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DRC Systems India Limited
(DRCSYSTEMS)
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Rating:76Outperform
Price Target:
₹15.00
▲(11.36% Upside)
Action:Upgraded
Date:05/22/26
The score is driven primarily by strong financial performance (rapid growth, solid profitability, deleveraged balance sheet, and improved FY2026 cash-flow conversion). This is tempered by a mixed technical picture with weak longer-term trend signals, while valuation appears supportive due to the relatively low P/E.
Positive Factors
Revenue Growth
Sustained double-digit revenue growth into FY2026 reflects successful scaling of services and stronger client demand. Over 2–6 months this supports durable revenue run-rate, enables incremental investment in sales and R&D, and reduces reliance on isolated large projects.
Negative Factors
Margin Compression
Although margins remain healthy, the trend of compression versus earlier years suggests growth is being achieved at some profitability cost. If driven by competitive pricing, higher SG&A or adverse mix, this could pressure sustainable operating margins and ROE.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Sustained double-digit revenue growth into FY2026 reflects successful scaling of services and stronger client demand. Over 2–6 months this supports durable revenue run-rate, enables incremental investment in sales and R&D, and reduces reliance on isolated large projects.
Read all positive factors
DRC Systems India Limited (DRCSYSTEMS) vs. iShares MSCI India ETF (INDA)
Market Cap
₹1.89B
Dividend YieldN/A
Average Volume (3M)17.86K
Price to Earnings (P/E)9.0
Beta (1Y)1.59
Revenue Growth46.09%
EPS Growth27.31%
CountryIN
Employees200
SectorGeneral
Sector StrengthN/A
IndustryInformation Technology Services
Share Statistics
EPS (TTM)1.45
Shares Outstanding144,081,330
10 Day Avg. Volume4,679
30 Day Avg. Volume17,860
Financial Highlights & Ratios
PEG Ratio0.45
Price to Book (P/B)1.77
Price to Sales (P/S)2.08
P/FCF Ratio4.17
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
DRC Systems India Limited Business Overview & Revenue Model
Company Description
Operating globally, DRC Systems India Limited is a software development firm delivering comprehensive IT business solutions. Among its core offerings is Z-ERP, an intelligent web-based Enterprise Resource Planning (ERP) platform designed primarily...
How the Company Makes Money
DRC Systems India Limited primarily makes money by providing IT services to customers under commercial contracts. Its revenue model is centered on fees earned from (1) custom software/application development projects (including web and mobile appl...
DRC Systems India Limited Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
93
Very Positive
Cash Flow
86
Very Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 955.05M | 653.77M | 476.83M | 256.25M | 195.01M |
| Gross Profit | 283.03M | 214.73M | 175.29M | 87.44M | 40.02M |
| EBITDA | 281.50M | 210.81M | 149.79M | 94.80M | 25.34M |
| Net Income | 192.63M | 150.75M | 116.54M | 66.94M | 7.03M |
Balance Sheet | |||||
| Total Assets | 1.54B | 995.07M | 785.64M | 392.41M | 249.55M |
| Cash, Cash Equivalents and Short-Term Investments | 48.98M | 175.61M | 41.42M | 23.73M | 5.09M |
| Total Debt | 4.17M | 5.10M | 7.51M | 6.05M | 158.37M |
| Total Liabilities | 414.53M | 349.16M | 307.34M | 47.84M | 181.74M |
| Stockholders Equity | 1.13B | 645.91M | 478.30M | 342.75M | 67.81M |
Cash Flow | |||||
| Free Cash Flow | 477.06M | 94.98M | 33.15M | -10.11M | -18.86M |
| Operating Cash Flow | 478.27M | 329.00M | 277.97M | 26.34M | -10.71M |
| Investing Cash Flow | -716.53M | -349.62M | -258.72M | -50.25M | -152.09M |
| Financing Cash Flow | 248.87M | -140.00K | -1.56M | 41.72M | 150.80M |
DRC Systems India Limited Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ₹1.89B | 9.05 | ― | ― | 46.09% | 27.31% | |
76 Outperform | ₹174.02B | 24.42 | ― | 0.03% | 22.32% | 32.16% | |
75 Outperform | ₹4.24B | 13.74 | ― | 13.87% | 4.74% | -11.10% | |
68 Neutral | ₹25.05B | 24.84 | ― | 1.62% | 18.68% | 8.59% | |
59 Neutral | ₹2.58B | 90.36 | ― | ― | 84.95% | 0.61% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
52 Neutral | ₹4.81B | 13.04 | ― | ― | -2.21% | -53.39% |
* General Sector Average
IN:DRCSYSTEMS
DRC Systems India Limited
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-20.32%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.