IRIS Business Services (540735) Q4 24/25 earnings summary

Executive summary

• Achieved 25% year-over-year total income growth to ₹12,851 lakhs (INR 128.51 crore) for FY25, with EBITDA up 36% to ₹2,154 lakhs and PAT up 51% to ₹1,325 lakhs, driven by recurring revenue, international traction, and cost management.

• SupTech segment led growth with 34% year-over-year increase, TaxTech grew 20%, and RegTech posted 12% growth, with strong contributions from Africa, the US, and Europe.

• Expanded global footprint, serving 54 countries and 30+ regulators, with marquee clients across banking, consulting, and industry.

• Audited standalone and consolidated financial results for FY25 were approved with unmodified opinions; Board approved re-appointment of auditors and managed interim leadership after CEO’s demise.

• Focused investments in technology, talent, and sales/marketing are positioning the company for sustained growth, with a deliberate ramp-up in spending.

Financial highlights

• FY25 consolidated revenue from operations was ₹12,596.78 lakhs, up from ₹10,229.66 lakhs in FY24; Q4 FY25 total income was ₹3,547 lakhs, up 16% year-over-year and 6% sequentially.

• EBITDA for FY25 was ₹2,154 lakhs (36% growth), with margin expansion to 16.8%; PAT for FY25 was ₹1,325 lakhs, up 51% year-over-year, and PAT margin improved to 10.3%.

• Earnings per share (consolidated, basic) for FY25 was ₹6.55, up from ₹4.49 in FY24.

• Receivable days increased to 123 from 93, and current ratio remained strong at 1.66.

• Cash and cash equivalents (consolidated) increased to ₹3,047.07 lakhs from ₹1,207.08 lakhs year-over-year.

Outlook and guidance

• Management expects the recent 28% average annual growth rate to be the new normal, with SaaS business share expected to increase and focus on expanding recurring revenues and leveraging AI-driven compliance and reporting solutions.

• No specific numeric guidance provided due to business mix and RFP-driven nature, but medium- to long-term growth is anticipated.

• Management reaffirmed commitment to support subsidiaries with negative net worth, particularly IRIS Business Services LLC.