R Systems International Limited disclosed its financial results for Q2 and H1 2026 through a regulatory filing under SEBI Listing Regulations (Regulation 30).
Financial Performance - Q2 2026 (Consolidated)
- Revenue: ₹6,017.01 mn (US$ 63.6 mn), representing 30.2% YoY growth in INR terms and 17.7% in US$ terms
- Adjusted EBITDA: ₹1,207.50 mn (US$ 12.8 mn) at 20.1% margin, compared to 17.3% in Q2 2025, with 51.4% YoY growth
- Adjusted Net Profit: ₹628.74 mn (US$ 6.6 mn), showing 35.4% YoY growth
- Basic EPS: ₹4.69 (adjusted basic EPS excluding RSUs expense and non-recurring items: ₹5.31)
- Employee benefits expense: ₹3,661.55 mn (including RSU cost of ₹62.37 mn)
- Finance costs: ₹94.77 mn
- Tax expense: ₹249.37 mn (current tax: ₹253.31 mn, deferred tax credit: ₹(3.94) mn)
Financial Performance - H1 2026 (Consolidated)
- Revenue: ₹11,764.69 mn (US$ 126.4 mn), representing 30.1% YoY growth in INR terms and 20.3% in US$ terms
- Adjusted EBITDA: ₹2,364.15 mn (US$ 25.4 mn) at 20.1% margin, compared to 17.3% in H1 2025, with 51.0% YoY growth
- Adjusted Net Profit: ₹1,386.84 mn (US$ 14.9 mn), showing 54.4% YoY growth
- Basic EPS: ₹10.21 (adjusted basic EPS excluding RSUs expense and non-recurring items: ₹11.70)
Operational Highlights
Management Commentary:
- CEO Nitesh Bansal attributed growth to AInative strategy and mid-market enterprise AI adoption
- Company recognized as Horizon 2 GCC Accelerator in HFS' Horizons: GCC Services, 2026 Report
- Portfolio includes GCC Copilot, OptimaAI, EXIQO, and C-Osmosis with 1,400+ AI experts and 150+ reusable AI agents
- CFO Nand Sardana highlighted improved utilization, operating leverage, and disciplined cost management
Key Deal Wins:
1. Global telecommunications and media company - advanced analytics, data science, and intelligence solutions
2. Leading US small business lender - established GCC for AI Product Engineering, Software Engineering, and Digital Operations Services
3. Global insurance and financial services provider - AI-powered quality engineering for HNW Reimagine initiative
4. Global financial services and market access provider - Microsoft Dynamics 365 Retail transformation
5. US-based AdTech company - core advertising platform modernization using AI-powered software engineering
Liquidity and Balance Sheet Position (as of June 30, 2026)
- Cash and bank balances (net of short-term borrowing): ₹3,351 mn (vs ₹2,726 mn as of December 31, 2025)
- Total equity attributable to shareholders: ₹10,983 mn (vs ₹10,323 mn as of December 31, 2025)
- Trade receivables: ₹3,760.81 mn
- Total assets: ₹21,104.50 mn
- Total liabilities: ₹8,197.94 mn
Operational Metrics
Revenue by Verticals (Q2 2026):
- Technology, Internet, Platforms & Services (TIPS): 41.39%
- Banking, Finance & Insurance (BFSI): 20.47%
- Telecom, Media & Entertainment (TME): 16.11%
- Health: 11.45%
- Manufacturing & Logistics (M&L): 10.58%
Geographic Revenue Mix (Q2 2026):
- Americas: 71.50%
- APAC: 15.28%
- Europe: 9.67%
- MEA: 3.55%
Client Concentration (Q2 2026):
- Top 10 Clients: 24.39%
- Top 5 Clients: 17.02%
- Top 3 Clients: 12.10%
- Largest Client: 5.99%
Utilization Rates (Q2 2026):
- Onsite: 96.33%
- Offshore: 78.95%
- Blended: 81.13%
Employee Count (Q2 2026):
- Technical: 4,728
- Software services: 3,830 (Onsite: 614, Offshore: 3,216)
- Knowledge Services: 865
- Trainees: 33
- Support: 542
- Total: 5,270
Days Sales Outstanding (as of June 30, 2026):
- Billed DSO: 55 days
- Billed & Unbilled DSO: 75 days
Accounting Notes
- Effective January 1, 2026, company designated certain foreign currency forward contracts as cash flow hedges under Ind AS 109
- Q2 2025 included ₹435.95 mn profit on sale of land, building and assets at NOIDA office
- Non-recurring items in Q2 2026 include severance payment of ₹16.17 mn
- RSU cost: ₹62.37 mn in Q2 2026, ₹126.51 mn in H1 2026