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1. Opening Hook
FY26 was, by the top line, the best year DC Infotech has had. Revenue reached ₹736.97 crore, up 32.6% year-on-year, management said. PAT hit ₹21.21 crore, growing 46.3%, management said. CRISIL upgraded the long-term rating from BBB- to BBB with a stable outlook during the year, management said.
Then there is the cash flow statement, which had a different year entirely. Operating activity drained ₹37 crore in FY26 versus minus ₹4 crore the year before, per the data sheet. Free cash flow came in at minus ₹43 crore.
So profit went up and a lot of it left through working capital. A networking distributor talking about AI data centres, an EBITDA margin that won’t sit still, and a forex line nobody saw coming. The call ran twelve pages. The interesting parts were not in the opening remarks.
2. At a Glance
- FY26 revenue ₹736.97 Cr (+32.6%) – The growth is real; the operating margin stayed near 5%, where it has lived for four straight years.
- FY26 PAT ₹21.21 Cr (+46.3%) – Profit grew faster than sales. Interest also grew, from ₹7 Cr to ₹9 Cr per the P&L.
- Q4 PAT ₹5.79 Cr – Lower than Q3’s ₹6.48 Cr, on higher Q4 sales. The quarter where the top line rose and the bottom line didn’t.
- Operating cash flow minus ₹37 Cr – Profit is on the P&L. The cash is somewhere in debtor days, which moved to 104.
- OPM 4.31% in Q4 – The “structural margin improvement” registered a four-decade-low number of basis points above 4%.
- Promoter holding 62.20% – Down 1.55% over the quarter, per the shareholding pattern.
3. Management’s Key Commentary
The Managing Director, Chetankumar Timbadia, did most of the talking. The quotes are his; the translations are not.
“What began as a product focused technology business has transformed into a diversified solution-led technology platform.”
(Per the data sheet, products were still 81% of revenue in FY25. The platform is diversified; the revenue mix is not yet.)
“We believe one of the most significant opportunities emerging globally is rapidly built out of AI infrastructure.”
(AI was named in the opening remarks before the actual FY26 numbers were. The compute and storage piece, management said, is something they are “slowly getting into” — i.e., do not have yet.)
“And what we were missing in terms of the compute and the compute storage, and second was power cooling and rack and stack. So, we are slowly getting into that facade of business also.”
(A rare on-record use of “facade” to describe one’s own expansion. We’ll let it stand.)
“During the Financial Year 2026, CRISIL upgraded our long-term credit rating from BBB- to BBB with a stable outlook.”
(A real upgrade, fairly stated. BBB is still BBB. The cash flow statement and the rating agency read FY26 slightly differently.)
“While business activities experience temporary moderation due to geopolitical developments, engagement levels remain encouraging.”
(“Temporary moderation” is the UAE subsidiary that signed Sangfor and then watched the Middle East stop buying. More on that in the Q&A, where it got more
