IRIS RegTech Solutions reported a 17% revenue growth to ₹128.5 crore in FY26, boosted by a one-time gain from selling its TaxTech business. Recurring revenue rose 22%, highlighting a strategic shift.
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IRIS RegTech Solutions Reports Strong FY 2025-26 Performance
Total Revenue ₹138.21 crore (₹13,821 lakh), Growth 23% (Y-o-Y) Recurring Revenue ₹69.42 crore (₹6,942 lakh), Growth 22% (Y-o-Y) ## What just happened IRIS RegTech Solutions Limited announced its financial results for FY 2025-26, with consolidated revenue from operations reaching ₹128.50 crore, a 17% increase year-on-year. The company's profit for the period significantly rose due to a one-time gain from selling its TaxTech business. Recurring revenue grew by 22% to ₹69.42 crore, now forming over half of the operational revenue. ## Why this matters This performance indicates a successful strategic pivot for IRIS RegTech. The divestment of the TaxTech business allows the company to concentrate on its core RegTech, SupTech, and DataTech segments. The strong growth in recurring revenue provides financial stability and predictability. ## The backstory Previously known as IRIS Business Services Limited, the company rebranded to IRIS RegTech Solutions Limited to better reflect its focus. The divestment of the TaxTech (GST ASP) business to Sovos UK for ₹153.39 crore was a key strategic move in the reported fiscal year. ## What changes now The company is sharpening its focus on SupTech, which contributed 59% of revenue and grew 23% to ₹75.73 crore, and RegTech (37% of revenue, up 10% to ₹46.89 crore). A new subsidiary, IRIS Data Solutions Private Limited, has been incorporated for the nascent DataTech business. ## Risks to watch Operating margins have seen some moderation due to increased investments in product engineering and sales/marketing. The company also faces operational risks related to execution and complexity in the SupTech segment, alongside potential geopolitical uncertainties impacting international markets. ## Peer comparison While specific peer data isn't provided in the filing, IRIS RegTech's strategy of focusing on specialized regulatory and supervisory technology aims to capture growth in these niche areas. Competitors likely operate in similar spaces, focusing on compliance and data solutions. ## Context metrics (time-bound) * Consolidated FY 2025-26 Total Revenue: ₹138.21 crore (up 23% Y-o-Y). * Consolidated FY 2025-26 Recurring Revenue: ₹69.42 crore (up 22% Y-o-Y). * Consolidated FY 2025-26 Net Worth: ₹200.73 crore. * TaxTech Business Divestment Value: ₹153.39 crore. * Debt-Equity Ratio (as on March 31, 2026): 0.01. * Current Ratio (as on March 31, 2026): 3.52. ## What to track next Investors will be keen to watch the company's progress towards its Annual Recurring Revenue (ARR) growth target of 35% and how the increased sales and marketing investments translate into profitable growth across its segments. The integration of AI technologies like 'Niti' and 'RegAI' will also be crucial. Reader Takeaway: Strong revenue growth and recurring revenue base balanced by margin pressure from growth investments.
