DC Infotech cuts services target to 25%, won't give FY27 guidance
After a strong FY26, management walked back its services pivot ambitions and refused to put numbers on the year ahead.
— 1 earlier story on DC Infotech and Communication Ltd. →What's new
- DC Infotech now targets services at 25% of revenue, down from a prior goal of 40%.
- Management gave no FY27 revenue or EBITDA margin guidance, citing Middle East tensions and AI adoption timelines.
- FY26 revenue grew 32.6% to ₹737 cr; PAT rose 46.3% to ₹21.2 cr.
Why this matters
The services pivot was the post-distribution story. Cutting the target by 15 percentage points and withholding guidance for the coming year signals that the AI infrastructure transformation is not on a predictable path. For a company in the middle of a strategic shift, ambiguity about direction is a cost.
What we're watching
- Whether the revised 25% services target is met or again adjusted.
- Concrete FY27 guidance from management in a future update.
- The growth trajectory of the Samsung partnership, cited at ₹150-175 cr.
The full read
DC Infotech had a strong FY26. Revenue jumped 32.6% to ₹737 crore and profit grew 46.3% to ₹21.2 crore. The conference call was about the future, and that story changed. The pivot to AI infrastructure and managed services now has a target of 25% of revenue, not the 40% management had previously outlined. The reasons given for withholding FY27 guidance were uncertainty around geopolitics and the long adoption curve for AI infrastructure. The earlier talk of double-digit EBITDA margins has been shelved. For a company in the middle of a strategic transformation, the absence of a concrete plan is itself the most important data point. The shift is still in the telling stage, not the showing stage.
Questions answered
- What were DC Infotech's FY26 results?
- Revenue grew 32.6% to ₹737 crore and profit after tax increased 46.3% to ₹21.2 crore.
- What changed in the company's strategic outlook?
- The target for services revenue was cut to 25% from a prior aspiration of 40%. Management also declined to provide specific FY27 guidance on revenue or EBITDA margins.
- Why did management refuse to give FY27 guidance?
- They cited geopolitical tensions in the Middle East and the multi-year adoption timeline for AI infrastructure as the primary sources of uncertainty.
- What does the Samsung partnership represent for the business?
- The partnership generated ₹150-175 crore in revenue, which is a material portion of the total ₹737 crore top line and highlights customer concentration.
- How does the services pivot compare to the original plan?
- The original goal was to double services to 40% of revenue. The new target of 25% suggests the shift from distribution to managed services is moving slower than initially planned.
Story so far
All notes on DCI →- 4 Jun 2026 · 3:07 PM IST DC Infotech cuts services target to 25%, won't give FY27 guidance
- 1d ago DC Infotech's FY26 presentation adds nothing new to its earlier earnings release