IRIS RegTech Q2 revenue rises 36%, half-year profit falls 94%

IRIS RegTech Solutions Limited reported consolidated revenue from operations of Rs 38.7411 crore for the quarter ended September 30, 2026, up 36% from a year earlier, while first-half profit from continuing operations fell 94% to Rs 12.25 lakh as employee, depreciation, finance and other expenses increased over the six-month period.

How did IRIS RegTech perform in the September 2026 quarter?

IRIS RegTech posted Rs 38.7411 crore in consolidated revenue from operations for the quarter ended September 30, 2026, compared with Rs 28.5635 crore a year earlier and Rs 32.7536 crore in the quarter ended June 30, 2026. Revenue increased by Rs 10.1776 crore year on year and by Rs 5.9875 crore sequentially, while total income, including other income, reached Rs 40.9268 crore against Rs 31.0999 crore in the September 2025 quarter.

IRIS RegTech reported profit from continuing operations of Rs 1.0937 crore in the September 2026 quarter, down from Rs 1.8388 crore in the September 2025 quarter. The result followed a Rs 97.12 lakh loss from continuing operations in the June 2026 quarter. Profit before tax from continuing operations was Rs 1.7725 crore, compared with Rs 2.0963 crore a year earlier and a Rs 95.36 lakh loss in the preceding quarter.

Why did IRIS RegTech’s first-half continuing profit decline despite higher revenue?

IRIS RegTech’s first-half profit from continuing operations was Rs 12.25 lakh, versus Rs 2.2066 crore in the half year ended September 30, 2025, a decline of about 94%. Revenue from operations nevertheless rose 33% to Rs 71.4947 crore from Rs 53.7557 crore, while total income increased to Rs 76.1667 crore from Rs 57.4868 crore.

Total expenses increased by Rs 20.7443 crore to Rs 75.3478 crore during the half year ended September 30, 2026, compared with a Rs 18.6799 crore increase in total income. Employee benefits expense rose to Rs 41.5388 crore from Rs 31.2645 crore, other expenses increased to Rs 29.6982 crore from Rs 22.0964 crore, and depreciation and amortisation rose to Rs 3.2986 crore from Rs 1.0032 crore. Finance costs increased to Rs 81.22 lakh from Rs 23.94 lakh.

The result was first-half profit before tax from continuing operations of Rs 81.89 lakh, down from Rs 2.8833 crore a year earlier. Tax expense was Rs 69.64 lakh, compared with Rs 67.67 lakh, leaving Rs 12.25 lakh of continuing profit. This comparison excludes gains and losses from discontinued operations, which were separately presented in the consolidated statement.

Which IRIS RegTech segments drove revenue growth?

SupTech and RegTech drove IRIS RegTech’s growth, with SupTech remaining the largest segment at Rs 21.7623 crore in the September 2026 quarter and RegTech reaching Rs 15.8321 crore. SupTech revenue was Rs 16.6347 crore a year earlier and Rs 19.4992 crore in the June 2026 quarter. Its first-half revenue increased to Rs 41.2615 crore from Rs 32.8451 crore.

RegTech revenue rose from Rs 10.6265 crore in the September 2025 quarter and Rs 11.5347 crore in the June 2026 quarter. First-half RegTech revenue increased to Rs 27.3668 crore from Rs 18.2506 crore. DataTech revenue declined to Rs 82.58 lakh in the half year from Rs 88.30 lakh, while the Others segment increased to Rs 2.0406 crore from Rs 1.7770 crore.

Segment results, which precede unallocated income, unallocated expenses, finance costs and depreciation, also changed across the businesses. SupTech’s first-half segment result rose to Rs 11.7040 crore from Rs 9.4757 crore, and RegTech moved to a Rs 2.1631 crore profit from a Rs 21.43 lakh loss. DataTech’s segment loss widened to Rs 2.7239 crore from Rs 49.45 lakh, while unallocated expenses increased to Rs 12.3100 crore from Rs 9.1949 crore.

What do IRIS RegTech’s cash flow and balance sheet show?

IRIS RegTech ended September 30, 2026 with total assets of Rs 277.4122 crore, up from Rs 252.7128 crore at March 31, 2026. Trade receivables increased to Rs 43.9320 crore from Rs 27.4864 crore. Cash and cash equivalents rose to Rs 14.0723 crore from Rs 13.3159 crore, while bank balances other than cash equivalents increased to Rs 74.0789 crore from Rs 32.0325 crore.

Net cash outflow from operating activities was Rs 6.0564 crore for the half year ended September 30, 2026, compared with an inflow of Rs 117.3116 crore in the prior-year period. The earlier period included Rs 128.7423 crore of proceeds from the sale of the Taxtech GST ASP business. In the latest half year, the increase in trade receivables used Rs 16.6541 crore of cash, while investing activities produced a net inflow of Rs 8.7024 crore.

Lease liabilities increased to Rs 14.1612 crore at September 30, 2026 from Rs 65.63 lakh at March 31, 2026, comprising Rs 11.5496 crore of non-current lease liabilities and Rs 2.6116 crore of current lease liabilities. Total equity was Rs 202.1543 crore, compared with Rs 200.7329 crore at the previous financial year-end. Current borrowings declined to Rs 92.19 lakh from Rs 99.71 lakh.

How were IRIS RegTech’s results reviewed?

IRIS RegTech’s consolidated results were reviewed by the audit committee and approved by the board on November 5, 2026. They cover the quarter ended September 30, 2026 and the six months from April 1, 2026 to September 30, 2026. The consolidated results include the parent and five subsidiaries.

KKC & Associates LLP performed a limited review rather than an audit of the consolidated interim results. The auditor stated that nothing had come to its attention that caused it to believe the statement failed to disclose information required under listing regulations or contained a material misstatement. It also noted that two unreviewed subsidiaries recorded Rs 2.0224 crore of quarterly revenue and Rs 3.3523 crore of first-half revenue before consolidation adjustments, and said that information was not material to the group.

Conclusion

The September-quarter recovery in continuing profit followed increased revenue in both SupTech and RegTech, but the half-year figures show that cost growth absorbed most of the additional income. Employee benefits, other expenses, depreciation and finance costs rose as first-half profit before tax from continuing operations declined to Rs 81.89 lakh from Rs 2.8833 crore.

The next reported period will show whether the September 2026 quarter’s Rs 1.0937 crore continuing profit can be sustained and whether segment growth can offset unallocated expenses of Rs 12.3100 crore in the first half. The filing discloses no revenue or profit target, leaving the trajectory of expenses, the Rs 43.9320 crore receivables balance and operating cash flow after the Rs 6.0564 crore outflow as matters to watch.