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Allied Digital Services Limited
(ADSL)
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Rating:63Neutral
Price Target:
₹107.00
▼(-9.78% Downside)
Action:Reiterated
Date:06/25/26
The score is primarily driven by solid top-line growth and a relatively low-leverage balance sheet, tempered by significant margin compression and uneven cash-flow performance. Technicals are mildly constructive in the short term but still below the 200-day trend, while valuation appears broadly reasonable with a modest dividend yield.
Positive Factors
Revenue Scaling
Sustained revenue expansion indicates that Allied Digital is enlarging its enterprise services activity and converting demand into a larger operating base. Continued scale can improve customer reach, support cross-selling across infrastructure and workplace services, and create a stronger foundation for future earnings.
Negative Factors
Margin Compression
The sharp deterioration in gross and net margins shows that revenue growth is not translating proportionately into profitability. If weaker margins persist, Allied Digital may have less capacity to reinvest, absorb cost increases, or convert its expanding services base into durable earnings growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Scaling
Sustained revenue expansion indicates that Allied Digital is enlarging its enterprise services activity and converting demand into a larger operating base. Continued scale can improve customer reach, support cross-selling across infrastructure and workplace services, and create a stronger foundation for future earnings.
Read all positive factors
Allied Digital Services Limited (ADSL) vs. iShares MSCI India ETF (INDA)
Market Cap
₹5.67B
Dividend Yield3%
Average Volume (3M)8.33K
Price to Earnings (P/E)15.8
Beta (1Y)1.57
Revenue Growth19.18%
EPS Growth-1.69%
CountryIN
Employees2,091
SectorGeneral
Sector StrengthN/A
IndustryInformation Technology Services
Share Statistics
EPS (TTM)6.33
Shares Outstanding56,650,604
10 Day Avg. Volume8,152
30 Day Avg. Volume8,334
Financial Highlights & Ratios
PEG Ratio0.52
Price to Book (P/B)0.65
Price to Sales (P/S)0.41
P/FCF Ratio4.51
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)14.95
Revenue Forecast (FY)₹11.57B
Allied Digital Services Limited Business Overview & Revenue Model
Company Description
Allied Digital Services Limited, founded in Mumbai, India, in 1995, operates as a global provider specializing in the entire lifecycle of IT infrastructure services and digital solutions, from design and development to deployment and delivery. The...
How the Company Makes Money
ADSL primarily makes money by selling IT services to enterprise customers under recurring and project-based commercial arrangements. Key revenue streams typically include: (1) Managed services contracts, where customers pay recurring fees (often m...
Allied Digital Services Limited Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
72
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.09B | 9.68B | 8.07B | 6.87B | 6.60B | 4.85B |
| Gross Profit | 1.66B | 1.64B | 1.49B | 1.48B | 1.49B | 1.32B |
| EBITDA | 704.50M | 562.10M | 986.90M | 838.20M | 939.70M | 955.10M |
| Net Income | 357.60M | 288.10M | 321.10M | 458.50M | 69.20M | 610.30M |
Balance Sheet | ||||||
| Total Assets | 0.00 | 10.58B | 9.25B | 7.78B | 6.95B | 6.93B |
| Cash, Cash Equivalents and Short-Term Investments | 1.52B | 1.52B | 2.16B | 1.38B | 1.35B | 637.00M |
| Total Debt | 0.00 | 1.36B | 966.20M | 748.00M | 549.70M | 461.80M |
| Total Liabilities | -6.71B | 3.87B | 2.79B | 1.59B | 1.24B | 1.37B |
| Stockholders Equity | 6.71B | 6.14B | 6.02B | 5.79B | 5.36B | 5.31B |
Cash Flow | ||||||
| Free Cash Flow | -420.20M | 884.30M | 822.50M | 643.20M | 335.10M | 81.10M |
| Operating Cash Flow | -324.20M | 983.70M | 847.30M | 676.10M | 470.20M | 146.30M |
| Investing Cash Flow | -29.60M | -1.83B | -131.50M | -29.30M | -116.50M | -59.60M |
| Financing Cash Flow | 94.40M | 302.90M | -101.60M | -102.30M | -70.40M | -76.90M |
Allied Digital Services Limited Technical Analysis
Negative
118.60
Price Trends
111.35
Negative
116.33
Negative
122.14
Negative
Market Momentum
-3.35
Positive
29.89
Positive
13.98
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ADSL, the sentiment is Negative. The current price of 118.6 is above the 20-day moving average (MA) of 104.83, above the 50-day MA of 111.35, and below the 200-day MA of 122.14, indicating a bearish trend. The MACD of -3.35 indicates Positive momentum. The RSI at 29.89 is Positive, neither overbought nor oversold. The STOCH value of 13.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ADSL.
Allied Digital Services Limited Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | ₹7.00B | 11.42 | ― | 3.18% | 8.25% | 15.33% | |
66 Neutral | ₹4.30B | 13.62 | ― | 14.20% | 4.74% | -11.10% | |
65 Neutral | ₹44.99B | 20.78 | ― | 0.66% | 13.17% | 1.95% | |
63 Neutral | ₹5.67B | 15.83 | ― | 3.00% | 19.18% | -1.69% | |
61 Neutral | ₹3.41B | 8.71 | ― | 4.39% | 35.17% | 9.87% | |
60 Neutral | ₹4.78B | 12.84 | ― | 3.07% | -2.21% | -53.12% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
IN:ADSL
Allied Digital Services Limited
100.05
-66.05
-39.77%
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-27.21%
Allied Digital Services Limited Corporate Events
Allied Digital Grants 200,000 ESOP Options Under 2020 Plan
Sep 10, 2026
Allied Digital Services Limited has approved the grant of 200,000 employee stock options under its ESOP 2020 plan to eligible staff, signaling a continued use of equity-based incentives to reward and retain talent. The options, convertible into an...
Allied Digital Board Clears Q1 FY2026 Results, Sets Hybrid AGM for September
Aug 6, 2026
Allied Digital Services Limited has announced that its Board of Directors has approved the unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, following a limited review by the statutory auditors. This appr...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.