Allied Digital Services Ltd

- Company aims for revenue growth to reach Rs. 1,000 crore in annualized revenue within next 4 to 5 quarters, with quarterly revenues moving towards Rs. 250 crore. - EBITDA margins targeted to improve steadily; current steady-state margin aimed at 11%-12%, with long-term goal of possibly reaching 13%-15% in 2-3 years depending on AI implementation success. - AI and technology-driven Solutions expected to enhance margins by reducing costs and enabling new higher-margin projects. - Large multi-year deals (e.g., a $50 million / Rs. 420 crore contract in Europe) contribute to long-term profit growth. - Management emphasizes quarter-over-quarter margin improvement but cautions on short-term jitter due to product-heavy billing in smart city projects. - Pricing pressures expected to persist for next 3-4 quarters, but company maintains focus on operational flexibility to sustain margin resilience. - Consistent pipeline and diversified portfolio expected to provide long-term earnings visibility and growth.

- The company does not typically disclose a specific order book number as it includes renewals, extra farming with current customers, and net new order wins, which can be confusing. - Instead, order wins and renewals for each quarter are communicated, with separate announcements for large, material deals. - The order intake for Q1 FY2026 was around Rs. 185 crore, strengthening the order book. - The company has a strong pipeline of new orders, including bids for smart cities and safe cities expected to conclude by September. - Large deals, like a recent $50 million (Rs. 420 crore) multi-year contract with a global pharmaceutical company, are part of the current order wins. - The revenue visibility is strong with staggered billing for ongoing projects like Pune Smart City over the next three to four quarters. - Management is confident about continued strong order wins and sustained growth in coming quarters.

- The company currently holds strong cash reserves. - There is no explicit mention of an ongoing or planned fundraising through debt or equity in the transcript. - The management is focused on potential acquisitions, particularly in Cybersecurity and Cloud spaces, and is keeping cash ready for opportunistic acquisitions when market conditions are favorable. - No specific plans for raising funds via debt or equity were disclosed during the call. - The company emphasizes operational flexibility and agility to manage margin pressures without indicating immediate need for external fundraising.

- The company is actively looking at possible acquisitions in the Cybersecurity and Cloud space. - The search and shortlisting process for acquisitions is ongoing. - Cash is being kept in hand strategically to be in a strong position for acquisitions when the market is favorable. - No finalized acquisition has been announced yet, but management indicated announcements will be made once any acquisition reaches the final stages. (Page 9) - No specific details on capital expenditure (capex) or other strategic investments were mentioned for the current or near future besides the acquisition plan.

- Targeting Rs. 1,000 crore annualized revenue within 4-5 quarters, with quarterly revenue run rate around Rs. 250 crore. - Strong double-digit year-on-year revenue growth: Q1 FY26 revenue at Rs. 219 crore, a 22% increase. - India operations growing rapidly (27% YoY), driven by enterprise and government segments, especially Smart Cities projects. - Continued growth expected from global markets (U.S., Europe, Middle East) with new large deals, e.g., a $50 million multi-year U.S. order. - Solutions revenue growing faster (32% YoY) than Services (20% YoY), enhancing recurring revenue stability. - Healthy order pipeline (~Rs. 185 crore intake in Q1 FY26) and increasing average ticket size boosting growth visibility. - Expansion of sales teams, especially for direct international customer acquisitions, to accelerate new wins. - AI-driven solutions and managed services expected to contribute significantly to revenue growth in the next 3-4 quarters.