IRIS RegTech in FY26: Growth led by SupTech, while enterprise ARR keeps compounding

IRIS RegTech Solutions Limited closed FY26 with steady top-line momentum and a sharper focus on recurring revenues, even as margins reflected the cost of scaling its enterprise ambitions. The company reported total revenue of 138.21 crore for FY26, up 23% versus 112.19 crore in FY25. For Q4 FY26, total revenue was 41.60 crore, up 36% year on year. Profit after tax for Q4 FY26 rose to 6.64 crore from 3.38 crore in Q4 FY25.

The underlying business construct is clear in the company’s own positioning. IRIS operates across SupTech for regulators, RegTech for enterprises and banks, and a smaller DataTech initiative aimed at MSMEs. FY26 revenue contribution in the presentation is shown as 59% SupTech, 37% RegTech and 4% DataTech including others. In management’s commentary, SupTech continues to be the stabilising engine while the enterprise segment is being shaped into an ARR-led growth story.

FY26 performance in one view: revenue up, margins tighter

The year’s growth came with a visible trade-off in profitability. FY26 EBITDA was 19.81 crore versus 21.48 crore in FY25, and EBITDA margin declined to 14% from 19%. PAT for the full year was 14.16 crore compared to 13.65 crore in FY25.

Management explicitly acknowledged the balancing act. The company aims to increase investments in SaaS customer acquisition while remaining EBITDA positive, with SupTech profitability helping offset the cost of building enterprise scale.

Note: Figures are for continuing operations as stated in the presentation.

Segment picture: SupTech expands, RegTech profitability compresses

SupTech remained the primary growth driver and the most profitable segment in FY26. Segment revenue increased from 61.50 crore in FY25 to 75.73 crore in FY26. Segment EBITDA also expanded from 16.47 crore to 24.15 crore. This combination of growth and margin expansion reinforces why SupTech is described as the anchor segment.

RegTech, which includes IRIS Carbon and IRIS iDEAL along with taxonomy and consulting, posted revenue growth but a sharp decline in EBITDA. RegTech revenue rose from 42.78 crore to 46.89 crore, but EBITDA fell from 17.20 crore to 8.79 crore. The company’s narrative points to a deliberate investment cycle in enterprise sales and product enhancements.

DataTech including others remained small in reported revenue, with FY26 revenue of 5.87 crore versus 5.39 crore in FY25. EBITDA dropped steeply to 0.07 crore from 2.75 crore. The presentation also states that IRIS Peridot for MSME is in a pre-revenue phase, which suggests that near-term profitability from the MSME initiative is not yet expected.

Recurring revenue and product momentum: Carbon leads ARR expansion

A key marker in FY26 was the growth in recurring revenues and ARR. Annual recurring revenue as of March 2026 was 21.10 crore compared to 15.50 crore as of March 2025, a 36% increase as presented.

Within RegTech, IRIS Carbon is positioned as the flagship enterprise platform. The presentation shows IRIS Carbon revenue rising to 33.33 crore from 29.36 crore, while ARR increased to 37.65 crore from 28.41 crore. Management described FY26 as a milestone year for its deeper push into enterprise accounts, including disclosure management wins and an opening in ESG reporting as an additional module.

IRIS iDEAL, the on-premise automated regulatory reporting platform for banks and financial institutions, showed a different pattern. FY26 revenue was 12.60 crore versus 13.42 crore in FY25, while ARR increased to 9.30 crore from 7.95 crore. Management attributed performance to delayed purchase decision-making in India during the first half and highlighted active exploration of non-India markets, especially Africa and the Middle East.

Geography mix and market exposure

The company disclosed revenue mix by geography. Africa remains the largest contributor at 38% in FY26 compared to 39% in FY25. Europe contributed 17% in FY26, India 19%, MENA 10%, APAC 9% and America 7%. This mix matters because management also flagged that prolonged geopolitical stress in the Middle East could delay SupTech deal closures, even though the enterprise SaaS focus is said to be predominantly Europe and U.S.

Strategy and guidance: the 500 crore aspiration and measured investment

In the earnings call, management reiterated an aspiration of reaching INR 500 crores of revenue. They stated that this would require slightly over 30% growth over the next 4 to 5 years. For enterprise SaaS, management communicated a benchmark of net ARR growth of around 35% or more.

Capital allocation tone was conservative. Management said organic growth is the first priority and that they will not pursue acquisitions merely because capital is available. They also indicated that sales and marketing investments will remain calibrated, with a clear preference to stay EBITDA positive.

The balance sheet commentary reflects the impact of the earlier TaxTech divestment. Management stated cash on the books was around INR 155 crores as of March 31, 2026, and net worth was around INR 200 crores compared to around INR 76 crores as of March 31, 2025.

AI initiatives: opportunity with higher customer expectations

IRIS devoted meaningful attention to AI in both the investor presentation and the call. The company presented initiatives such as IRIS Instant for AI-assisted tagging and conversion in iFile, and IRIS RegAI for clause-level compliance validation and scoring. On the IRIS Carbon side, AI is positioned around regulatory intelligence, disclosure integrity checks, and reporting fluency features such as tagging and summarisation.

Management framed AI as both an opportunity and a threat. The opportunity is to deepen the value proposition and expand use cases. The threat is that customer expectations will rise in parallel, and competitive dynamics may shift over time. For regulators, management also acknowledged adoption constraints around cloud and AI, discussing approaches such as private or sovereign language models where data residency is sensitive.

Closing takeaways

IRIS RegTech’s FY26 shows a company leaning into its dual-engine model. SupTech is delivering growth with improving segment profitability, while enterprise SaaS is being scaled through higher investment with a focus on ARR compounding. The immediate investor watchpoints are margin trajectory and the pace at which enterprise ARR growth translates into sustained profitability.

Management’s forward commentary is anchored on a multi-year growth aspiration of INR 500 crores of revenue over 4 to 5 years, supported by a stated target of around 35% net ARR growth for the SaaS business. The company’s ability to execute this while remaining EBITDA positive will likely define how FY26’s growth translates into a longer compounding story.