DRC Systems India Limited has filed its quarterly compliance statement under Regulation 32 of SEBI Listing Regulations, confirming no deviation in the utilization of funds raised through preferential issue for the quarter ended December 31, 2025. The company successfully raised Rs. 25,00,00,000 through preferential issue on October 28, 2025, and has deployed these funds in accordance with the original objectives stated in the Annual General Meeting notice dated August 26, 2025.

Fund Utilization Details

The company's fund utilization across various objectives demonstrates disciplined capital allocation:

Regulatory Compliance and Governance

The statement was duly reviewed by the company's Audit Committee and received approval from the Board of Directors at their meeting held on February 04, 2026. Both the Audit Committee and auditors provided no adverse comments on the fund utilization, indicating proper adherence to the stated objectives.

Key Compliance Parameters

The filing confirms several important regulatory aspects:

Fund Deployment Strategy

Out of the total Rs. 25 crore raised, the company has utilized Rs. 21.25 crore across three key areas. The major portion of Rs. 13 crore was allocated toward prepayment and repayment of liabilities, demonstrating the company's focus on strengthening its balance sheet. Additionally, Rs. 2 crore was deployed for working capital requirements, while Rs. 6.25 crore was used for general corporate purposes.

Notably, the company has not yet utilized the Rs. 3.75 crore allocated for investments, including potential investments in subsidiary companies. This suggests a cautious approach toward expansion activities during the quarter.

Board Oversight and Transparency

The compliance filing underscores DRC Systems' commitment to regulatory transparency and corporate governance. The statement is available on the company's website at www.drcsystems.com , ensuring stakeholder accessibility to this information. Company Secretary Jainam Shah signed the compliance documents, confirming adherence to all regulatory requirements under the amended SEBI Master Circular dated January 30, 2026.

DRC Systems India Limited has delivered impressive financial results for the third quarter and nine months ended December 31, 2025, with the Board of Directors approving and taking on record the unaudited financial results at their meeting held on February 4, 2026. The IT services and consulting company demonstrated strong operational performance and sustained business momentum across key financial metrics.

Board Meeting Outcome and Regulatory Compliance

Pursuant to Regulation 30 & 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board of Directors meeting commenced at 11:00 a.m. and concluded at 12:25 p.m. on February 4, 2026. The board considered, approved and took on record the unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, together with the Limited Review Report from Statutory Auditors Rajpara Associates.

Strong Q3 FY26 Performance

The company's consolidated financial performance for Q3 FY26 showed remarkable growth momentum. Revenue from operations reached ₹2,718.3 lakhs, marking a substantial 60% year-on-year increase from ₹1,695.1 lakhs in Q3 FY25. This growth trajectory was supported by strong performance across business verticals and continued expansion in key market segments.

Nine Months Performance Highlights

For the nine months ended December 31, 2025, DRC Systems maintained consistent growth across all major parameters. Consolidated revenue from operations grew 41% year-on-year to ₹6,830.6 lakhs compared to ₹4,844.8 lakhs in the corresponding period of FY25. Net profit after tax increased 27% YoY to ₹1,350.4 lakhs from ₹1,066.6 lakhs in the previous year.

Impact of New Labour Codes

The financial results included exceptional items totaling ₹87.3 lakhs related to the statutory impact of new Labour Codes notified by the Government of India on November 21, 2025. These codes consolidate 29 existing labour laws and primarily impact gratuity provisions due to changes in wage definition. The company has assessed this impact based on actuarial valuation reports and guidance from the Institute of Chartered Accountants of India.

Capital Structure and Equity Allotment

During the quarter, DRC Systems allotted 1,00,00,000 equity shares of face value ₹1 each on a preferential basis to investors other than promoters and promoter group. The shares were issued at ₹25 per share (including premium of ₹24), raising ₹2,500 lakhs in cash consideration. The paid-up equity share capital increased to ₹1,440.8 lakhs as of December 31, 2025.

Business Expansion and Technology Focus

The company has been expanding its portfolio in the education and digital learning sector, developing AI-powered solutions including Learning Management Systems integrated with WhatsApp chatbots. DRC Systems is positioning itself in the Learning Experience Platform (LXP) space with new AI-driven learning ecosystem components, bridging the gap between traditional LMS and modern LXP architectures.