DCX Systems Limited disclosed that its promoters have not created any encumbrance on their equity holdings for the financial year ended March 31, 2026. The company submitted the annual disclosures to BSE Limited and National Stock Exchange of India Ltd pursuant to Regulation 31(4) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The filing confirms that the pledged status of promoter shares remains unchanged, providing stability regarding the ownership structure of the defence and aerospace sector player.

The disclosures were received from three promoter entities: Dr. Raghavendra Rao Hosakote Shamarao, Raneal Technologies Private Limited, and NCBG Holdings Inc. Each entity confirmed that they had not pledged any of their holdings directly or indirectly during the financial year 2025-26. The company, in its filing dated April 08, 2026, stated that these declarations were submitted for the records of the stock exchanges and the Audit Committee.

Promoter Holdings and Disclosures

The following table details the shareholding of the promoters as disclosed in the regulatory filing:

Dr. Raghavendra Rao Hosakote Shamarao confirmed in his declaration dated April 01, 2026, that he holds 38,12,558 equity shares. Raneal Technologies Private Limited, through its authorized signatory Ramegowda Shiva Kumar, disclosed a holding of 3,18,84,542 equity shares. NCBG Holdings Inc, represented by authorized signatory Neal Jeremy Castleman, reported a holding of 2,24,07,242 equity shares.

Regulatory Compliance

The submissions were made in compliance with Regulation 31(4) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. This regulation mandates the disclosure of any encumbrance created by promoters on their shareholding. The absence of encumbrance indicates that the promoters have not utilized their share capital for borrowing purposes during the specified period. The letters were addressed to the stock exchanges and copied to the Audit Committee of DCX Systems .

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.