RS Software Reports Q2FY26 Loss of ₹536.59 Lac Against Prior Year Profit
RS Software (India) Ltd reported a standalone net loss of ₹536.59 lac for Q2FY26 compared to a profit of ₹585.59 lac in Q2FY25, with revenue declining 64.72% to ₹606.87 lac. Both USA and ROW segments underperformed, with the USA segment revenue dropping 76.10%. The company's half-year performance also showed a loss of ₹846.69 lac against prior year profit of ₹888.34 lac.
*this image is generated using AI for illustrative purposes only.
RS Software (India) Ltd has announced its Q2FY26 financial results for the quarter ended September 30, 2025, showing a significant decline in performance compared to the previous year. The company reported a standalone net loss of ₹536.59 lac against a profit of ₹585.59 lac in the corresponding quarter of FY25.
Financial Performance Overview
The company's standalone financial performance for Q2FY26 reflects challenging operating conditions across key metrics:
| Metric | Q2FY26 | Q2FY25 | Change (%) |
|---|---|---|---|
| Revenue from Operations | ₹606.87 lac | ₹1,720.43 lac | -64.72% |
| Total Revenue | ₹612.10 lac | ₹1,732.13 lac | -64.66% |
| Net Profit/(Loss) | ₹(536.59) lac | ₹585.59 lac | -191.65% |
| Basic EPS | ₹(2.08) | ₹2.28 | -191.23% |
Expense Analysis
Despite the revenue decline, the company's expense structure remained elevated. Total expenses for Q2FY26 stood at ₹1,148.69 lac compared to ₹1,188.03 lac in Q2FY25. Employee benefits expense decreased to ₹726.53 lac from ₹802.86 lac, while other expenses including subcontractor costs increased to ₹295.96 lac from ₹278.22 lac.
Segment Performance
The company operates through two primary segments - USA and Rest of World (ROW):
| Segment | Q2FY26 Revenue | Q2FY25 Revenue | Change (%) |
|---|---|---|---|
| USA Segment | ₹306.13 lac | ₹1,280.98 lac | -76.10% |
| ROW Segment | ₹300.74 lac | ₹439.45 lac | -31.56% |
Both segments reported losses before tax and interest, with the USA segment recording a loss of ₹167.81 lac compared to a profit of ₹676.37 lac in the previous year.
Half-Year Performance
For the half-year ended September 30, 2025, the company reported a standalone net loss of ₹846.69 lac against a profit of ₹888.34 lac in the corresponding period of FY25. Revenue for the half-year declined to ₹1,384.13 lac from ₹3,595.74 lac.
Consolidated Results
On a consolidated basis, which includes subsidiaries Responsive Solutions Inc. and Paypermint Pvt Limited, the company reported a net loss of ₹591.67 lac for Q2FY26 compared to a profit of ₹493.54 lac in Q2FY25. Consolidated revenue from operations remained at ₹606.87 lac, similar to standalone figures.
Balance Sheet Position
As of September 30, 2025, the company maintained total assets of ₹8,833.28 lac compared to ₹9,559.04 lac as of March 31, 2025. The company's cash and cash equivalents decreased significantly to ₹232.50 lac from ₹1,394.01 lac, while trade receivables increased to ₹981.82 lac from ₹467.99 lac.
The Board of Directors approved these audited financial results in their meeting held on November 5, 2025, with statutory auditors expressing an unqualified audit opinion on the financial statements.
Historical Stock Returns for RS Software
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.54% | -7.48% | -28.16% | -54.42% | -76.35% | +40.38% |
18
