Are Allied Digital latest results good or bad?

Allied Digital Services has released its financial results for the quarter ending June 2025, which reveal several noteworthy operational trends. The company reported a Profit Before Tax (PBT) of Rs 11.47 crore, reflecting significant growth compared to the average PBT of Rs 4.04 crore over the previous four quarters. Additionally, the Profit After Tax (PAT) reached Rs 14.44 crore, indicating a substantial increase over the average PAT of Rs 8.03 crore during the same period.
In terms of net sales, the company achieved Rs 643.94 crore for the nine-month period, which represents a year-on-year growth of 22.20%. For the quarter ended June 2025, net sales showed a quarter-on-quarter growth of 7.18%, contrasting with a decline of 7.35% in the previous quarter. The consolidated net profit also demonstrated a notable quarter-on-quarter growth of 289.75%, compared to a decline of 142.97% in the prior quarter.

However, it is important to note that Allied Digital is facing challenges, particularly with its debt-equity ratio, which has reached 0.16 times, the highest in the last five half-yearly periods. This indicates an increase in borrowing to support its operations.

Furthermore, the company saw an adjustment in its evaluation over the past three months. Overall, the financial results present a mixed picture, highlighting both significant growth in profitability and sales, alongside rising debt levels.