DRC Systems Achieve New Heights in Q3 FY 2025-26 Financial Results

The company has delivered result-oriented outcomes in Q3 with margin expansion and operational efficiency. Enabling an AI-driven learning ecosystem, driving LMS into the LXP era, and moving forward with a vision to continue this growth story.

DRC Systems India Limited announces Third Quarter and Nine Months Ended Results for FY 2025-26.

Key Highlights (Consolidated)

Nine Months Ended December 31, 2025

  • Revenue from Operations up 41% Y-o-Y at INR 6,830.6 Lakhs.
  • EBITDA up 34% Y-o-Y at INR 2,016.5 Lakhs.
  • Net Profit up 27% Y-o-Y at INR 1,350.4 Lakhs.
  • EBITDA Margin and Net Margin at 30% and 19% respectively.

Quarter Ended December 31, 2025

  • Revenue from Operations up 60% Y-o-Y at INR 2,718.3 Lakhs.
  • EBITDA up 37% Y-o-Y at INR 718.8 Lakhs.
  • Net Profit up 41% Y-o-Y at INR 499.0 Lakhs.
  • EBITDA Margin and Net Margin at 26% and 18% respectively.

Gandhinagar, India, February 04, 2026: Information Technology and Software Consultancy Services provider, DRC Systems India Limited {BSE: 543268) {NSE: DRCSYSTEMS), “DRC Systems” “The Company” today announced its financial results for the third quarter {Q3) and nine months ended December 31, 2025, as approved by its Board of Directors

The company delivered a strong performance during the quarter, reporting a year-on-year net profit increase of 41%, reaching INR 499.0 Lakhs for Q3 FY2025-26. Revenue from operations also grew by 60 %, totalling INR 2,718.3 Lakhs, reflecting continued business momentum across key verticals.

Strong Q3 Performance Driven by Margin Expansion and Operational Efficiency:

DRC Systems’ growth in the third quarter was primarily supported by improved margins and sustained operational optimisation. Most business verticals continued their upward trajectory, contributing to the company’s strengthened financial position. The company also expanded its portfolio in the education and digital learning sector, delivering solutions such as Learning Management Systems (LMS) integrated with Al-powered WhatsApp chatbots to enable scalable, next-generation learning experiences.

DRC Systems Pushes LMS into the LXP Era with New Al-Driven Learning Ecosystem:

In a move that reflects the rapid evolution of digital learning, DRC Systems has developed a suite of Al-powered, pluggable components designed to extend platforms like Open edX and other LMS solutions into full-fledged Learning Experience Platforms (LXP). The development underscores a broader industry shift: traditional LMS and modern LXP architectures are converging into unified, intelligent learning ecosystems.

Across the learning and development landscape, generative Al is transforming how learners engage with digital content. Capabilities such as personalized guidance, automated feedback, and intelligent content creation are making learning more adaptive and responsive. Learning Experience Platforms (LXPs) are gaining momentum, especially in workforce development, because they focus on learner-driven exploration rather than rigid administrative structures. Unlike traditional Learning Management Systems (LMS) that primarily push mandatory training in a top-down model, LXPs enable a bottom-up approach allowing learners to pull relevant content based on their interests, roles, and career aspirations.

DRC Systems is now positioning itself at the centre of this transformation with a new eLearning Ecosystem that layers LXP capabilities on top of its existing LMS offerings. The ecosystem introduces four flagship Al-enabled products:

1. Al Studio

A generative Al course-authoring engine integrated with Open edX, enabling rapid creation of structured, high-quality learning modules.

2. Learner Chatbot

An embedded virtual assistant that provides real-time, contextual guidance within the learning environment, enhancing engagement and reducing learner friction.

3. Instructor Chatbot

A conversational analytics companion for educators and administrators, designed to simplify data-driven decision-making through intuitive dialogue.

4. Al-Powered Coding & Subjective Evaluation Module

An automated assessment engine capable of evaluating programming tasks and open-ended responses with consistency and scalability.

Together, these components signal DRC Systems’ ambition to redefine digital learning infrastructure-bridging the gap between LMS and LXP, and accelerating the shift toward intelligent, learner-centric ecosystems.

Management Commentary:

“Our growth continues to be driven by improved execution, strong management focus, and operational optimisation. As we strengthen our portfolio in the edtech domain, we are excited to enter the LXP space with our new Al-driven learning ecosystem. The edtech and skilling market presents significant opportunities, and we are well-positioned to capture this growth,” said Mr. Hiten Barchha, Managing Director, DRC Systems India Limited.

Consolidated Financial Highlights (INR Lakhs)
Particulars

Quarter Ended

December 31, 2025

September 30, 2025

December 31, 2024

Y-o-Y %

Revenue from Operations

2,718.3

2,283.2

1,695.1

60%

Profit before Tax

529.9

477.8

407.8

30%

EBITDA

718.8

648.7

525.7

37%

EBITDA Margin

26%

28%

31%

Profit after Tax

499.0

416.7

354.7

41%

Net Margin

18%

18%

21%

Nine Months Ended

December 31, 2025

December 31, 2024

Y-o-Y %

6,830.6

4,844.8

41%

1,496.9

1,218.0

23%

2,016.5

1,506.8

34%

30%

31%

1,350.4

1,066.6

27%

19%

22%

  • For the third quarter, revenue from operations grew 60 % year-over-year to INR 2,718.3 Lakhs, while EBITDA increased 37 % year-over-year to INR 718.8 Lakhs.
  • Profit before tax rose 30 % year-over-year to INR 529.9 Lakhs. Net profit rose 41 % year-over-year to INR 499.0 Lakhs, with EBITDA and Net Margins at 26 % and 18 %, respectively.
  • For the nine months ended period, revenue from operations grew 41 % year-over-year to INR 6,830.6 Lakhs, while EBITDA increased 34 % year-over-year to INR 2,016.5 Lakhs.
  • Profit before tax rose 23 % to INR 1496.9 Lakhs. Net profit rose 27 % year-over-year to INR 1,350.4 Lakhs, with EBITDA and Net Margins at 30 % and 19 %, respectively.
About DRC Systems India Limited

DRC Systems is an IT services and consulting company based in India, dedicated to providing sustainable and impactful business solutions. Since our inception in 2012, we have focused on innovation and creativity to drive change. Our services and solutions empower businesses to scale and stay competitive in the market. Our services and solutions help businesses scale the market. Over the years, we have diversified our service offerings through a mix of organic growth and strategic transactions. Our wide range of services allows us to build strong client relationships and create opportunities for cross-selling. Our customer base spans multiple geographies, primarily in Europe, the USA, the Middle East, and Asia.