DRC Systems India Limited (DRCSYSTEMS) AI Stock Analysis

• Market Cap: ₹2.39B
• Dividend Yield: N/A
• Average Volume (3M): 17.86K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 1.56
• Revenue Growth: 20.62%
• EPS Growth: 1.68%
• Country: IN
• Employees: 175
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.32
• Shares Outstanding: 144,081,330
• 10 Day Avg. Volume: 4,679
• 30 Day Avg. Volume: 17,860
• PEG Ratio: 0.78
• Price to Book (P/B): 5.68
• Price to Sales (P/S): 5.61
• P/FCF Ratio: 38.62
• 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: 64 Neutral
• Price Target: ₹19.50 ▲(10.42% Upside)

The overall stock score of 64 reflects strong financial performance as the most significant factor, supported by robust revenue growth and profitability. However, bearish technical indicators and the lack of dividend yield weigh down the score. The valuation is reasonable, but the absence of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

Sustained revenue growth highlights the company's expanding market presence and successful business strategies, ensuring long-term stability.

Cash Flow Management

Strong cash flow management allows the company to fund operations and growth internally, reducing reliance on external financing and enhancing financial resilience.

Profitability

Improved profitability through higher net profit margins suggests effective cost control and operational efficiency, bolstering long-term financial health.

Negative Factors

Technical Indicators

While not a direct reflection of fundamental health, bearish technical indicators could signal potential investor concerns, impacting market perception and future capital raising.

Earnings Call Data Absence

The absence of recent earnings call data limits transparency and investor insight into management's strategic direction and operational performance.

Dividend Policy

Lack of dividends may deter income-focused investors, potentially impacting stock demand and limiting shareholder returns in the absence of capital gains.

DRC Systems India Limited Business Overview & Revenue Model

Company Description

DRC Systems India Limited, a software development company, provides IT business solutions worldwide. It offers Z-ERP, a smart web-based ERP solution primarily for B2B business that enables services, such as financial accounting, sales and distribution, procurement, inventory management, payroll, project management, compliance management, system administration, and quality control. The company also provides consultancy and discovery workshop services, and dedicated developers; UI/UX, wireframe, and frontend design services; web development, mobile application development, content management system, digital commerce/e-commerce, and eLearning services; blockchain, big data, engineering, and IOT services; and cyber security, manual testing, automation testing, and performance testing services. In addition, it offers DevOps and cloud, salesforce, and support and maintenance services; data analytics, and AI and automation services; and enterprise resource planning, enterprise, digital marketing, digital process automation, and hub spot solutions. It serves health care, financial Services, retail, education, transportation, hospitality, and public sector. The company was formerly known as DRC Systems India Private Limited. The company was incorporated in 2012 and is headquartered in Gandhinagar, India.

How the Company Makes Money

DRC Systems India Limited generates revenue through a multi-faceted business model that includes project-based consulting services, software licensing, and subscription fees for cloud-based solutions. Key revenue streams consist of custom software development contracts with enterprises, ongoing maintenance and support services, and recurring revenue from software as a service (SaaS) offerings. The company has established significant partnerships with technology firms and industry leaders, enabling it to enhance its service offerings and expand its market reach. Additionally, DRCSYSTEMS benefits from strategic alliances that facilitate access to new clients and projects, contributing to its overall earnings.

DRC Systems India Limited Financial Statement Overview

Summary

DRC Systems India Limited demonstrates strong financial health with significant revenue growth, robust profitability, and efficient cash flow management. The company maintains a solid balance sheet with low leverage and effective equity utilization.

Income Statement

DRC Systems India Limited has shown robust revenue growth, with a significant increase from the previous year. The gross profit margin has improved, reflecting efficient cost management. The net profit margin has also increased, indicating strong profitability. The company’s EBIT and EBITDA margins are healthy, showcasing operational efficiency and effective cost control.

Balance Sheet

The balance sheet is strong, with a favorable equity ratio indicating significant equity financing. The debt-to-equity ratio is low, suggesting low financial leverage and reduced financial risk. The return on equity is impressive, demonstrating effective utilization of shareholder funds to generate profits.

Cash Flow

DRC Systems India Limited exhibits strong cash flow management. There's a notable increase in free cash flow, reflecting efficient capital expenditure and strong cash generation from operations. The operating cash flow to net income ratio indicates solid cash conversion, underscoring the company's ability to fund operations and growth without excessive reliance on external financing.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	683.13M	653.77M	476.83M	256.25M	195.01M	205.95M
Gross Profit	247.48M	214.73M	175.29M	87.44M	40.02M	30.25M
EBITDA	224.17M	210.81M	149.79M	94.80M	25.34M	16.52M
Net Income	155.71M	150.75M	116.54M	66.94M	7.03M	-4.79M
Balance Sheet
Total Assets	0.00	995.07M	785.64M	392.41M	249.55M	144.32M
Cash, Cash Equivalents and Short-Term Investments	20.61M	175.61M	41.42M	23.73M	5.09M	17.09M
Total Debt	0.00	5.10M	7.51M	6.05M	158.37M	0.00
Total Liabilities	-645.91M	349.16M	307.34M	47.84M	181.74M	87.30M
Stockholders Equity	645.91M	645.91M	478.30M	342.75M	67.81M	57.02M
Cash Flow
Free Cash Flow	0.00	94.98M	33.15M	-10.11M	-18.86M	8.18M
Operating Cash Flow	0.00	329.00M	277.97M	26.34M	-10.71M	8.30M
Investing Cash Flow	0.00	-349.62M	-258.72M	-50.25M	-152.09M	14.00K
Financing Cash Flow	0.00	-140.00K	-1.56M	41.72M	150.80M	-518.00K

DRC Systems India Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.66
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:DRCSYSTEMS, the sentiment is Negative. The current price of 17.66 is above the 20-day moving average (MA) of 17.13, below the 50-day MA of 17.73, and below the 200-day MA of 19.64, indicating a bearish trend. The MACD of -0.26 indicates Positive momentum. The RSI at 40.96 is Neutral, neither overbought nor oversold. The STOCH value of 10.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:DRCSYSTEMS.

DRC Systems India Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INTENTECH	72 Outperform	₹2.76B	35.54	―	0.84%	-10.39%	-52.44%
DRCSYSTEMS	64 Neutral	₹2.39B	13.35	―	―	20.62%	1.68%
DEVIT	62 Neutral	₹1.88B	2.44	―	0.49%	30.15%	330.45%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
IVP	57 Neutral	₹1.49B	13.66	―	0.68%	7.44%	-9.39%
RSSOFTWARE	56 Neutral	₹1.18B	-11.40	―	0.46%	-52.09%	-142.64%
TRIGYN	52 Neutral	₹1.92B	43.09	―	―	-16.31%	-9.79%

DRC Systems India Limited Corporate Events

DRC Systems India Files SEBI Regulation 74(5) Demat Compliance Certificate

DRC Systems India Limited has submitted a confirmation certificate from its registrar and transfer agent MUFG Intime India Private Limited, stating compliance with Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended 31 December 2025. The filing confirms that all securities received for dematerialisation during the quarter were duly processed, either accepted or rejected, appropriately listed on the stock exchanges, and that corresponding physical certificates were mutilated, cancelled, and updated in the company’s register of members within prescribed timelines, reinforcing the company’s adherence to regulatory norms in handling its share capital.

DRC Systems India to Close Trading Window Ahead of December Quarter Results

DRC Systems India Limited has announced that, in line with SEBI’s Prohibition of Insider Trading Regulations and its own code of conduct, the trading window for dealing in its securities will be closed from January 1, 2026 until 48 hours after the declaration of its financial results for the quarter and nine months ended December 31, 2025. The company has not yet specified the date on which these financial results will be announced, and the closure signals standard compliance measures intended to prevent insider trading around the upcoming earnings disclosure, affecting when insiders and connected persons can transact in the company’s shares.