Business Performance Highlights

Financial Performance:

  • Sustained growth momentum with revenues growing at over 30% year-on-year in both Q1 and Q2 FY27
  • Second half revenues and profitability traditionally better than first half
  • Higher Annual Recurring Revenue (ARR) expected to drive Q3 FY27 revenues

IRIS CARBON (Disclosure Management Platform):

  • Achieved 52% ARR growth from March 31, 2026 baseline
  • Now serving more than 50 clients
  • Secured a large enterprise deal contributing significantly to ARR growth
  • Product features AI functionalities embedded within the platform
  • Built on Office 365 platform enabling seamless integration
  • Fast onboarding capability compared to competitors

IRIS iDEAL (BFSI Regulatory Reporting):

  • Pitching for end-to-end automated reporting leading to higher deal sizes
  • Successful implementation completed in India
  • Pursuing similar business in Mauritius and Qatar
  • Long sales cycles with several ongoing discussions

SupTech Business:

  • Global economic uncertainty, particularly in Middle East, impacted new order intake
  • Participating in several RFPs with expected improvement in H2 FY27
  • Successfully mining existing customers for additional work
  • Expanded product suite to include Risk-based supervision, licensing, and other modules
  • Targeting to become one-stop shop for regulatory reporting requirements

Financial Management:

  • Endeavor to balance customer acquisition expenses in SaaS business with profits from SupTech and iDEAL businesses
  • Comfortable cash position
  • Planning higher outlay on SaaS sales and marketing expenses going forward
  • Efficient sales and marketing spend: less than $1 spent per $1 net ARR earned in H1 FY27 (excluding large enterprise deal)
  • Target sales and marketing efficiency: $1-$1.4 per $1 net ARR earned
  • IRIS CARBON gross margin approximately 20%

Operational Metrics:

  • Sales and marketing expenses growing faster than revenue growth due to RegTech division expansion
  • Unallocated expenses primarily consist of corporate expenses including management salaries and rent
  • Additional ARR component (~INR 3-5 crores) from long-standing content management services for Reserve Bank of India

Geographic Performance:

  • Middle East operations affected by economic uncertainty but able to execute current business
  • Customers cautious about new spending despite operational continuity
  • Situation improving compared to Q1 FY27

Growth Strategy:

  • Focus on building IRIS CARBON brand in US market
  • Strengthening product capabilities and partnership networks
  • Expanding product suite for regulatory customers
  • Maintaining competitive sales and marketing efficiency ratios

Forward-Looking Commentary

Management expects improved second half performance based on:

  • Higher ARR conversion to revenue in Q3 FY27
  • Better order intake in SupTech business with ongoing RFP participation
  • Potential improvement in global economic conditions aiding pipeline conversion
  • Continued focus on efficient customer acquisition while expanding market presence