R Systems Intl. Q2 FY27 Results (NSE: RSYSTEMS)
Signal: Margin expansion
The read
The operating trajectory strengthened: revenue grew 30.2% YoY to ₹6017.01 million and EBITDA grew 52.9% to ₹1145.13 million as gross margin expanded 323bps to 39.23% and EBITDA margin reached 19.03%, but reported PAT fell 26.7% to ₹555.70 million because the comparable quarter contained a ₹409.36 million land-sale gain; the more representative adjusted PAT still grew 35.4%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹601.7 Cr | +30.2% | +4.7% |
| EBIT | ₹90.86 Cr | -9.1% | |
| Net profit | ₹55.57 Cr | -26.7% | |
| EPS | ₹4.69 | -26.8% | |
| EBIT margin | 19.03% |
P&L walk
Revenue increased to ₹6017.01 million, +30.2% YoY and +4.7% QoQ, with gross margin expanding to 39.23% from 36.00%; EBITDA rose to ₹1145.13 million, +52.9% YoY, but PAT declined to ₹555.70 million, -26.7%, because Q2FY26 included a ₹409.36 million non-recurring land-sale gain.
Segments
No segment results table is disclosed; vertical mix shifted toward BFSI at 20.47% of revenue from 16.56% YoY, while Manufacturing & Logistics declined to 10.58% from 13.54%, making BFSI the clearest mix tailwind and M&L the principal drag.
Key positives
- Revenue reached ₹6017.01 million, +30.2% YoY and +4.7% QoQ, accelerating from +23.6% YoY in the preceding quarter.
- Adjusted EBITDA increased 51.4% YoY to ₹1207.50 million and adjusted EBITDA margin was 20.07% versus 17.26% a year ago.
- Gross margin expanded 323bps YoY to 39.23%, with cost of revenues declining to 60.77% of revenue from 64.00%.
- The filing attributes margin sustainability to improved utilisation, platform-led operating leverage and disciplined cost management; blended utilisation improved 69bps QoQ to 81.13%.
- Adjusted PAT rose 35.4% YoY to ₹628.74 million despite the reported PAT comparison being distorted by the prior-year land-sale gain.
Key concerns
- Finance costs increased 342.6% YoY to ₹94.77 million, materially faster than revenue and reducing EBIT-to-PAT conversion.
- Billed-and-unbilled DSO increased to 75 days from 73 days at December 31, 2025, indicating modest working-capital pressure despite billed DSO improving to 55 days from 56 days.
- Employee count increased 15.6% YoY to 5270 while revenue grew 30.2%, requiring continued utilisation and productivity gains to sustain margin expansion.
- Manufacturing & Logistics revenue mix fell to 10.58% from 13.54% YoY, while Americas mix declined to 71.50% from 74.86%.
Research and educational content only. Not investment advice.