Dev Information Technology approved the allotment of 6,23,944 equity shares to eligible employees under its Employee Stock Option Plan – 2024 during its board meeting held on September 11, 2026.

The allotment follows the exercise of stock options by employees, with none of the shares allotted to company directors. The shares rank pari passu with existing equity shares in all respects.

Allotment Details

The board considered and approved the business pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Key details of the transaction include:

The original grant involved 2,52,186 stock options issued on August 8, 2025. At the time of grant, the face value was ₹5 per share. Following a stock split effective August 21, 2025, the face value was sub-divided to ₹2, and the ESOPs were adjusted accordingly.

Scheme Structure

A total of 6,30,466 equity shares vested under the plan. Employees had 45 days from the first vesting date to exercise their options. The scheme adheres to the SEBI (Share Based Employee Benefits) Regulations, 2014 and the Companies Act, 2013. Options granted are subject to a minimum vesting period of one year.

Post-issue, the company’s paid-up capital stands at ₹11,39,75,318, comprising 5,69,87,659 shares. There were no variations in terms or subsequent cancellations reported for this batch.

Dev Information Technology has secured a significant work order worth Rs 30.0 lakh from Central Power Research Institute (CPRI) Bangalore, under the Ministry of Power, Government of India. The order was disclosed to stock exchanges on September 10, 2026.

The project scope includes re-design, re-development, testing, commissioning, rollout, security audit, GIGW compliance certification, and comprehensive maintenance of the official CPRI website in a bilingual format. The execution period is approximately four years.

WHAT HAPPENED

The company received the formal work order on September 10, 2026. This follows recent order wins including a Rs 5.15 crore contract from National Informatics Centre Services Incorporated (NICSI) for the Rajasthan Finance Department disclosed on August 20, 2026. The CPRI order adds to the company's growing pipeline of government digital transformation projects.

ORDER IN FINANCIAL CONTEXT

At Rs 30.0 lakh, this order represents approximately 0.4% of the company's average quarterly revenue of Rs 72.05 crore. When combined with prior disclosures, the total disclosed order book stands at Rs 300.83 crore across nine orders in the last three fiscal quarters. This backlog provides coverage of 4.18 quarters of average quarterly revenue, offering visibility into future earnings streams.

COMPANY ORDER TRACK RECORD

Order inflows have remained consistent across government entities. The latest win from CPRI complements recent contracts from NICSI, HARTRON, GIFTCL, and state revenue departments.

EXECUTION AND REVENUE QUALITY

Revenue execution has shown volatility in recent quarters. Q4FY26 returned to profitability with an OPM of 5.40%, following a net loss in Q3FY26. The company reported consolidated revenue of Rs 288.2 crore and net profit of Rs 75.6 crore for the trailing twelve months.

REVENUE GROWTH - ORDER WINS TRANSLATING TO REVENUE

Annual revenue grew from Rs 183.90 crore in FY25 to Rs 189.50 crore in FY26, a YoY increase of +3.0%. Net profit surged by +530.8% to Rs 93.36 crore in FY26, driven by improved margin quality. The company maintains a Return on Capital Employed (ROCE) of 26.65% and Return on Equity (ROE) of 21.49% for FY25.

WORKING CAPITAL AND EXECUTION CAPACITY

The balance sheet shows a current ratio of 1.79x and total liabilities to equity of 0.73x as of FY26. However, operating cashflow was negative at -Rs 8.90 crore in FY25, with free cashflow at -Rs 13.50 crore. This indicates potential working capital headwinds despite accrual-based profitability.

WHAT TO WATCH

• Execution rate: Monitor whether the Rs 300.83 crore backlog translates into accelerated revenue recognition in upcoming quarters.
• OPM trajectory: Watch for stabilization of operating margins above the 5% level, given the volatility seen in Q3FY26.
• Cash conversion: Track improvements in receivables days and working capital efficiency as new orders execute, following negative operating cashflows in FY25.
• Client concentration: Assess if reliance on large government clients creates payment cycle risks that could impact liquidity.

KEY OBSERVATIONS

• Margin stress: Net loss of Rs 7.40 crore in Q3FY26; execution stress visible in quarterly data with OPM dropping to -14.43%.
• Cash conversion: Operating cashflow of -Rs 8.90 crore in FY25; backlog is not converting to cash efficiently.
• Promoter holding: Moved from 66.63% to 41.58% in Q1FY27, indicating significant promoter divestment or dilution events during the quarter.