Mumbai: DRC Systems India Ltd reported a 32 percent year-on-year rise in consolidated net profit to Rupees5.8 crore for the fourth quarter ended March 31, 2026, aided by strong growth in revenue from operations and sustained momentum across its digital solutions business. Revenue from operations during Q4 FY26 rose 61 percent to Rupees 27.2 crore compared with Rupees 16.9 crore in the corresponding quarter last year. Sequentially, revenue remained flat at Rupees 27.2 crore reported in Q3 FY26, while profit increased from Rupees 5 crore in the preceding quarter.
Margins Stay Healthy Despite Higher Costs
The company posted total income of Rupees 28.2 crore during the March quarter, up from Rupees 17 crore in Q4 FY25. Profit before tax rose 29 percent year-on-year to Rupees 6 crore, while EBITDA increased 33 percent to Rupees 8.2 crore. EBITDA margin stood at 30 percent compared with 36 percent a year earlier, while net margin came in at 21 percent.
Total expenses during the quarter rose to Rupees 21.3 crore from Rupees 12.4 crore in the year-ago period due to higher employee benefit expenses and increased contracting costs linked to business expansion and project execution. Employee benefit expenses rose to Rupees 7.9 crore, while contracting expenses increased to Rupees 9.5 crore. Finance costs stood at Rupees34 lakh during the quarter.
Sequential Growth Reflects Operational Momentum
On a quarter-on-quarter basis, consolidated profit after tax rose 16.6 percent from Rupees 5 crore in Q3 FY26 to Rupees 5.8 crore in Q4 FY26. Profit before tax increased from Rupees 5.3 crore in the previous quarter to Rupees 6 crore. EBITDA also improved sequentially from Rupees 7.2 crore to Rupees 8.2 crore, reflecting stronger operational efficiency and steady execution across business verticals. Diluted earnings per share improved to Rupees 0.42 in Q4 FY26 from Rupees 0.37 in Q3 FY26 and Rupees 0.33 in Q4 FY25.
Strategic Expansion Into HRMS And AI Solutions
During the quarter, the company announced a strategic investment to acquire a 49 percent stake in Skizzle Technolabs India Pvt Ltd, strengthening its presence in the HRMS and SaaS segments. DRC Systems also continued expanding its AI-powered digital learning and chatbot solutions portfolio aimed at enterprise and institutional customers. The company said its diversified business model and growing enterprise partnerships supported overall performance during FY26.
FY26 Revenue Crosses Rs 95 Crore
For the full year ended March 31, 2026, consolidated revenue from operations rose 46 percent to Rupees 95.5 crore from Rupees 65.4 crore in FY25. Annual net profit increased 28 percent to Rupees 19.3 crore, while profit before tax climbed to Rupees 21 crore from Rupees 16.9 crore in the previous fiscal. EBITDA for FY26 stood at Rupees 28.3 crore, up 34 percent year-on-year, with EBITDA margin at 30 percent.
Disclaimer: This report is based on company filings and financial disclosures and does not constitute investment advice.
