DCI revenue rises 27.05% QoQ as operating margin edges up
Costs grew slightly slower than revenue, but interest expense rose 62.18% and other income contributed 14.65% of pre-tax profit.
Filed 05 Nov 2026, 18:30 IST · after market close · DC Infotech & Communication Ltd (DCI)
Key takeaways
- Consolidated revenue rose +27.05% QoQ to Rs 212.48 cr as expenses grew +26.55%, lifting operating margin by 0.37 percentage points to 5.05%.
- Net profit increased +28.04% QoQ to Rs 5.80 cr despite interest expense rising +62.18% to Rs 3.86 cr.
- DCI's 5.05% operating margin was 11.30 percentage points below the 16.35% median for 69 reported IT peers.
Price around the results
Revenue growth outpaced costs in Q2FY27
Consolidated revenue increased +27.05% QoQ, while expenses grew +26.55%, allowing operating profit to rise +37.34%. That cost gap lifted operating margin by 0.37 percentage points from Q1FY27.
Higher interest limited profit conversion
Interest expense rose +62.18% QoQ to Rs 3.86 cr, faster than operating profit growth, while profit before tax increased +23.89%. The tax rate fell by 2.46 percentage points to 25.40%, supporting the +28.04% increase in net profit. Other income represented 14.65% of pre-tax profit, making it a meaningful part of reported earnings.
Margin improved but stayed near the bottom of its peer set
The sequential direction was positive, with operating margin rising from 4.68% in Q1FY27 to 5.05% in Q2FY27. It remained 11.30 percentage points below the 16.35% median operating margin of 69 IT peers that had reported, placing DCI seventh from the bottom.
Results came after market close
DCI filed the consolidated results after market close on 05 Nov 2026 at 18:30 IST. The stock reaction is not yet part of this update.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹212 cr | ₹167 cr | +27.05% |
| Other income | ₹1 cr | ₹1 cr | +12.87% |
| Expenses | ₹202 cr | ₹159 cr | +26.55% |
| Operating profit | ₹11 cr | ₹8 cr | +37.34% |
| Operating margin (%) | 5.05% | 4.68% | — |
| Interest | ₹4 cr | ₹2 cr | +62.18% |
| Depreciation | ₹0 cr | ₹0 cr | +35.29% |
| Profit before tax | ₹8 cr | ₹6 cr | +23.89% |
| Tax | ₹2 cr | ₹2 cr | +13.14% |
| Net profit | ₹6 cr | ₹5 cr | +28.04% |
| EPS (₹) | ₹3.46 | ₹2.84 | +21.83% |
Operating margin of 5.05% compares with a Information Technology sector median of 16.35% across 69 peers that have reported Q2FY27.
What to watch
- Whether consolidated operating margin moves above or below 5.05%.
- Whether interest expense remains near Rs 3.86 cr after rising +62.18% QoQ.
- Whether other income's 14.65% share of pre-tax profit changes.