DRC Systems FY26 Net Profit Rises 28% to ₹1,932.2 Lakh; Plans HRTech Entry
DRC Systems India Limited posted strong FY26 consolidated results with net profit rising 28% YoY to ₹1,932.2 lakh and revenue growing 46% to ₹9,550.5 lakh, supported by a 34% EBITDA increase to ₹2,832.6 lakh. Q4 FY26 saw net profit grow 32% to ₹581.8 lakh on 61% revenue growth. The Board also approved acquiring up to a 49% stake in Skizzle Technolabs India Private Limited for up to ₹2 crore, marking entry into the HRTech and SaaS segment.
*this image is generated using AI for illustrative purposes only.
DRC Systems India Limited has announced its audited consolidated financial results for the quarter and year ended March 31, 2026. The company reported a 28% year-on-year increase in net profit to ₹1,932.2 lakh for the fiscal year, compared to ₹1,507.5 lakh in the previous year. Revenue from operations for the year grew 46% to ₹9,550.5 lakh from ₹6,537.7 lakh in the prior year. EBITDA for the year stood at ₹2,832.6 lakh, a 34% increase year-on-year, with EBITDA and net margins at 30% and 20%, respectively.
For the quarter ended March 31, 2026, the company posted a net profit of ₹581.8 lakh, up 32% from ₹440.7 lakh in the corresponding quarter of the previous year. Revenue from operations for the quarter rose 61% to ₹2,719.9 lakh. EBITDA for the quarter increased 33% to ₹816.0 lakh, with EBITDA and net margins at 30% and 21%, respectively. Profit before tax for the quarter rose 29% year-on-year to ₹602.5 lakh.
Consolidated Financial Performance
The company delivered strong operational performance across key verticals, supported by a diversified product and services portfolio. The full-year results reflect sustained business momentum, with annual revenue climbing to ₹9,550.5 lakh and net profit expanding to ₹1,932.2 lakh. The following table presents the key consolidated financial highlights:
| Particulars: | Q4 FY26 | Q3 FY26 | Q4 FY25 | Y-o-Y % | FY26 | FY25 | Y-o-Y % |
|---|---|---|---|---|---|---|---|
| Revenue from Operations (₹ lakh): | 2,719.9 | 2,718.3 | 1,692.9 | 61% | 9,550.5 | 6,537.7 | 46% |
| Profit before Tax (₹ lakh): | 602.5 | 529.9 | 468.4 | 29% | 2,099.4 | 1,686.5 | 24% |
| EBITDA (₹ lakh): | 816.0 | 718.8 | 614.0 | 33% | 2,832.6 | 2,120.9 | 34% |
| EBITDA Margin: | 30% | 26% | 36% | — | 30% | 32% | — |
| Profit after Tax (₹ lakh): | 581.8 | 499.0 | 440.7 | 32% | 1,932.2 | 1,507.5 | 28% |
| Net Margin: | 21% | 18% | 26% | — | 20% | 23% | — |
The results reflect the company's ability to deliver profitable growth, reinforced by its strategic expansion into the education and digital learning space, where the company offers Learning Management Systems (LMS) integrated with AI-powered WhatsApp chatbot solutions designed to enable scalable, next-generation learning experiences for institutional clients.
Standalone Financial Performance
On a standalone basis, income from operations for the year ended March 31, 2026 stood at ₹4,865.6 lakh, compared to ₹4,239.0 lakh in the prior year. Standalone profit after tax for the year was ₹344.4 lakh, against ₹425.9 lakh previously. For the quarter ended March 31, 2026, standalone income from operations was ₹1,303.0 lakh, with profit after tax at ₹68.2 lakh. Basic and diluted earnings per share (not annualised) for the full year stood at ₹0.25 each.
| Particulars: | Q4 FY26 | Q3 FY26 | Q4 FY25 | FY26 | FY25 |
|---|---|---|---|---|---|
| Income from Operations (₹ lakh): | 1,303.0 | 1,223.1 | 1,181.4 | 4,865.6 | 4,239.0 |
| Profit before Tax (₹ lakh): | 90.7 | 119.4 | 151.3 | 456.7 | 506.3 |
| Profit after Tax (₹ lakh): | 68.2 | 88.0 | 152.1 | 344.4 | 425.9 |
| Basic EPS (₹, not annualised): | 0.05 | 0.06 | 0.11 | 0.25 | 0.32 |
The standalone results include an exceptional item of ₹78.9 lakh representing the statutory impact of new Labour Codes, recognised as a non-recurring, regulatory-driven charge primarily arising from changes in wage definition affecting gratuity obligations.
Management Commentary
"Our fourth quarter and full-year results reflect the strength of our business agility and the effectiveness of our diversified operating model. The integration of AI-driven capabilities and digital learning solutions into our service portfolio has strengthened our ability to address evolving client requirements and enhance the overall value proposition for our customers," said Mr. Hiten Barchha, Managing Director, DRC Systems India Limited.
The company also plans to strengthen its presence in the OEM brand channel partnership business by establishing distribution partnerships with large global technology providers. The initiative is expected to expand enterprise engagement, strengthen technology offerings, and create opportunities to introduce proprietary software solutions to a wider customer base.
Strategic Investment: Entry into the HRTech Market
The Board of Directors approved an investment in Skizzle Technolabs India Private Limited. The company plans to acquire up to a 49% stake for a consideration not exceeding ₹2 crore. Post-investment, Skizzle will become an associate company. This strategic move aims to strengthen DRC Systems' presence in the Human Resource Technology (HRTech) and Software-as-a-Service (SaaS) segment, focused on workforce management and employee experience solutions.
The key details of the proposed investment are as follows:
| Parameter: | Details |
|---|---|
| Target Entity: | Skizzle Technolabs India Private Limited |
| Date of Incorporation: | March 14, 2020 |
| Paid-up Share Capital: | ₹15,00,000 (1,50,000 equity shares of ₹10 each) |
| Industry: | HRTech / SaaS – Workforce Management & Employee Experience |
| Stake to be Acquired: | Up to 49% |
| Consideration: | Not exceeding ₹2 crore (cash) |
| Post-Investment Status: | Associate Company |
| Related Party Transaction: | No |
| Completion Timeline: | Within 60 days, subject to due diligence |
Skizzle's turnover has grown from ₹0.10 lakh in FY 2022-23 to ₹1.48 lakh in FY 2023-24 and ₹3.94 lakh in FY 2024-25. The investment is expected to support business expansion, drive operational synergies, enhance technological capabilities, and broaden the company's software solutions portfolio. The transaction is not a related party transaction and requires no governmental or regulatory approvals.
Historical Stock Returns for DRC Systems India
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -4.05% | +1.13% | -9.59% | -16.55% | -22.51% | +51.80% |
Given the significant gap between consolidated revenue growth (46%) and standalone revenue growth (~15%), which subsidiaries are driving the outperformance, and can this consolidation-level momentum be sustained into FY27?
With standalone profit after tax declining from ₹425.9 lakh to ₹344.4 lakh despite revenue growth, what structural cost pressures or margin headwinds could further erode standalone profitability in the coming quarters?
Skizzle Technolabs reported turnover of only ₹3.94 lakh in FY25 — what specific revenue synergies or client cross-selling opportunities does DRC Systems expect to unlock through this HRTech investment to justify its strategic value?
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