Allied Digital targets 25% growth after record quarterly revenue
Management expects a massive Mumbai smart city win within weeks, alongside two ₹600 cr state contracts.
What's new
- Company posted record Q4 revenue of ~₹250 cr.
- Management guides for 12.5-13% EBITDA margins in the near term.
- A ₹150-200 cr Mumbai smart city project is due for announcement in 2-3 weeks.
Why it matters
The company is transitioning from resolving legacy audit issues to a growth phase backed by clear revenue and margin targets. The pipeline is heavy on state-level infrastructure work, which demands execution precision to convert into earnings.
What we're watching
- Formal announcement of the Mumbai smart city contract.
- Progress on the final RBI approvals to fully close previous audit qualifications.
- Execution of the two pending ~₹600 cr Maharashtra contracts.
The full read
Allied Digital Services just finished its strongest quarter ever, bringing in ₹250 crore in revenue. Management is betting on that momentum to carry through FY27, setting a growth target of 22-25% and projecting EBITDA margins between 12.5% and 13%. Beyond the financials, the company has an active pipeline with two Maharashtra government contracts worth ₹600 crore each and an imminent ₹150-200 crore smart city project in Mumbai expected to be public in roughly three weeks. CFOs often face scrutiny regarding past audit qualifications, but management claims these are now cleared, pending only final RBI sign-offs. The company is currently pinning its growth on AI-driven efficiency and government infrastructure demand. What changes from here is whether Allied Digital can bridge the gap between this pipeline and the bottom line.