Chennai: Enterprise software company Ramco Systems closed its 2025-26 (FY26) financial year with a consolidated net profit of Rs 41.8 crore, marking its first profitable year since FY21. The turnaround was partly driven by operational discipline and the growth of its software as a service (SaaS) recurring pricing model, which now accounts for more than half of its revenue mix.
Financial Performance
The company's consolidated net profit stood at Rs 41.8 crore, compared to a net loss of Rs 34 crore in the previous fiscal year. Consolidated revenue from operations rose to Rs 700 crore from Rs 596 crore, reflecting a 17.4% increase. Revenue growth was primarily fueled by an acceleration in recurring revenue, which grew by 15% year-on-year, according to a company statement.
Fourth Quarter Results
For the fourth quarter of FY26, revenue from operations improved to Rs 185 crore from Rs 155 crore in the same period last year. Net profit for the quarter stood at Rs 25 crore, underscoring the company's sustained profitability in recent months.
Abinav Raja, Managing Director of Ramco Systems, said the company continues to remain focused on delivery and execution. The strong performance in Q4 and the full year reflects the effectiveness of the company's strategy to shift toward a subscription-based model and optimize operational efficiencies.
Ramco Systems, a global enterprise software provider, offers solutions in HR, payroll, and asset management. The company's focus on recurring revenue streams has helped stabilize earnings and reduce dependence on one-time license fees. With SaaS now representing over half of total revenue, the company is well-positioned for sustained growth in the coming years.
