Allied Digital Services Limited

Vaswani. Mayank Vaswani

Thank you, Renju. Good morning, everyone, and thank you for joining

Rs. 234 crore

ing the momentum from the start of the financial year as we have reported consolidated revenues of Rs. 234 crore, registering Q2 & H1 FY2026 Earnings Call Transcript growth of 15% year-over-year. Thi

15%

venues of Rs. 234 crore, registering Q2 & H1 FY2026 Earnings Call Transcript growth of 15% year-over-year. This has been a quarter of strong execution as we have delivered revenue growth of

7%

year-over-year. This has been a quarter of strong execution as we have delivered revenue growth of 7% on a quarter- on-quarter basis. We have witnessed business verticals, as well as across all geogra

32%

s has been accompanied by strong improvement in profitability, too. In quarter 2, PBT has grown by 32% year-over-year to Rs. 21 crore and PAT has increased by 33% year-on-year to Rs. 15 crore. Durin

Rs. 21 crore

by strong improvement in profitability, too. In quarter 2, PBT has grown by 32% year-over-year to Rs. 21 crore and PAT has increased by 33% year-on-year to Rs. 15 crore. During the quarter, Rest of the World

33%

y, too. In quarter 2, PBT has grown by 32% year-over-year to Rs. 21 crore and PAT has increased by 33% year-on-year to Rs. 15 crore. During the quarter, Rest of the World operations reported a year-o

Rs. 15 crore

, PBT has grown by 32% year-over-year to Rs. 21 crore and PAT has increased by 33% year-on-year to Rs. 15 crore. During the quarter, Rest of the World operations reported a year-on- year growth of 17%, driven

17%

s. 15 crore. During the quarter, Rest of the World operations reported a year-on- year growth of 17%, driven by improving traction in our U.S. business. Meanwhile, execution in Europe and the Middle

12%

ipeline. India operations continued to grow double-digit revenue with standalone revenues rising 12% year-on-year in quarter 2 FY '26, supported by healthy momentum across both the enterprise and the

8%

tal perspective, our Services business grew 17% year- on-year, while Solutions revenue increased by 8%. As many of you are aware, the Solutions segment often acts as strategic feeder to our Services b

18%

s. Reflecting the renewed enterprise sentiments, revenues from nongovernment customers increased 18% year-on-year, outpacing growth from the government segment, which reported 7% year-on- year growth

Rs. 698 crore

r digital transformation plans. During the quarter, we recorded an order intake of approximately Rs. 698 crore, further strengthening our order book. This includes both new order wins and annual renewals of mu

“A particularly noteworthy milestone this quarter was successful completion of the new Command and Control center for the Pune Smart City project in August 2025.”

“In August 2025, we proudly handed over the cutting-edge Command and Control center named Drishti, developed by us as a part of the Pune City Surveillance project.”

“We believe this project sets a benchmark for urban surveillance and public safety.”

“This also marks the highest ever quarterly revenue in our history, putting us firmly on track to surpass our stated target of Rs.”

“We do expect margin pressure to continue over the next 3 to 4 quarters, but our focus remains on maximizing operating leverage as top line growth continues.”

“So, from Q4, we expect some revenue coming forward?”

“Q1 of next year should be having the full revenue because until the February of next year, we would be still doing the go-live for different countries.”

“So, the full revenue for the whole quarter will be coming in from the first quarter of next year.”

“There is a project in the Pune city itself where there is some additional revenue expected.”

“Apart from that, there is a large project which is due for renewal in Mumbai.”

Nehal Shah

10

Gopal Tiwari

4

Moderator

3

Paresh Shah

3

Kunal Bajaj

3

Ramanan R

3

Mayank Vaswani

1

Mayank Vaswani

Thank you, Renju. Good morning, everyone, and thank you for joining us on Allied Digital Services Limited's Earnings Call for the Second Quarter of FY '25-'26. We have with us on the call today, Mr. Nitin Shah, Founder and CMD; Mr. Ramanan Ramanathan, Global Head of Strategy for Growth, Innovation and Partnerships; Mr. Nehal Shah, Whole-Time Director; Mr. Paresh Shah, Global Chief Executive Officer; and Mr. Gopal Tiwari, Chief Financial Officer. We will begin with comments from Mr. Nehal Shah, who will cover recent developments across the business. Mr. Paresh Shah will then discuss the operational performance and order wins, followed by Mr. Gopal Tiwari, who will walk us through the financial highlights. Thereafter, we will open the call for the Q&A session. Before we begin, I would like to point out that some of the statements made in today's call may be forward-looking in nature, and a disclaimer to this effect has been included in the earnings documents that have been shared with al

Nehal Shah

Thank you, Mayank. Good morning, everyone, and thank you for joining us today. I hope you have had a chance to review the earnings material we shared earlier. We are pleased to report a strong performance in the second quarter, continuing the momentum from the start of the financial year as we have reported consolidated revenues of Rs. 234 crore, registering Q2 & H1 FY2026 Earnings Call Transcript growth of 15% year-over-year. This has been a quarter of strong execution as we have delivered revenue growth of 7% on a quarter- on-quarter basis. We have witnessed business verticals, as well as across all geographies, which is reflected in the broad-based growth this quarter. Importantly, this has been accompanied by strong improvement in profitability, too. In quarter 2, PBT has grown by 32% year-over-year to Rs. 21 crore and PAT has increased by 33% year-on-year to Rs. 15 crore. During the quarter, Rest of the World operations reported a year-on- year growth of 17%, driven by improving t

Paresh Shah

Yes. Thank you, Nehal and good morning, everyone. It is great to be speaking with you again. The second quarter has been a period of Q2 & H1 FY2026 Earnings Call Transcript steady growth and continued execution momentum for Allied Digital. We have maintained our focus on strengthening global delivery, enhancing operational excellence and deepening our relationships with marquee customers across industries and geographies. Our efforts to build a robust and diversified portfolio are bearing really good fruit with significant new wins across both international and domestic markets. During the quarter, we continued to strengthen our client portfolio through several strategic wins and renewals. Let me share a few highlights from these engagements. We are proud to have been chosen by a leading global health care and pharmaceutical company with operations spanning several countries. This engagement further reinforces our credibility in developing complex enterprise-scale workplace services th

Gopal Tiwari

Thank you, Paresh, and good afternoon, everyone. Let me begin by sharing some of key financial highlights for Q2 FY '26. We are pleased to report continued strong momentum in our business as reflected in robust double-digit growth in top line performance. Revenues for Q2 FY '26 stood at Rs. 234 crore, representing a year- on-year growth of 15%. This also marks the highest ever quarterly revenue in our history, putting us firmly on track to surpass our stated target of Rs. 250 crore in quarterly revenues. To further illustrate the expanding scale of our operations, our trailing 12 months revenue now stands at approximately Rs. 878 crore compared to Rs, 807 crore for the full year FY '25. This clearly demonstrates the solid progress we are making and our teams remain fully aligned towards achieving our next milestone of Rs. 1,000 crore in annualized revenue. In Q2 FY '26, EBITDA grew by 23% year-on-year basis to Rs. 28 crore. As our top line continued to expand, we are seeing a parallel

Kunal Bajaj

Q2 & H1 FY2026 Earnings Call Transcript the pricing pressure there in terms of deal negotiations with them? These are broad 3 questions.

Nehal Shah

Thank you, Kunal, for your questions. I would want you to repeat the first question, but before that, I will give you the answer for the next 2 ones. So, for the direct sales update, let me tell you that we have hired a Chief Revenue Officer for our U.S. subsidiary, who is going to be working directly for acquiring large direct clients. Typically, from a strategy perspective, we have done straight that we are going to be targeting small and medium enterprises in the U.S., which sit in the periphery, which will help us in starting with a good revenue from a direct source. So probably in the coming quarters, we will have more updates. Maybe the order size could be smaller, but we will start getting some direct customers coming up. And from a pricing pressure perspective, yes, we have started getting some good deals in the U.S., which we have announced also, and there are good deals in the pipeline as well. But you rightly mentioned that there is still some pricing pressures due to the en