DCX Systems reported a 72% year-on-year decline in standalone net profit to ₹92.95 million for the financial year ended March 31, 2026, down from ₹331.62 million in the previous year. Revenue from operations fell 33% to ₹4,954.06 million from ₹7,398.72 million in FY25, primarily due to substantial reduction in export sales arising from lower business volumes from overseas customers. The Board of Directors approved the audited standalone and consolidated financial results at its meeting held on May 27, 2026. The statutory auditors issued an audit report with an unmodified opinion on the audited financial results. The company published the audited financial results in newspapers, including the Financial Express and Samyuktha Karnataka, on May 28, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance

For the quarter ended March 31, 2026, standalone net profit stood at ₹77.13 million, compared to ₹207.02 million in the same period last year. Quarterly revenue decreased to ₹2,059.05 million from ₹5,499.57 million in Q4FY25. The company reported an EBITDA of ₹44 million for the quarter, with margins expanding to 2.16% from 0.85% in the year-ago period. On a consolidated basis, the company reported a net loss of ₹77.11 million for FY26, compared to a net profit of ₹388.76 million in the previous year.

Operational Factors and Outlook

The revenue decline was influenced by global geopolitical tensions and significant supply chain disruptions, which affected the availability of critical components. Airspace closures and delays in obtaining export licenses for suppliers further hampered material transportation and technical discussions. Additionally, certain programmes faced delays due to stringent product technical qualification processes. The company noted that supply chain stability is gradually returning and key programmes are progressing through qualification milestones, anticipating strong momentum in upcoming periods.

Board Decisions and Compliance

The Board appointed Rajagopal A & Co., Chartered Accountants, as the internal auditors for the financial year 2026-27. The Board also reviewed and updated the 'Policy on materiality of Related Party Transactions'. The meeting was convened in compliance with Regulations 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

DCX Systems Limited has successfully concluded its postal ballot process, with shareholders approving the Ordinary Resolution for material related party transactions with ELTX Systems Private Limited. The remote e-voting process, conducted pursuant to Sections 108 and 110 of the Companies Act, 2013, commenced on Friday, April 10, 2026, at 9:00 a.m. (IST) and concluded on Saturday, May 09, 2026, at 5:00 p.m. (IST). The resolution has been deemed passed on May 09, 2026, being the last date of e-voting.

Voting Process and Timeline

The postal ballot was initiated following a notice dated April 09, 2026, submitted to the stock exchanges, seeking member approval for material related party transactions with ELTX Systems Private Limited, a related party of the company. The cut-off date for determining eligible shareholders was Friday, April 03, 2026. The e-voting facility was provided by MUFG Intime India Private Limited (formerly known as Link InTime India Private Limited), and the entire process was conducted exclusively through remote e-voting.

CS Pramod S, Practicing Company Secretary, was appointed as the Scrutinizer for the process. He submitted his report on the voting results on May 11, 2026, confirming that the resolution was passed with the requisite majority. The votes were unblocked and downloaded on May 09, 2026, and witnessed by two independent witnesses, Mr. Hemanth Pai and Mr. Prashanth CY, who are not in the employment of the company or MUFG Intime.

Detailed Voting Results

The following table presents the category-wise breakdown of votes polled and the outcome of the resolution:

Notably, the Promoter and Promoter Group, who held 58104342 shares and were noted as interested parties in the resolution, did not participate in the voting, as is standard practice for related party transaction approvals where interested parties are required to abstain.

Key Resolution Details

The following summarises the key parameters of the postal ballot:

Scrutinizer's Confirmation

CS Pramod S, in his report submitted on May 11, 2026, confirmed that the Ordinary Resolution for approval of material related party transactions with ELTX Systems Private Limited has been passed by the shareholders with the requisite majority. The electronic data and all other relevant records relating to the e-voting are to be handed over to the Company Secretary of the company. The results have been communicated to the stock exchanges by Gurumurthy Hegde, Company Secretary, Legal and Compliance Officer of DCX Systems Limited, and will also be made available on the company's website at www.dcxindia.com .