Financial Performance Summary

FY 2025-26 Consolidated Financials:

  • Revenue: ₹25.60 crores (56% decline from ₹57.91 crores in FY 2024-25)
  • Net loss: ₹28.59 crores (significant deterioration from profit of ₹9.64 crores in FY 2024-25)
  • Basic EPS: (₹11.38) compared to ₹2.70 in FY25

Standalone Financials:

  • Revenue: ₹25.44 crores
  • Loss before tax: ₹29.93 crores
  • Loss after tax: ₹29.41 crores

Segment-wise Performance:

  • USA Segment: Revenue fell sharply to ₹9.76 crores from ₹38.96 crores, reporting a segment loss of ₹13.76 crores
  • Rest of World Segment: Revenue decreased to ₹15.38 crores from ₹18.36 crores, reporting a loss of ₹2.63 crores

Key Developments & Strategic Updates

Business Transformation: The company is transitioning from a services-oriented model to a product-led technology company focusing on AI-native payment infrastructure. This transition contributed to financial challenges due to long sales cycles and delayed product licensing conversions.

Awards & Recognition: Received the NASSCOM Tech Excellence Award in Financial Services for payment infrastructure innovation and AI-powered fraud prevention.

Product Portfolio: Focus on four main products: RS IntelliEdge™ (AI fraud prevention), RS DigitalEdge™ (payment orchestration), Payabbhi® (merchant payments), and RS Bill@Edge™ (bill presentment).

Facility Expansion: Relocated to new India Development Centre with 25,000 sq. ft. capacity for 180 employees, nearly four times previous capacity.

Subsidiary Performance

Paypermint Private Limited (80.30% subsidiary):

  • Revenue: ₹3.09 crores
  • Profit after tax: ₹3.08 crores (down from ₹4.60 crores in FY25)
  • Granted loan of ₹8.75 crores to holding company

Responsive Solutions Inc (100% subsidiary):

  • No revenue
  • Loss: $175,251 (approximately ₹1.31 crores)
  • Total assets: $21,142

Litigation and Regulatory Matters

Ongoing Legal Cases:

  • Case against Software One (vendor) for non-performance, pending with High Courts
  • Case against G Ravi regarding disputed claim of 12,000 shares, pending with court

Tax Litigation:

  • Service tax demand of ₹3.99 crores for 2007-12 under appeal with CESTAT
  • US federal tax demand of $494,563 (₹3.75 crores) for 2011-12, company making installment payments
  • Service tax refund claims of ₹1.88 crores pending with High Court

Corporate Governance & Operations

Board Composition: 6 directors (2 executive, 4 non-executive) with 5 board meetings held

Employee Strength: 151 permanent employees as of March 31, 2026

ESOP Grants: Granted 100,000 ESOP options to senior managerial personnel

CSR Expenditure: Spent ₹50 lakhs, exceeding mandatory requirement of ₹5.53 lakhs

Auditor's Remarks

Statutory auditors highlighted revenue recognition as a key audit matter, noting significant judgements in identifying distinct performance obligations and determining transaction price, particularly for software development contracts recognized over time using percentage-of-completion method.

Future Outlook

The company maintains that cumulative investments exceeding ₹130 crores in building scalable platforms are beginning to yield results. Focus remains on converting pipeline into business outcomes, strengthening client partnerships, and expanding global market presence in North America and Europe despite current financial challenges.