DC Infotech Q1 FY27 Results (NSE: DCI)
Signal: Growth decelerated
The read
The quarter shows a sequential margin inflection, with consolidated EBITDA margin rising 37bps QoQ to 4.68% after 4.27% in Q4FY26, but the trajectory is not yet a clean acceleration: revenue fell 30.13% QoQ, security software and services declined 5.58% YoY, finance costs rose 38.37% YoY, and EPS growth of 1.79% materially lagged PAT growth of 12.00% because of dilution.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹167.24 Cr | +12.93% | -30.13% |
| EBIT | ₹7.65 Cr | +19.89% | |
| Net profit | ₹4.53 Cr | +12.00% | |
| EPS | ₹2.84 | +1.79% | |
| EBIT margin | 4.68% |
P&L walk
Consolidated revenue rose 12.93% YoY, gross margin expanded 67bps to 8.62%, EBITDA margin improved 30bps to 4.68%, and PAT increased 12.00% to ₹453.37 lakh; however, security software and services revenue fell 5.58% YoY and the subsidiary reduced group PAT by ₹17.80 lakh.
Segments
Products drove the quarter with revenue up 15.38% YoY to ₹15,091.30 lakh and segment result up 28.87% to ₹1,237.77 lakh, while Security Software and Services revenue fell 5.58% YoY to ₹1,632.31 lakh and its result fell 5.91% to ₹204.47 lakh; the subsidiary's ₹17.80 lakh loss pulled consolidated PAT below standalone PAT.
Key positives
- Products revenue reached ₹15,091.30 lakh, up 15.38% YoY, while Products segment result rose 28.87% to ₹1,237.77 lakh.
- Consolidated EBITDA rose 20.53% YoY to ₹782.42 lakh versus revenue growth of 12.93%, and EBITDA margin expanded 30bps to 4.68%.
- Consolidated segment assets increased 62.80% YoY to ₹31,746.82 lakh while depreciation rose 58.26% to ₹17.33 lakh, indicating asset growth is broadly accompanied by depreciation.
Key concerns
- Security Software and Services revenue declined 5.58% YoY to ₹1,632.31 lakh and segment result declined 5.91% to ₹204.47 lakh, weakening the higher-value growth leg.
- Finance costs rose 38.37% YoY to ₹237.51 lakh, materially faster than revenue growth of 12.93%.
- EPS grew only 1.79% YoY to ₹2.84 versus PAT growth of 12.00%, indicating dilution from the increase in paid-up share capital to ₹1,640 lakh from ₹1,600 lakh.
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