Dynacons Sys.

Dynacons Systems & Solutions Limited reported a robust FY26, with revenue from operations growing 12% year-on-year to ₹1,424 crores. EBITDA saw a significant 41% increase, reaching ₹146 crores, and EBITDA margins expanded to 10.2% from 8.1% in FY25. Profit after tax for FY26 grew 17% to ₹85 crores. For Q4 FY26, revenue from operations stood at ₹402 crores, marking a 22% year-on-year growth, with EBITDA at ₹36 crores, up 26% year-on-year.

The company secured several marquee orders in FY26, including the Reserve Bank of India's enterprise application platform project worth ₹249 crores, Punjab and Sind Bank's private cloud infrastructure project for ₹109 crores, and LIC's digital workplace solutions engagement for ₹138 crores. Other significant wins included Jammu and Kashmir Bank's DaaS project (₹75 crores) and SBI's SD-WAN project (₹75 crores). These wins demonstrate Dynacons' ability to address multiple layers of enterprise technology transformation, from data center infrastructure to managed services.

Dynacons is well-positioned to capitalize on the significant transformation in the technology landscape, driven by aggressive investments in AI-ready infrastructure, cloud adoption, cybersecurity, and digital workplace modernization. The company noted India's IT spending is expected to exceed USD 176 billion by 2026, with data center capacity growing significantly. Dynacons' integrated capabilities across data center, cloud, network, security, and digital workplace solutions align with these market trends.

As of May 30, 2026, Dynacons' order book stood at approximately ₹3,000 crores, providing strong visibility for future execution and growth. The management indicated that this order book is executable over an average period of 18 to 24 months. The bidding pipeline is substantial, valued at ₹5,100 crores, with a historical conversion ratio of around 30%.

The company made significant investments in infrastructure and delivery capabilities during FY26, with property, plant, and equipment increasing from ₹8 crores in FY25 to ₹68 crores in FY26. This increase was primarily driven by upfront capex for 'as a service' projects like core banking and device as a service, and the accounting of leased assets as right-of-use assets. Despite these investments, net debt remained low at ₹68 crores as of March 31, 2026, with a healthy net debt to equity ratio of 0.2x.

While FY26 saw overall margin expansion, Q4 experienced sequential margin compression, with gross margin decreasing from 18% to 14% and operating profit margin from 11.92% to 9.05%. Management attributed this to short-term cost pressures and supply chain tightness in certain technology components, particularly linked to the strong demand for AI-ready infrastructure. They expect these pressures to normalize, viewing the Q4 impact as a temporary blip^📎 rather than a structural shift.

Dynacons maintained disciplined working capital management, with net working capital days at 17 days, a slight increase from the previous year. Trade receivables increased from ₹301 crores to ₹602 crores, and payable days increased from approximately 75 days to 134 days. Management explained that the project-based nature of their business, with milestone payments and longer receivable cycles, contributes to these figures. However, strong credit support from OEMs helps manage the working capital cycle efficiently.