Dev Information

Dev Information Technology Limited delivered a strong Q4 FY26, with total income growing 8.1% year-on-year to INR 56 crores. EBITDA saw a significant increase of 68.5% year-on-year, reaching INR 5.04 crores, and the EBITDA margin improved by 322 basis points to 8.99%. For the full fiscal year 2026, the company reported a total income of INR 193.50 crores and a net profit of INR 75.60 crores, which included an exceptional unutilized gain. The diluted EPS for FY26 stood at INR 13.25.

The company has strategically aligned with XDuce Infotech, a U.S.-based IT service company, which acquired a 25% stake in DEV IT from promoters. This partnership is expected to generate $1-2 million in business for DEV IT in FY27, growing to $3-5 million in FY28, and 15-20% year-on-year thereafter. Additionally, DEV IT signed a shareholding agreement to acquire a 25% stake in UCI New York, which is projected to bring over $3 million worth of Microsoft Dynamics business in the U.S. market. An exclusive master distribution agreement with A21 Technologies for its AI-powered intelligence platform is also in place to scale across India and the MENA region.

To enhance focus on its core technological service business and improve profitability, DEV IT's Board approved the transfer of its Talligence and other product businesses to Technosys Private Limited. This divestment was for a cash consideration of approximately INR 11.90 crores. Management explained that product businesses require significant investment for development and marketing, which can impact DEV IT's EBITDA, and this move aims to create better value and allow DEV IT to concentrate on its service offerings.

DEV IT continues to strengthen its capabilities across key high-growth areas, referred to as ABCD: AI, Blockchain, Cybersecurity, and Data & Data Centers. The company achieved all 6 Microsoft solution partner designations, validating its technical expertise and strengthening its position within the Microsoft ecosystem. This accomplishment is expected to provide a stronger value proposition and increased visibility, enabling DEV IT to participate in larger and more complex enterprise transformation opportunities and secure high-value business in regions like Texas, Canada, and the UK.

In FY26, DEV IT strategically focused on the India market due to geopolitical situations, with India contributing 67% of its revenue. The company aims to acquire more enterprise and government clients, having added 35-40 strategic customers in the last year. While the India market offers lower profitability, it provides stability and learning. The company also reported an export business of INR 45 crores, cloud revenue of INR 25 crores, and India government corporate business of INR 110 crores for FY26.

Despite a lower full-year EBITDA margin of 3.74% in FY26, influenced by the India market focus and integration costs, management is committed to improving operating margins over the next 12-18 months. This will be achieved through strengthened processes, leveraging strategic alliances like XDuce and UCI to build a stronger pipeline, and becoming a global delivery center for XDuce to reduce sales and marketing expenses. The company emphasizes its lean and efficient delivery model as a competitive advantage.