Dev Information Technology posts Q3 loss, buys stake, extends redemption

Dev Information Technology Limited (DEVIT) faced a challenging December 2025 quarter, characterized by operational losses and strategic shifts in its capital structure.

• Revenue from Operations: The company reported consolidated revenue of ₹4,414.40 lakh for the December 2025 quarter.
• Net Profit (PAT): DEVIT posted a consolidated Net Loss of ₹741.91 lakh. On a standalone basis, the Net Loss stood at ₹647.13 lakh.
• Operating Performance: Core operations remained under pressure, with a consolidated Profit Before Tax (excluding exceptional items) loss of ₹726.74 lakh.
• Exceptional Items: The bottom line was impacted by a massive one-time gain of ₹9,354.64 lakh (consolidated) and ₹9,236.13 lakh (standalone) resulting from the termination of the Dev Accelerator associate.
• Earnings Per Share (EPS): Reflecting the operational struggles, the consolidated EPS was negative at ₹(1.30).

Key Operational Highlights:

• Strategic Acquisition: The company acquired a 19% stake in Scaleax Advisory Pvt Ltd for ₹1.90 lakh. This acquisition is aimed at strengthening DEVIT’s Global Capability Centre (GCC) advisory and management consultancy vertical.
• Capital Management: In a move to preserve liquidity, DEVIT extended the redemption date for 3,577,519 non-convertible redeemable preference shares. The maturity has been pushed back five years, from March 2026 to March 2031.
• Regulatory Impact: Following an assessment of new Labour Codes effective November 2025, the company determined there would be no material impact on its profitability or cash flows.

Outlook:

• Management describes the medium-term outlook as moderately positive, with a strategic focus on cross-selling advisory services through the Scaleax integration and improving cash-flow generation to offset current operating losses.