IRIS Business Services Limited , a leading provider of regulatory compliance solutions, has reported a mixed set of financial results for the second quarter, marked by revenue growth but declining profitability in its core operations, offset by a significant exceptional gain from business divestments.

Revenue Growth Amid Profitability Challenges

For Q2, IRIS Business Services reported:

• Quarterly revenue increased to ₹286.00 crore, up from ₹269.00 crore in the same quarter last year, representing a year-over-year growth of 6.32%.
• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a substantial decline, dropping to ₹1.50 crore from ₹50.00 crore in the previous year.
• EBITDA margin contracted significantly to 0.52% from 18.59% year-over-year.

Exceptional Item Boosts Bottom Line

The company recorded an exceptional item of ₹136.00 crore, which contributed to a substantial increase in consolidated net profit:

• Consolidated net profit rose to ₹120.00 crore, compared to ₹38.00 crore in the same quarter last year.
• However, profit before tax from continuing operations declined to ₹21.00 crore from ₹48.00 crore year-over-year.

Strategic Divestments

During the quarter, IRIS Business Services undertook strategic divestments to streamline its operations:

• The company divested its Tax Technology GST Application Service Provider ('GST ASP') business.
• It sold its 100% equity stake in IRIS Logix Solutions Private Limited, a wholly-owned subsidiary engaged in e-Way Bill generation services.
• The e-invoicing business in Malaysia was also divested.

These divestments resulted in a significant exceptional gain, which has been presented as discontinued operations in accordance with Ind AS 105.

Segment Performance

The company's performance varied across its business segments:

Management Commentary

The management of IRIS Business Services stated that the divestments form part of a strategic initiative to simplify operations and focus on core business lines. They believe this restructuring will allow the company to allocate resources more effectively towards growth areas.

Future Outlook

While the core business faced profitability pressures, the strategic divestments have significantly strengthened the company's balance sheet. The management is expected to utilize these resources to invest in growth opportunities and enhance shareholder value in the coming quarters.

Investors and analysts will be keenly watching how IRIS Business Services leverages its streamlined operations and improved financial position to drive sustainable growth and profitability in its core business segments.

Note: All figures are in Indian Rupees (INR) unless otherwise stated.

IRIS Business Services Limited (IRIS), a global RegTech company specializing in structured data and regulatory reporting solutions, has announced a strategic partnership with Board International, a leading Enterprise Planning software company. This collaboration aims to integrate IRIS CARBON®, IRIS's flagship SaaS disclosure reporting platform, with Board's Financial Consolidation and Close capabilities.

Key Partnership Details

• Integration Focus: The partnership will connect the entire reporting cycle – from financial close to regulatory submission – within a single, secure workflow.
• Target Market: The integrated solution is designed for enterprises managing financial, ESG, and compliance reporting across teams and geographies.
• Regulatory Compliance: The system supports global digital regulatory frameworks including ESEF, SEC, FERC, and emerging ESG/sustainability reporting standards.

Benefits of the Integrated Solution

1. Streamlined Workflow: Companies can now go from close to disclosure without switching systems, improving efficiency and speed.
2. Enhanced Data Consistency: The integration ensures data consistency across finance, legal, investor relations, and sustainability functions.
3. Risk Reduction: Features such as role-based access, version control, and built-in validations help minimize filing risks and eliminate data silos.
4. Compliance Ready: The unified platform offers a scalable and compliance-ready digital reporting framework.

Executive Insights

Anuradha RK, Business Head of IRIS CARBON, stated, "We are making the end-to-end reporting easier and more accessible for enterprise teams. Together with Board, we are giving Board's customers one connected workflow to meet today's reporting demands and prepare for what's next."

Vijay Kurkal, COO of Board International, emphasized the solution's relevance, saying, "Disclosure requirements are getting more complex, and the cost of getting them wrong is higher than ever. This partnership helps our customers go from close to disclosure without switching systems or sacrificing speed. It's a smarter way to report."

The unified Disclosure Management solution is now available to customers of both Board and IRIS CARBON®, offering a powerful tool for companies to navigate the increasingly complex landscape of financial and non-financial reporting.

This partnership marks a significant step in simplifying the reporting process for enterprises, potentially reducing the time and resources required for regulatory compliance while improving accuracy and transparency in financial disclosures.