IRIS returns to profit as revenue rises 18.29% QoQ
Lower expense growth lifted operating margin 10.04 percentage points, although other income exceeded reported pre-tax profit.
Filed 05 Nov 2026, 18:08 IST · after market close · IRIS Regtech Solutions Ltd (IRIS)
Key takeaways
- Consolidated revenue grew 18.29% QoQ while expenses rose 6.97%, taking operating margin from -5.08% to 4.96%.
- Net profit returned to 1.09 from a loss of 0.97, but other income equalled 123.73% of reported pre-tax profit.
- IRIS's 4.96% operating margin was 12.71 percentage points below the 17.67% median of 66 reported IT peers.
Price around the results
Revenue growth moved IRIS back into the black
Consolidated revenue increased 18.29% QoQ to 38.74, while expenses grew 6.97% to 36.82. That operating leverage moved operating profit from -1.66 to 1.92 and net profit from a loss of 0.97 to 1.09. The company was filed after market close on 5 November 2026.
Margin recovered, but profit quality needs attention
Revenue grew faster than expenses, lifting operating margin by 10.04 percentage points to 4.96%. Interest rose 38.24% and depreciation increased 29.17% QoQ, limiting the conversion of operating profit into pre-tax profit. Other income was 123.73% of reported pre-tax profit, while the tax rate increased 40.15 percentage points to 38.3%, so the return to net profit was not driven by a lower tax rate.
IRIS remains below the reported IT peer margin
IRIS's 4.96% operating margin was 12.71 percentage points below the 17.67% median among 66 Information Technology peers that had reported the same quarter. The only prior quarter in the trend shows a sharp sequential recovery from -5.08%, but the available trend does not establish a longer multi-quarter direction. Management said the company had entered the tax, deposit insurance and pension categories for the first time in the last two years.
New products and partnerships are part of the expansion story
Management said IRIS had built the capability to add partners and extend its footprint, while early wins were increasing confidence in its partnerships and alliances. The presentation said IRIS Carbon brings siloed data and teams onto one platform for reporting and control. Management also said IRIS iDeal has more than 90% market share among banks in India.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹39 cr | ₹33 cr | +18.29% |
| Other income | ₹2 cr | ₹2 cr | -12.05% |
| Expenses | ₹37 cr | ₹34 cr | +6.97% |
| Operating profit | ₹2 cr | ₹-2 cr | — |
| Operating margin (%) | 4.96% | -5.08% | — |
| Interest | ₹0 cr | ₹0 cr | +38.24% |
| Depreciation | ₹2 cr | ₹1 cr | +29.17% |
| Profit before tax | ₹2 cr | ₹-1 cr | — |
| Tax | ₹1 cr | ₹0 cr | +3300.00% |
| Net profit | ₹1 cr | ₹-1 cr | — |
| EPS (₹) | ₹0.53 | ₹-0.47 | — |
Operating margin of 4.96% compares with a Information Technology sector median of 17.67% across 66 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Expansion
- The company entered tax, deposit insurance and pension categories for the first time in the last two years.
New initiatives
- IRIS has put in place the capability to add partners and extend its footprint.
- IRIS Carbon connects siloed data and disparate teams on one platform for reporting and control.
- The company is building partnerships and alliances, with early wins increasing confidence.
Competition
- IRIS iDeal has more than 90% market share among banks in India.
Problems & risks
- IRIS Carbon addresses siloed data and disparate teams as a reporting and control challenge.
What to watch
- Whether operating margin holds above 4.96% after the 10.04-percentage-point QoQ recovery.
- Whether other income remains below its 123.73% share of reported pre-tax profit.
- Whether revenue growth can remain ahead of expense growth after the 18.29% versus 6.97% QoQ gap.