Dev Information Technology has won a confirmed work order worth Rs 5.33 crore from the Settlement Commissioner and Director of Land Records, an undertaking of the Revenue Department, Government of Gujarat. The scope includes software enablement and infrastructure modernization services utilizing Microsoft SQL Server 2025 Enterprise architectures to support iORA (Integrated Revenue and Office Record Application), e-Milkat, and Any RoR systems hosted at the Gujarat State Data Center (GSDC). The execution period for this contract is one month.

WHAT HAPPENED

The company received a formal work order for Rs 5.33 crore on August 11, 2026. This is a Type A confirmed order, meaning the value is firm and executable immediately upon mobilization. The project focuses on modernizing legacy land record systems for the Gujarat government, leveraging enterprise-grade database architecture to enhance data integrity and accessibility.

ORDER IN FINANCIAL CONTEXT

At Rs 5.33 crore, this single order represents approximately 7.4% of the company's average quarterly revenue of Rs 71.78 crore. When added to existing wins, the total disclosed order book stands at Rs 285.20 crore (sum of the 6 orders disclosed across the last 3 fiscal quarters shown in the table below). This backlog provides coverage of 3.97 quarters of average quarterly revenue, offering near-term visibility into future earnings. The book-to-bill ratio remains healthy, supported by consistent inflows from government and semi-government entities.

COMPANY ORDER TRACK RECORD

Order inflow has remained robust over the last two quarters, with slight acceleration in Q2FY27 compared to Q1FY27. The current order value of Rs 5.33 crore is consistent with the smaller end of the company's typical per-order size, which ranges from sub-crore projects to multi-crore digital transformation mandates.

EXECUTION AND REVENUE QUALITY

Revenue execution has shown volatility in recent quarters, largely driven by one-time items and project completion cycles. Q2FY26 saw a significant spike in revenue and profit, while Q3FY26 recorded a net loss due to operating pressures. Q4FY26 returned to profitability with an OPM of 5.40%.

REVENUE GROWTH - ORDER WINS TRANSLATING TO REVENUE

As Dev Information Technology has sustained order wins, with inflows exceeding Rs 139 crore in each of the last two quarters, its annual revenue has grown from Rs 183.90 crore in FY25 to Rs 189.50 crore in FY26, representing a YoY growth of +3.0% based on the latest annual data. While top-line growth moderated compared to previous years, net profit surged by +530.8% to Rs 93.36 crore in FY26, driven by improved margin quality and other income contributions.

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, indicating sufficient short-term liquidity to fund ongoing operations. However, operating cashflow was negative at -Rs 8.90 crore in FY25, and free cashflow stood at -Rs 13.50 crore. This suggests that while the company is profitable on an accrual basis, it faces working capital headwinds that may constrain its ability to self-fund rapid expansion without external capital or improved receivables collection.

WHAT TO WATCH

• Execution rate: Monitor whether the high backlog of Rs 285.20 crore translates into accelerated revenue recognition in upcoming quarters, especially given the volatility seen in Q3FY26.
• OPM trajectory: Watch for stabilization of operating margins above the 5% level, as Q3FY26 demonstrated sensitivity to cost structures or project delays.
• Cash conversion: Given negative operating cashflows in FY25, track improvements in receivables days and working capital efficiency as new orders execute.
• Client concentration: Assess if reliance on large government clients like HARTRON and GIFTCL 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, and receivables or working capital cycle may be stretched.
• Promoter holding: Moved from 66.63% to 41.58% in Q1FY27, a 25.05 pp change, indicating significant promoter divestment or dilution events during the quarter.

Dev Information Technology has secured a work order worth approximately ₹73 Lakhs from Haryana State Electronics Development Corporation Limited (HARTRON) for the design, development, implementation, and maintenance of the Haryana State Legal Knowledge System. The project, awarded by a State Government Undertaking, will serve the Chief Secretary Office, Government of Haryana. The total contract value is divided into ₹48.22 Lakhs for the design and implementation phase and ₹24.78 Lakhs for annual maintenance.

The engagement is a fixed-cost contract awarded by a domestic state entity. There are no interests held by the promoter, promoter group, or group companies in the entity awarding the order, and the transaction does not fall within related party transactions. The disclosure was submitted to the exchanges pursuant to Regulation 30 of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015.

Project Timeline and Scope

The execution of the order is divided into two distinct phases. The initial phase covers the design, development, deployment, and implementation as per the scope of work, which is expected to take approximately 4 to 5 months. Following the implementation, the contract includes an annual maintenance period of approximately 3 years.

Financial Breakdown of the Order

The financial details of the order are structured to cover the initial development and subsequent maintenance support.

The disclosure was signed by Krisa Shah, Company Secretary and Compliance Officer of Dev Information Technology Limited, on July 6, 2026.