DCI - DC Infotech

📊 NSE: DCI 🏢 Trading 📅 Last Updated: 12/13/2025 21:22

💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations grew 21.17% YoY to INR 301.52 Cr in H1 FY26. The Products segment contributed INR 265.57 Cr (up from INR 196.43 Cr), while Security Software and Services contributed INR 35.94 Cr (down from INR 52.41 Cr). For FY25, revenue grew 20.91% to INR 555.75 Cr, driven by strong demand for brands like Samsung and Netgear.

Geographic Revenue Split

The company operates primarily in India with major installations pan-India. It incorporated a wholly owned subsidiary in Dubai (DCInfotech And Communication - FZCO) on July 28, 2025, to expand internationally, though operations are pending funding.

Profitability Margins

PAT margin improved to 3.26% in Q2 FY26, a 43 bps expansion YoY. H1 FY26 PAT margin stood at 3.00%, up 29 bps from 2.71% in H1 FY25. FY25 Net Profit margin was 2.61%, up from 2.53% in FY24, reflecting disciplined execution and cost optimization.

EBITDA Margin

EBITDA margin for H1 FY26 was 4.96%, a 28 bps improvement YoY. Q2 FY26 EBITDA margin reached 5.52%, up 60 bps YoY. EBITDA grew 32.32% YoY in Q2 FY26 to INR 8.48 Cr, supported by product-mix optimization and tighter vendor pricing terms.

Capital Expenditure

Not explicitly disclosed in absolute INR Cr for future plans, but the company is investing in international expansion through its new Dubai subsidiary and has converted warrants to equity (INR 7.37 Cr in H1 FY26) to strengthen its financial foundation.

Credit Rating & Borrowing

Borrowing costs are reflected in interest expenses of INR 3.14 Cr for H1 FY26, compared to INR 3.05 Cr in H1 FY25. The company maintains a strong financial foundation through effective working capital management and prudent provisioning.

⚙️ Operational Drivers

Raw Materials

Networking hardware, Security software, and Unified Communication products (Samsung, Netgear, Arbor, D-Link, Kramer, Zscaler) represent 90.7% of total costs.

Import Sources

Sourced from global technology leaders including Samsung (South Korea), Netgear (USA), and Arbor (USA). Specific import countries for all components are not disclosed.

Key Suppliers

Key suppliers and brand partners include Samsung, Netgear, Arbor, D-Link, Kramer, and Zscaler.

Capacity Expansion

The company is expanding its operational footprint through the incorporation of DCInfotech And Communication - FZCO in Dubai (Trade license received 28/07/2025).

Raw Material Costs

Raw material/purchase costs stood at INR 273.65 Cr in H1 FY26, representing 90.7% of revenue. This is an increase from INR 228.54 Cr in H1 FY25, tracking revenue growth.

Manufacturing Efficiency

Not applicable as the company operates as a leading architect and solution provider rather than a manufacturer.

Logistics & Distribution

Distribution costs are part of the operating costs which rose to INR 7.36 Cr in H1 FY26 from INR 4.25 Cr in H1 FY25, partly due to higher sales promotion spends.

📈 Strategic Growth

Expected Growth Rate

21%

Growth Strategy

Growth will be achieved by deepening customer engagements in core Networking and Unified Communication portfolios, optimizing product mix toward high-margin segments, and leveraging international expansion through the new Dubai subsidiary. The company aims to stay 'one step ahead' by anticipating future market trends in security and networking.

Products & Services

Networking equipment, security software, unified communication products, and security implementation services.

Brand Portfolio

Samsung, Netgear, Arbor, D-Link, Kramer, Zscaler.

New Products/Services

Continued traction in core categories and strengthening offerings in high-growth segments like Unified Communication are expected to drive future margin improvement.

Market Expansion

International expansion into the Middle East via the Dubai-based subsidiary (FZCO) incorporated in July 2025.

Market Share & Ranking

Established as one of the leading architects and solution providers of networking, security, and unified communication products in India.

Strategic Alliances

Strong partnerships with Samsung (36% revenue share), Netgear (23%), Arbor (12%), D-Link (19%), and Kramer (3%).

🌍 External Factors

Industry Trends

The Indian network equipment market is projected to reach USD 4,915.6 million by 2030, growing at a CAGR of 5.5%. Hardware remains the largest component with a 55.19% revenue share.

Competitive Landscape

Operates in a competitive market for networking and security solutions, positioning itself through technology know-how and premium brand partnerships.

Competitive Moat

Moat is built on being a 'leading architect' with deep brand partnerships and a strategy to understand future market needs before they become obvious. Sustainability is driven by the shift toward high-growth security and unified communication segments.

Macro Economic Sensitivity

Sensitive to global growth paths, which are forecast at 3.3% for 2025 and 2026. Subdued global growth and trade policy changes impact export potential.

Consumer Behavior

Strong demand for networking and unified communication products is driving the current 21% revenue growth trajectory.

Geopolitical Risks

Export growth is under pressure due to evolving trade policies and a slowdown in global demand.

⚖️ Regulatory & Governance

Industry Regulations

Complies with Indian Accounting Standards (Ind AS) and the Companies Act, 2013. Segment disclosures follow Ind AS 108.

Environmental Compliance

Not disclosed.

Taxation Policy Impact

Effective tax rate for H1 FY26 was approximately 25.5% (INR 3.10 Cr tax on INR 12.15 Cr PBT).

Legal Contingencies

No non-compliance, penalties, or strictures were imposed on the company by Stock Exchanges, SEBI, or any statutory authority during the last three years.