Dynamic Services & Security has disclosed a new confirmed work order valued at Rs 26.0 lakh from the Additional Secretary, Health & Family Welfare Department, Govt. of West Bengal. The contract, dated July 25, 2026, entails providing 17 unskilled security personnel for a period of one year, running from August 1, 2026, to July 31, 2027.

What Happened

The company received a firm work order (TYPE A) worth Rs 26.0 lakh. The scope is limited to manpower supply for security services, with execution commencing in the next fiscal year. This follows a pattern of diverse client acquisition, adding a state government health department to its existing portfolio dominated by Indian Railways entities.

Order in Financial Context

At Rs 26.0 lakh, this specific order is modest relative to the company's scale. The total disclosed order book, which sums the four orders disclosed across the last three fiscal quarters shown in the table below, stands at Rs 121.27 crore. Given the company's average quarterly revenue context, this backlog provides substantial visibility into future earnings. The book-to-bill ratio remains elevated, indicating that order inflows are outpacing current revenue recognition rates, a positive signal for future growth if execution proceeds without delays.

Company Order Track Record

Order inflow velocity has been strong in the most recent quarter. In Q1FY27, the company secured Rs 121.27 crore in orders, primarily from various zones of Indian Railways. The current order from the West Bengal government represents a diversification away from pure railway supply contracts, though the value is significantly smaller than the typical battery supply contracts seen in the recent history.

Execution and Revenue Quality

The company has demonstrated consistent profitability and margin expansion over the last three years. While specific quarterly P&L data is not available in the input, annual figures show robust performance.

Revenue Growth - Order Wins Translating to Revenue

As Dynamic Services & Security has sustained order wins, with a significant inflow of Rs 121.27 crore in Q1FY27 alone, its annual revenue has grown from Rs 276.80 crore in FY25 to Rs 490.92 crore in FY26, representing a YoY growth of +77.4% based on the latest annual data. This acceleration aligns with the increased order book visibility seen in recent quarters.

Working Capital and Execution Capacity

The balance sheet indicates healthy liquidity for ongoing operations. The current ratio stands at 1.65x, suggesting sufficient short-term assets to cover liabilities. Total Liabilities/Equity is at 1.21x, which includes trade payables and other non-debt liabilities, indicating moderate leverage. Operating cashflow was positive at Rs 20.70 crore in FY25, reversing a negative trend from FY24, which suggests improving cash conversion efficiency despite capital expenditures.

What To Watch

• Execution rate: Monitor whether the large railway orders from Q1FY27 convert to revenue at the pace required to sustain the +77.4% YoY growth trend.
• Client concentration: Assess the percentage of the order book derived from Indian Railways versus diversified clients like state governments to gauge dependency risk.
• Margin quality: Track OPM on new security service contracts versus hardware supply contracts, as service margins may differ from product margins.
• Cash conversion: Continue monitoring operating cashflows to ensure that revenue growth is backed by actual cash inflows rather than accruals.

Key Observations

• Valuation check (as of 27 Jul 2026): P/E of 5.3x against ROCE of 14.2%. At the time of this article, valuation was pricing in execution improvement not yet visible in return ratios. (P/E is price-derived and will change; ROCE is from audited financials)
• Backlog signal: Book-to-bill metrics suggest strong order inflows relative to revenue, making execution capacity the binding constraint for near-term growth.

The Bharat Battery Mfg Co Private Limited, a wholly owned subsidiary of Dynamic Services & Security Limited , has secured a new order worth ₹56.97 lakh from South East Central Railway. The contract entails the supply of Low Maintenance Lead Acid Batteries (8V/500 Ah). This domestic order is governed by the general terms and conditions of Indian Railways and other terms incorporated in the tender documents.

The execution of the order is scheduled in three phases, with delivery timelines set from June 26, 2026, to May 31, 2027. The company confirmed that the order does not involve any related party transactions and that neither the promoter group nor other group companies hold any interest in the entity awarding the contract.

Order Details

The following table outlines the key specifics of the contract disclosed to the exchange:

The disclosure was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. Prerna Ghorawat, Company Secretary and Compliance Officer, signed the filing on behalf of Dynamic Services & Security Limited.