Allied Digital Q4 FY26 Results (NSE: ADSL)
Signal: Slipped to loss
The read
Q4FY26 marks an inflection point for the worse: the first quarterly loss in the series, driven by a blowout in employee costs that turned OPM deeply negative (-3.78%), despite revenue accelerating to +31% YoY. The full-year PAT grew 124% to ₹50.87 Cr, but the Q4 loss raises serious questions about cost control and the quality of earnings.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹267.77 Cr | 31.03% | 8.23% |
| EBIT | ₹-10.12 Cr | -141.56% | |
| Net profit | ₹-3.39 Cr | -152.9% | |
| EPS | ₹-0.6 | -123.53% | |
| EBIT margin | -3.78% |
P&L walk
Revenue growth accelerated to +31% YoY, but inflated employee costs (75.2% of revenue, up sharply QoQ) crushed margins, leading to a rare negative OPM and PAT loss.
Key positives
- Revenue growth re-accelerated to +31% YoY, the highest in the series, reflecting strong deal momentum.
- Full-year PAT grew +124% YoY to ₹50.87 Cr, showing strong annual profitability.
Key concerns
- OPM was deeply negative at -3.78%, the lowest in the series, driven by employee costs surging to 75.2% of revenue.
- The company reported a net loss of ₹3.39 Cr for the quarter, a sharp reversal from a profit of ₹14.11 Cr in Q4FY25.
- Sequential margin collapse of 1435bps QoQ signals a significant operational issue or one-off cost in the quarter.
Research and educational content only. Not investment advice.