Ramco Systems , a global enterprise software provider, has reported a significant turnaround in its financial performance for the second quarter of the fiscal year. The company's latest results showcase a remarkable improvement across key financial metrics, indicating a robust recovery and strengthened market position.

Financial Highlights

Ramco Systems has delivered an impressive turnaround in its Q2 results, posting a consolidated net profit of 126.00 crore rupees, a significant improvement from the loss of 97.00 crore rupees reported in the same quarter of the previous year. This represents a substantial positive swing of 223.00 crore rupees in the company's bottom line.

Revenue Growth and Operational Efficiency

The company's revenue grew to 176.00 crore rupees from 142.00 crore rupees year-over-year, marking a 24% increase. This growth in top-line performance indicates a strong demand for Ramco's software solutions and services.

Notably, Ramco Systems has more than doubled its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) to 39.40 crore rupees, up from 16.60 crore rupees in the corresponding quarter last year. This significant improvement in EBITDA suggests enhanced operational efficiency and cost management.

Margin Expansion

The EBITDA margin expanded substantially to 22.42% from 11.65% in the previous year's corresponding quarter. This near-doubling of the EBITDA margin demonstrates the company's ability to improve profitability while growing its revenue base.

Regulatory Compliance

While Ramco Systems has shown strong financial performance, it's worth noting that Ramco Industries Limited has recently received orders from the Tamil Nadu – Windmill GST authority regarding GST impact on Corporate Guarantees provided to a group company. The total penalty as per six orders amounts to 45.82 crore rupees. However, it's important to clarify that this regulatory matter pertains to Ramco Industries Limited and not directly to Ramco Systems, the subject of this financial report.

The remarkable turnaround in Ramco Systems' Q2 results, characterized by significant improvements in profit, revenue, and operational efficiency, signals a positive trajectory for the company. As the tech sector continues to evolve, Ramco Systems appears well-positioned to capitalize on market opportunities and maintain its growth momentum.

Ramco Industries has emerged victorious in a significant tax dispute, as the High Court dismissed an appeal by the Income Tax Department, upholding the treatment of subsidy income as a 'capital receipt'.

High Court Ruling

The High Court, in its order dated September 22, 2025, sided with Ramco Industries, affirming the earlier decision made by the Income Tax Appellate Tribunal (ITAT). This ruling effectively puts an end to the dispute involving Rs 156.04 lakhs in disputed tax value.

Implications of the Verdict

The favorable outcome for Ramco Industries is expected to have positive financial implications for the company. By treating the subsidy income as a capital receipt, the company may benefit from potential tax savings and improved financial positioning.

Company's Disclosure

In compliance with SEBI regulations, Ramco Industries promptly disclosed the outcome of this litigation. The company's Company Secretary and Legal Head, S. Balamurugasundaram, confirmed in a regulatory filing that they downloaded the High Court order on September 24, 2025.

Ongoing Transparency

This disclosure aligns with Ramco Industries' commitment to transparency, as mandated by Clause 8 of Para B, Part A of Schedule III, read with Regulation 30 of SEBI (LODR) Regulations, 2015, and the recent SEBI circular dated July 11, 2023, regarding disclosures on material litigations.

Trading Window Closure

In a separate announcement, Ramco Industries also informed stakeholders about the closure of the trading window for the company's securities. The trading window will remain closed for directors and designated persons (including their immediate relatives) from October 1, 2025, until two trading days after the board meeting that will declare the unaudited financial results for Q2 FY2025-26.

This legal victory marks a positive development for Ramco Industries, potentially strengthening its financial position and reinforcing investor confidence in the company's operations and financial management.