R Systems International has been assigned an unsolicited ESG rating of 'CRISIL ESG 54 (Adequate)' by CRISIL ESG Ratings & Analytics Limited. The rating was communicated via email on May 20, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The assessment by the SEBI-registered ESG Rating Provider is based on disclosures made by the company for the financial year ended December 31, 2024, as well as other publicly available data. R Systems International Limited clarified that it did not engage CRISIL ESG for this specific assessment, which was independently assigned based on information available in the public domain.

Rating Details

Future Disclosures

The company stated that it is currently in the process of issuing its Business Responsibility and Sustainability Report for the financial year ended December 31, 2025. This upcoming report is expected to include incremental disclosures regarding Environmental, Social, and Governance parameters.

R Systems International Limited reported strong financial results for the quarter ended March 31, 2026, with consolidated revenue from operations rising 29.9% year-on-year to Rs. 5,747.68 million (US$ 62.83 million). The Board of Directors, at its meeting held on May 6, 2026, approved both audited standalone and unaudited consolidated financial results, alongside key corporate actions including a merger-related share allotment and a change in the compliance officer. The financial results were subsequently published as a newspaper advertisement in Business Standard (English) all editions and Business Standard (Hindi), New Delhi edition on May 8, 2026, in compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Managing Director and CEO Nitesh Bansal attributed the performance to sustained demand for engineering services and early traction from EXIQO, the company's AI Studio. "Q1 2026 underscores the momentum we have built as mid-market enterprises move from AI pilots to full-scale, production-grade deployments," he said, adding that early EXIQO deployments are delivering 40-55% improvements in engineering velocity and up to 50% reductions in operational overhead.

Consolidated Financial Performance

The company's consolidated total income for the quarter stood at Rs. 5,949.19 million, compared to Rs. 4,447.44 million in the corresponding quarter of the previous year. Net profit for the period rose sharply by 69.5% to Rs. 654.14 million, up from Rs. 385.93 million. Profit before tax came in at Rs. 896.32 million versus Rs. 567.28 million in the year-ago period. EBITDA for the quarter stood at Rs. 1,092.51 million (19.01% margin) compared to Rs. 705.61 million (15.95% margin) in the same period last year. On an adjusted basis (excluding RSU costs, non-recurring and exceptional items), Adj. EBITDA was Rs. 1,156.65 million, representing a margin of 20.12% versus 17.36% in the year-ago quarter — a YoY growth of 50.6%. Adjusted net profit after tax stood at Rs. 758.10 million, reflecting YoY growth of 74.8%. CFO Nand Sardana noted, "The Company reported revenue of INR 574 crore and an EBITDA margin of 20%, reflecting a significant improvement driven by enhanced efficiencies and operating leverage from its platform-led model, while maintaining disciplined investments in AI. The full-quarter consolidation of Novigo further strengthened our revenue and margin profile."

The following table summarises the consolidated financial performance:

Key financial ratios on a consolidated basis for the quarter ended March 31, 2026 included an operating margin of 13.76%, a net profit margin of 11.38%, a current ratio of 2.00 times, and a debt equity ratio of 0.40 times. Net worth stood at Rs. 10,371.56 million. The table below highlights the key EBITDA metrics on a year-on-year basis:

Standalone Financial Performance

On a standalone basis, revenue from operations for the quarter ended March 31, 2026 was Rs. 3,203.41 million, compared to Rs. 2,770.77 million in the prior year quarter. Standalone net profit rose to Rs. 628.92 million from Rs. 344.71 million. Profit before tax on a standalone basis was Rs. 788.48 million. During the quarter, the company recognised dividend income from its subsidiaries amounting to Rs. 140.60 million, recorded under Other Income. The standalone results also reflect the restatement of comparative financial information for all prior periods, pursuant to the pooling of interest method applied for the amalgamation.

Segment Performance

The company operates across two segments: Information Technology services and Knowledge services. The consolidated segment revenue and results for the quarter ended March 31, 2026 are presented below:

Segment results represent earnings before tax, interest, and exceptional items. On a standalone basis, IT services revenue was Rs. 2,647.23 million and Knowledge services revenue was Rs. 556.18 million for the quarter.

Operational Metrics

The company's revenue concentration from its top clients moderated on a year-on-year basis, with the top 10 clients contributing 23.96% of revenues in the quarter ended March 31, 2026, compared to 24.80% in the year-ago quarter. Geographically, Americas remained the largest revenue contributor at 69.34%, followed by APAC at 17.51%, Europe at 9.56%, and MEA at 3.59%. The company's total headcount stood at 5,303 as of March 31, 2026, up from 4,369 a year earlier, with technical staff comprising 4,741 of the total.

Cash and bank balances, net of short-term borrowing, as of March 31, 2026, were Rs. 2,497 million compared to Rs. 2,726 million as of December 31, 2025. Total equity attributable to shareholders as of March 31, 2026, was Rs. 10,372 million compared to Rs. 10,323 million as of December 31, 2025. The company also paid an interim dividend of INR 6 per share (600% of face value) during the quarter, reflecting confidence in its earnings trajectory and cash generation.

Key Deal Wins

During the quarter, R Systems secured several notable client engagements across sectors. A leading global technology research and advisory organization engaged the company to implement custom APIs and platform enhancements for its enterprise research data environment, improving security, AI-enabled metadata processing, and insights delivery. A North America-based technology company specialising in digital engagement solutions engaged R Systems to build a unified data foundation and establish trusted golden records. A leading provider of technology platforms for the financial services industry engaged R Systems to lead a large-scale application modernisation program, enhancing security, scalability, and long-term supportability. R Systems was also selected by a leading global cloud services provider to deliver a hybrid cloud migration leveraging its platform-led approach. Additionally, a global life sciences and aesthetics innovator partnered with R Systems to deliver a next-generation, end-to-end consumer loyalty program spanning medical aesthetics treatments and retail product purchases.

Merger and OCRPS Allotment

The Board approved the allotment of 5,160,833 Optionally Convertible Redeemable Preference Shares (OCRPS) of face value INR 1/- each to the erstwhile shareholders of Velotio Technologies Private Limited, pursuant to the composite scheme of amalgamation of Velotio Technologies Private Limited and Scaleworx Technologies Private Limited with the company. The scheme was sanctioned by the Hon'ble National Company Law Tribunal, New Delhi, vide its order dated April 16, 2026, and became effective from May 1, 2026, with an appointed date of April 1, 2024. The OCRPS, valued at Rs. 2,407.00 million, have been disclosed under Other Equity. Key terms of the OCRPS are as follows:

Separately, the company also confirmed that its 9.75% listed, rated, unsecured, senior, redeemable Non-Convertible Debentures (allotted on November 11, 2025, amounting to Rs. 275 Crores) are unsecured in nature, and accordingly, the provisions of Regulation 54 of SEBI Listing Regulations relating to maintenance of security cover are not applicable.

Corporate Governance Changes

The Board took note of the resignation of Mr. Bhasker Dubey as Company Secretary & Compliance Officer, effective the closing hours of May 6, 2026. Mr. Piyush Jain was appointed as the new Company Secretary & Compliance Officer with effect from May 7, 2026. Mr. Jain is a qualified Company Secretary (Membership No. A44656) and a law graduate with over a decade of experience in corporate laws, securities regulations, FEMA Regulations, and strategic legal advisory. He has been associated with the company since 2019 in a senior role in the Compliance & Secretarial function, and previously worked with DLF Group. Mr. Jain has been authorised as the person responsible for determining materiality of events and making disclosures to stock exchanges under SEBI Listing Regulations.