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DRC Systems India Limited (IN:DRCSYSTEMS)
:DRCSYSTEMS
India Market
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DRC Systems India Limited (DRCSYSTEMS) AI Stock Analysis

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IN:DRCSYSTEMS

DRC Systems India Limited

(DRCSYSTEMS)

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Neutral 69 (OpenAI - Gpt-5.6Sol)
Rating:69Neutral
Price Target:
₹14.00
▲(3.93% Upside)
Action:Downgraded
Date:08/22/26
The score is driven primarily by strong financial performance (rapid growth, solid margins, low leverage, and improved FY2026 cash flow conversion) and a low P/E valuation. These positives are tempered by weak technical signals, with price below key moving averages and bearish momentum indicators.
Positive Factors
Rapid Revenue Growth
Strong revenue scaling indicates expanding demand for the company’s software development, maintenance, and IT services. Sustained growth can improve operating leverage and strengthen its position across client industries over the next several quarters.
Negative Factors
Margin Compression
Lower margins suggest that rapid growth may be accompanied by higher delivery costs, pricing pressure, or a less favorable service mix. If this persists, revenue expansion may translate less efficiently into earnings and reduce the durability of profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Rapid Revenue Growth
Strong revenue scaling indicates expanding demand for the company’s software development, maintenance, and IT services. Sustained growth can improve operating leverage and strengthen its position across client industries over the next several quarters.
Read all positive factors

DRC Systems India Limited (DRCSYSTEMS) vs. iShares MSCI India ETF (INDA)

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
Strong fundamentals supported by rapid revenue scaling and solid profitability (FY2026 net margin ~20%). Balance sheet is a major strength with very low leverage in FY2024–FY2026 and healthy ROE, while cash flow quality improved sharply in FY2026 (FCF ~ net income). Key risks are some margin compression versus prior years and historically uneven free cash flow consistency.
Income Statement
84
Very Positive
Balance Sheet
93
Very Positive
Cash Flow
86
Very Positive
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue1.01B955.05M653.77M476.83M256.25M195.01M
Gross Profit288.48M283.03M214.73M175.29M87.44M40.02M
EBITDA282.04M281.50M210.81M149.79M94.80M25.34M
Net Income204.70M192.63M150.75M116.54M66.94M7.03M
Balance Sheet
Total Assets0.001.54B995.07M785.64M392.41M249.55M
Cash, Cash Equivalents and Short-Term Investments31.22M48.98M175.61M41.42M23.73M5.09M
Total Debt0.004.17M5.10M7.51M6.05M158.37M
Total Liabilities-1.13B414.53M349.16M307.34M47.84M181.74M
Stockholders Equity1.13B1.13B645.91M478.30M342.75M67.81M
Cash Flow
Free Cash Flow96.12M477.06M94.98M33.15M-10.11M-18.86M
Operating Cash Flow96.93M478.27M329.00M277.97M26.34M-10.71M
Investing Cash Flow-46.52M-716.53M-349.62M-258.72M-50.25M-152.09M
Financing Cash Flow-15.34M248.87M-140.00K-1.56M41.72M150.80M

DRC Systems India Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
₹176.58B24.810.03%23.20%29.28%
69
Neutral
₹1.86B8.4547.26%23.41%
66
Neutral
₹4.11B12.9813.87%4.74%-11.10%
60
Neutral
₹4.98B13.51-2.21%-53.12%
59
Neutral
₹2.48B90.9684.95%0.61%
58
Neutral
₹23.06B27.781.62%21.39%-13.39%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:DRCSYSTEMS
DRC Systems India Limited
12.79
-6.23
-32.75%
IN:3IINFOLTD
3i Infotech Limited
23.07
1.63
7.60%
IN:CYBERTECH
CyberTech Systems & Software Ltd.
135.25
-5.27
-3.75%
IN:ECLERX
eClerx Services Limited
1,941.65
-179.25
-8.45%
IN:FCSSOFT
FCS Software Solutions Limited
1.46
-0.95
-39.42%
IN:PROTEAN
Protean eGov Technologies Limited
556.25
-330.25
-37.25%
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.Date of analysis: Aug 22, 2026