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, improved utilization rates, and a rise in trailing twelve-month (TTM) annual contract value (ACV) bookings excluding renewals to $82.9 million.

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. The company also adopted cash flow hedge accounting under Ind AS 109 effective January 1, 2026, recording a gain of ₹90.79 million in Other Comprehensive Income for the quarter.

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. TTM ACV bookings excluding renewals rose to $82.9 million in Q2FY27 from $74.0 million in Q2FY26, indicating strong new business momentum.

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 blended utilization standing at 81.13%. Offshore utilization rose to 78.95% from 80.70% in the prior year period, though it slightly declined from 78.23% in Q1FY27. The total employee count decreased slightly to 5,270 from 5,303 in March 2026, with technical staff numbering 4,728. Days Sales Outstanding (DSO) on billed invoices improved to 55 days in Q2FY27 from 63 days in Q1FY27, signaling better collection efficiency.

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 will host an investor and analyst conference call on Wednesday, August 5, 2026, at 10:00 AM IST. The discussion will focus on the financial results for the quarter and six months ended June 30, 2026, offering stakeholders a direct channel to review the company’s latest operational and financial performance. This proactive engagement allows investors to gain immediate clarity on the key drivers behind the reported figures for the period ending in mid-2026.

The announcement was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The intimation was submitted to both the National Stock Exchange of India Limited and BSE Limited on July 28, 2026. Piyush Jain, Company Secretary and Compliance Officer, signed the disclosure, ensuring regulatory compliance and timely dissemination of material information to the market.

Participants can join the conference call through multiple channels designed to accommodate domestic and international attendees. The primary method is an express join feature with Diamond Pass™ technology, which promises no wait time for participants. Additionally, traditional dial-in numbers are available for those preferring standard telephonic access.

The company has also published the relevant details on its official website at https://www.rsystems.com/investors-analysts-call/ . This digital resource serves as a central hub for investors seeking further information or recording links post-event.

What the Numbers Show

While specific financial figures were not included in this preliminary notice, the timing of the call coincides with the conclusion of the second quarter of fiscal year 2026. Investors will likely scrutinize revenue growth trends, margin stability, and any strategic updates regarding the company’s IT services portfolio. The inclusion of international toll-free numbers underscores the global nature of R Systems International’s investor base, facilitating broader participation from overseas analysts and institutional stakeholders.