1. At a Glance
Welcome to the land of routers, firewalls, and growth numbers hotter than Delhi’s Wi-Fi in summer —DC Infotech & Communication Ltd (DCICL)has dropped itsQ2 FY26 results, and the numbers are as spicy as its new cybersecurity tie-ups. Revenue for the quarter clocked in at₹153.42 crore, up17.7% YoY, whilePAT rose a solid 35.8% to ₹5.01 crore. For a company that began in 1998 selling networking products, it’s now sitting pretty at amarket cap of ₹407 croreand astock P/E of 24.2x— slightly above the industry P/E of 22.7x.
TheROCE at 25.5%andROE at 23.6%show this small-cap distributor is sweating its assets like a Gujarati businessman at a discount sale. TheDebt-to-Equity ratio of 0.73indicates that while DC Infotech isn’t allergic to loans, it hasn’t turned into a leveraged circus either. Sales over the trailing twelve months (TTM) touched₹608 crore, growing20.4% YoY, and profit growth stands at28.1%.
At a CMP of ₹255, after a 5.47% gain in the last three months (but still down 22% in a year), the stock looks like it’s quietly resetting Wi-Fi routers while everyone else is distracted by AI hype. But the real bandwidth story is in itsQ2 partnerships— fromVersa NetworkstoSangfor— DC Infotech is turning into India’s all-you-can-eat buffet for cybersecurity solutions.
2. Introduction
Imagine an IT distributor so efficient it could probably deliver a firewall faster than your food app delivers pani puri. That’s DC Infotech. Founded in 1998, it’s spent nearly three decades connecting cables, companies, and chaos — and in FY26, it’s finally making serious noise in the IT hardware and cybersecurity distribution space.
Operating in a sector dominated by global heavyweights and razor-thin margins, DC Infotech’s real magic trick has been diversification. From networking cables and routers to cybersecurity and digital signage, this Mumbai-based distributor has gone from being a hardware peddler to a solutions partner.
The financials are proving that the evolution is working: over the pastfive years, DC Infotech’s profit has compounded at 51.4% CAGR, while sales grew 30.4%. The management clearly believes in the “scale or die” philosophy, withrevenue up nearly fourfold since FY21 (₹169 crore → ₹608 crore TTM).
Of course, it’s not all plug-and-play. The company doesn’t pay dividends, which means it’s hoarding cash like an anxious squirrel before Diwali. But for those who understand distribution businesses, reinvestment is the only way to survive — because every year, the tech alphabet soup changes: SD-WAN, SaaS, IoT, AI, XDR — and distributors like DC Infotech need to keep upgrading or risk becoming the next fax machine.
3. Business Model – WTF Do They Even Do?
Let’s break this down like you’re explaining routers to your dadi.DC Infotechdoesn’t manufacture gadgets — itdistributesthem. Think of it as the middleman between global IT brands and Indian businesses.
They sell products and solutions acrossnetworking, cybersecurity, AV, and digital signage, acting as the official distributor for major brands:
- D-Link:Routers, switches, structured cabling (basically India’s backbone of office Wi-Fi).
- Netgear:High-performance switches and NAS devices.
- Netscout:DDoS and cyber threat management solutions.
- Samsung:Smart LED and digital signage solutions for commercial spaces.
- SonicWall:Firewalls, endpoint protection, and secure remote access.
- Zscaler:Cloud security and Zero Trust network access solutions.
It’s like being the Amazon of B2B IT security, but without consumer tantrums or one-day returns.
In FY23,82% of revenue came from hardware salesand18% from software and services, but this mix is slowly shifting. The company’s new partnerships — withVersa Networksfor SD-WAN andSangforfor cybersecurity — show it’s moving up the tech food chain.
Their customer base includesMaruti Suzuki Gujarat, Tata Play, Bluestar, and evenBharat Petroleum, which proves that from petrol to pixels, everyone needs a firewall. With1,600+ channel partnersacross
India and branches inSurat, Delhi, Kolkata, Bengaluru, and more, DC Infotech’s network looks more spread out than India’s 5G coverage map.
4. Financials Overview
Quarterly Results Lock: Q2 FY26 (Half Yearly consolidated verified)Figures in ₹ crore
| Metric | Latest Qtr (Sep ’25) | YoY Qtr (Sep ’24) | Prev Qtr (Jun ’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 153.42 | 130.32 | 148.09 | 17.7% | 3.6% |
| EBITDA | 8.47 | 6.41 | 6.49 | 32.2% | 30.5% |
| PAT | 5.01 | 3.69 | 4.05 | 35.8% | 23.7% |
| EPS (₹) | 3.13 | 2.73 | 2.53 | 14.7% | 23.7% |
Commentary:DC Infotech’s Q2 numbers show a company that’s learning to monetize connectivity faster than Indian Railways learned dynamic pricing. Revenue growth is robust at nearly 18%, but the bigger story is margin resilience —EBITDA margins improved from 4.38% to 5.52%, and net profit margins are holding near 3.3%.
At anannualized EPS of ₹12.52, theP/E ratio of 24.2xdoesn’t look unreasonable — especially for a company with consistent double-digit growth.
5. Valuation Discussion – Fair Value Range (Educational Only)
Method 1: P/E ApproachIndustry average P/E = 22.7xAnnualized EPS (Q2 FY26 x 4) = ₹12.52→ Fair Value Range = ₹12.52 × (22x to 26x) =₹275 – ₹325
Method 2: EV/EBITDA ApproachEV = ₹451 crore; EBITDA (TTM) = ₹30 crore→ EV/EBITDA = 15.0x (fair for distribution biz).If re-rated to 13–17x,Equity Value range ≈ ₹390–₹510 crore → ₹245 – ₹320 per share
Method 3: DCF (Conservative)Assuming 20% growth for 3 years, then 10% terminal, discount at 12%, intrinsic range =₹260–₹310
🧾Educational Disclaimer:This fair value range is for learning purposes only, not investment advice.
6. What’s Cooking – News, Triggers, Drama
The last year has been a drama ofpartnerships, preferential allotments, and power plays.
- Nov 2025:DC Infotech inked a partnership withSangfor Technologies, expanding its cybersecurity and cloud offerings across the MEA region. Big flex for a ₹400-crore cap company!
- Sep 2025:Promoters converted1.58 million warrants, raising their stake to63.75%.
- FY23–FY25:Multiple tie-ups —Versa Networks, Netscout, Array Networks, andSamsung’s signage division— turned DC into a multi-brand distributor with serious credibility.
- Mar 2024:
