets, account unlocks, deskside repairs and equipment moves. Others include e-waste management, multi-cloud migration and monitoring tools that watch networks and devices for intrusions. Command and control systems are sold to cities that would like to watch themselves.
In the three months to June 2026, India was 27% of revenue
