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Informist, Wednesday, Jan. 21, 2026

By Arya S. Biju

MUMBAI – After reporting a sequential fall in the past two quarters, Oracle Financial Services Software Ltd. reported a low double-digit sequential rise in its bottom line for the December quarter driven by a double-digit sequential rise in its top line, which grew at its fastest pace in eight quarters. The company's top line for the quarter was supported by robust sales growth across its segments, strong execution, and new strategic customer wins.

The company, which is a subsidiary of US-based Oracle Corp., reported a consolidated net profit of INR 6.10 billion for the reporting quarter, up around 12% sequentially and 13% on year. However, it failed to meet the INR 6.54 billion net profit estimated by Dolat Capital Market Pvt. Ltd., the only estimate on the company's earnings available with Informist. 

Its consolidated revenue for the quarter grew 10% sequentially and 15% on year to INR 19.66 billion, beating the INR 19.18 billion net sales estimated by Dolat Capital by a comfortable margin. This comes after an over 3% sequential decline in consolidated revenue in the trailing quarter. The company's operating income for the quarter was INR 7.97 billion, up 14% on year.

The company's total expenditure for the quarter rose around 11% sequentially and 15% on year to INR 11.69 billion. This was mainly on the back of an over 17% sequential jump in its employee benefit expense to INR 9.57 billion. The company's employee benefit expense for the quarter included a one-time cost of INR 498 million due to the impact of the new labour codes, which came into effect in November. Under the new labour code, basic pay must account for at least 50% of an employee's total cost to the company. As a result, payouts tied to statutory contributions such as gratuity and leave-related benefits are set to increase for companies.

Among other major expenses of the company, expenses related to professional fees grew 4% on quarter and 53% on year to INR 1.08 billion. Meanwhile, the company's other operating expenses fell around 43% sequentially to INR 457 million. Its expenses related to travel rose just over 1% sequentially to INR 355 million.

Revenue from the company's product licences and related activities segment rose over 9% on quarter and 14% on year to INR 17.74 billion. Sales from its IT solutions and consulting services segment rose over 16% quarter and 25% on year to INR 1.92 billion. 

Sales from the product licences segment contributed over 90% to the company's total sales and those from the IT solutions and consulting services segment contributed to the remaining around 10%.

"The net profit margin for the quarter was 31% despite the effect of the new labour code-related accruals," Avadhut Ketkar, chief financial officer of the company, said in a post-earnings press release. For the nine months ended December, the company reported a consolidated net profit of INR 17.98 billion, up around 4% on year. Its revenue for the same period rose over 9% on year to INR 56.07 billion.

The company announced its December quarter earnings post-market hours Wednesday. Shares of the company closed around 2% lower at INR 7,673.50 on the National Stock Exchange.  End 

Edited by Ashish Shirke

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