DC Infotech & Communications announced on January 3, 2026, through a regulatory filing under Regulation 30, that CRISIL Ratings has upgraded the company's long-term credit rating to BBB with a stable outlook. This significant development reflects the company's improved financial strength, prudent financial management, and consistent operational performance.

Credit Rating Upgrade Details

The rating upgrade underscores DC Infotech & Communications' focused approach towards strengthening its balance sheet, improving cash flows, and maintaining disciplined capital allocation practices. CRISIL has recognized the company's robust business model, established market presence, and ability to sustain stable operating margins despite operating in a competitive environment.

Key Factors Behind the Upgrade

The upgrade factors in several positive aspects of the company's operations and financial management. CRISIL noted the company's established market position, diversified client base, and strong execution capabilities, which have enabled it to maintain stable operating performance despite a challenging and competitive business environment.

Management Response

The management expressed satisfaction with the rating upgrade, viewing it as a strong endorsement of their strategic direction and disciplined execution. "The upgrade by CRISIL is a strong endorsement of our strategic direction and disciplined execution. It reflects our continuous efforts to enhance financial resilience, operational efficiency, and governance standards. We remain committed to delivering sustainable growth while creating long-term value for all our stakeholders," the company stated.

Future Outlook

The stable outlook indicates CRISIL's expectation that DC Infotech & Communications will continue to maintain healthy business risk profiles, improve its financial metrics, and adhere to prudent financial policies over the medium term. This rating upgrade is expected to strengthen the company's credibility with lenders, investors, and business partners, potentially supporting future growth initiatives.

The announcement was signed by Chetankumar Timbadia, Director of the company, highlighting the significance of this development for the organization's financial standing and market position.

DC Infotech & Communications Limited , a leading provider of networking and security solutions, has reported robust financial results for the second quarter of fiscal year 2026, demonstrating significant growth and improved profitability.

Key Financial Highlights

Revenue Growth and Market Performance

DC Infotech & Communications witnessed a strong 18% year-on-year growth in total revenue for Q2 FY26, reaching Rs 153.42 crores. This growth was primarily driven by robust demand across the company's networking and unified communication portfolios. The company's strategic partnerships with key brands have significantly contributed to this performance:

Profitability and Margin Expansion

The company's focus on operational efficiency and strategic product mix optimization has yielded positive results:

• PAT increased by 35.14% year-on-year, accompanied by a 43 basis points expansion in PAT margin.
• EBITDA grew by 28.79% compared to the same quarter last year, reaching Rs 8.50 crores.
• Operating Profit Margin (OPM) improved to 5.52%, up from 4.91% in Q2 FY25, representing a 12.42% increase.

Half-Year Performance

For the first half of FY26 (H1 FY26), DC Infotech & Communications reported:

• Total revenue of Rs 301.52 crores, marking a 21% growth compared to H1 FY25.
• Continued strong performance in networking and unified communication segments.

Management Commentary

The management attributes the company's strong performance to deepened customer engagements and the strength of key brand partnerships. They also highlighted the marginal improvement in margins, supported by a strategic shift in product mix and ongoing operational efficiencies.

Outlook

Looking ahead, DC Infotech & Communications remains confident in sustaining its growth trajectory through the remainder of FY26. The company expects to maintain or further improve its margin profile in the coming quarters, supported by:

1. Continued traction in core categories
2. A stable demand environment
3. Commitment to strengthening offerings in high-growth segments

The company's financial foundation remains strong, underpinned by prudent provisioning and effective working capital management.

Conclusion

DC Infotech & Communications' Q2 FY26 results demonstrate the company's ability to capitalize on market opportunities while improving operational efficiency. The strong revenue growth, coupled with margin expansion, positions the company well for sustained performance in the evolving networking and communication solutions market.