Dev Information Technology H1 profit falls 93% after gain

Dev Information Technology Limited reported consolidated profit of Rs 4.85 crore for the half year ended September 30, 2026, down 93% from Rs 74.06 crore a year earlier, because a Rs 93.55 crore exceptional gain on investments recorded in the prior period did not recur. Revenue from operations nevertheless increased 16.7% to Rs 106.76 crore.

Why did Dev Information Technology’s H1 reported profit fall 93%?

Dev Information Technology’s reported half-year profit fell because the half year ended September 30, 2025 included a Rs 93.55 crore exceptional item that was absent in the half year ended September 30, 2026. The consolidated cash-flow statement identifies the earlier item as a net gain on sale or fair valuation of investments. Profit before tax consequently declined to Rs 6.97 crore from Rs 98.59 crore, although profit before exceptional items and tax rose.

The tax charge also changed with the absence of the investment gain. Total tax expense was Rs 2.13 crore in the latest half year, compared with Rs 24.53 crore a year earlier, when deferred tax expense was Rs 23.16 crore. Consolidated profit after tax was Rs 4.85 crore, versus Rs 74.06 crore in the corresponding six months of 2025.

Dev Information Technology’s half-year comparison therefore contains two separate movements: higher revenue and pre-exceptional profit, alongside a much lower reported profit following the non-recurrence of the prior-year gain. Basic earnings per share for the half year were Rs 0.89, compared with Rs 13.13 in the corresponding period. The filing states that quarterly earnings per share are not annualised.

How did Dev Information Technology’s revenue and costs change?

Dev Information Technology increased revenue from operations by Rs 15.27 crore to Rs 106.76 crore in the half year ended September 30, 2026, from Rs 91.49 crore a year before. Other income declined to Rs 0.96 crore from Rs 1.15 crore, resulting in total income of Rs 107.72 crore against Rs 92.64 crore in the corresponding half year.

Total expenses increased by Rs 13.01 crore to Rs 100.61 crore. Employee benefits expense rose by Rs 15.72 crore to Rs 54.96 crore, and other expenses increased by Rs 3.90 crore to Rs 8.18 crore. These movements were partly offset by a Rs 5.97 crore reduction in cost of software and services, which fell to Rs 35.31 crore.

Dev Information Technology’s revenue from operations in the quarter ended September 30, 2026 was Rs 62.63 crore, compared with Rs 44.13 crore in the quarter ended June 30, 2026 and Rs 48.51 crore in the quarter ended September 30, 2025. Quarterly profit before exceptional items and tax was Rs 4.24 crore, above Rs 2.87 crore in the preceding quarter and Rs 2.26 crore a year earlier.

The group reports one business segment, IT and IT enabled services, under Indian Accounting Standard 108, or Ind AS 108. As a result, the filing does not split the Rs 106.76 crore half-year revenue or the Rs 7.11 crore pre-exceptional profit by service line, customer category or geography.

What does Dev Information Technology’s balance sheet show?

Dev Information Technology had total consolidated assets of Rs 186.96 crore at September 30, 2026, compared with Rs 188.90 crore at March 31, 2026. Current assets decreased to Rs 97.39 crore from Rs 107.89 crore, while non-current assets increased to Rs 89.57 crore from Rs 81.01 crore.

Trade receivables fell to Rs 84.73 crore at September 30 from Rs 90.95 crore at the March year-end. Cash and cash equivalents increased to Rs 8.55 crore from Rs 6.18 crore, while non-current investments rose to Rs 55.60 crore from Rs 47.98 crore. The results also recorded Rs 7.67 crore of changes in fair value of investments within other comprehensive income for the latest half year.

Total equity was Rs 123.13 crore at September 30, 2026, up from Rs 109.30 crore at March 31, 2026. Current borrowings decreased to Rs 10.18 crore from Rs 18.42 crore, while non-current borrowings declined to Rs 9.41 crore from Rs 10.70 crore. Total current liabilities fell to Rs 44.49 crore from Rs 60.18 crore over the same period.

Dev Information Technology generated net cash from operating activities of Rs 4.78 crore in the latest half year, compared with Rs 7.00 crore a year earlier. Cash generated from operations was Rs 7.37 crore after a Rs 5.20 crore working-capital outflow, whereas the corresponding period had cash generated from operations of Rs 9.57 crore and a Rs 2.05 crore working-capital inflow.

What subsidiary and share changes did Dev Information Technology disclose?

Dev Information Technology disclosed a plan to divest a 25% equity interest in Dhyey Consulting Services Private Limited to Unique Comp, Inc for aggregate consideration of Rs 4.60 crore. The share purchase agreement was executed on May 28, 2026. By September 30, 2026, the company had transferred 25,200 shares, representing 10.08% of Dhyey Consulting Services’ total capital.

Dev Information Technology retained an 89.92% interest in Dhyey Consulting Services at September 30, 2026. The filing says Dhyey Consulting Services will cease to be a wholly owned subsidiary after the proposed transaction but will remain a subsidiary. The consolidated accounts also include Minddeft Technologies Private Limited, Dev Info-Tech North America Limited, Dynamic Stars LLC and associate Byte Technosys Private Limited.

Dev Information Technology allotted 623,944 equity shares with a face value of Rs 2 each under its 2024 employee stock option scheme on September 11, 2026. The shares were listed on both stock exchanges on October 7, 2026. Consolidated equity share capital stood at Rs 11.40 crore at September 30, compared with Rs 11.27 crore at March 31.

The auditor’s review report says two Indian subsidiaries included in the consolidated accounts recorded half-year revenue of Rs 24.45 crore and profit after tax of Rs 1.38 crore. Two foreign subsidiaries recorded revenue of Rs 6.39 crore and a loss after tax of Rs 0.58 crore. The report states that the component financial information had not been reviewed by those subsidiaries’ auditors, while management converted the foreign subsidiaries’ accounts to Indian accounting principles.

Conclusion

Dev Information Technology’s reported half-year profit was primarily shaped by the absence of the Rs 93.55 crore investment-related exceptional gain booked in the corresponding period of 2025. Revenue rose to Rs 106.76 crore and profit before exceptional items and tax increased to Rs 7.11 crore, while employee benefits expense and other expenses increased and operating cash flow declined to Rs 4.78 crore.

The next disclosed matter to watch is completion of the planned Rs 4.60 crore sale of a 25% stake in Dhyey Consulting Services. Only 10.08% of its capital had been transferred by September 30, 2026, leaving the balance of the proposed transaction unresolved at that date. The 623,944 employee stock option shares were subsequently listed on October 7, 2026.