Dynacons Sys. Q4 FY26 Results (NSE: DSSL)
Signal: Growth reaccelerated
The read
Q4 PAT growth decelerated sharply to 4% despite 22% revenue growth and margin expansion, as higher depreciation and finance costs absorbed gains; FY26 full-year performance was robust with EBITDA margin up 181bps. The company's strong order book (marquee wins from RBI, LIC, SBI) provides revenue visibility but near-term profit growth may remain constrained by cost headwinds.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹402.45 Cr | 22% | 18.0% |
| Net profit | ₹18.99 Cr | 4% | |
| EPS | ₹14.92 | 4% | |
| EBIT margin | 9.55% |
P&L walk
Revenue grew 22% YoY to ₹402.45 Cr, driven by strong execution in cloud, cybersecurity and managed services. EBITDA margin expanded 25bps YoY to 9.55%. However, PAT growth slowed to 4% as higher depreciation and finance costs absorbed operating gains.
Key positives
- Q4FY26 revenue grew 22% YoY to ₹402.45 Cr, accelerating vs Q3's 9.7% growth.
- Q4 EBITDA margin improved 25bps YoY to 9.55%; FY26 margin expanded 181bps to 10.65%.
- Secured marquee contracts in FY26: RBI EAP (₹249.15 Cr), Punjab & Sind Bank (₹108.88 Cr), LIC (₹138.44 Cr), J&K Bank DaaS (₹74.99 Cr), SBI SD-WAN (₹62.98 Cr).
- Robust order book provides strong revenue visibility for FY27.
Key concerns
- Q4 PAT growth slowed to just 4% YoY, while PAT fell ~21% QoQ due to higher depreciation and finance costs.
- Sequential revenue declined 2.5% QoQ (₹402 Cr vs ₹412 Cr average of prior two quarters) indicating possible quarter-end lumpiness.
- Heavy client concentration in BFSI and government; any slowdown in public sector capex could impact order flow.
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