R Systems International Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript R Systems International Ltd filed with BSE on 11 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
R Systems reported Q2 2026 revenue of Rs. 601.7 crores, up 30.2% year-on-year in rupee terms and 17.7% in dollar terms, with adjusted EBITDA at Rs. 120.7 crores or 20.1% of revenue. Management attributed the growth to volume, rupee depreciation, the Novigo acquisition, and an increasing share of AI, data and cloud services in the revenue mix. The company also reported trailing 12-month ACV bookings of $82.9 million and discussed several new client wins across telecom, financial services, insurance and ad-tech sectors.
Numbers mentioned
Revenue: Rs. 601.7 crores or $63.6 million (Q2 2026)
p. 4
“it has been a strong quarter with Rs. 601.7 crores or $ 63.6 million in revenue, which is a 17.7% year-on-year growth in dollar terms and 30.2% in rupees”
Nitesh Bansal, page 4 of the filed PDF · View the filing
Adjusted EBITDA: Rs. 120.7 crores or $12.8 million, 20.1% margin (Q2 2026)
p. 4
“This also brings us to a record Rs. 120.7 crores in adjusted EBITDA, which is $12.8 million or a 20.1% as EBITDA percentage.”
Nitesh Bansal, page 4 of the filed PDF · View the filing
Adjusted net profit: Rs. 62.9 crores or $6.6 million, 10.5% of revenue (Q2 2026)
p. 4
“The adjusted net profit stood at Rs. 62.9 crores or $6.6 million, which is 10.5% of revenues, a year-over-year growth of 35.4%.”
Nitesh Bansal, page 4 of the filed PDF · View the filing
Adjusted EPS: Rs. 5.3 (Q2 2026)
p. 4
“The adjusted EPS stood at Rs. 5.3, which is again a year-overyear growth of 35.3%.”
Nitesh Bansal, page 4 of the filed PDF · View the filing
H1 Revenue: Rs. 1,176.5 crores or $126.4 million (H1 2026)
p. 4
“we closed at a revenue of Rs. 1,176.5 crores or $126.4 million for H1, which is a 30.1% increase year-over-year”
Nitesh Bansal, page 4 of the filed PDF · View the filing
H1 Adjusted EBITDA: Rs. 236.4 crores or $25.4 million, 20.1% margin (H1 2026)
p. 4
“an adjusted EBITDA number of Rs. 236.4 crores or $25.4 million at 20.1% of EBITDA percentage, resulting in a 51% growth year-overyear.”
Nitesh Bansal, page 4 of the filed PDF · View the filing
H1 Adjusted net profit: Rs. 138.7 crores or $14.9 million, 11.8% of revenue (H1 2026)
p. 4
“The adjusted net profit correspondingly was at Rs. 138.7 crores or $14.9 million or 11.8%, a year-over-year increase of 54.4%”
Nitesh Bansal, page 4 of the filed PDF · View the filing
Gross margin: 39.2% (Q2 2026)
p. 7
“The gross margin was 39.2% compared to 36% last quarter and 36% in the previous year same quarter.”
Nand Sardana, page 7 of the filed PDF · View the filing
SG&A expenses: Rs. 115.3 crores (Q2 2026)
p. 7
“SG&A expenses have increased by Rs. 23.8 crores from Rs. 91.4 crores in last quarter to Rs. 115.3 crores this quarter.”
Nand Sardana, page 7 of the filed PDF · View the filing
Net profit after tax: Rs. 55.6 crores or $5.9 million (Q2 2026)
p. 8
“Net profit after tax was Rs. 55.6 crores or $5.9 million compared to Rs. 65.4 crores or $7.2 million last quarter.”
Nand Sardana, page 8 of the filed PDF · View the filing
Trailing 12-month ACV bookings: $82.9 million (Q2 2026)
p. 7
“we recorded $82.9 million of ACV bookings compared to $82.3 million in Q1.”
Nitesh Bansal, page 7 of the filed PDF · View the filing
Utilization: 81% (Q2 2026)
p. 5
“Utilization percentage has slightly ticked up to reach 80.5% to 81% which is our standard and accepted band of between 80% to 81% which is where we want to operate.”
Nitesh Bansal, page 5 of the filed PDF · View the filing
Effective tax rate: 31% (Q2 2026)
p. 8
“Our income tax expense was Rs. 24.94 crores this quarter as against Rs. 24.2 crores last quarter. Our effective tax rate is around 31%.”
Nand Sardana, page 8 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Adjusted EBITDA margin — 18 to 19 percentage
stated as an aspiration by Nitesh Bansal
p. 13
“we continue to stay focused to stay in that 18 to 19 percentage adjusted EBITDA on a sustainable basis, beyond which we will obviously continue to invest in our AI initiatives, sales and marketing efforts”
Nitesh Bansal, page 13 of the filed PDF · View the filing
Constant currency revenue growth — 3%-4% range
stated as an aspiration by Nitesh Bansal
p. 16
“I think it is only a matter of time that we will actually start seeing that quite consistently.”
Nitesh Bansal, page 16 of the filed PDF · View the filing
Data, AI and cloud revenue share
stated as an aspiration by Nitesh Bansal
p. 14
“revenue numbers have crossed 50% and continues to go up.”
Nitesh Bansal, page 14 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said the increase reflects deliberate investment in sales bandwidth, a new Chief Revenue Officer, AI-based sales expertise, and marketing spend on the EXIQO brand.
Answered by Nitesh Bansal
Asked by Anmol Garg: What is driving the increase in SG&A expenses this quarter?
p. 10
“there is definitely a very deliberate focus and effort to increase sales and marketing in that area.”
Nitesh Bansal, page 10 of the filed PDF · View the filing
Management declined to give explicit guidance but said trailing 12-month trends suggest confidence in continued momentum.
Answered by Nitesh Bansal
Asked by Anmol Garg: What is the outlook for full-year organic growth?
p. 10
“we do not provide guidance, but if our trailing 12 month numbers are an indication, then we are positively stepping into a zone where we feel comfortable that we will continue to create traction.”
Nitesh Bansal, page 10 of the filed PDF · View the filing
Management said the company has grown organically every quarter and pointed to increasing deal size and duration despite flat headcount.
Answered by Nitesh Bansal
Asked by Ashis Das: Why does organic growth appear muted despite organizational changes, and when will growth revive?
p. 12
“we have to continue to win more than what closes in order to continue that growth trajectory.”
Nitesh Bansal, page 12 of the filed PDF · View the filing
Management confirmed the biannual wage hike had already been implemented and reflected in Q2 results.
Answered by Nitesh Bansal
Asked by Ashis Das: When will the wage hike take effect and what is the margin outlook?
p. 13
“We have implemented a wage hike in this quarter. We carry out biannual wage hike cycles.”
Nitesh Bansal, page 13 of the filed PDF · View the filing
Management attributed it to large deal wins occurring in the same quarter last year, filling the comparison base, not to a slowdown.
Answered by Nitesh Bansal
Asked by Sandeep Shah: Is the flattish ACV on a trailing basis due to delayed decision-making or macro weakness?
p. 13
“we have had a few large deal wins in Q2, which has effectively filled up for what would have been a significant ACV uptick Q2 last year.”
Nitesh Bansal, page 13 of the filed PDF · View the filing
Management said signs of accelerating revenue and margin velocity exist but the full-year impact is uncertain given it must become a larger share of revenue.
Answered by Nitesh Bansal
Asked by Sonal Minas: Is productivity from AI translating into faster revenue growth, and over what timeframe?
p. 16
“I am certainly seeing signs of accelerating revenue velocity and margin velocity there. Will it reflect within the year is difficult to say”
Nitesh Bansal, page 16 of the filed PDF · View the filing
Management said decision cycles remain the key variable and expressed confidence pipeline conversion will eventually deliver that growth.
Answered by Nitesh Bansal
Asked by Manish Jain: When will constant currency revenue growth return to the 3%-4% range?
p. 16
“I think the biggest factor over there continues to be the decision cycles, sometimes if a deal decision gets delayed or whatever.”
Nitesh Bansal, page 16 of the filed PDF · View the filing
Management said it remains open to acquisitions but only where capability is differentiated and value/margin accretive.
Answered by Nitesh Bansal
Asked by Deepak Malhotra: Is the company still considering further acquisitions?
p. 17
“we as an organization have an organic plus inorganic growth ambition and thesis. So, we continue to be on the lookout”
Nitesh Bansal, page 17 of the filed PDF · View the filing
Management said its AI-led delivery model avoids deflationary pressure because productivity gains are built into pricing from the outset rather than negotiated down in renewals.
Answered by Nitesh Bansal
Asked by Ayush Shah: Is AI causing deflation in contract values as seen at some IT companies?
p. 19
“a project revenue which we have already won then does not have deflationary pressures.”
Nitesh Bansal, page 19 of the filed PDF · View the filing
Risks flagged
Currency volatility and hedge accounting losses affecting other income
p. 8
“exchange rates experienced volatility during the quarter, ranging approximately between Rs. 92.6 and Rs. 96.5 per USD.”
Nand Sardana, page 8 of the filed PDF · View the filing
Geopolitical challenges affecting Novigo's operations in the Middle East
p. 12
“Novigo, of course, has an ongoing geopolitical challenge that they are dealing with, which is due to the geopolitical situation in the Middle East.”
Nitesh Bansal, page 12 of the filed PDF · View the filing
Market uncertainty affecting client decision-making and deal timing
p. 13
“clients are uncertain, they will take some time, but that is the averaging out factor and we consider it as a standard factor.”
Nitesh Bansal, page 13 of the filed PDF · View the filing
Reliance on rupee depreciation for margin benefit, which is not controllable
p. 13
“quite a large portion of it also comes from the Forex or exchange rate or rupee depreciation, which we cannot take for granted. It is beyond our control.”
Nitesh Bansal, page 13 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.