Dynacons Systems & Solutions Limited (NSE: DSSL) on Saturday reported a 27.33% year-on-year increase in consolidated net profit for the third quarter ended December 31, 2025, supported by resilient demand for data center infrastructure and a growing base of annuity-led revenue.
The Mumbai-based IT system integrator posted a net profit of ₹23.49 crore for the quarter, up from ₹18.45 crore in the same period last year. The company’s Board of Directors approved the unaudited results during a meeting held on February 14, 2026, which also saw the re-appointment of Satya Pattnaik as internal auditor for a two-year term starting from the 2026-27 financial year.
Revenue and Margin Performance
Consolidated revenue from operations for the third quarter rose 9.51% to ₹340.59 crore, compared to ₹311.02 crore in the corresponding quarter of the previous fiscal year. The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) saw a sharper increase, jumping 49% to ₹40.61 crore.
The expansion in EBITDA was reflected in improved profitability metrics, with EBITDA margins rising to 12% from 9% a year earlier. Management attributed this margin improvement to a healthier revenue mix and better project economics within its data center solutions segment. The net profit margin for the quarter stood at 6.90%.
Consolidated Financial Performance (Figures in ₹ Crore)
| Metric | Q3 FY26 | Q3 FY25 | YoY Change | 9M FY26 | 9M FY25 | YoY Change |
| Revenue | 340.59 | 311.02 | 10% | 1,021.83 | 938.32 | 9% |
| EBITDA | 40.61 | 27.22 | 49% | 109.62 | 75.80 | 45% |
| EBITDA Margin | 12% | 9% | — | 11% | 8% | — |
| Net Profit (PAT) | 23.49 | 18.45 | 27% | 65.82 | 54.29 | 21% |
| PAT Margin | 7% | 6% | 16% | 6% | 6% | 11% |
Operational Highlights and Growth Drivers
A significant operational milestone during the quarter was the successful deployment of Core Banking as a Service (CBAAS) for 38 banks under a NABARD initiative for State Cooperative Banks. The company noted that demand remained robust for cybersecurity, network resilience, and digital workplace adoption.
Shirish Anjaria, Chairman and Managing Director of Dynacons Systems & Solutions, stated that the performance was a result of consistent execution and the increasing relevance of the company’s integrated capabilities. He further noted that the company is focused on strengthening its annuity-led revenue base while expanding its footprint across key verticals.
Key growth drivers identified during the period included:
Infrastructure Transformation: Sustained demand for cloud adoption and AI-ready workloads.
Managed Services: An increasing contribution from recurring “As-a-Service” annuity revenues.
Cybersecurity: Expanded capabilities in managed security services, including Security Operations Center (SOC) engagements.
Enterprise Modernization: Continued traction in hyperconverged infrastructure and enterprise backup solutions.
Business Outlook and Strategy
The company anticipates future growth will be driven by heightened enterprise investments in AI-ready data centers and cloud infrastructure. Additionally, the ongoing digital transformation within the Banking, Financial Services, and Insurance (BFSI) and public sectors is expected to serve as a structural tailwind.
Dynacons’ strategy involves deepening multi-year engagements to enhance client retention and increase its share of “As-a-Service” recurring revenue. The company continues to invest in delivery excellence and operational security to address growing enterprise focus on compliance and resilience.
Sector Context
The results come as India’s IT spending and digital transformation programs continue to accelerate. System integrators like Dynacons are increasingly pivoting toward managed services and cloud infrastructure to capture higher-margin business as organizations move away from traditional one-time hardware procurement toward subscription-based technology models.
Reasons to Pass on DSSL
- Moderate top-line growth: Q3 revenue increased 9.5% year-on-year, indicating steady but not high-growth expansion relative to the stronger rise in EBITDA.
- Relatively thin net margins: Net profit margin stood at 6.9% in Q3, suggesting limited buffer against cost pressures or revenue volatility.
- Margin sustainability risk: EBITDA margin improvement to 12% was driven by a favorable revenue mix and project economics, which may fluctuate depending on future deal composition.
- Exposure to IT spending cycles: Growth outlook is closely linked to enterprise investments in AI-ready data centers and cloud infrastructure, which can be cyclical.
- Sector concentration risk: Anticipated growth is tied to continued digital transformation spending in BFSI and public sectors, where budget allocations and policy changes may affect demand.
- Execution dependence in annuity model: Increasing focus on “As-a-Service” and recurring revenue requires consistent service delivery and strong client retention to sustain performance.
- Competitive operating segments: Expansion in managed services, cybersecurity, and enterprise modernization places the company in competitive, margin-sensitive markets.
- Transition-related investment needs: The shift toward subscription-based and managed services models may necessitate ongoing investments in capabilities, delivery infrastructure, and compliance.
- Client concentration considerations: Emphasis on deepening multi-year engagements could increase reliance on a smaller base of long-term contracts.
- Cost control sensitivity: Sustaining recent profitability gains will depend on maintaining operational efficiency and disciplined project execution.