Q2 2026 R Systems International Ltd Earnings Call Transcript
Key Points
- Revenue crossed Rs 600 crore for the first time, with a 17.7% YoY growth in dollar terms and 30.2% in rupee terms.
- Adjusted EBITDA margin improved to 20.1%, a 281 basis points YoY increase, driven by operational leverage and favorable exchange rates.
- Strong AI-led deal wins across telecom, financial services, insurance, and ad tech, showcasing a differentiated AI-first approach.
- Utilization rate ticked up to 80.5%-81%, indicating better asset sweating from prior AI investments.
- Client concentration improved with top client and top 10 client contributions rising to 6% and 24.4%, respectively.
- Adjusted net profit declined 17.1% QoQ due to a one-time currency hedging benefit in Q1 and realized exchange losses in Q2.
- SG&A expenses increased by Rs 23.8 crore QoQ, driven by higher sales and marketing spend, impacting near-term profitability.
- Trailing 12-month ACV bookings remained nearly flat QoQ at $82.9 million, indicating potential slowdown in new deal momentum.
- Effective tax rate rose to 31% due to non-deductibility of intangible amortization from acquisitions, higher than normalized 28-29%.
- Other income turned negative due to exchange losses on forward contracts, adding volatility to quarterly earnings.
Ladies and gentlemen, good day and welcome to the R Systems Q2 and H1 2026 Earnings Conference Call.
As a reminder, all participant lines will remain in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes.
Should you need assistance during the conference call, please signal the operator by pressing then 0 on a touch-tone telephone.
Please note that this conference is being recorded.
I will now hand the conference over to Mr. Tarun Kothari, AVP, Finance and Accounts, for opening remarks.
Thank you, and over to you.
Thank you, Ryan. I welcome all participants to R Systems Q2 and H1 2026 earnings conference call. Since R Systems follows calendar year as its financial year, April to June quarter is quarter two for us. We have today with us Nitesh Mansal, Managing Director and CEO of R Systems and Nam Sadhana, COO of R Systems. We shared the investor presentation late evening yesterday as well as
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