Ramco Systems Limited Earnings Summary — Q4 FY2026
Ramco Systems Returns to Quarterly Profitability as Revenue Surges 19% YoY
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 6.8% sequentially in Q1 FY2027.
- Revenue of ₹173 Cr is 7.1% higher year-on-year.
- Revenue has compounded at 13.0% annualised over the last 10 quarters.
- Net profit of ₹1 Cr is 36.2% below the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at -82.5% annualised across the period.
- Operating margin stands at 14.7% in Q1 FY2027.
- Operating margin compressed by 327 bps year-on-year.
- Over the last two years operating margin has expanded by 1222 bps.
- PBT margin is 2.0%.
- Expenses grew 11.4% against revenue growth of 7.1%.
- Operating profit of ₹25 Cr is 12.4% lower year-on-year.
- Operating leverage has been under pressure recently.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 49/100 (Moderate) on the latest 10 quarters.
- Business momentum has softened and warrants monitoring.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 173 | 185 | 179 | 176 | 161 | 155 | 157 | 143 | 137 | 131 |
| Expenses | Stable | 147 | 140 | 134 | 136 | 132 | 114 | 143 | 126 | 134 | 129 |
| Operating Profit | Improving | 25 | 45 | 45 | 39 | 29 | 42 | 14 | 17 | 3 | 2 |
| Operating Margin | Volatile | 14.7% | 24.3% | 25.2% | 22.4% | 18.0% | 26.7% | 9.0% | 11.7% | 2.5% | 1.6% |
| Other Income | Volatile | 2 | 1 | -20 | 1 | 4 | 2 | 1 | 1 | 1 | 1 |
| Interest | Softening | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 |
| Depreciation | Stable | 23 | 23 | 23 | 23 | 22 | 35 | 23 | 23 | 22 | 23 |
| Profit Before Tax | Volatile | 3 | 22 | 1 | 17 | 9 | 7 | -9 | -7 | -18 | -21 |
| Tax | Volatile | 3 | -3 | -2 | 4 | 8 | 2 | 1 | 3 | 1 | 2 |
| Net Profit | Volatile | 1 | 25 | 3 | 13 | 1 | 5 | -10 | -10 | -20 | -23 |
| Net Margin | Volatile | 0.3% | 13.5% | 1.8% | 7.2% | 0.6% | 3.4% | -6.5% | -6.8% | -14.3% | -17.5% |
Key Takeaways
- Ramco Systems achieved a significant turnaround in Q4 FY26, reporting a consolidated net profit of ₹250.47 million compared to ₹53.09 million in the same quarter last year.
- Consolidated revenue grew nearly 20% YoY, reaching ₹1,853.63 million, indicating improved market traction for its enterprise software solutions.
- The company demonstrated strong operational leverage, with profit before tax and exceptional items stabilizing at ₹220.11 million for the quarter.
- A new Employee Stock Option Scheme (ESOS 2026) was approved, involving up to 15,00,000 equity shares to align employee interests with long-term growth.
- The balance sheet remains stable with consolidated cash and cash equivalents significantly increasing to ₹1,227.12 million from ₹442.00 million YoY.
- The company continues to operate as a single segment focused on Software Solutions & Services, simplifying its strategic execution.
Management Guidance
Management commentary emphasizes a 'turnaround' phase, focusing on operational discipline and leveraging recent leadership changes, including the appointment of Sandesh Bilagi as CEO, to drive growth in the US Defense and Aviation MRO segments.
Sentiment Shift
Improving
The firm has shifted from consistent net losses in previous years to a strong profitable quarter, supported by debt reduction and robust revenue growth.
Outlook
The outlook is optimistic based on entry into US Defense sector contracts and a recovery in operating margins, though the company faces a high valuation and historical volatility in commercial execution.
From the Annual Report (Key Quotes)
“The Audited Financial Results (Standalone and Consolidated) for the quarter & year ended March 31, 2026, [are] with unmodified opinion.”
“Approved the formulation of new Employees Stock Option Scheme named as Employees Stock Option Scheme 2026 (ESOS 2026).”
“Figures for the quarter ended March 31, 2026... are the balancing figures between audited figures in respect of the full financial years and published year to date figures.”
Official Quarterly Documents
Ask AI about this quarter
This summary is AI-generated from Ramco Systems Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.