Allied Digital Services Limited (ADSL) AI Stock Analysis

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Allied Digital Services Limited

(NSE:ADSL)

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Rating:63Neutral

Price Target:INR 115.00▲(10.63% Upside)

Action:reiterated

Date:10/30/26

The score is primarily supported by strong revenue growth, reasonable cash generation, a solid balance sheet, and moderate valuation. Compressing profitability, higher leverage, volatile cash flow, and mixed technical momentum limit the overall score.

Positive Factors

Revenue ScalingRevenue has expanded substantially across the reported period, demonstrating meaningful top-line scaling and sustained demand for the company’s services. Continued growth can broaden customer reach, improve operating leverage over time, and provide a foundation for reinvestment in infrastructure, digital workplace, and enterprise IT capabilities.

Negative Factors

Margin CompressionThe sharp decline in gross and net margins shows that revenue growth has not translated proportionately into earnings power. Persistent margin pressure could limit operating leverage, reduce funds available for reinvestment, and leave results more sensitive to costs, pricing, or changes in service mix.

Allied Digital Services Limited (ADSL) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 5.92B
Dividend Yield: 2.89%
Average Volume (3M): 23.02K
Price to Earnings (P/E): 18.9
Beta (1Y): 1.48
Revenue Growth: 18.61%
EPS Growth: -21.98%
Country: India
Employees: 2,091
Sector: General
Sector Strength: 55
Industry: Information Technology Services

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 co...

Allied Digital Services Limited Financial Statement Overview

Summary

Strong revenue growth, a solid capital base, and generally adequate cash generation are offset by compressing margins, declining net income, rising leverage, and volatile cash-flow growth.

Income Statement

57Neutral

Balance Sheet

68Positive

Cash Flow

64Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	10.41B	9.68B	8.07B	6.87B	6.60B	4.85B
Gross Profit	1.74B	1.64B	1.49B	1.48B	1.49B	1.32B
EBITDA	665.60M	562.10M	986.90M	838.20M	939.70M	964.10M
Net Income	313.20M	288.10M	321.10M	458.50M	69.20M	610.30M
Balance Sheet
Total Assets	11.21B	10.58B	9.25B	7.78B	6.95B	6.93B
Cash, Cash Equivalents and Short-Term Investments	2.11B	1.52B	2.16B	1.38B	1.35B	637.00M
Total Debt	1.84B	1.36B	966.20M	748.00M	549.70M	461.80M
Total Liabilities	4.24B	3.87B	2.79B	1.59B	1.24B	1.37B
Stockholders Equity	6.35B	6.14B	6.02B	5.79B	5.36B	5.31B
Cash Flow
Free Cash Flow	0	884.30M	822.50M	643.20M	335.10M	81.10M
Operating Cash Flow	0	983.70M	847.30M	676.10M	470.20M	146.30M
Investing Cash Flow	0	-1.83B	-131.50M	-29.30M	-116.50M	-59.60M
Financing Cash Flow	0	302.90M	-101.60M	-102.30M	-70.40M	-76.90M

Allied Digital Services Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price103.95

Price Trends

50DMA103.16Positive

100DMA109.36Negative

200DMA112.67Negative

Market Momentum

MACD0.39Negative

RSI49.57Neutral

STOCH45.22Neutral

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 103.95 is above the 20-day moving average (MA) of 103.47, above the 50-day MA of 103.16, and below the 200-day MA of 112.67, indicating a neutral trend. The MACD of 0.39 indicates Negative momentum. The RSI at 49.57 is Neutral, neither overbought nor oversold. The STOCH value of 45.22 is Neutral, 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

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:ADSL against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:INSPIRISYS	69Neutral	INR 3.45B	9.24	―	―	23.30%	-5.56%
IN:DATAMATICS	65Neutral	INR 42.63B	18.86	―	0.69%	11.14%	-2.79%
IN:ADSL	63Neutral	INR 5.89B	18.85	―	2.89%	18.61%	-21.98%
IN:XCHANGING	58Neutral	INR 6.67B	11.18	―	3.34%	3.91%	0.96%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:CYBERTECH	55Neutral	INR 3.84B	12.29	―	18.90%	10.49%	-9.67%
IN:3IINFOLTD	44Neutral	INR 4.29B	19.37	―	―	-0.84%	-79.45%

* General Sector Average

Performance Comparison

IN:ADSL and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:ADSL	Allied Digital Services Limited	103.95	-64.82	-38.41%
IN:3IINFOLTD	3i Infotech Limited	20.69	2.97	16.76%
IN:CYBERTECH	CyberTech Systems & Software Ltd.	126.50	-21.70	-14.64%
IN:DATAMATICS	Datamatics Global Services Limited	721.30	-172.94	-19.34%
IN:INSPIRISYS	lnspirisys Solutions Limited	87.04	-14.25	-14.07%
IN:XCHANGING	Xchanging Solutions Limited	59.85	-24.14	-28.74%

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 eq...

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 approva...

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.

Date of analysis: Oct 30, 2026

Allied Digital Services Limited AI Stock Analysis