Dev IT Q1 Results: Net profit falls 25% YoY to ₹1.31 crore
Dev Information Technology Ltd reported Q1FY27 consolidated income of ₹44.64 crore, up slightly from ₹43.46 crore in Q1FY26, but net profit fell to ₹2.11 crore from ₹2.18 crore. Standalone revenue dropped 8.1% YoY to ₹32.80 crore, with EBITDA margins contracting to 7.57% from 9.17%. The company cited government order wins and a strategic partnership with XDuce as positive indicators for future growth despite current margin pressures.
*this image is generated using AI for illustrative purposes only.
Dev Information Technology Limited ( Dev Information Technology ) reported a contraction in profitability for the first quarter of FY27, driven by revenue declines at the standalone level and margin compression across both standalone and consolidated segments.
For Q1FY27, the company’s consolidated total income logged ₹44.64 crore, a modest increase from ₹43.46 crore in the corresponding period last year. However, consolidated net profit declined to ₹2.11 crore from ₹2.18 crore in Q1FY26. The standalone segment faced sharper headwinds, with total income falling 8.1% year-on-year to ₹32.80 crore from ₹35.69 crore. Standalone net profit dropped 25.1% to ₹1.31 crore, down from ₹1.75 crore in Q1FY26.
Financial Performance
The company’s operating efficiency metrics showed signs of pressure during the quarter. Consolidated EBITDA remained relatively flat at ₹3.99 crore compared to ₹4.03 crore in Q1FY26, resulting in a margin contraction from 9.27% to 8.93%. The standalone segment witnessed a more pronounced dip, with EBITDA falling to ₹2.48 crore from ₹3.27 crore, causing the EBITDA margin to slide from 9.17% to 7.57%.
| Metric: | Standalone Q1FY27 | Standalone Q1FY26 | Consolidated Q1FY27 | Consolidated Q1FY26 |
|---|---|---|---|---|
| Total Income (₹ Cr): | 32.80 | 35.69 | 44.64 | 43.46 |
| EBITDA (₹ Cr): | 2.48 | 3.27 | 3.99 | 4.03 |
| EBITDA Margin (%): | 7.57% | 9.17% | 8.93% | 9.27% |
| Net Profit (₹ Cr): | 1.31 | 1.75 | 2.11 | 2.18 |
| Net Profit Margin (%): | 3.99% | 4.91% | 4.72% | 5.02% |
What the Numbers Show
The divergence between consolidated revenue growth and standalone revenue decline suggests that the company’s subsidiaries or associates contributed significantly to the top-line stability in Q1FY27. While the standalone entity saw an 8.1% revenue drop, the consolidated figure grew by approximately 2.7%, indicating that non-standalone operations offset the domestic or parent-entity slowdown. Furthermore, the sharper contraction in standalone EBITDA margins (a 160 basis point drop) compared to consolidated margins (a 34 basis point drop) highlights operational cost pressures or mix shifts primarily within the standalone business unit.
Strategic Outlook
Pranav Pandya, Chairman of Dev Information Technology Limited, stated that the quarter marked continued execution in cloud services, digital transformation, enterprise applications, and managed IT services. He noted that the company secured orders from government entities, reinforcing its presence in government-led digital transformation initiatives.
Pandya highlighted the strategic alignment with XDuce as a key growth lever. “The strategic alignment with XDuce is expected to create opportunities through the combination of XDuce’s client relationships and market presence in North America and the UK with DEV IT’s engineering capabilities and global delivery infrastructure,” he said.
The company emphasized its focus on AI, cybersecurity, and cloud solutions, citing demand from government digitisation and enterprise technology modernisation as tailwinds. Founded in 1997 and headquartered in Ahmedabad, Dev Information Technology offers services including Cloud Services, Digital Transformation, and Managed IT Services, alongside products like Talligence and ByteSigner.
Historical Stock Returns for Dev Information Technology
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.49% | -3.69% | -9.29% | +1.83% | -43.65% | +135.77% |
How will the strategic alignment with XDuce specifically impact Dev IT's revenue mix and profitability in the upcoming quarters?
What specific cost-control measures is the standalone segment implementing to reverse the 160 basis point EBITDA margin contraction?
To what extent are government-led digital transformation orders expected to offset the decline in standalone revenue in FY27?
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