IRIS Business Services reports Q2 FY26 earnings, strengthens balance sheet

IRIS Business Services Limited announced its Q2 FY26 earnings, detailing strategic investments and financial performance. The company’s balance sheet strengthened significantly following the divestment of its TaxTech business, with investments and cash reaching approximately INR 170 crores. Net worth increased to INR 189 crores from INR 76 crores as of March 2025, and book value rose to INR 92 from INR 37. The SupTech segment boosted revenues, while the RegTech segment expanded its offerings in non-mandate areas.

The company's annual recurring revenue (ARR) for IRIS CARBON grew by 14% in the first half of FY26 compared to March 2025, primarily driven by its Disclosure Management offering. Despite a revenue drop in IRIS IDEAL due to delayed purchase decisions, its ARR is also increasing, with plans to transition to a subscription model. IRIS added two new logos in the SupTech business: Qatar Central Bank and Qatar Tax Authority.

The company is focused on scaling its SaaS business through increased investments in sales, marketing, and product development, which has led to higher employee expenditure, up roughly 26% in the first six months. IRIS aims to achieve 35% ARR growth for CARBON this financial year and is exploring opportunities for organic growth and potential inorganic acquisitions.