R K Swamy Limited reported a consolidated revenue of ₹8,361.75 lakh for the quarter ended June 30, 2026, reflecting a 7.8% increase compared to ₹7,756.79 lakh in the corresponding quarter of the previous fiscal year. Consolidated net profit for the period rose 20.5% to ₹346.51 lakh, up from ₹287.46 lakh in Q1FY25.

The Board of Directors approved the unaudited standalone and consolidated financial results on August 12, 2026. The statutory auditors, C N K & Associates LLP, expressed an unmodified review opinion on the financial statements.

Financial Performance

Consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) stood at ₹1,092.36 lakh for the quarter, up from ₹879.32 lakh in Q1FY25. This translates to an EBITDA margin of 13.1%, compared to 11.3% in the prior year period. Total income increased to ₹8,580.86 lakh from ₹8,024.81 lakh, driven primarily by growth in revenue from operations.

On a standalone basis, revenue from operations grew 16.0% to ₹3,808.97 lakh from ₹3,283.06 lakh. Standalone net profit increased 61.5% to ₹216.61 lakh against ₹134.16 lakh in the same quarter last year. Standalone EBITDA rose 33.3% to ₹551.03 lakh.

What the Numbers Show

While top-line growth was modest at 7.8%, the expansion in EBITDA by 24.2% indicates improved operational efficiency or cost management during the period. Employee benefits expense decreased slightly to ₹3,005.79 lakh from ₹3,182.71 lakh in Q1FY25, despite the revenue increase, contributing positively to margin expansion. Operational expenses rose 8.7% to ₹2,712.32 lakh, tracking closely with revenue growth.

IPO Proceeds Utilization

The company disclosed the utilization of net proceeds from its initial public offering completed in FY24. As of June 30, 2026, the company had utilized ₹11,315.51 lakh out of total net proceeds of ₹15,632.52 lakh. Unutilized amount stands at ₹4,317.01 lakh.

• Funding working capital requirements: Fully utilized (₹5,400.00 lakh)
• IT infrastructure development: ₹1,430.64 lakh utilized out of ₹3,334.20 lakh
• Setting up new CEC and CATI: ₹858.65 lakh utilized out of ₹2,173.60 lakh
• General corporate purposes: Fully utilized (₹3,626.22 lakh)
• DVCP Studio setup: No utilization yet; full amount of ₹1,098.50 lakh remains unutilized

The company operates in a single reportable segment, 'Integrated Marketing Services'. Results are not evenly distributed across the year based on past trends.

R K Swamy Limited has received Board approval for a Scheme of Amalgamation involving two of its subsidiaries: Dsquare Solutions Private Limited (the Transferor Company) and Hansa Customer Equity Private Limited (the Transferee Company). The approval was granted during Board meetings held on August 10, 2026, at 10:30 A.M. and 12:50 P.M. IST. This corporate action is designed to streamline the group’s organizational structure by merging Dsquare into Hansa Cequity, thereby enhancing operational control and resource utilization.

The amalgamation falls under related party transactions but is exempt from certain disclosures under Regulation 23(5)(c) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as both entities are wholly-owned subsidiaries of the listed company. The filing was made pursuant to Regulation 30 read with Schedule III of the SEBI Listing Regulations. The Appointed Date for the scheme is fixed as April 1, 2026, subject to necessary statutory and regulatory approvals.

Financial Position of Entities

As of March 31, 2026, Hansa Cequity holds significantly higher financial metrics compared to Dsquare, reflecting its role as the consolidating entity within the customer analytics vertical. Both companies operate in the domain of data analytics and digital marketing consultancy.

Dsquare Solutions is engaged in developing customer relationship management solutions using data analytics. Hansa Cequity operates in a similar space, providing market mix modelling, data management, segmentation, direct marketing services, and loyalty program management.

Rationale and Impact

The primary rationale for the amalgamation is to achieve effective control, optimum utilization of resources, and economies of scale. Management stated that the consolidation will reduce the multiplicity of legal and regulatory compliances, thereby creating a simple and transparent ownership structure. The scheme is expected to generate synergies by consolidating ownership under Hansa Cequity.

Since Hansa Cequity holds the entire share capital of Dsquare (including through nominees), no cash consideration or share exchange ratio applies. The shares held by Hansa Cequity in Dsquare will stand cancelled automatically upon the appointed date. Consequently, there is no change in the shareholding pattern of R K Swamy Limited, as the listed entity is not a direct party to the amalgamation. The company asserts that there will be no adverse impact on business operations.