NSE: DRCSYSTEMS · BSE: 543268
DRC SYSTEMS INDIA LIMITED
Provides IT and IT-enabled services spanning cloud computing, artificial intelligence, machine learning, ERP, digital marketing, and web and mobile application development. In FY26, consolidated revenue from operations was Rs. 9,550.5 lakhs, up 46% year-on-year, with net profit of Rs. 1,932.2 lakhs (up 28%) and EBITDA of Rs. 2,832.6 lakhs at a 30% margin. Q4 FY26 revenue grew 61% to Rs. 2,719.9 lakhs. The company has been expanding into education and digital learning through AI-powered solutions, and made an investment in Skizzle Technolabs India Private Limited, which became an Associate Company. It also operates a wholly owned Dubai-based subsidiary, DRC Systems EMEA LLC - FZ, which targets Middle East clients in the same service areas. Employee cost is the largest input at 31.7% of revenue, followed by other operating expenses at 38.9%, with depreciation at 7.1% and no materials cost, reflecting an asset-light services model. Outstanding borrowings were reported as nil as of March 31, 2026. AR · MarketPing reader · 2026-08-02
Revenue streams, as the annual report describes them. IT and ITeS services, Middle East operations, Education and digital learning. Asset-light IT and ITeS services company with international expansion.
Exhibit 1: Financial summary, FY23–FY26 (all audited; no estimate years)
| ₹ crore · consolidated | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|
| Revenue | 26 | 48 | 65 | 96 |
| EBITDA (ex other income) | 6 | 15 | 21 | 27 |
| margin % | 22.9 | 31.1 | 31.7 | 28.6 |
| Owners' profit | 7 | 12 | 15 | 19 |
| EPS, as reported (₹) | 1.64 | 0.88 | 1.14 | 1.40 |
| ROE % · ROCE % | 19.4 · 24.6 | 24.4 · 24.9 | 23.3 · 25.4 | 17.2 · 19.6 |
| Debt / equity (x) | 0.00 | 0.00 | 0.00 | 0.00 |
| Cash from operations | 3 | 28 | 33 | 48 |
| Capex | (4) | (24) | (23) | (0) |
Exhibit 2: Quarterly performance, last 8 quarters
| ₹ crore | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 16 | 17 | 17 | 18 | 23 | 27 | 27 | 23 |
| Profit before tax | 4 | 4 | 5 | 5 | 5 | 5 | 7 | 6 |
| Net profit | 3 | 4 | 4 | 4 | 4 | 5 | 6 | 6 |
| EPS (₹) | 0.25 | 0.27 | 0.33 | 0.33 | 0.31 | 0.37 | 0.42 | 0.39 |
Exhibit 3: Peers — basic industry group, by market cap
| Company | M.cap ₹ cr | P/E | P/B | EV/EBITDA | ROE % | ROCE % | Rev CAGR 5y % | EBITDA m. % |
|---|---|---|---|---|---|---|---|---|
| L&T TECHNOLOGY SER. LTD. | 43,370 | 32.9 | 6.68 | 20.0 | 19.7 | 21.1 | 15.1 | 19.6 |
| INVENTURUS KNOWLEDGE SO L | 28,839 | 37.0 | 10.30 | 26.2 | 25.8 | 27.7 | — | 33.6 |
| TATA TECHNOLOGIES LIMITED | 26,430 | 47.4 | 6.74 | 28.7 | 13.9 | 14.3 | — | 18.3 |
| NETWEB TECH INDIA LTD | 25,071 | 95.9 | 34.66 | — | 28.5 | 37.5 | — | 15.7 |
| SAGILITY LIMITED | 21,192 | 21.4 | 2.19 | 12.0 | 9.6 | 11.6 | — | 22.3 |
| AFFLE 3I LIMITED | 19,968 | 41.7 | 5.47 | 27.3 | 12.5 | 15.2 | 39.3 | 25.8 |
| BLACK BOX LIMITED | 14,418 | 61.8 | 11.20 | 28.7 | 16.9 | 9.5 | 6.2 | 8.4 |
| CYIENT LIMITED | 12,888 | 33.8 | 2.09 | 11.7 | 7.5 | 9.7 | 12.0 | 13.0 |
Exhibit 4: Where the company sits in its group
| Metric | Company | Group median | Rank | Better than |
|---|---|---|---|---|
| P/E (TTM) | 7.5 | 17.9 | 16 of 76 | 80% |
| P/B | 1.4 | 2.2 | 27 of 70 | 62% |
| ROCE | 19.2 | 9.6 | 20 of 86 | 78% |
| ROE | 17.2 | 9.2 | 13 of 70 | 83% |
| Debt / Equity | 0.0 | 0.0 | 1 of 70 | 74% |
| EBITDA margin | 32.2 | 13.0 | 11 of 69 | 85% |
| Revenue growth | 27.8 | 20.8 | 25 of 67 | 64% |
| Profit growth | 27.8 | 14.6 | 25 of 64 | 62% |
| Market cap | 161 | 325 | 50 of 87 | 43% |
Exhibit 5: Filings of the last 90 days, with the measured price reaction
| Date · filing | Category | Importance | Next day % | 5-day % |
|---|---|---|---|---|
| 26 Oct 2026 · DRC Systems software division earns CMMI Level 5 appraisal | compliance | low | — | — |
| 26 Oct 2026 · Q2 revenue slips 7%, H1 profit rises 13%, but operating cash flow turns negative | results | high | — | — |
| 16 Oct 2026 · DRC Systems board meeting on Oct 26 to consider Q2 FY26 results | results | low | — | — |
| 14 Oct 2026 · DRC Systems to divest full Inexture stake, acquire 49% in Skizzle | strategic transactions | high | — | — |
| 14 Oct 2026 · DRC Systems to acquire 49% in Skizzle, divest Inexture stake | strategic transactions | medium | — | — |
| 10 Oct 2026 · Quarterly dematerialisation certificate filed for July to September 2026 | compliance | minimal | — | — |
| 24 Sept 2026 · DRC Systems closes trading window ahead of Q2 results | compliance | minimal | — | — |
| 17 Sept 2026 · DRC Systems 14th AGM: All 4 resolutions passed with 99.99% approval | board shareholder meetings | low | — | — |
| 17 Sept 2026 · DRC Systems holds 14th AGM; 4 resolutions passed including MD re-appointment | board shareholder meetings | low | — | — |
| 21 Aug 2026 · DRC Systems 14th AGM on Sept 17, 2026; e-voting from Sept 13 to 16 | compliance | minimal | — | — |
How to read this document
| Where a broker report shows | This document shows | Why |
|---|---|---|
| A rating (BUY / ADD / REDUCE / SELL) | A state: the latest filed quarter and the measured reactions | an event is a fact; a rating is an opinion that requires SEBI RA registration |
| A target price and upside | The current price and the multiples against the group | a target is a forecast; a multiple is a measurement |
| Estimate years marked E | More audited years; no estimates | MarketPing publishes no forecasts — your own model lives on the Models page |
Sources, method and disclosures
This document is a statistical summary of publicly filed information and market data, prepared by software from primary sources: SEBI results XBRL filed with BSE and NSE, LODR disclosures, shareholding patterns, exchange price data. It contains no research recommendation, no price target and no opinion on the merits of any security, and is not a research report within the meaning of the SEBI (Research Analysts) Regulations, 2014, Regulation 2(1)(w)(vii). Financial statements are as filed (consolidated where the company files consolidated results). Ratios are computed over filed lines. Where a figure is unavailable the table shows a dash rather than an estimate. The business brief is written by MarketPing's reader from the annual report and checked against it; no figure in a table was generated by a model. Nothing here constitutes investment advice, an offer or a solicitation; readers should consult a SEBI-registered adviser before acting. MarketPing is not a SEBI-registered intermediary.