IRIS reports strong Q2 growth, bolsters balance sheet with TaxTech sale

IRIS Business Services Ltd. reported 18% sequential growth in total revenue for Q2FY26, with EBITDA reaching 269 lakhs, an 86% increase quarter-over-quarter. For the first half of FY26, total revenue grew by 10%, despite an EBITDA decline due to increased sales and marketing investments aimed at scaling its SaaS business.

The company's balance sheet was significantly strengthened by an exceptional income of 13,598 lakhs from the sale of its TaxTech business to Sovos. Cash, cash equivalents and investments now stand at 16,966 lakhs, largely as a result of these divestment proceeds.

Key highlights include 13% year-over-year revenue growth in SupTech for H1FY26, and a new contract with the General Tax Authority, Qatar, marking IRIS's first SupTech engagement with a tax authority. The company also noted 14% growth in IRIS Carbon's net annual recurring revenue (ARR) in the first six months of FY26.