Dynacons Systems and Solutions Ltd — Q3 FY26
Dynacons delivered a steady Q3 FY26 with revenue of 341 crore (+10% YoY) and EBITDA of 41 crore (+49% YoY), with margins expanding to 11.9% (+310 bps YoY).
bullish
high
Financial stats pending filing verification
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
42%Questions answered5Evaded / deflected12Questions auditedMixedNumbers vs filing
Partial answer
High priority
Margin profile of cloud, data center, managed services vs workplace solutions.
Asked by Madur Rati, Counter Cyclical Investments
Management confirmed higher margins for some segments but refused to disclose specific numbers.
no segment-wise margin disclosed
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Question
If you could just help us understand what is the margin profile of uh the cloud and data center the managed services and the digital offerings that we provide.
Management
The margin profile for the cloud and data center and cloud and the network and security and the managed services is higher than the workplace solutions. However, each segment uh we we uh are not disclosing segment wise uh margin profitability.
Evasive
High priority
Can Dynacons reach 15-20% margins like competitor Unified Data?
Asked by Madur Rati, Counter Cyclical Investments
Management did not answer whether margins can reach 15-20%, only cited mix improvement.
no direct margin target givenreframed to product mix growth
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Question
So can Dinoons reach those levels as the mix of data center cloud cyber security increases in our revenue.
Management
With the product mix that we are uh there if you see our product mix we uh the contribution from data center and cloud has been steadily growing uh there over the years it has moved from 14% to 37% as we are today.
Declined
High priority
Revenue growth and EBITDA margin guidance for FY27.
Asked by Madur Rati, Counter Cyclical Investments
Management explicitly refused to provide any forward guidance.
no guidance givendeferred to policy
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Question
So if I look at FI27 so what kind of revenue growth can we expect and what kind of AETA margins we expect on a steady state sheet basis.
Management
We are not giving any revenue guidance uh as per policy we are not giving revenue guidance uh there however we believe that you know we uh our continued focus is to ensure that we improve the product mix.
Partial answer
Medium priority
Order book breakdown by segment and execution timeline.
Asked by Madur Rati, Counter Cyclical Investments
Management gave average timeline but refused segment-wise breakdown.
no segment-wise order book breakdown
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Question
Out of this 2400 order book that we have sir what would be from uh data center and cloud and network and security and what would be the other from IT managed services and sir what is the timeline to execute this 2389 K of order book.
Management
We currently do not provide a client segment wise break up of the order book. In terms of timeline, the order execution timeline ranges from some immediate orders to some to be executed over a period of 5 years but an average timeline would be around 2 years.
Partial answer
Medium priority
Capex for opex model deals and balance sheet impact.
Asked by Ankur Agarwal, Search Capital
Management described funding sources but did not quantify capex.
no specific capex amount given
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Question
Could you provide a sense of what kind of capex that we are incurring in this deal and like going ahead in the long term uh how is our balance sheet placed to fund this capex?
Management
We are funding these through multiple avenues. One is through some of the internal approvals. We are also utilizing certain lease options. So we are procuring devices on a long-term lease which collaborates with the revenue.
Evasive
High priority
Will ROCE be maintained with new opex model?
Asked by Ankur Agarwal, Search Capital
Management gave a non-committal answer without specific ROCE targets.
no commitment on ROCE levelvague assurance
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Question
Do you believe that you can still maintain the same level of ROC's that we have been doing in the traditional business or given the debt raising, ROCE will take a hit?
Management
We do see uh you know this keeping uh steady for a period of time and then we will definitely look at the various alternatives and ensure that the return on capital employed continues to be in a steady state and does not drop significantly.
Evasive
Medium priority
Long-term revenue mix target for opex vs EPC model.
Asked by Ankur Agarwal, Search Capital
Management did not provide a specific target mix, only said it will grow significantly.
no target percentage given
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Question
In the long run how big can this OPEX business be of our old revenue mix? Will 70% remain EPC and 20-30% become opex?
Management
Currently our managed services and annuity based revenue is around 21% of our overall product mix. We expect this to grow very significantly over a period of time.
Partial answer
High priority
What drove past margin improvement and future PAT margin outlook?
Asked by Ankur Agarwal, Search Capital
Management cited past performance but did not give a forward margin target.
no specific future PAT margin target
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Question
What has led to improved margins in the past? At a PAT level do you believe we'll continue to scale margins like we have done?
Management
We are seeing a richer solution mix and we believe that this level is not only sustainable but can be also growing. We definitely are confident that the PAT margins will also reflect the quote which you can also see that even with a 10% increase in the business we have been able to raise PAT margins by 27% in this quarter.
Answered
Medium priority
How does Dynacons manage competitive dynamics and rising hardware costs?
Asked by Nirj Dalal, 3A Capital Advisor
Management directly addressed both parts with specific mitigation strategies.
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Question
How do you manage the competitive dynamics given that the business is based on orders from PSUs? And how does rising hardware costs feed into margin profile?
Management
We actively manage input costs and currently do not see material pressures that would impact margins due to our strong OEM partnerships. We have a vendor buy in to all these projects.
Answered
High priority
Contribution of recurring revenue and strategy to increase it.
Asked by Urish Sha, Money Wisers
Management gave a specific percentage and clear strategy.
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Question
I want to know what is the contribution of recurring revenue in our books and what is the strategy going forward? Are we looking to increase from existing clients or adding new clients?
Management
Our managed services revenue is around 21% of our current revenue. Recurring revenues are forming a large and growing part. We have a two-prong strategy: cross-selling to existing accounts and acquiring new large enterprise accounts.
Evasive
Medium priority
Reason for quarter-on-quarter revenue and profit decline.
Asked by Bhagya Bansil, Individual Investor
Management did not explain the decline, instead argued QoQ is not a valid metric.
dismissed QoQ as irrelevantno specific reason given
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Question
In case of a quarter on quarter growth there's a major slump: revenue minus 3.3% and profit 3.6%. Could you please inform us about the reason?
Management
We are in a project nature of business. Our execution depends on project completion. We are not into run rate sales looking at quarter-on-quarter numbers. Year-on-year is a better metric.
Answered
High priority
Price pass-through clause for hardware price increases in order book.
Asked by Madur Rati, Counter Cyclical Investments
Management clearly explained that pricing is locked with OEMs and customers.
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Question
Do we have any price pass through loop clause where raw material or equipment prices are passed on to end consumers?
Management
We have back-to-back arrangements already with all the IT vendors. The pricing is already agreed with the customer and the OEM. So there is no hit on us.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| PAT margins increased by 27% this quarter | 27% | 27% | Matches filing |
| PAT margins increased 21% over 9-month period | 21% | 27% | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.