Allied Digital Services Ltd (NSE: ADSL) Q4 2025 Earnings Call dated Jun. 06, 2025
Corporate Participants:
Nehal Shah — Wholetime Director
Gopal Tiwari — Chief Financial Officer
Paresh Shah — Chief Executive Officer
Nitin Shah — Chairman and Managing Director
Ramanathan Ramanan — Global Head of Strategy, Growth, Innovation, and Partnerships
Analysts:
Mit Shah — Analyst
Shweta Deshmukh — Analyst
Deepak Poddar — Analyst
Amit Agicha — Analyst
Unidentified Participant
Harshit — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Allied Digital Services Limited Earnings Conference Call. As a reminder, all participant lines will remain in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal the operator by pressing star then zero on your touchstone telephone. Please note that this conference is being recorded.
I would now like to hand the call to Mr Meet Shah from CDR India for opening remarks. Thank you, and over to you.
Mit Shah — Analyst
Thank you, Ryan. Good afternoon, everyone, and thank you for joining us on Allied Digital Services Limited’s earnings call for the 4th-quarter and financial year ended 31st March 2025. We have with us on the call today, Mr Nitin Shah, CMD; Mr Amanan Ramanathan, Global Head, Strategy, Responsible for Growth, Innovation and Partnerships; Mr Nehar Shah, Whole-Time Director; Mr Paresh Shah, Global CEO; and Mr Gopal Tiwari, Chief Financial Officer.
We will begin with comments from Mr Niel Shah, who will cover the recent developments across the business, followed by Mr Gopal Tiwari, who will walk us through the financial highlights. Thereafter, Mr Paresh Shah will discuss the operational performance and order wins, post which we will open the call for a Q&A session. Before we begin, I’d like to point out that certain statements made on today’s call could be forward-looking in nature and a disclaimer to this effect has been included in the earnings documents that have been shared with you earlier.
I’d like to hand over the call to Mr Shah for closing remarks. Over to you, sir.
Nehal Shah — Wholetime Director
Thank you, Mit. Good afternoon, everyone, and thank you for joining us today. I hope you have had a chance to review the earnings material we shared earlier. We are pleased to report a strong performance for FY ’25 with consolidated revenues reaching INR807 crore at 17% year-on-year growth and the highest annual revenue in our company’s history. This milestone underscores a robust execution capabilities and the growing demand for our digital transformation services across geographies. The Board of Directors has recommended a dividend of 30% for FY ’25 amounting to INR1.5 rupee per share of face value INR5. This is subject to shareholders’ approval at the upcoming AGM.
Our India operations continued to lead our growth trajectory with revenues rising 21% quarterly growth year-over-year. This was driven by strong momentum in both the enterprise and the government segments, particularly through Smart City initiatives. We are proud to play a strategic role in India’s digital transformation journey. Notably, our domestic business surpassed the INR300 crore mark this year, reflecting its depth and resilience. Internationally, we are seeing encouraging signs of recovery. Enterprise clients in the US are reengaging with greater conviction, while EMEA and other global markets are contributing steadily to our diversified revenue base.
From a geographical standpoint, the US showed improved traction, helping drive a 8% year-on-year increase in revenues from the ROW segment. The Indian business continued its momentum, reporting a 28% year-on-year growth. Segment-wise, our services business grew by 9% year-on-year, while solutions revenue rose by 58%. As many of you know, the Solutions segment often serves as a pipeline for our services business, which generates recurring revenue and provides long-term stability. We recorded order intake exceeding INR133 crores this quarter, further strengthening our order book. Over the past few quarters, consistent high-quality wins have helped us build a more diversified portfolio, enhancing our long-term growth visibility., our Global CEO will share more on this shortly.
A key highlight in the quarter — a key highlight in the current quarter, there is a — there is — there was an additional INR80 crore order from the Pune Smart City in May 2025, following the INR430 crore win in October 2024. This brings our total engagement in Puneet City project to over INR500 crore, reinforcing our leadership in the smart city space. We are also in advanced discussions for another major engagement and we share updates as they want — as they materialize. Importantly, we are seeing an increase in the average ticket size of new wins, an encouraging sign of our growth value proposition that trust our clients place in us. Despite the challenging macroeconomic environment, including inflationary pressures and heightened competition, our margins have remained resilient. This is a result of disciplined execution, operational efficiency and continued investment in strategic growth levers.
You are aware that in FY ’25, we changed our statutory auditors upon expiry of five-year term of previous auditors in compliance with regulations. The new auditors have undertaken, they have made in detailed review of our financial statements for last several years and have made some observations in keeping with their interpretation of the applicable accounting standards in order to strengthen the presentation of our financial statements. Our CFO, Gopal Tiwari, will share further details on this exercise.
Looking ahead, we remain cautiously optimistic. While macroeconomic uncertainties persists, we are encouraged by the early signs of recovery in discretionary spending and continued customer engagement. The strong business momentum for the last 3/4, coupled with a healthy deal pipeline increased win rates position us well to deliver consistent growth in the coming quarters. With a more diversified portfolio, robust demand in both domestic and international markets and strong execution capability, we are confident that in our ability to sustain the growth trajectory from FY ’26 and beyond.
That’s all from my side. I’ll now hand over to Gopal Diwari, who will walk you through the financials in more detail.
Gopal Tiwari — Chief Financial Officer
Thank you, Nehal, and good afternoon, everyone. Let me highlight some of the key financial achievements in FY ’25. To begin with, we are pleased to report strong double-digit growth in revenue. Revenues for Q4 FY ’25 were higher by 16% year-on-year basis at INR204 crore. For FY ’24 ’24-’25, we have reported top-line growth of 17% on a year-on-year basis. Full-year revenue of INR807 crore are the highest-ever annual revenue in our history, setting a new benchmark in performance. As we informed earlier, we had appointed new strategy auditors at the last AGM. This change reflects our intent to bring in fresh perspective and further strengthen oversight controls and compliance practices.
The statutory auditors in the year have undertaken a detailed review of our financial statements for last several preceding years. In the course of this review, they have validated a large part of our statements as correctly portraying — portraying the financial position of the company. However, there have been some observations and corrections made by them in standalone financial statements, which I shall take you through. So first one is your — in FY 20078, Allied Digital India had extended a loan to its subsidiary, Allied Inc. USA with the intention that Allied Inc would invest that amount in Allied LLC USA. However, erroneously, the said amount was recorded as an investment in ADSL India books.
This has now been rectified and reclassified to loans and advances. Due to this reclassification of foreign-exchange gain to the extent of INR48 and INR48 crore-plus pertaining to earlier periods has been recognized in the statement of profit and loss account during the current year. Further auditors have identified some areas in valuation of certain assets and liabilities pertaining to foreign-exchange gains loss and the resulting impact of INR20-odd crore has been recognized as a foreign loss in the current year.
Apart from that, there was an error of omission with regard to booking of deferred revenue for an amount of INR7.5 crore, which has now been recognized in the financial statements and other income. Further loss on-sale of fixed assets amounting to INR7.5 crore, which was unrecognized due to an error has now been included in other expenditure. Depreciation has increased to INR15 crore in-quarter FY ’25 compared to INR5 crore in FY ’24. This includes rectification of incorrect estimation of useful life of certain fixed assets, which had resulted in short booking of depreciation to the extent of INR6.9 crores.
The aggregate effect of these rectifications has resulted in a marginal gain in the standalone financial statements. Index 8 specifies that any modification corrections for prior periods should be done in form of restatement of an answers for the earlier years, which requires a detailed exercise involving additional bandwidth and time. Keeping in mind the overall nominal impact of these rectifications, it was considered prudent to take effect of all the above rectification in the current financial year itself. Coming to the consolidated financial statements, the performance up to the profit before-tax level has remained positive.
However, a deferred tax charge arising from these non-recurring items and higher current year tax has led to a negative profit-after-tax for the quarter compared to positive PAT in the Q4 of the previous year. We’d like to reiterate that we are working closely with our Board and Audit Committee to continuously upgrade our internal frameworks, ensuring that our corporate governance keeps pace with the evolving business environment and regulatory expectations. These steps are central to building long-term credibility and trust with all our stakeholders.
Thank you so much. I’ll now hand it over — hand it over to Mr Sah, our CEO, who will take you through our order book and strategic initiatives in more details.
Paresh Shah — Chief Executive Officer
Thank you, Gopal. Good afternoon, everyone. Let me take you through the operational highlights for this quarter. We are pleased to report that Allied Digital secured over INR133 crores in new orders and contract renewals, reinforcing the strength of our offerings and our growing relevance across geographies and sectors. Here are some of the key wins during the quarter, which I’m listing. We have significant engagement with the publicly-traded omnichannel furniture leasing company headquartered in Plano, Texas. Operating across North-America via retail and digital platforms, the client has entrusted Allied Digital to deliver 24×7 multilingual service support English and Spanish for its employees, contractors and vendors across the US, Mexico and Puerto Rico.
Another win, we were selected by a leading British oil and gas player for its US onshore operations in Texas and Louisiana with a strong focus on high-margin production, safety and emission reduction. Allied Digital will provide technical support services for this — for their collaboration tools, meeting rooms and audio-video platforms. Another noteworthy win came from a leading healthcare research firm pioneering treatments for severe diseases through CRI SPR-based genome Editing. Ally Digital will offer digital workplace services, including 24×7 service their support for their clinical users and endpoint engineering for their end-user devices.
On the domestic front, we secured a critical order from a major state-owned electricity transmission company in Maharashtra. We will upgrade their current network by implementing SD-WAN infrastructure across the state reaching down to divisional office levels, a key step-in modernizing their digital backbone. We also received a contract from a multi-super specialty hospital in Gujar, established a joint-venture by leading medical professionals. Allied Digital will manage their facility — facility managed services supporting their day-to-day operations. In addition to all these, we successfully renewed multiple contracts across a wide range of industries, including FMCG, packaging, factoring services, global medical devices, manufacturing, multinational IT consulting and trade-off associations.
These wins and renewals are a testament to our execution strength, industry expertise and commitment to delivering business-critical digital transformation across sectors. We are also proud of our expanding capabilities and the trust our clients continue to place on us. As we move ahead, we remain focused on innovation, operational excellence and driving impactful outcomes for our stakeholders.
With that, I will now hand it over for a Q&A session. Thank you.
Questions and Answers:
Operator
Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Ladies and gentlemen, if you wish to ask a question, please press star and 1. The first question comes from the line of from Ariant Capital Market Limited. Please go-ahead.
Shweta Deshmukh
Yeah. Hi, good afternoon, sir. Thank you for the opportunity. My question regarding the order book with the strong order momentum this year, what kind of revenue growth are we anticipating for FY ’26? And can you throw some light on the split between domestic and the rest of the world orders?
Nehal Shah
So thank you,, for your question. As I told in my previous calls also, we are leading steadily towards our INR1,000 crore top-line revenue and we feel and we expect maybe 1/4 here or there, we should be on the track to reach the milestone in the next four to five quarters. Regarding the breakup, we are seeing there are certain large contracts that are there in the pipeline from international customers for which we are very, very, very excited that we will hear some closures very soon. And from India perspective, there are — we just announced the Pune City about four months back and we got an additional order on that as well, which I already spoke about. And there is a strong pipeline from the government sector as well as the enterprise sector. So some exciting orders might be there, which would be able to announce in the next quarterly meeting that we have?
Shweta Deshmukh
Okay. So what is the progress on onboarding clients directly without intermediaries? And when do you expect this to start reflecting in margin and customer stickiness.
Nehal Shah
So thank you for this question again., in India, if you see, most of our customers are direct. We do not have too many customers who are partners, but yes, our global revenues do have partners through whom we take contracts. The reason for that from a strategy perspective was to make sure that we get to access larger customer-base who by themselves would not consider us large-enough to work directly with us. So that’s the strategy. Coming to direct customers, there is — very soon we’re going to be hiring more salespeople who would be focusing predominantly only on identifying and going behind the mid-segment Tier-1 customers in the global market. So we are very, very confident that in the next three to four quarters, you’ll be hearing some or maybe good number of direct customers, maybe smaller in size, but those customers will come and we should be direct to us, which will help us in bettering our margins in the future quarters.
Shweta Deshmukh
Okay. Sir, my last question is regarding — you have mentioned regarding the restatements of financials. So could you throw some lights on the nature of the restatements and whether there is any financial or operational impact from it.
Gopal Tiwari
I’ll answer that. I’ll answer that. See, restatement was required as per 8. However, there being mine — very minor overall impact on our financials after the gains and losses are booked in the current year, there is hardly, I mean very miniscule impact was there. So that’s why we management took the decision not to restate and take all gains and losses in the current year itself. So you will see that our gains and losses are more or less on a similar line. So there was hardly any impact. I mean, just you can say less than a crore gain were there overall.
Shweta Deshmukh
Okay. Okay. Okay. Thank you so much, sir, for your kind of and all the best for the future. Thank you.
Gopal Tiwari
Thank you.
Operator
Thank you. We take the next question from the line of Deepak Podar from Sapphire Capital. Please go-ahead.
Deepak Poddar
Yeah, am I audible? Hello. Am I audible?
Operator
Please go-ahead.
Nehal Shah
Yeah, go-ahead.
Deepak Poddar
Okay. Thank you very much for this opportunity. Sir, just first up, I wanted to understand first on the reinstatement part. I mean, if this reinstatement would not have happened, I mean what would be — what would have been your consolidated PBT? I mean, which is currently INR10 croven crores. So that will give us some understanding, I mean on operational basis where we stand.
Gopal Tiwari
Yeah. I’ll give you the answer. See, the restatement — the real statement has not made any major difference on the number. The PBT would have been just impacted by less than a crore. However, because of the auditors, I think there is.
Nehal Shah
PBT they are saying it’s looking right now at INR11 crores.
Gopal Tiwari
Yeah, INR11 crores.
Nehal Shah
It would have been better.
Gopal Tiwari
Yeah, no. I mean, that’s what I’m about to say. So there are certain expenses, extra expenses provisions have been booked in our expenses. If you see our other expenses number, that is drastically increased from last quarter or year-on-year basis also. So there were certain provisions, extra provisions and corrections pertaining to earlier period, which was taken into account. Because of that, our — this amount is INR11 crore only. Otherwise this amount would have been actually in the range of around INR20 crore to INR23 crore. Crore if we take-out that impact. So it’s rather quarter-on-quarter basis, it would have been better than the last quarter and year-on-year basis also, it would have been better than last year. So because of that impact, our PBT amount is reduced.
Deepak Poddar
So around INR11 crores would have been in the range of INR20 crores to INR23 crores. So impact of INR112 crores on PBT on an overall basis. I mean the entire impact, right?
Gopal Tiwari
Yes.
Deepak Poddar
Okay. Okay. I got it. And what is your current order book? I mean, what would be our — in rupees crores?
Nitin Shah
So Deepak, technically, we don’t give our order books numbers out because in the past, when we have tried giving out that, it has just confused our investors because typically, if I give out a number, that number has to be a combination of some renewals, some things that already built, some things that we are going to build-out. So typically, what we’ve done is that from the last four or eight quarters that you have been following us or if you see our numbers, we generally give our quarterly order wins and the recurring revenue targets based on that. So even in our current scenario, most of our revenue is recurring in nature. And even the solutions business typically that we build-out eventually turn into services after go-live. So any project that we are implementing right now, we consider them under the solutions bucket. And once we move-out, they go into the services bucket. So the recurring revenue keeps on happening.
Deepak Poddar
Understood. And so this 4th-quarter your order win was around INR133 crores, that’s right.
Nitin Shah
Yes, that’s for this quarter.
Gopal Tiwari
Yes.
Deepak Poddar
And overall, I think we — I mean, you mentioned somewhere a INR500 crores order that we have got in Pune. Is that the right understanding?
Nitin Shah
Correct, correct. That is that we got in last quarter that we announced in the last quarter.
Nehal Shah
Last — lastly last quarter, yeah.
Deepak Poddar
So we got some INR80 crores extra, right?
Nitin Shah
Yeah, that we got — that we just got this month. I mean in the month of May, we got an additional change request coming in from the customer. So that the whole order value went from INR420 crore to INR510 crore something. So about more than INR500 crores.
Deepak Poddar
And when you say, I mean, we have got a good deal pipeline, I mean, can you throw some more light there? I mean, what sort of pipeline talking about? And what is the scale — I mean, what sort of order win per quarter we can see because of this pipeline?
Nehal Shah
So there are so couple of large contracts through the tune of about — in the US, we are seeing one or two large orders that are there in the pipeline of which one looks very, very positive. I’m probably talking about the bigger numbers, okay, I’m not going through the smaller details. That contract itself is in the tune of about 45 million to $50 million. If we click in there, that adds to the order book. And then there are several other smaller items on which we are working probably Pradesh, I could give a number on that well.
Paresh Shah
Yeah, as you know we — talked about the Pune project, which will reflect from this quarter though. So that’s another one large one. And we have some very critical projects even in India, which are pretty much in the pipeline on the verge of closure. So we will soon have some announcement this quarter on that. And these are good size orders. So we definitely see that the coming quarters show a very promising order wins at least in the next two, 3/4, that’s the visibility that we have immediately.
Deepak Poddar
But we can say, I mean for FY ’26, what sort of order win we can target?
Nehal Shah
So I would say order wins important is that the top-line target that we have kept of INR1,000 crores, I think we are slowly progressing over there. We would want to make sure that we try and reach there. For that, from our revenue perspective, we should be ideally targeting a quarterly revenue of about INR250 crore. If you see last 3/4, we have been successfully able to go beyond the INR200 crore mark and slowly progressing, depending upon how and when the billing happens, we are targeting to reach towards the INR250 crore quarterly mark. That’s the first short-term target that we kept for ourselves.
Deepak Poddar
INR1,000 crores won’t be possible, right? I mean, I mean maybe in three, four quarters or two, 3/4, we may target to reach a INR250 crores kind of a quarterly run-rate. Is that understanding right?
Nehal Shah
So see, if you ask me, Deepak, the idea is that it all depends upon when the billing is allowed. If you ask from the previous orders that are already booked in, depending upon the execution and depending upon when I can build them, I would be able to reach to that number. But we are very confident that the number is in the hindsight, it is reachable and doable. Maybe, yeah, you are right, if the billing happens or gets postponed by a quarter, you might see that happening maybe after five quarters.
Paresh Shah
If I can add — if I can add something to dominant hello? Hello.
Nehal Shah
Yeah, go-ahead.
Paresh Shah
I suggest — I mean, I would request you to look at the trajectory that Allied Digital is looking at from a — you know-how it’s going to affect Allied Digital’s revenues over the next several years. First of all, there is a very strong growth in our system integration business, the master system integration business in India and we are seeing bigger and bigger opportunities. And that is a huge demand for intelligent infrastructure, not just from a national point-of-view, but also from GCCs and all which are coming up. And so this is right in the core competency of Allied Digital.
And so there is a great opportunity in front of us, which we are bidding on and we are being pretty successful because of our track-record. The second is the same opportunity exists in international markets and we are now looking at international opportunities in master System integration, not just in the developed countries, but in also the emerging economies. The third trajectory is enterprise solutions in India and enterprise business. So that is again we have had increasing number of customers who are now reposing their faith in us in end-to-end infrastructure management or managed services.
And managed services is going to grow because of the complexity of technology that is getting integrated into all the solutions that is currently out there, whether it is edge AI, whether it is IoT and so on. And AI-enabled managed service is now going to become the norm and that is where Allied Digital has already developed assets and IP, which is going to help us in that direction and therefore, more-and-more reliance on allied digital solutions and services will do there. And the fourth is we are also diversifying from a geography point-of-view and that geographical expansion, not just depending on one particular country, but in multiple countries is going to help us because now we have a track-record of operational execution in multiple countries across the globe.
And finally, that question which somebody asked in terms of going direct, that is again a very conscious strategy that we are developing now and we have started looking at because on one-side, our partnership strategy enables us to address large potential customers that are beyond our reach, but there is a whole lot of medium and small customers that Allied digital can go directly on. So if you look at this trajectory growth, that should give you a certain sense of the quality of revenue and the holistic approach that we are looking at. And I would urge this view to be taken from the point-of-view of an assessment of digital capabilities as well as the future.
Deepak Poddar
That’s very helpful, sir. And just one final thing. On the margin side, how should we look at margin for this year, FY ’26, either EBITDA or PAT margin, whatever.
Nehal Shah
So Deepak, we are trying to work on our EBITDA margins, but looking at the current order book and the pipeline that we have in the US market, global market, it could be a little challenging. We’ll be happy to continue at the margins that we are showing right now and try to improve it operationally as and when we can in the near-future.
Deepak Poddar
So right now, I mean, we are talking about 11%, 12% EBITDA margin. I mean, is that the range we are looking at?
Nehal Shah
Yes. Currently, yes, this is what I would want to stick to and then constantly work towards improving the margins because most of our contracts that we get — we get for a longer period of time. So once they go in the go-live phase or in the stabilization phase is when we get a lot of scope of improving the margins with respect to getting additional change request or additional business from the existing customer or reducing the operational cost by introducing as Mr explained, AI in AI in our delivery model. So we would — we would be able to do that in the coming quarters.
Deepak Poddar
That’s very helpful, sir. I mean that would do it from my side. Thank you so much.
Nehal Shah
Thank you.
Operator
Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and one. The next question comes from the line of Amit from H.G. Hawa; Company. Please go-ahead. Yeah, good afternoon, sir. Am I audible? Yes, yes. Please go-ahead.
Amit Agicha
Yeah, thank you for the opportunity, sir. Sir, my question was like two questions. One is like connected to the cash-flow. Can you elaborate on the FY ’25 operational cash generated versus the profit reported?
Gopal Tiwari
And second question is connected to the capex, like what are the capex plan like for the FY ’26? See, cash-flow generated in FY ’25 is to the tune of almost 30 — sorry, it’s almost INR60 odd crore cash-flow has been generated in this financial year. And there is as such, we have no major plan for capex for the coming year.
Nehal Shah
So rather than capex, I think we have kept this watches money for looking out for any potential acquisitions with respect to our making sure that we are more technically and technologically more advanced. So that is what the money is kept for.
Amit Agicha
Thank you, sir. All the best for the future.
Nehal Shah
Thank you.
Gopal Tiwari
Thank you.
Operator
Thank you. The next question comes from the line of Tushar Parik from Natwal Mangaldas and Company. Please go-ahead.
Unidentified Participant
Hi, this is Tushar Yar. Good afternoon to everybody. I just wanted to understand that am I audible?
Paresh Shah
Yes, yes, please.
Nehal Shah
Yeah. The current scenario with regards to the war and things going on and Allied Digital having connect with the government and working closely with the government, is there any prospect for us to participate in any border security or cybersecurity or anywhere where the company can also show participation in the defense sector, which is a very hot topic for the government and very interesting for the international market as well because the surveillance market and the cybersecurity Board proves as a very interesting area to work upon. Is there any chances where the company can participate there? Please let me have.
Nitin Shah
I will answer. Anitan. We had been trying to get into the model security almost about five, six years, right. We had a good connection with the Israel-based company, DOG and I visited, they also visited here and somehow it did not work-out. We are very much there in the homeland security. So whatever that doing for the city services, same thing could also be done at defense also. So we are very optimistic to get some of those large good tenders that we can work on that and we are ahead of the curve on when it comes to cyber security or physical security.
Paresh Shah
Yeah, let me just add written by is cybersecurity is going to be because after this operations, there have been even more attacks of cybersecurity attacks. So it’s very important that that’s an area which is very much hot in-demand for every industry in India. And there are certain targets which the terrorists want to achieve. So we see a big prospect in really improving on the cybersecurity business, which I’m sure it’s going to be in big demand in coming quarters.
Nehal Shah
And Tushar, just to add to that, there are a couple of RFPs that have come across with us for which we are right now doing technical evaluation for us to figure out if it is good enough for us to bid or not on the border security and border safety. So yes, hopefully, maybe in the next two or 3/4, you’ll hear some positive news on that side as well. But having said that, Allai Digital is in the right space and right position when we want to do any such kind of projects due to the various different city projects that we have done.
Unidentified Participant
Okay. Thank you very much. It was nice and hope all of you all the very best and see if you doing something in the defense force also defense sector also.
Ramanathan Ramanan
Thank you. Thank you. If I can just finally add-on this, cybersecurity is now taking a new turn-in terms of AI getting integrated into all the drones and IoT devices that are out there. And that is very much up Allied Digital’s core competency because of the managed services that we do, not just from the point-of-view of IT, but also for smart city, surveillance and so on and so forth. So this is an area that we intend to capitalize on and also develop necessary partnerships with very strong organizations who have good solutions so that not only are we able to address the big opportunities, but also enable through the partnerships opportunities in the international market.
Unidentified Participant
Okay. Thank you.
Operator
Thank you. We take the next question from the line of Harshit, an investor. Please go-ahead.
Harshit
Hello, everyone. My name is Harshit. My question is more with regards to the net profit margins. I can see the EBITDA margins has been consistent since last three years. So it was around 13% in FY ’23 and then 12 each in FY ’24, ’25, which is around flat. But the net profit margins have been consistently down. What is the reason for the same? And also, I think in one of the earlier questions, you mentioned that there are some additional other expenses, which has been booked in the quarter to the tune of, INR10 crore INR11 crores. So I just wanted to understand what that relates to
Gopal Tiwari
Thank you. So I’ll give you the answer. The other expenses have increased by around INR10 crores INR2 crore almost. That amount pertains to extra provisions have been made as per the advise of the new auditors, which needs not to be written-off in coming years that can be brought back again into the profit. But since we had to take that provision, our PBT amount has been reduced by that. So if you take that amount into account, our PBT for this year would have been around INR72 crore to INR73 crore.
So our EBITDA would have been much better and our net profit — so-far as net profit is concerned, you can see that net profit is down because of tax implications. Our deferred tax has increased in this year. Instead of last year, it was INR25 odd lakhs. This year it is INR5 crore, INR5.5 crore. And even our current year tax has also increased from last year’s INR17 crore, it is INR23 odd crore. So our tax implication is much higher in this year because of our PAT is squeezed to that extent. So going-forward, this is a one-time phenomenon. Going-forward, it’s not — it’s not going to be remaining same. So our PAT will improve considerably in coming periods. So our PAT margin and EBITDA is going to be better than the current year.
Unidentified Participant
Okay, understood. Thank you. Just one follow-up question on these provisions. So these provisions, are these some provisions on the data? So like can you just explain a bit in detail?
Gopal Tiwari
It’s an extra ECL have been provided by the — by the auditors or the auditors. So we have provided that as a precautionary measure, but it’s going to be written back most probably in the coming years.
Unidentified Participant
Okay. Understood. And one second question from me is on these new Pune projects, is there any additional one-time expenses that has been booked, which kind of reduces your net profit margins or there isn’t anything like that?
Nehal Shah
No, nothing one-time that we have done for Pune project, it is a standard project for us. Whatever we — so and whenever we go in the — in the implementation phase, we see a lot of products being procured and deployed. That could be one of the other reasons where you will see the margins to be a little lower because all of us know that in the product — during the product delivery phase, the margins are not as good as — or as high as the delivery and the O&M phase. So that could be the reason. But having said that, I don’t see or I don’t look at that there are any extra investments done, one-time investment or in one-time expenses done from the Pune project perspective.
Nitin Shah
Okay. I would rather put it this way, Pune is a very large project. Unfortunately, no benefit that is being accrued till now in this balance sheet. But next quarter and coming quarter, you will see a lot of benefit which will be coming. So unfortunately, we have not benefited from balance sheet point-of-view, but INR500 crore project is yet to be executed. And you will see a lot of upside during the next quarter and post that.
Unidentified Participant
Okay. That’s very helpful. One last question from me is around the deposits, which has been or investment which has been now reclassified as investment or as deposits, sorry is there any provision on those deposits considering those have been like provided to the to the subsidiary in 2008.
Gopal Tiwari
No, no, no, no, it’s other way around. In fact, it is reclassified from investments to deposits. Deposits. No, this thing is done because it’s basically it’s in the nature of equity only. So that amount is going to be converted into equity in the near-future. So there is no provision, no, nothing has been done against that. That amount is.
Unidentified Participant
Understood. Thank you so much. And all the best for the future.
Operator
Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and one. The next question comes from the line of Pratik Dedia, an investor. Please go-ahead.
Unidentified Participant
Yeah thanks for the opportunity. This is my. I think you might be have to ever.
Paresh Shah
Can you speak up little louder? Can’t hear you Pratik, are you there? Hello? Pratik, are you there? Your voice is
Operator
Ladies and gentlemen, since there is no response from our participant, we conclude the question-and-answer session. I now hand the conference over to the management for their closing comments.
Nehal Shah
Thank you for your participant engagement in today’s call. As we look-ahead, we remain confident in our ability to drive consistent and sustainable growth with solid operational execution, enhanced financial discipline and renewed focus on governance, we are steadily progressing towards INR1,000 crore revenue milestone. We are excited about the opportunities across the landscape and continue to seek out large complex multiyear orders. Should you have any further questions or need additional details, please feel free-to reach-out to our team of CDR India. Thank you once again for your continued interest and support. We look-forward to engaging with you again next quarter. Thank you, everyone.
Gopal Tiwari
Thank you.
Operator
Thank you. On behalf of Allied Digital Services Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.