R Systems International Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript R Systems International Ltd filed with BSE on 13 May 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 Q1 FY26 revenue of INR 574.8 crore, up 29.9% year-over-year and 3.5% quarter-over-quarter, with adjusted EBITDA margin of 20.1%. Management attributed growth to volume, rupee depreciation, and the Novigo acquisition, while noting utilization declined to about 80.5% due to deliberate investment in AI and data talent. The company also announced the launch of its EXIQO AI studio, a brand refresh, and the appointment of a new Chief Revenue Officer.
Numbers mentioned
Revenue: INR 574.8 crore or $62.8 million (Q1 FY26)
p. 4
“We are happy to report that we posted a revenue of INR 574.8 crore or $62.8 million in the 1st Quarter, which represents a year-over-year growth of 29.9% and a quarter-over-quarter growth of 3.5%.”
Nitesh Bansal, page 4 of the filed PDF · View the filing
Adjusted EBITDA: INR 115.7 crore or $12.6 million, 20.1% margin (Q1 FY26)
p. 4
“The adjusted EBITDA, adjusted for RSU expenses and non-recurring costs, stood at INR 115.7 crore or $12.6 million, which is an EBITDA percentage of 20.1%.”
Nitesh Bansal, page 4 of the filed PDF · View the filing
Adjusted net profit: INR 75.8 crore or $8.3 million, 13.2% (Q1 FY26)
p. 4
“The adjusted net profit for the same period stood at INR 75.8 crore or $8.3 million, which is 13.2%.”
Nitesh Bansal, page 4 of the filed PDF · View the filing
Adjusted EPS: INR 6.4 (Q1 FY26)
p. 4
“The adjusted EPS stood at INR 6.4, which is 74.6% year-over-year growth or 25.4% quarterover-quarter growth on the EPS numbers.”
Nitesh Bansal, page 4 of the filed PDF · View the filing
Utilization: 80.5% (Q1 FY26)
p. 5
“thus bringing our utilization down to about 80.5%, which was at its peak at about 84%.”
Nitesh Bansal, page 5 of the filed PDF · View the filing
Gross margin: 36% (Q1 FY26)
p. 8
“The gross margin was 36% compared to 38.9% last quarter and 36.7% same quarter last year.”
Nand Sardana, page 8 of the filed PDF · View the filing
SG&A expenses: INR 91.4 crore (Q1 FY26)
p. 8
“SG&A expenses decreased by INR 22.9 crore from INR 114.3 crore in last quarter to INR 91.4 crore this quarter.”
Nand Sardana, page 8 of the filed PDF · View the filing
Net profit after tax: INR 65.4 crore or $7.2 million (Q1 FY26)
p. 9
“Net profit after tax was INR 65.4 crore or $7.2 million compared to INR 36.4 crore or $4.1 million last quarter.”
Nand Sardana, page 9 of the filed PDF · View the filing
TTM ACV wins: $82.5 million (TTM as of Q1 FY26)
p. 6
“We are reporting $82.5 million of ACV wins this quarter.”
Nitesh Bansal, page 6 of the filed PDF · View the filing
Employee headcount: approximately 5,400 employees (Q1 FY26)
p. 16
“We are about 5,400 employees globally.”
Nitesh Bansal, page 16 of the filed PDF · View the filing
Attrition rate: approximately 11% (Q1 FY26)
p. 16
“And attrition currently is running at, I believe, approximately 11%, which is lower than the industry.”
Nitesh Bansal, page 16 of the filed PDF · View the filing
AI and AI-enabled revenue share: approximately 29% (Q1 FY26)
p. 16
“just to give you an idea, approximately 29% of our revenue today comes from AI and AI-enabled services.”
Nitesh Bansal, page 16 of the filed PDF · View the filing
TIPS vertical revenue share: (+40%) (Q1 FY26)
p. 16
“TIPS, which is Tech, Internet, Platforms and Services, is our largest vertical. It contributes about (+40%) of our revenues.”
Nitesh Bansal, page 16 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 — +17% margin range
stated firmly by Nitesh Bansal
p. 4
“We have continued to maintain our margins in a very healthy range, as we had guided in the +17% margin, kind of a range.”
Nitesh Bansal, page 4 of the filed PDF · View the filing
SG&A run rate — 11 million or 11 point something
stated as an aspiration by Nitesh Bansal
p. 14
“perhaps I think this quarter we are talking about 10 million, it will probably, our normal run rate is at 11mn or 11 point something, and we will come back to that.”
Nitesh Bansal, page 14 of the filed PDF · View the filing
Organic and combined growth
stated as an aspiration by Nitesh Bansal
p. 15
“we don't provide any forward guidance and flavors, but very high confidence that both organically, as well as combined entities, we are on the right trajectory for doing what we promised to our investors to continue to grow the organization.”
Nitesh Bansal, page 15 of the filed PDF · View the filing
Fixed price revenue mix
stated as an aspiration by Nitesh Bansal
p. 18
“we believe that it will continue to move in the favor of fixed price as we go along and as we do more and more of these transformation objectives.”
Nitesh Bansal, page 18 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 AI in SDLC is a huge opportunity rather than a threat because most revenue comes from discretionary project spend, and every new bid now includes AI as a competitive advantage.
Answered by Nitesh Bansal
Asked by Sandeep Shah: Whether AI-led productivity gains will impact growth as clients demand cost pass-through versus revenue recognition happening later.
p. 10
“we are a projects organization, and we have said that multiple times, in fact, over 90% of our revenue is coming from discretionary spend where we are doing project work for our customers.”
Nitesh Bansal, page 10 of the filed PDF · View the filing
Management said it validates that AI success depends on talent rather than tools alone, and views the move as early-stage with limited near-term competitive impact.
Answered by Nitesh Bansal
Asked by Sandeep Shah: Whether frontier AI model vendors launching IT services units are a competitive threat.
p. 11
“It validates that AI is fundamentally a people problem, not a tools problem.”
Nitesh Bansal, page 11 of the filed PDF · View the filing
Management confirmed the benefit of full-quarter Novigo consolidation and accounting policy alignment, noting organic revenue was largely flat this quarter due to fewer days and prior-quarter true-ups.
Answered by Nitesh Bansal
Asked by Sandeep Shah: Whether growth was driven by full-quarter Novigo consolidation and organic revenue declined.
p. 12
“we have largely remained flat organically, and we have very strong deal momentum, and we are very confident that the organic growth continues to be there, and we continue to gain the market share and will continue to grow.”
Nitesh Bansal, page 12 of the filed PDF · View the filing
Management said it is early days for such ventures and framed it as one more competitor, expressing confidence in R Systems' existing platform and client relationships.
Answered by Nitesh Bansal
Asked by Vinay Menon: Whether Blackstone's partnership with Anthropic to deploy AI engineers could threaten mid-market IT players.
p. 13
“right now, it is a lot of hypothetical, Vinay. They do not really have a company today.”
Nitesh Bansal, page 13 of the filed PDF · View the filing
Management clarified that while AI reduces the effort per traditional deal, R Systems' own deal sizes are increasing because it now takes on larger, end-to-end transformation engagements.
Answered by Nitesh Bansal
Asked by Vinay Menon: Clarification on whether deal sizes are increasing or decreasing given AI efficiency.
p. 13
“for us, deal sizes, because of this new TAM, our deal sizes are still improving.”
Nitesh Bansal, page 13 of the filed PDF · View the filing
Management said the decline was due to reversal of AR provisions collected during the quarter, not a reduction in sales or G&A investment, and expects SG&A to normalize.
Answered by Nitesh Bansal
Asked by Vinay Menon: Whether the quarter's lower SG&A reflects reduced investment.
p. 14
“SG&A coming down is not a reflection of any reduction in investment or people, neither in sales nor in G&A.”
Nitesh Bansal, page 14 of the filed PDF · View the filing
Management said cross-engagement is already happening across roughly a dozen deals, with some clients receiving services from the other entity.
Answered by Nitesh Bansal
Asked by Anmol Garg: Whether Novigo integration has led to cross-selling with R Systems clients.
p. 14
“today there are at least, close to a dozen deals where Novigo and R Systems teams are cross-engaged, and at least maybe three clients where Novigo clients have received R Systemsservice delivery”
Nitesh Bansal, page 14 of the filed PDF · View the filing
Management said it has helped close to eight or nine organizations establish GCCs and views this as an opportunity to become a long-term partner.
Answered by Nitesh Bansal
Asked by Anmol Garg: Whether mid-market GCC formation is a risk or opportunity for R Systems' client base.
p. 15
“We have successfully helped close to eight or nine organizations in various stages of their GCC formations.”
Nitesh Bansal, page 15 of the filed PDF · View the filing
Management said token costs for client-delivered output are almost entirely borne by the client, while R Systems bears its own internal training and R&D token costs.
Answered by Nitesh Bansal
Asked by Anmol Garg: Who bears AI token costs, the client or the company.
p. 15
“token cost for output delivered to the client is usually, I would say, in almost 100% cases borne by the client”
Nitesh Bansal, page 15 of the filed PDF · View the filing
Management estimated approximately 29% of revenue today comes from AI and AI-enabled services, though it does not yet track this from a system.
Answered by Nitesh Bansal
Asked by Varun Kulkarni: What proportion of revenue currently comes from AI and AI-enabled services.
p. 16
“approximately 29% of our revenue today comes from AI and AI-enabled services.”
Nitesh Bansal, page 16 of the filed PDF · View the filing
Management estimated fixed-price contracts moved from around 10% up to around 15-16% over the past year and expects the shift toward fixed price to continue with more transformation work.
Answered by Nitesh Bansal
Asked by Mayank Babla: What share of revenue comes from fixed-price versus time-and-material contracts and how has the mix changed.
p. 18
“what till last year would have been approximately, let's say, 10% fixed price. Last year, as in 2024, has already probably changed to maybe closer to 15% or 16% in 2025”
Nitesh Bansal, page 18 of the filed PDF · View the filing
Risks flagged
Novigo's markets were impacted by the Middle East crisis in Q1.
p. 12
“They obviously were also impacted by the Middle East crisis to some extent in Q1.”
Nitesh Bansal, page 12 of the filed PDF · View the filing
Deliberate reduction in utilization due to investment in building AI and data capabilities.
p. 5
“there's a deliberate decrease in utilization as a result of which, for creating that COE and the deliberate bench on both data and AI talent, thus bringing our utilization down to about 80.5%”
Nitesh Bansal, page 5 of the filed PDF · View the filing
Quarterly margins impacted by reduced utilization from AI investment and one fewer working day.
p. 8
“Our quarterly margins are prominently impacted by reduction in utilization due to investment in AI and one lesser day.”
Nand Sardana, page 8 of the filed PDF · View the filing
Potential competitive threat from frontier AI model vendors and private equity-backed consulting ventures entering the mid-market IT services space.
p. 11
“Sure, they will become a competition.”
Nitesh Bansal, page 11 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.