1. At a Glance – Blink and You’ll Miss It (But Don’t)
DRC Systems India Ltd is one of those companies that quietly sits in the corner of the Indian IT classroom, finishes the exam early, scores well, and still doesn’t get invited to the after-party. Market cap around ₹252 crore, current price hovering near ₹17, and a Stock P/E of ~13 in an industry where even mediocrity trades north of 20x. The latest quarter shows ₹27.18 crore revenue with a 60% YoY jump, PAT of ₹6.28 crore up 77% YoY, and operating margins casually flexing at ~27–30%. ROE is a spicy ~27%, ROCE sits at ~30%, and debt is so low it’s basically a rounding error.
Yet the stock is down ~37% over one year. Yes, you read that right. Profits are growing, margins are fat, balance sheet is clean, and the share price is sulking like it didn’t get dessert. Add a ₹25 crore preferential issue at ₹25/share (well above current price) and you’ve got a situation that makes retail investors squint and whisper, “Bhai, something interesting is happening here.” Curious already? Good. Let’s dig.
2. Introduction – Another IT Company? Yes. Another Boring One? No.
DRC Systems India Ltd was incorporated in 2012, which in Indian IT years means it’s old enough to have survived multiple buzzword cycles: websites, mobile apps, cloud, AI, blockchain, automation, and whatever comes next. Unlike the IT dinosaurs fighting over legacy BFSI contracts, DRC plays in a more modular, service-heavy, project-driven universe.
The company is a member of the Electronics & Computer Software Export Promotion Council, appraised at CMMI Maturity Level 3, and is an Adobe Solutions Partner (Bronze). Translation for non-IT folks: this is not a two-laptop-and-a-garage operation. There are processes, audits, certifications, and enterprise clients who don’t tolerate jugaad.
What stands out is how fast the numbers have scaled. Annual revenue moved from ₹20 crore in FY22 to ~₹85 crore TTM, profits jumped even faster, and margins expanded instead of collapsing (which is rare in small IT firms chasing growth). The obvious question: is this sustainable execution or just a golden patch? And the uncomfortable follow-up: if things are so good, why is the market treating the stock like yesterday’s cold samosa?
3. Business Model – WTF Do They Even Do?
Let’s keep this simple, because
their service list reads like an IT restaurant menu with 27 pages.
DRC Systems is an IT services and consultancy company offering end-to-end digital solutions. Their work spans:
- Discovery & Consulting – workshops, requirement analysis, dedicated developer teams
- Design – UI/UX, wireframes, frontend work
- Development – web apps, mobile apps, CMS, e-commerce, e-learning
- Innovation – AI/ML, blockchain, data analytics, big data
- Transformation – ERP, enterprise solutions, digital process automation
- Deployment & Assurance – DevOps, cybersecurity, testing, maintenance
In short, if a government body, university, enterprise, or corporate wants to digitise something and doesn’t want to deal with a Tier-1 IT behemoth’s billing department, DRC shows up.
They also have products, not just services:
- Economic Zone Management System (EZMS)
- Enterprise Resource Planning (ERP)
- University Management System
Client list includes Wipro, NSDC, IIM-B, GMR, and various public sector and enterprise names. That mix matters because it reduces dependency on one sector. Revenue split in FY23 was ~49% exports and ~51% domestic, which is a healthy hedge against currency and policy mood swings.
So yes, it’s “another IT company,” but it’s playing the smallcap, high-margin, niche execution game. Question is: how long before competition notices?
4. Financials Overview – The Numbers That Made the Stock Grumpy
Quarterly Comparison (Consolidated – Q3 FY26)
| Metric | Latest Quarter | Same Qtr Last Year | Previous Qtr | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 27.18 | 16.95 | 22.83 | ~60% | ~19% |
| EBITDA (₹ Cr) | 7.45 | 5.02 | 6.18 | ~48% | ~21% |
| PAT (₹ Cr) | 6.28 | 3.55 | 4.17 | ~77% | ~51% |
| EPS (₹) | 0.38 | 0.27 | 0.32 | ~41% | ~19% |
Margins remain comfortably above 27%, which is unusually high for a company of this size. Over the last three years, sales CAGR ~50%, profit growth ~178%, and ROE consistently near high-20s.
Now the EPS math. These are
