DRC Systems India Limited (DRCSYSTEMS)
₹11.57 -2.53% last close, 16 Oct
Q2 FY27 results
📅 Next results: 26 Oct 2026 (board meeting)DRC Systems India Limited's board meets on 26 Oct 2026 to consider its Q2 FY27 results (July-September 2026).
In its latest reported quarter, Q1 FY27, DRC Systems' revenue was ₹23.4 Cr (+27.8% year on year, -14.0% on the previous quarter), and net profit ₹5.6 Cr (+27.8% year on year); the operating margin was 27.4%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹23.4 | +27.8% | -14.0% |
| Operating profit | ₹6.4 | +0.2% | -20.6% |
| Net profit | ₹5.6 | +27.8% | -4.5% |
| EPS (₹) | 0.39 | +18.2% | -7.1% |
| Operating margin | 27.4% | — | — |
DRCSYSTEMS delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 63.6% of the DRCSYSTEMS shares traded on NSE were taken to delivery, against the stock's own 20-session average of 71.15%. That is close to its usual level. Turnover was only ₹7 lakh, so a handful of trades can move this figure.
Delivery in the last 5 sessions: 52.6% · 46.5% · 68.3% · 67.1% · 63.6%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
DRC Systems has approved the complete divestment of its 49.18% stake in associate company Inexture Solutions Limited for a consideration not exceeding ₹1.02 Cr, expected to complete within 60 days. Inexture reported turnover of ₹19.03 Cr and net worth of ₹1.95 Cr as of March 31, 2026. Concurrently, the Board revised the acquisition structure for a 49% stake in Skizzle Technolabs for up to ₹2.00 Cr from existing shareholders (instead of a fresh subscription), target completion by March 31, 2027. Relative to DRC's market cap of ₹164 Cr and net worth of ₹70 Cr, both transactions represent small capital reallocations of ~1-3%.
- Divesting entire 49.18% stake in associate Inexture Solutions for consideration not exceeding ₹1.02 Cr
- Inexture reported turnover of ₹1,902.88 Lakhs (₹19.03 Cr) and net worth of ₹195.17 Lakhs as of March 31, 2026
- Inexture agreement to be signed by October 26, 2026, with disposal targeted within 60 days
- Board approved buying 49.00% stake in Skizzle Technolabs from existing shareholders for up to ₹2.00 Cr by March 31, 2027
DRC Systems has approved the complete divestment of its 49.18% stake in associate company Inexture Solutions Limited for a consideration not exceeding ₹1.02 Cr, expected to complete within 60 days. Inexture reported turnover of ₹19.03 Cr and net worth of ₹1.95 Cr as of March 31, 2026. Concurrently, the Board revised the acquisition structure for a 49% stake in Skizzle Technolabs for up to ₹2.00 Cr from existing shareholders (instead of a fresh subscription), target completion by March 31, 2027. Relative to DRC's market cap of ₹164 Cr and net worth of ₹70 Cr, both transactions represent small capital reallocations of ~1-3%.
- Divesting entire 49.18% stake in associate Inexture Solutions for consideration not exceeding ₹1.02 Cr
- Inexture reported turnover of ₹1,902.88 Lakhs (₹19.03 Cr) and net worth of ₹195.17 Lakhs as of March 31, 2026
- Inexture agreement to be signed by October 26, 2026, with disposal targeted within 60 days
- Board approved buying 49.00% stake in Skizzle Technolabs from existing shareholders for up to ₹2.00 Cr by March 31, 2027
DRC Systems India Limited has submitted its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended September 30, 2026. The certificate issued by Registrar and Share Transfer Agent MUFG Intime India Private Limited confirms that share certificates received for dematerialisation were processed and confirmed or rejected within prescribed timelines. Additionally, the corresponding physical certificates were cancelled and depositories were registered as owners. This is a recurring regulatory filing with no financial or operational impact.
- Compliance certificate submitted under Regulation 74(5) of SEBI Regulations, 2018
- Pertains to the quarter ended September 30, 2026
- Issued by RTA MUFG Intime India Private Limited on October 03, 2026
- Filing officially submitted to BSE and NSE on October 10, 2026
DRC Systems India Limited released the scrutinizer's report and voting results for its 14th Annual General Meeting held on September 17, 2026. All four resolutions, including the adoption of FY26 financial statements and the re-appointment of Managing Director Hiten Ashwin Barchha, were passed with over 99.99% approval. A total of 11,04,96,613 votes were polled out of 14,40,81,330 total shares, representing a 76.69% turnout. The meeting concluded via video conferencing with 54 members attending.
- Overall voting turnout stood at 76.6904% with 11,04,96,613 votes polled out of 14,40,81,330 shares
- Adoption of FY26 Audited Financial Statements approved with 99.9995% votes in favour (11,04,96,094 votes)
- Re-appointment of Managing Director Mr. Hiten Ashwin Barchha approved with 99.9994% votes in favour
- Re-appointment of Executive Director Mr. Janmaya Preyas Pandya approved with 99.9994% votes in favour
- A total of 54 shareholders attended the AGM via Video Conferencing (4 promoter group, 50 public)
DRC Systems India Limited held its 14th Annual General Meeting on September 17, 2026, via Video Conferencing. Key business transacted included the adoption of FY26 financial statements and the re-appointment of Managing Director Hiten Barchha and Executive Director Janmaya Pandya via special resolutions. No audit qualifications were reported by the statutory or secretarial auditors. Detailed voting results under Regulation 44 will be submitted separately.
- 14th AGM held and concluded on September 17, 2026, spanning 11:01 AM to 11:08 AM
- Total of 4 resolutions transacted, including 2 ordinary and 2 special resolutions
- Managing Director Hiten Barchha and Executive Director Janmaya Pandya proposed for re-appointment
- Remote e-voting was open from September 13 to September 16, 2026
- No qualifications reported by Statutory and Secretarial Auditors for FY26
DRC Systems India Limited has issued the notice for its 14th Annual General Meeting scheduled for September 17, 2026, via video conferencing. The cut-off date for remote e-voting eligibility is set for September 10, 2026, with the voting window open from September 13 to September 16, 2026. In the accompanying Annual Report for FY 2025-26, the company highlighted a 46% growth in consolidated revenue from operations to Rs 95.51 crore (Rs 9,550.5 lakhs) and a 28% increase in PAT to Rs 19.32 crore (Rs 1,932.2 lakhs).
- 14th AGM scheduled for September 17, 2026, at 11:00 AM IST via Video Conferencing
- Remote e-voting cut-off date fixed as September 10, 2026
- E-voting period active from 9:00 AM on September 13 to 5:00 PM on September 16, 2026
- FY26 consolidated revenue reached Rs 9,550.5 lakhs, up 46% YoY
- FY26 profit after tax stood at Rs 1,932.2 lakhs, registering a 28% YoY growth
DRC Systems has approved the re-appointment of Mr. Hiten Ashwin Barchha as Managing Director and Mr. Janmaya Preyas Pandya as Executive Director for three-year terms starting in late 2026 and early 2027, respectively. The company also reported its Q1 FY27 standalone results, showing a revenue increase to ₹13.32 Cr from ₹11.51 Cr in the same quarter last year. However, standalone PAT saw a slight decline to ₹0.82 Cr from ₹0.89 Cr YoY, primarily due to a significant rise in contracting expenses. The re-appointments are subject to shareholder approval at the upcoming AGM on September 17, 2026.
- Re-appointment of Managing Director Hiten Ashwin Barchha for a 3-year term effective November 9, 2026
- Standalone Q1 FY27 revenue grew 15.7% YoY to ₹13.32 Cr from ₹11.51 Cr
- Contracting expenses increased by 40.8% YoY to ₹7.11 Cr in Q1 FY27
- Standalone Profit After Tax (PAT) for the quarter stood at ₹0.82 Cr vs ₹0.89 Cr YoY
- 14th Annual General Meeting (AGM) scheduled for September 17, 2026
DRC Systems has approved the re-appointment of Mr. Hiten Ashwin Barchha as Managing Director for a three-year term effective November 9, 2026. The company also re-appointed Mr. Janmaya Preyas Pandya as Executive Director for three years starting January 2027. On the financial front, standalone Q1 FY27 revenue grew 15.7% YoY to ₹13.32 Cr, though standalone PAT saw a slight decline to ₹0.82 Cr from ₹0.89 Cr in the previous year. The company continues to focus on AI integration and international expansion from its GIFT City headquarters.
- Re-appointment of MD Hiten Barchha for a 3-year term starting November 09, 2026
- Standalone Q1 FY27 revenue increased to ₹13.32 Cr from ₹11.51 Cr in Q1 FY26
- Standalone Q1 FY27 PAT stood at ₹0.82 Cr, a decrease from ₹0.89 Cr YoY
- Contracting expenses rose significantly to ₹7.11 Cr compared to ₹5.05 Cr in the year-ago quarter
- 14th Annual General Meeting (AGM) scheduled for September 17, 2026
DRC Systems India Limited reported a standalone revenue of ₹13.32 Cr for Q1 FY27, a 15.7% increase compared to ₹11.51 Cr in Q1 FY26. However, Profit After Tax (PAT) saw a slight decline of 7.8% YoY to ₹0.82 Cr, primarily due to a significant rise in contracting expenses which reached ₹7.11 Cr. Sequentially, the company showed improvement with PAT rising 20.6% from ₹0.68 Cr in Q4 FY26. The board also ensured leadership continuity by re-appointing the Managing Director and an Executive Director for three-year terms.
- Standalone revenue from operations grew 15.7% YoY to ₹13.32 Cr from ₹11.51 Cr.
- Net profit (PAT) for the quarter stood at ₹0.82 Cr, down from ₹0.89 Cr in the previous year's corresponding quarter.
- Contracting expenses increased by 40.9% YoY to ₹7.11 Cr, impacting overall margins.
- Managing Director Hiten Ashwin Barchha re-appointed for a 3-year term effective November 09, 2026.
- The 14th Annual General Meeting (AGM) is scheduled for September 17, 2026.
DRC Systems reported a 15.7% YoY growth in standalone revenue to ₹13.32 Cr for Q1 FY27, though standalone PAT declined by 8% to ₹0.82 Cr. The bottom line was pressured by a 40.8% surge in contracting expenses, which rose to ₹7.11 Cr compared to ₹5.05 Cr in the year-ago period. The board approved the re-appointment of Managing Director Hiten Ashwin Barchha for a three-year term starting November 2026. Investors should note that standalone quarterly revenue represents only ~14% of the TTM consolidated revenue, indicating significant operations reside in subsidiaries.
- Standalone revenue increased 15.7% YoY to ₹13.32 Cr from ₹11.51 Cr.
- Contracting expenses rose significantly by 40.8% to ₹7.11 Cr, impacting operating margins.
- Standalone PAT fell to ₹0.82 Cr compared to ₹0.89 Cr in the same quarter last year.
- Managing Director Hiten Ashwin Barchha re-appointed for a 3-year term effective Nov 9, 2026.
- 14th Annual General Meeting (AGM) scheduled for September 17, 2026.
DRC Systems India Limited has filed its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. The document, provided by the Registrar and Transfer Agent (RTA) MUFG Intime India Private Limited, confirms that share certificates received for dematerialization during the quarter ended June 30, 2026, were processed and cancelled within prescribed timelines. This is a standard administrative procedure for listed companies to verify the accuracy of their shareholding records. The filing has no impact on the company's financial performance or business strategy.
- Compliance certificate issued for the quarter ended June 30, 2026
- RTA MUFG Intime India Private Limited confirmed processing of all demat requests
- Company maintains a debt-free balance sheet with ₹0 Cr debt as per latest financial context
- Promoter holding remains stable at 20.63% as of the last reported quarter
DRC Systems India Limited has announced the closure of its trading window starting July 1, 2026, in compliance with SEBI insider trading regulations. This closure is ahead of the announcement of financial results for the quarter ending June 30, 2026. The window will remain closed until 48 hours after the results are declared to the stock exchanges. This is a standard regulatory requirement and does not impact the company's fundamental operations.
- Trading window closure starts on July 01, 2026.
- Closure pertains to financial results for the quarter ended June 30, 2026.
- Window will reopen 48 hours after the results are officially announced.
- The announcement follows SEBI (Prohibition of Insider Trading) Regulations, 2015.
DRC Systems India Limited has confirmed that there were no deviations or variations in the utilization of the Rs 25 crore raised via a preferential issue in October 2025. As of the quarter ended March 31, 2026, the company has fully utilized the proceeds according to the objects stated in the original notice. Significant portions were used for debt repayment and working capital, with the company now concluding its reporting requirements for this specific fundraise. This transparency indicates disciplined capital management and adherence to shareholder-approved plans.
- Total funds raised via preferential issue amounted to Rs 25.00 crore on October 28, 2025.
- Rs 13.00 crore was utilized for the prepayment or repayment of liabilities, strengthening the balance sheet.
- Rs 3.75 crore was invested in subsidiaries and other strategic investments as planned.
- The company reported zero deviation from the original objects, with 100% of funds now fully utilized.
- No further statements of utilization will be submitted as all proceeds have been exhausted.
DRC Systems India Limited reported a 14.8% year-on-year growth in standalone revenue for FY26, reaching ₹4,865.6 lakhs. Despite the revenue growth, standalone net profit for the full year declined by 19.1% to ₹344.4 lakhs, down from ₹425.9 lakhs in FY25, due to a sharp rise in contracting and other operating expenses. The company also announced a strategic investment in Skizzle Technolabs India Private Limited, which will become an associate company. The Q4 FY26 performance was particularly weak in terms of profitability, with PAT dropping over 55% compared to the same quarter last year.
- Standalone revenue from operations for FY26 increased to ₹4,865.6 lakhs from ₹4,239.0 lakhs in FY25.
- Full-year standalone Net Profit (PAT) fell to ₹344.4 lakhs compared to ₹425.9 lakhs in the previous fiscal year.
- Q4 FY26 standalone PAT stood at ₹68.2 lakhs, a significant drop from ₹152.1 lakhs in Q4 FY25.
- Contracting expenses surged to ₹2,082.3 lakhs in FY26 from ₹1,588.7 lakhs in FY25, impacting margins.
- Board approved investment in Skizzle Technolabs India Private Limited, which will now be an associate company.
DRC Systems reported a steady 14.8% YoY growth in standalone revenue for FY26, reaching ₹4,865.6 Lakhs. However, Profit After Tax (PAT) for the full year declined by 19% to ₹344.4 Lakhs, impacted by a sharp 55% YoY drop in Q4 PAT to ₹68.2 Lakhs. The bottom line was pressured by rising contracting expenses, which jumped 31% YoY, and a one-time exceptional charge of ₹78.9 Lakhs related to new labor codes. Additionally, the company announced a strategic investment in Skizzle Technolabs India Private Limited, which will become an associate company.
- Standalone annual revenue increased 14.8% YoY to ₹4,865.6 Lakhs in FY26.
- Full-year Standalone PAT fell to ₹344.4 Lakhs from ₹425.9 Lakhs in FY25.
- Contracting expenses rose significantly to ₹2,082.3 Lakhs in FY26 from ₹1,588.7 Lakhs YoY.
- Q4 FY26 PAT declined 55% YoY to ₹68.2 Lakhs despite a 10% increase in quarterly revenue.
- Board approved a new investment in Skizzle Technolabs India Private Limited as an associate company.
Financial Performance
Revenue Growth by Segment
The company operates in a single business segment: IT and IT enabled Services. Revenue from operations for H1 FY26 reached INR 4,112.4 Lakhs, a 31% YoY increase from INR 3,149.7 Lakhs. For Q2 FY26, revenue grew 41% YoY to INR 2,283.2 Lakhs, driven by increased demand for web and mobile app development and maintenance services.
Geographic Revenue Split
The company maintains a presence across India, the Middle East, and the US. While specific percentage splits are not disclosed, management describes this tri-regional presence as a 'balanced engine of growth' that reinforces sustainable global performance.
Profitability Margins
Net Profit for H1 FY26 was INR 851.4 Lakhs, up 20% YoY. Net Margin for H1 FY26 was 21%, compared to 23% in the previous year. For Q2 FY26, Net Margin was 18% on a profit of INR 416.7 Lakhs. The slight margin compression in H1 is attributed to investments in global expansion and AI integration.
EBITDA Margin
EBITDA for H1 FY26 was INR 1,297.9 Lakhs, up 32% YoY, with the EBITDA margin improving to 32% from 31% YoY. Q2 FY26 EBITDA grew 43% YoY to INR 648.7 Lakhs with a 28% margin, reflecting strong operational efficiency in project delivery.
Capital Expenditure
Not explicitly disclosed in absolute INR Cr for future periods, but the company reported positive cash flow from operating activities of INR 83.1 Lakhs in FY21 and continues to invest in AI and digital platforms to energize performance.
Credit Rating & Borrowing
The company reported finance costs of INR 2.3 Lakhs for H1 FY26, down from INR 2.6 Lakhs YoY. Standalone cash and cash equivalents stood at INR 422.0 Lakhs as of September 30, 2025, indicating a low reliance on external debt for immediate operations.
Operational Drivers
Raw Materials
As an IT services company, the primary 'raw material' is human capital. Employee benefits expense was INR 819.8 Lakhs in FY21, representing approximately 40% of total operating revenue (INR 2,059.5 Lakhs).
Import Sources
Not applicable as the company is a service provider; however, talent is sourced primarily from India to serve global markets in the US and Middle East.
Key Suppliers
Not applicable for IT services; the company relies on technology infrastructure and software vendors rather than traditional raw material suppliers.
Capacity Expansion
Capacity is measured by workforce and technological capability. The company is currently integrating Artificial Intelligence (AI) across its development and delivery operations to enhance operational agility and efficiency.
Raw Material Costs
Employee costs are the primary driver. In FY21, these costs were INR 819.8 Lakhs. Management focuses on 'Resource Utilization Levels' which improved significantly in FY21 to drive a 100% YoY increase in EBITDA.
Manufacturing Efficiency
Efficiency is tracked via 'Resource Utilization Levels.' The company achieved its highest-ever quarterly EBITDA of INR 1.3 Cr in Q4 FY21 by optimizing staff allocation to projects.
Logistics & Distribution
Distribution is digital. Costs are categorized under 'other expenses' and international expansion costs, which support the 31% YoY revenue growth.
Strategic Growth
Expected Growth Rate
31%
Growth Strategy
Growth is targeted through the integration of AI across all development operations to increase delivery speed. The company is expanding its portfolio in the Middle East and US markets to create a 'balanced engine' of performance and is focusing on sustainable, long-term value through digital platform innovation.
Products & Services
IT and IT enabled Services including web and mobile app development, software consultancy, maintenance, testing, and related ancillary services.
Brand Portfolio
DRC Systems
New Products/Services
Integration of AI-driven development tools and digital platforms is expected to energize the existing portfolio, though specific revenue contribution % for new products is not disclosed.
Market Expansion
Targeting deeper penetration in the US and Middle East markets. The company is leveraging its GIFT City, Gandhinagar headquarters to facilitate international service exports.
Strategic Alliances
The company enters into and maintains commercial agreements and strategic transactions, though specific partner names for the current period were not listed in the provided text.
External Factors
Industry Trends
The industry is rapidly adopting AI. DRC is positioning itself by integrating AI into its core delivery operations to stay competitive and maintain its 30%+ growth rate.
Competitive Landscape
The company operates in a highly competitive global IT services market, competing on the basis of technical expertise in web/mobile apps and operational agility.
Competitive Moat
The moat is built on 'operational excellence' and a diversified geographic presence. Operating from GIFT City provides a competitive cost and regulatory advantage for international IT exports.
Macro Economic Sensitivity
Highly sensitive to global economic conditions and the rate of Internet growth, which dictate the capital expenditure budgets of its international clients.
Consumer Behavior
Shift toward digital-first interactions is driving demand for the company's mobile and web development services.
Geopolitical Risks
Operations in the Middle East and US expose the company to trade policies and world events that could cause actual results to differ materially from forward-looking statements.
Regulatory & Governance
Industry Regulations
Compliant with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company adheres to Ind AS-108 for segment reporting and maintains strict policies on the 'Preservation of Documents' and 'Materiality for Disclosures.'
Environmental Compliance
Not a major cost factor for IT services; ESG compliance is managed through corporate governance policies available on the company website.
Taxation Policy Impact
The company notes that the 'extent to which we owe taxes' is a factor that could cause results to differ; it complies with standard Indian corporate tax norms and Ind AS-108.
Legal Contingencies
The company reported 0 complaints filed, 0 disposed, and 0 pending for the financial year. Statutory audit fees were INR 1.50 Lakhs and limited review fees were INR 1.50 Lakhs.
Risk Analysis
Key Uncertainties
Foreign exchange volatility and changes in government policies are primary risks. Management of rapid international growth (31% YoY) poses an execution risk if resource utilization is not maintained.
Geographic Concentration Risk
Revenue is spread across India, Middle East, and the US, reducing the risk of 100% concentration in any single economy.
Third Party Dependencies
Dependent on the maintenance of commercial agreements and strategic transactions to sustain its expanding portfolio.
Technology Obsolescence Risk
High risk in the IT sector; mitigated by the proactive integration of Artificial Intelligence into development and delivery operations.
Credit & Counterparty Risk
Receivables quality is managed through the Audit Committee; the company reported a positive cash flow from operations of INR 83.1 Lakhs in its last full-year cycle.
