R Systems International reported consolidated revenue from operations of ₹6,017.01 million for the quarter ended June 30, 2026 (Q2FY27), reflecting a 30.2% increase compared to ₹4,620.15 million in the corresponding period of the previous fiscal year. While statutory net profit fell 26.8% to ₹555.70 million due to the absence of one-time asset sale gains recorded in the prior year, the company’s adjusted EBITDA surged 51.4% to ₹1,207.50 million. The strong operational performance was driven by sustained demand for AI-first engineering services and improved utilization rates across its delivery centers.

The Board of Directors approved these results at its meeting held on August 04, 2026. For the first half of FY27 (H1FY27), consolidated revenue reached ₹11,764.69 million, up 30.1% year-on-year. Adjusted EBITDA for the half-year stood at ₹2,364.15 million, representing a 51.0% growth, with margins expanding to 20.1% from 17.3% in H1FY26. Management attributed the margin expansion to operating leverage from its platform-led model, disciplined cost management, and higher utilization, particularly in offshore operations.

Key Financial Metrics

The variance between statutory and adjusted profitability highlights the impact of non-recurring items. In Q2FY26, other income included a ₹435.95 million gain on the sale of land, building, and other assets at the company’s Noida office. In contrast, Q2FY27 included severance payments and share-based payment expenses of ₹62.37 million related to restricted stock units (RSUs). Excluding these items, adjusted net profit grew 35.4% to ₹628.74 million.

Operational Highlights and AI Strategy

Nitesh Bansal, Managing Director & CEO, stated that Q2FY27 reflects the continued focus on an AI-native strategy as mid-market enterprises scale from experimentation to production-grade AI adoption. Revenue grew 17.7% year-on-year in US$ terms for the quarter, driven by sustained demand for services enabled by EXIQO, the company’s AI Studio leveraging the OptimaAI platform. R Systems was recognized as a Horizon 2 GCC Accelerator in HFS’ Horizons: GCC Services, 2026 Report, validating its AI-first Global Capability Center (GCC) model.

Key deal wins during the quarter included engagements with a leading global telecommunications company for advanced analytics, a U.S. small business lender for an AI-powered GCC, and a global insurance provider for AI-powered quality engineering. Additionally, the company partnered with a U.S.-based AdTech firm to modernize its core advertising platform using AI-powered software engineering.

Revenue Mix and Utilization

Revenue from the Technology, Internet, Platforms & Services (TIPS) vertical remained the largest contributor at 41.39%, followed by Banking, Finance & Insurance (BFSI) at 20.47%. Geographically, the Americas accounted for 71.50% of revenue, while APAC contributed 15.28%. Client concentration remained stable, with the top 10 clients contributing 24.39% of revenue.

Utilization rates showed improvement, with offshore utilization rising to 78.95% from 80.70% in the prior year period, though it slightly declined from 78.23% in Q1FY27. Blended utilization stood at 81.13%. The total employee count decreased slightly to 5,270 from 5,303 in March 2026, with technical staff numbering 4,728.

What the Numbers Show

The divergence between statutory net profit decline and adjusted EBITDA surge underscores the normalization of earnings after the one-time asset sale in the prior year. The expansion in adjusted EBITDA margin from 17.3% to 20.1% indicates genuine operational leverage rather than just top-line growth. Furthermore, the robust cash generation is evident from the increase in cash and bank balances (net of short-term borrowing) to ₹3,351 million as of June 30, 2026, from ₹2,726 million at the end of December 2025. Total equity attributable to shareholders also strengthened to ₹10,983 million.

Deloitte Haskins & Sells LLP served as the statutory auditor for the standalone results and conducted a limited review of the consolidated results, issuing an unmodified report. The company continues to implement Ind AS 109 for cash flow hedges, recording a gain of ₹90.79 million in Other Comprehensive Income for the quarter.

R Systems International reported its Q1 financial results, revealing a mixed performance marked by robust revenue and EBITDA growth on a year-on-year basis, even as consolidated net profit registered a decline compared to the same period last year. The results highlight a notable improvement in operating efficiency alongside a contraction at the bottom line.

Revenue and EBITDA Performance

The company posted Q1 consolidated revenue of ₹6B rupees, compared to ₹4.6B rupees in the corresponding quarter of the previous year, reflecting significant year-on-year top-line expansion. EBITDA for the quarter came in at ₹1.1B rupees, rising sharply from ₹702M rupees recorded in the year-ago period. The EBITDA margin expanded meaningfully, improving to 18.39% from 15.19% on a year-on-year basis, underscoring stronger operational leverage during the quarter.

The following table summarises the key financial metrics for Q1:

Net Profit Decline

Despite the strong revenue and EBITDA performance, R Systems International's Q1 consolidated net profit declined to ₹556M rupees from ₹759M rupees in the year-ago quarter. This contraction in net profit, even as operating metrics improved, points to increased costs or other below-the-EBITDA line factors that weighed on the final earnings figure during the period.

Key Highlights

• Revenue grew to ₹6B rupees from ₹4.6B rupees YoY
• EBITDA increased to ₹1.1B rupees from ₹702M rupees YoY
• EBITDA margin expanded by 320 basis points to 18.39% from 15.19% YoY
• Consolidated net profit declined to ₹556M rupees from ₹759M rupees YoY

Overall, R Systems International's Q1 results present a nuanced picture: while the company demonstrated meaningful improvement in revenue generation and operating profitability, the decline in consolidated net profit remains a key area of focus for stakeholders reviewing the quarter's performance.