R Systems' Q2 profit rose 15.49% as margin widened
Revenue growth outpaced expense growth QoQ, while a 3.86-point tax-rate decline added to the profit increase.
Filed 03 Nov 2026, 21:11 IST · after market close · R Systems International Ltd (RSYSTEMS)
Key takeaways
- Consolidated net profit rose +15.49% QoQ to Rs 64.18 cr as the tax rate fell 3.86 percentage points to 27.11%.
- Revenue grew +2.24% QoQ while expenses grew +1.26%, lifting operating margin by 0.79 percentage points to 19.18%.
- R Systems' 19.18% operating margin was 0.09 percentage points below the 19.27% median for 51 IT peers that reported the quarter.
Price around the results
Margin expansion drove the sequential improvement
Consolidated revenue rose +2.24% QoQ to Rs 615.2 cr, while expenses increased only +1.26%; this lifted operating profit by +6.61% to Rs 117.97 cr. Operating margin therefore widened by 0.79 percentage points to 19.18%. Below operating profit, interest rose +1.05% and depreciation increased +3.99%, but profit before tax still grew +9.37%.
Lower tax rate amplified profit growth
Net profit growth of +15.49% outpaced the +9.37% increase in profit before tax because the tax rate fell 3.86 percentage points from the previous quarter. Other income rose +88.32%, but it accounted for only 2.93% of profit before tax, so it was not a major contributor to earnings.
Margin was close to the IT peer median
R Systems' 19.18% operating margin was 0.09 percentage points below the 19.27% median among 51 Information Technology peers that had reported the same quarter. With only Q1FY27 available in the recent trend, the quarter shows a sequential margin recovery of 0.79 percentage points rather than a longer multi-quarter direction. The results were filed after market close, so there is no session reaction to assess yet.
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 | ₹615 cr | ₹602 cr | +2.24% |
| Other income | ₹3 cr | ₹1 cr | +88.32% |
| Expenses | ₹497 cr | ₹491 cr | +1.26% |
| Operating profit | ₹118 cr | ₹111 cr | +6.61% |
| Operating margin (%) | 19.18% | 18.39% | — |
| Interest | ₹10 cr | ₹9 cr | +1.05% |
| Depreciation | ₹23 cr | ₹22 cr | +3.99% |
| Profit before tax | ₹88 cr | ₹81 cr | +9.37% |
| Tax | ₹24 cr | ₹25 cr | -4.29% |
| Net profit | ₹64 cr | ₹56 cr | +15.49% |
| EPS (₹) | ₹5.42 | ₹4.69 | +15.57% |
Operating margin of 19.18% compares with a Information Technology sector median of 19.27% across 51 peers that have reported Q2FY27.
What to watch
- Whether revenue growth continues to outpace expense growth after +2.24% versus +1.26% QoQ.
- Whether operating margin holds above 19.18%.
- Whether the tax rate remains near 27.11% after the 3.86-percentage-point decline.