Ramco Systems Limited announced its Q3FY26 financial results for the quarter ended December 31, 2025, with the Board of Directors approving the unaudited financial results in a meeting held on January 28, 2026. The results reflect a mixed performance, with operational improvements overshadowed by regulatory compliance costs.

Financial Performance Overview

The company's consolidated performance showed revenue growth, while standalone operations faced some challenges. The most significant impact came from the implementation of new Labour Codes, which created substantial one-time costs.

Labour Code Implementation Impact

The most significant development during the quarter was the implementation of new Labour Codes by the Government of India, effective November 21, 2025. This regulatory change had a substantial financial impact on the company.

The Labour Code consolidated various existing labour legislations into a unified framework. The company assessed the financial implications, resulting in increased gratuity liability and leave liability arising from past service costs. Due to the materiality and non-recurring nature of this impact, it was presented as "Impact of Labour Code" under Exceptional Items.

Nine-Month Performance Analysis

For the nine months ended December 31, 2025, the company showed improved operational performance on a consolidated basis:

On a standalone basis, the nine-month performance was affected by the Labour Code impact:

Operational Highlights

Several operational developments occurred during the quarter:

• Equity Allotment: The company allotted 49,264 equity shares under Employee Stock Option Schemes, increasing paid-up capital to Rs.374.47 million from Rs.373.98 million
• Subsidiary Closure: Ramco Systems Macau Limited, a step-down subsidiary, was voluntarily closed effective November 07, 2025, with no impact on financial results
• Employee Benefits: ESOP costs for Q3FY26 were Rs.13.24 million compared to Rs.23.39 million in Q3FY25

Other Comprehensive Income

The company reported other comprehensive income of Rs.41.19 million on a standalone basis for Q3FY26, primarily due to remeasurement of defined benefit obligations amounting to Rs.64.49 million, partially offset by foreign currency translation effects.

Earnings Per Share

The Labour Code impact significantly affected earnings per share calculations:

The company operates in a single segment of Software Solutions & Services, with global operations across multiple countries including India, Singapore, Malaysia, USA, Canada, and several other international markets.

Ramco Systems announced a significant contract win with Powerhouse Engines, a South Florida-based aviation services company, for the implementation of its next-generation Aviation Software. The announcement was made through a press release filed under Regulation 30.

Contract Overview

Ramco Systems Corporation (RSC), a subsidiary of Ramco Systems Limited, will implement its advanced aviation software solution at Powerhouse Engines. The company specializes in jet engine leasing, trading, and MRO services for CFMS56 family engines. The software implementation will provide complete lifecycle coverage for Powerhouse's engine MRO operations, aiming to enhance throughput and reduce turnaround time.

Software Implementation Details

The implementation includes an integrated suite of modules designed to enhance operational efficiency and provide comprehensive visibility across key functions. Powerhouse will adopt modules covering Engineering CAMO, Engine and Shop Maintenance, MRO Contracting, Finance, and Quality management.

Key features of the implementation include:

• Configuration management and maintenance planning
• AD and SB management with task card management
• Inventory management and purchasing optimization
• Cost tracking and subcontracting processes
• Third-party repair process streamlining

Digital Transformation Initiative

Powerhouse will leverage Ramco's advanced digital solutions to transition toward paperless operations. The digital toolkit includes Ramco's Anywhere mobile applications, Hubs, and BInGO dashboards for real-time tracking capabilities.

Management Commentary

Eric Engdahl, CEO of Powerhouse Engines, emphasized the strategic importance of the partnership for the company's growth phase. He highlighted Ramco Systems' combination of cutting-edge technology with a strong track record in aviation MRO as key factors in the selection process.

Manoj Kumar Singh, Chief Customer Officer for Aviation, Aerospace & Defense at Ramco Systems, expressed honor at being chosen as Powerhouse Engines' technology partner. He emphasized that the software is built on industry best practices and enables organizations to minimize downtime while maximizing asset utilization.

Market Position and Global Reach

Ramco Aviation Software demonstrates significant market presence with established credentials across the global aviation industry. The platform's accessibility through cloud deployment and advanced features position it as a comprehensive solution for aviation organizations.

The software serves diverse aviation sectors including airlines, third-party MROs, helicopter operators, defense organizations, and urban air mobility companies worldwide. Advanced features include artificial intelligence-based solutions, voice-enabled user experience, digital task cards, offline maintenance capability, and conversational chatbots.