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IRIS RegTech Solutions Ltd
NSE: IRIS BSE: 540735 INE864K01010 Information Technology IT 🔎 Screen
₹551 Cr
Market Cap
36.7
P/E
0.17
PEG
12.6%
ROCE
10.2%
ROE
0.01
D/E
7.0%
OPM
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
Shareholding
About

Incorporated in 2000, IRIS Business Services Ltd offers Regtech solutions to regulators and enterprises

✓ Strengths 3
  • Company has reduced debt.
  • Company is almost debt free.
  • Company has delivered good profit growth of 27.9% CAGR over last 5 years
! Concerns

No concerns data yet.

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📈 Growth Pattern
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Mixed quarter: revenue grew 36% YoY to ₹41.60 Cr, but EBITDA margin contracted 200bps to 19%, driven by elevated costs and a sharp margin decline in RegTech. quarter Investor Presentation One-Pager? Mar 2026
Revenue
₹41.60 Cr
+36% YoY
EBITDA Margin
19%
-200bps YoY
PAT
₹6.64 Cr
+97% YoY
SupTech ARR
₹21.10 Cr
+36% YoY
What Went Right
  • Q4 revenue grew 36% YoY to ₹41.60 Cr, driven by strong SupTech (FY26 revenue ₹75.73 Cr, up 23% YoY).
  • PAT surged 97% YoY to ₹6.64 Cr, supported by lower tax expense (₹0.51 Cr vs ₹2.30 Cr in Q4 FY25).
  • SupTech ARR grew 36% to ₹21.10 Cr, indicating robust recurring revenue pipeline.
  • DataTech segment grew 9% YoY to ₹5.87 Cr; IRIS Peridot app reached 1.5-2 lakh monthly active users.
  • SupTech EBITDA margin improved to 31.9% in FY26 from 26.8% in FY25.
What to Watch
  • RegTech EBITDA margin collapsed from 40.2% in FY25 to 18.7% in FY26, despite only 9.6% revenue growth — severe cost overruns or pricing pressure.
  • Overall EBITDA margin for FY26 fell to 14.3% from 19.1%, a 482bps decline despite 23% revenue growth.
  • Employee expenses rose 28% YoY and other expenses jumped 57% YoY in Q4, far outpacing revenue growth of 36%.
  • DataTech remains pre-revenue (EBITDA only ₹0.07 Cr in FY26) with no clear path to profitability.
  • Q4 EBITDA declined sequentially (₹7.81 Cr vs ₹7.88 Cr) even as revenue grew, signaling persistent margin pressure.
Investor Lens
The investment thesis is weakened by the sharp margin erosion, particularly in RegTech where EBITDA margin halved to 18.7%. While SupTech is strong with improving margins and 36% ARR growth, RegTech's margin collapse and the 7% rise in other expenses in Q4 (up 57% YoY) highlight serious cost control issues. DataTech is still pre-revenue with negligible EBITDA, adding drag. The company’s cash position (₹13.32 Cr cash + ₹32.03 Cr other bank balances) provides a buffer, but the core earnings quality is declining. Next quarter, watch for RegTech margin recovery, cost containment measures, and any updates on DataTech monetization.
From investor presentation · AI-generated analysis · Not investment advice
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📊 MIXED Revenue up 32% YoY, PAT up 44% but margins compressed.
Revenue
Revenue grew 31.6% YoY to ₹39.1 Cr, with sequential growth of 10.0%. Strong top-line momentum sustained.
Profitability
Net profit rose 44.1% YoY to ₹4.2 Cr, with EPS improving from ₹1.37 to ₹2.02. However, PAT declined 21.8% QoQ, partly due to negative other income.
Margins
Operating profit margin fell to 13.67% from 18.53% a year ago, reflecting higher costs. Sequentially, margins improved from 12.92%.
Cash Flow
No cash flow data provided in the report.
Balance Sheet
Borrowings are minimal at ₹2 Cr against reserves of ₹180 Cr, giving a debt-to-equity ratio of 0.01. Balance sheet is very healthy.
Key Risks
Operating margin compression YoY, QoQ PAT decline despite revenue growth, and a high PE (34.1) relative to ROE (10.2%) warrant caution.
Outlook
Revenue growth remains strong, but margin recovery is critical. Sustained performance improvement could support better profitability.
Generated by AI · Mar 2026 results · Not investment advice
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Revenue by Segment

Segment Q3FY26 Q4FY26 Trend
DataTech
0
EBIT -1
1
EBIT -1
Exceptional Items
0
EBIT 0
Others
1
EBIT 0
1
EBIT 1
Profit / (Loss) from discountinued operations
0
EBIT 0
RegTech
13
EBIT 3
16
EBIT 6
SupTech
21
EBIT 8
22
EBIT 6
Unallocated Expenses (Not directly attributable)
0
EBIT -6
0
EBIT -7
Unallocated Income (Other income)
0
EBIT 3
0
EBIT 2
Total 36 39

Source: NSE Integrated Filing XBRL (Reg. 33 Ind AS). Values in ₹ Crore.

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