Dev Information Technology Ltd (DEVIT) AI Stock Analysis

• Market Cap: ₹1.32B
• Dividend Yield: 0.49%
• Average Volume (3M): 6.40K
• Price to Earnings (P/E): 1.9
• Beta (1Y): 1.45
• Revenue Growth: 30.15%
• EPS Growth: 330.45%
• Country: IN
• Employees: 971
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -1.29
• Shares Outstanding: 56,335,230
• 10 Day Avg. Volume: 4,420
• 30 Day Avg. Volume: 6,401
• PEG Ratio: 0.30
• Price to Book (P/B): 3.79
• Price to Sales (P/S): 1.53
• P/FCF Ratio: -16.63
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ₹25.00 ▼(-37.92% Downside)
• Action: Reiterated Date: 02/20/26
• Date: Action: Reiterated 02/20/26

The score is primarily supported by strong valuation (very low P/E) and generally solid financial performance (growth and improved profitability), but it is held back by weak technicals (broad downtrend with negative momentum) and cash-flow concerns (negative operating cash flows) that increase risk.

Positive Factors

Revenue Growth Trend

Consistent mid-teens revenue growth reflects durable demand for the firm's IT services and supports scale advantages. Sustained top-line expansion provides capacity to invest in sales, product development and talent, reinforcing competitive position over the next 2-6 months.

Improved Net Profit Margin

A materially improved net margin indicates better cost management and operational efficiency, which is a structural strength. Higher margins enhance earnings durability, enable reinvestment or deleveraging, and create buffer against pricing or cost pressures over medium term.

Stable Equity and Rising ROE

A stable equity base together with improving ROE signals effective capital deployment by management and a reasonably capitalized balance sheet. This supports funding for organic growth or strategic initiatives and improves resilience to sector cyclicality.

Negative Factors

Negative Operating Cash Flow

Persistent negative operating cash flow undermines the quality of reported earnings and pressures liquidity. Over several quarters this forces reliance on external financing or asset sales, raising execution risk for growth plans and increasing sensitivity to funding costs.

Rising Debt-to-Equity

An increasing debt-to-equity trend raises leverage risk and reduces financial flexibility. If leverage continues to climb while cash flow stays weak, interest burden and refinancing needs could constrain investment and heighten vulnerability to downturns or higher rates.

Volatile Gross Profit Margin

Volatility in gross margins suggests exposure to pricing pressure, variable input costs, or contract mix shifts. This complicates margin planning and can erode the sustainability of recent net margin gains unless the company secures more stable pricing or cost control.

Dev Information Technology Ltd Business Overview & Revenue Model

Company Description

Dev Information Technology Limited provides information technology enabled services in India. The company offers enterprise resource planning and customer relationship management applications, and application development solutions; and enterprise mobility services, such as mobile application development and mobile device management services. It also provides infrastructure management services, including incident management, problem management, helpdesk, server management, database administration, network and firewall, and consulting and managed services; planning, licensing, and implementation services for office 365 solutions; and cybersecurity services. In addition, the company offers cloud computing services, including cloud advisory, cloud management, cloud migration, managed backups, disaster recovery, and unified communication solutions; and digital commerce, digital marketing, and document digitization services. Further, it licenses software products; and provides digital signatures and SSL certificates. Additionally, the company offers maintenance services for software products, as well as technical support services; and resells software products. Dev Information Technology Limited was incorporated in 1997 and is based in Ahmedabad, India.

How the Company Makes Money

DEVIT generates revenue primarily through a diversified model that includes project-based contracts for software development and consulting services. The company charges clients on a time-and-materials basis or fixed-price contracts, depending on the project scope and client needs. Additionally, DEVIT earns recurring revenue through maintenance and support services for its software products, along with subscription fees for cloud-based solutions. The company has established strategic partnerships with leading technology firms, which enhance its service offerings and expand its customer base. These collaborations often lead to joint projects that contribute significantly to DEVIT's revenue stream, alongside direct sales from its proprietary software products.

Dev Information Technology Ltd Financial Statement Overview

Summary

Solid revenue growth and improved net profit margin support a positive operating trajectory, and the balance sheet remains reasonably stable with improving ROE. However, persistent negative operating cash flows and a rising debt-to-equity trend reduce financial quality and raise liquidity/leverage risk.

Income Statement

Dev Information Technology Ltd has demonstrated strong revenue growth with a notable increase in total revenue over the past years, indicating a positive growth trajectory. The net profit margin has improved significantly, reflecting better cost management and operational efficiency. However, there is room for improvement in gross profit margin, which has shown some volatility.

Balance Sheet

The company maintains a stable equity ratio, suggesting a well-capitalized balance sheet. The debt-to-equity ratio remains moderate but has been increasing, indicating a potential risk if leverage continues to rise. Return on equity has improved, which is a positive indicator of profitability.

Cash Flow

Cash flow analysis reveals challenges with negative operating cash flows in recent years, which could affect liquidity if not addressed. However, free cash flow has shown some recovery in earlier periods, suggesting the potential for future improvement. The company needs to focus on enhancing cash flow generation to support ongoing operations.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.78B	1.71B	1.63B	1.24B	997.49M	843.80M
Gross Profit	167.43M	160.83M	197.53M	121.61M	106.99M	80.49M
EBITDA	217.89M	237.18M	153.11M	138.93M	59.06M	32.53M
Net Income	134.46M	148.73M	92.88M	89.75M	1.34M	-3.20M
Balance Sheet
Total Assets	0.00	1.22B	954.86M	677.40M	664.81M	629.74M
Cash, Cash Equivalents and Short-Term Investments	19.05M	23.34M	65.07M	24.96M	88.33M	78.38M
Total Debt	0.00	199.84M	145.80M	72.93M	96.32M	111.05M
Total Liabilities	-687.63M	533.35M	372.02M	261.33M	337.02M	288.95M
Stockholders Equity	687.63M	686.22M	554.51M	415.46M	327.86M	338.81M
Cash Flow
Free Cash Flow	0.00	-156.49M	-27.84M	-74.13M	32.30M	50.41M
Operating Cash Flow	0.00	-110.96M	-7.92M	-16.48M	47.73M	56.52M
Investing Cash Flow	0.00	48.28M	-21.05M	-6.49M	-10.93M	-3.66M
Financing Cash Flow	0.00	47.71M	38.01M	-43.32M	-21.33M	-1.72M

Dev Information Technology Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 40.27
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:DEVIT, the sentiment is Negative. The current price of 40.27 is above the 20-day moving average (MA) of 28.09, above the 50-day MA of 31.75, and above the 200-day MA of 39.92, indicating a bearish trend. The MACD of -2.45 indicates Positive momentum. The RSI at 25.31 is Positive, neither overbought nor oversold. The STOCH value of 6.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:DEVIT.

Dev Information Technology Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DEVIT	66 Neutral	₹1.32B	1.95	―	0.49%	30.15%	330.45%
DRCSYSTEMS	66 Neutral	₹2.19B	11.20	―	―	20.62%	1.68%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
GOLDTECH	55 Neutral	₹2.08B	23.63	―	―	18.44%	-32.39%
TRIGYN	52 Neutral	₹1.62B	41.30	―	―	-16.31%	-9.79%
RSSOFTWARE	45 Neutral	₹866.12M	-4.24	―	0.46%	-52.09%	-142.64%
XELPMOC	45 Neutral	₹1.95B	-25.42	―	―	-30.22%	25.16%

Dev Information Technology Ltd Corporate Events

Dev Information Technology Wins INR 29 Lakh AutoCAD Licensing Order from GIFT City

Dev Information Technology Limited has secured a fixed-cost order worth approximately INR 29 lakh from Gujarat International Finance Tec-City (GIFT), an undertaking of the Gujarat Government, for the procurement of AutoCAD licences with a three-year subscription for the DTA area of GIFT City. The contract, to be executed over roughly three years, strengthens DEVIT’s presence in government-linked infrastructure and design technology projects, underlining its role as a technology partner for specialised platforms that support architectural design, structural engineering, MEP and construction workflows, and potentially enhancing its credentials in the urban development and smart-city ecosystem.

Dev Information Technology Ltd Releases Q2 Earnings Call Transcript

Dev Information Technology Ltd has released the transcript of its earnings conference call for the second quarter and half-year ending September 30, 2025. This announcement aligns with SEBI regulations and is accessible on the company’s website, reflecting transparency and compliance in financial reporting.