IRIS Business Services (540735) Q2 25/26 earnings summary

Executive summary

• Completed divestment of TaxTech, GST ASP, and e-invoicing businesses, resulting in exceptional income and a strengthened balance sheet.

• Achieved 10% year-over-year revenue growth in H1FY26, with total revenue reaching ₹5,749 lakhs.

• SupTech segment led revenue, expanded global footprint to over 30 regulators in 26 countries, and added major clients like Qatar Central Bank.

• Focus remains on growing ARR, particularly in IRIS CARBON and IRIS iDEAL, despite temporary revenue dips in iDEAL.

• Board approved financials for H1 and Q2 FY26, with new director appointments and leadership changes.

Financial highlights

• IRIS CARBON's ARR grew 14% in H1 FY26 compared to March 2023, mainly from disclosure management.

• H1FY26 EBITDA declined 56% year-over-year to ₹413 lakhs, with margin at 7%; PAT fell 66% to ₹221 lakhs.

• Net profit for Q2 FY26 was ₹11,685.04 lakhs, driven by a one-time divestment gain.

• Employee expenses increased by 26%-27% in H1, with headcount up by about 8%.

• Book value rose to INR 92 from INR 37, net worth increased to INR 189 crore from INR 76 crore as of March 2025.

Outlook and guidance

• Targeting 35% ARR growth in IRIS CARBON for FY26, having achieved 14% in H1.

• Emphasizes continued investment in product innovation, digital transformation, and global market expansion.

• Recurring revenue share expected to rise as RegTech grows; SupTech pipeline remains strong.

• ESG product modules are in advanced customer discussions, with revenue contribution expected soon.