CyberTech Systems & Software Reports Q3FY26 Results with 28% Decline in Quarterly Profit

3 min read     Updated on 11 Feb 2026, 10:13 PM
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Overview

CyberTech Systems & Software Limited announced Q3FY26 results showing consolidated net profit decline of 27.69% to ₹653.35 lakhs while revenue remained stable. The company's standalone operations also faced challenges with profit dropping 19.12% to ₹542.52 lakhs. Board approved significant executive compensation changes including USD $100,000 annual incentive for Executive Director.

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CyberTech Systems & Software Limited announced its unaudited financial results for the third quarter of FY26 ended December 31, 2025, revealing a mixed performance with stable revenue but declining profitability. The IT services company's board meeting held on February 11, 2026, approved both standalone and consolidated financial results along with key executive compensation decisions pursuant to Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Consolidated Financial Performance

The company's consolidated operations showed resilience in revenue generation but faced profitability challenges during Q3FY26. Total income remained relatively stable with marginal fluctuations across quarters.

Metric: Q3FY26 Q3FY25 Change (%)
Revenue from Operations: ₹5,783.95 lakhs ₹5,857.23 lakhs -1.25%
Other Income: ₹600.27 lakhs ₹506.62 lakhs +18.49%
Total Income: ₹6,384.22 lakhs ₹6,363.85 lakhs +0.32%
Profit Before Tax: ₹843.89 lakhs ₹1,213.55 lakhs -30.46%
Net Profit: ₹653.35 lakhs ₹903.53 lakhs -27.69%

The nine-month consolidated performance showed marginal revenue growth but profit decline. Revenue from operations increased slightly to ₹17,481.86 lakhs from ₹17,440.34 lakhs in the corresponding period last year. However, net profit decreased to ₹2,336.23 lakhs from ₹2,533.84 lakhs, reflecting ongoing margin pressures.

Standalone Results Analysis

The standalone financial results presented a similar trend with revenue contraction and profit decline. The company's domestic operations faced headwinds during the quarter.

Parameter: Q3FY26 Q3FY25 Variance
Revenue from Operations: ₹3,941.13 lakhs ₹4,033.60 lakhs -2.29%
Total Income: ₹4,398.50 lakhs ₹4,431.52 lakhs -0.75%
Net Profit: ₹542.52 lakhs ₹670.70 lakhs -19.12%
Basic EPS: ₹1.74 ₹2.15 -19.07%

For the nine-month standalone period, revenue declined to ₹11,889.61 lakhs from ₹12,037.52 lakhs, while net profit decreased to ₹1,671.73 lakhs from ₹1,813.07 lakhs in the previous year.

Expense Structure and Margins

The company's expense management showed mixed results across different cost categories. Employee benefits expense increased significantly in both consolidated and standalone operations, impacting overall profitability.

Expense Category (Consolidated Q3FY26): Amount (₹ lakhs) Previous Year (₹ lakhs)
Employee Benefits: 3,443.99 3,167.29
Outsourced Project Cost: 1,403.08 1,315.61
Other Expenses: 588.84 555.23
Finance Costs: 17.90 14.38

Board Decisions and Corporate Actions

The board meeting held on February 11, 2026, approved significant executive compensation changes. The directors sanctioned an annual incentive equivalent to USD $100,000 for Mr. Ramasubramanian, Executive Director (DIN: 05350841), effective from April 1, 2026, for a three-year period. This decision, based on performance evaluation and Nomination & Remuneration Committee recommendations, requires shareholder approval and regulatory clearances.

Earnings Per Share and Capital Structure

The company maintained its paid-up equity share capital at ₹3,113.06 lakhs with a face value of ₹10.00 per share. Consolidated basic earnings per share declined to ₹2.10 in Q3FY26 from ₹2.90 in Q3FY25. For the nine-month period, basic EPS decreased to ₹7.50 from ₹8.14 in the corresponding previous period.

Business Segment and Subsidiaries

CyberTech Systems and Software Limited operates in a single reportable business segment of 'Information Technology Services' as per IND AS 108 requirements. The consolidated results include three wholly-owned subsidiaries: CyberTech Systems and Software Inc. USA, Spatialitics LLC USA, and CyberTech Systems and Software Canada Inc. The company's international operations continue to contribute to overall revenue diversification and geographic presence expansion.

Regulatory Compliance and Audit

The unaudited financial results were reviewed by the Audit Committee and approved by the Board of Directors. Lodha & Co LLP, Chartered Accountants, conducted the limited review of both consolidated and standalone financial statements in accordance with Standard on Review Engagements (SRE) 2410. The board meeting commenced at 08:00 PM and concluded at 09:00 PM on February 11, 2026.

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CyberTech Systems And Software Focuses on AI-Led Cloud Transformation for Long-Term Growth

1 min read     Updated on 06 Nov 2025, 09:38 PM
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Reviewed by
Ashish TScanX News Team
Overview

CyberTech Systems & Software is strategically positioning itself for growth through AI-led cloud transformation and partnerships. The company is strengthening collaborations with Esri and Microsoft Azure, expanding global delivery capabilities in SAP S/4HANA migrations and geospatial intelligence. Q2 FY26 results show total revenue of ₹667.30 million, up 5.2% YoY, with a slight decline in EBITDA and PAT. The company aims for sustained margin improvement and double-digit growth through innovation in AI-led transformation, intelligent SAP migrations, and cloud-based geospatial solutions.

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Cybertech Systems & Software , a CMMI Level 3 next-generation Enterprise Cloud Transformations provider, is strategically positioning itself for sustained growth through AI-led cloud transformation and strategic partnerships.

Strategic Focus on AI and Cloud

The company is concentrating its efforts on AI-led cloud transformation and SAP-GIS integration to drive long-term growth. This focus aligns with the increasing demand for advanced cloud solutions and artificial intelligence in enterprise systems.

Strengthening Key Partnerships

CyberTech Systems & Software is reinforcing its strategic partnerships with industry leaders:

  • Esri Partnership: The company continues to build on its long-standing partnership with Esri, a key player in geographic information system (GIS) software.
  • Microsoft Azure Collaboration: CyberTech Systems & Software is scaling Azure ArcGIS solutions, leveraging its partnership with Microsoft to deliver integrated, cloud-based spatial intelligence for global clients.

Expanding Global Delivery Capabilities

The company is expanding its global delivery capabilities in two key areas:

  1. SAP S/4HANA migrations
  2. Geospatial intelligence

These expansions are aimed at meeting the growing demand for enterprise system modernization and cloud-based spatial solutions.

Financial Performance

For the second quarter ended September 30, 2025, CyberTech Systems & Software reported:

Metric Q2 FY26 YoY Change
Total Revenue ₹667.30 million +5.2%
Operating Revenue ₹587.90 million +1.4%
EBITDA ₹125.70 million -8.4%
EBITDA Margin 18.80% -2.8% points
PAT ₹86.60 million -3.2%
PAT Margin 13.00% -1.1% points

Operational Highlights

  • Active client count: 76 (LTM) as of September 30, 2025
  • Technology sector contribution: 73% of operating revenue
  • U.S. business contribution: 99% of operating revenue
  • Total employee count: 539 as of September 30, 2025

Future Outlook

CyberTech Systems & Software aims for sustained margin improvement and double-digit growth through:

  1. Innovation in AI-led transformation
  2. Intelligent SAP S/4HANA migrations
  3. Modern cloud-based geospatial solutions
  4. Operational discipline

The company sees continued demand for mission-critical system modernization, particularly in utility network transformation and SAP cloud migrations.

CyberTech Systems & Software's CEO, Mr. Vish Tadimety, stated, "Our differentiated capabilities in combining SAP expertise with geospatial intelligence position us well to capture opportunities as enterprises prioritize intelligent, cloud-based operations."

As CyberTech Systems & Software continues to evolve its service offerings and strengthen its market position, the company appears well-positioned to capitalize on the growing demand for advanced cloud and AI solutions in the enterprise space.

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