DEVIT - Dev Information

📊 NSE: DEVIT 🏢 Computers - Software - Medium / Small 📅 Last Updated: 12/13/2025 21:29

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 11.38% in FY 2024-25 to INR 183.91 Cr. In H1 FY 2025-26, revenue reached INR 92.64 Cr, a 10.32% increase YoY. While specific segment percentages are not disclosed, management highlighted that growth is being driven by India-centric business and a recovery in export markets.

Geographic Revenue Split

The company is shifting focus toward the India market for sustainability, which currently accounts for a significant portion of the 40% order book. Overseas markets, specifically the USA and exports, have shown growth traction in recent months despite geopolitical turmoil.

Profitability Margins

Net Profit Ratio improved significantly to 10.24% in FY 2024-25 from 5.58% in FY 2023-24 (an 83.59% increase). However, Q2 FY 2025-26 reported net profit of INR 71.88 Cr was heavily inflated by an exceptional gain of INR 93.55 Cr from the DevX IPO.

EBITDA Margin

EBITDA for Q2 FY 2025-26 stood at INR 3.82 Cr, a sharp 66% decline from INR 11.23 Cr in Q2 FY 2024-25. This margin compression is attributed to heavy investments in employee upskilling and the creation of IT-based solutions/IPs which are expected to yield returns in future quarters.

Capital Expenditure

Planned R&D and Center of Excellence (CoE) investment is between INR 12 Cr and INR 18 Cr. This includes INR 7-12 Cr for AI and Blockchain products and INR 3-5 Cr for Cybersecurity infrastructure.

Credit Rating & Borrowing

Debt-to-equity ratio increased by 29.49% to 0.22 in FY 2024-25 (from 0.17) due to increased loan obligations. Interest Coverage Ratio remains healthy at 12.42, though it slightly declined by 1.28% YoY.

⚙️ Operational Drivers

Raw Materials

As an IT services firm, the primary 'raw material' is human capital/technical talent, which accounts for the bulk of operational costs. Upskilling expenses for emerging technologies like AI and Blockchain are currently the primary cost drivers impacting margins.

Import Sources

Not applicable as the company provides IT services; however, talent is primarily sourced from India, with service delivery extending to the USA and other overseas markets.

Key Suppliers

Not disclosed in available documents as the business is service-oriented rather than manufacturing-based.

Capacity Expansion

The company is expanding its 'digital capacity' by creating a Center of Excellence for AI, Blockchain, and Cybersecurity. It currently has 40+ solutions available on the Microsoft Marketplace.

Raw Material Costs

Employee-related costs are the primary expenditure. The company is intentionally lowering short-term margins (EBITDA fell 66% in Q2 FY26) to invest in workforce productivity and alignment with emerging technologies.

Manufacturing Efficiency

Operational performance is being driven by a 'recalibration of workforce allocation,' focusing on productivity in high-demand areas like cybersecurity and data analytics.

📈 Strategic Growth

Expected Growth Rate

10.32%

Growth Strategy

Growth will be achieved through 'asset class creation' (investing in startups like DevX), developing proprietary IPs (Talligence, ByteSigner), and expanding the Microsoft Marketplace portfolio (40+ solutions). The company is also focusing on high-margin recurring revenue through long-term managed services contracts.

Products & Services

IT solutions including Talligence (BI tool), ByteSigner (digital signature), and various cloud, cybersecurity, and AI-based managed services.

Brand Portfolio

DEVIT, Talligence, ByteSigner, Minddeft, Dhyey, and DevX (associate venture).

New Products/Services

New AI and Blockchain-based products are under development with a dedicated investment of INR 7-12 Cr, intended to create a recurring revenue mix.

Market Expansion

Aggressive focus on the India market for sustainability while maintaining growth in the USA and export markets.

Strategic Alliances

Strategic equity stake in Dev Accelerator Limited (DevX), which recently went public. DEVIT's shareholding was adjusted from 23% to 17% following the IPO, resulting in a valuation gain.

🌍 External Factors

Industry Trends

The industry is shifting toward AI adoption, cybersecurity, and digital transformation. DEVIT is positioning itself by upskilling its workforce and creating a 'world-class shop' for cybersecurity within its infrastructure.

Competitive Landscape

The company competes in the IT services and digital transformation space, differentiating through its 'People First' philosophy and its role as a promoter/investor in tech-adjacent businesses.

Competitive Moat

The moat is built on 'asset class creation' and IP ownership. By developing proprietary solutions like Talligence and holding a significant stake in a public accelerator (DevX), the company creates value beyond traditional IT services.

Macro Economic Sensitivity

Highly sensitive to global geopolitical stability and Indian government labor regulations. Management noted that geopolitical turmoil is a factor they are waiting to settle to fully utilize new solutions.

Consumer Behavior

Strong long-term demand for enterprise system modernization and AI adoption is driving the shift toward managed services and recurring revenue models.

Geopolitical Risks

Geopolitical turmoil is currently impacting the timing of overseas business utilization, prompting a strategic pivot to India-centric business for sustainability.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with the Companies Act 2013 and SEBI LODR Regulations. The company is also monitoring new labor codes which may impact cost structures.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the timeline for the 'geopolitical turmoil' to settle, which impacts the return on current R&D investments. Margin pressure from upskilling (66% EBITDA drop in Q2 FY26) is a significant short-term risk.