R. S. Software (India) Limited (RSSOFTWARE) AI Stock Analysis

• Market Cap: ₹1.90B
• Dividend Yield: 0.37%
• Average Volume (3M): 6.64K
• Price to Earnings (P/E): 342.2
• Beta (1Y): 1.66
• Revenue Growth: -31.06%
• EPS Growth: -97.39%
• Country: IN
• Employees: 148
• Sector: Technology
• Sector Strength: 97
• Industry: Information Technology Services
• EPS (TTM): -1.40
• Shares Outstanding: 25,831,211
• 10 Day Avg. Volume: 11,493
• 30 Day Avg. Volume: 6,640
• PEG Ratio: -0.38
• Price to Book (P/B): 2.77
• Price to Sales (P/S): 2.77
• P/FCF Ratio: 165.73
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹87.00
• Price Target Upside: 18.01% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 61 Neutral
• Price Target: ₹82.00 ▲(11.23% Upside)

RS Software's overall stock score is driven by strong financial performance improvements, particularly in profitability and balance sheet strength. However, technical indicators suggest mixed momentum, and the stock appears overvalued with a very high P/E ratio and low dividend yield. The absence of earnings call data and corporate events limits additional insights.

R. S. Software (India) Limited Business Overview & Revenue Model

Company Description

R. S. Software (India) Limited (RSSOFTWARE) is a technology company specializing in the development and delivery of software solutions, primarily focused on the payments industry. The company offers a range of services including software development, maintenance, and testing. It serves a global clientele across sectors such as banking, financial services, and retail, providing customized solutions to meet the evolving needs of its clients.

How the Company Makes Money

R. S. Software (India) Limited generates revenue through a diversified model centered around providing software solutions and services. The company's key revenue streams include project-based contracts for software development, where it designs and implements custom payment solutions for clients. It also generates income through maintenance services, ensuring ongoing support and updates for its software products. Additionally, the company offers testing services to ensure software reliability and performance, contributing to its earnings. Significant partnerships with leading financial institutions and technology providers further bolster its revenue, enabling access to larger projects and enhanced service offerings.

R. S. Software (India) Limited Financial Statement Overview

Summary

RS Software has significantly improved its profitability, turning losses into profits with a net profit margin of 15.22%. The balance sheet is robust with a high equity ratio and low debt, indicating financial stability. However, cash flow from operations decreased significantly, and revenue growth was negative, requiring attention for sustainable long-term growth.

Income Statement

In the latest annual period, RS Software showed an improvement in profitability with a net profit margin of 15.22%, up from previous losses. However, the revenue growth rate was a negative 3.73% from the previous year, indicating a decline. The gross profit margin stood at 47.03%, reflecting strong cost management, and EBIT margin improved to 47.03% from negative margins in prior years, signaling operational efficiency gains.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 78.66%, indicating financial stability. The debt-to-equity ratio is low at 0.01, minimizing financial risk. Return on equity improved to 15.22%, supported by profitable operations, enhancing shareholder value.

Cash Flow

Cash flow from operations decreased significantly, and free cash flow turned positive at 9.56 million, showing a recovery from past deficits. The operating cash flow to net income ratio of 0.93 indicates that cash generation aligns well with reported profits, although the free cash flow growth rate was negative compared to the previous year.

Breakdown	TTM	Dec 2025	Dec 2023	Dec 2022	Dec 2021	Dec 2021
Income Statement
Total Revenue	463.40M	573.21M	595.42M	301.27M	354.57M	275.24M
Gross Profit	130.59M	269.60M	284.93M	77.72M	-35.15M	7.43M
EBITDA	49.53M	141.91M	232.72M	-42.86M	-158.21M	-77.95M
Net Income	5.33M	87.28M	181.08M	-81.46M	-200.46M	-151.27M
Balance Sheet
Total Assets	697.11M	728.85M	683.33M	432.14M	715.62M	478.50M
Cash, Cash Equivalents and Short-Term Investments	266.18M	230.19M	222.28M	82.33M	156.05M	128.34M
Total Debt	2.75M	5.48M	15.53M	24.14M	78.01M	866.00K
Total Liabilities	-12.63B	141.86M	192.25M	125.13M	146.78M	81.22M
Stockholders Equity	13.32B	573.31M	481.87M	302.72M	545.23M	387.81M
Cash Flow
Free Cash Flow	-119.91M	9.57M	96.82M	-105.24M	-150.78M	91.46M
Operating Cash Flow	-41.42M	81.46M	158.47M	-96.06M	-150.28M	91.46M
Investing Cash Flow	-84.21M	-77.02M	-2.94M	64.67M	147.57M	-19.95M
Financing Cash Flow	-8.76M	-3.76M	43.00K	2.28M	-5.11M	-84.21M

R. S. Software (India) Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 73.72
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RSSOFTWARE, the sentiment is Neutral. The current price of 73.72 is below the 20-day moving average (MA) of 79.02, below the 50-day MA of 73.82, and below the 200-day MA of 122.32, indicating a bearish trend. The MACD of -2.31 indicates Positive momentum. The RSI at 47.25 is Neutral, neither overbought nor oversold. The STOCH value of 43.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:RSSOFTWARE.

R. S. Software (India) Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ISFT	63 Neutral	₹1.54B	12.11		―	4.48%	19.82%
RSSOFTWARE	61 Neutral	₹1.90B	342.25		0.37%	-31.06%	-97.39%
COMPUSOFT	61 Neutral	₹1.59B	105.95		1.95%	-52.11%	-72.11%
Sector *	50 Neutral	C$3.52B	0.80	-5.03%	7.64%	16.88%	-2.22%
XELPMOC	44 Neutral	₹1.33B	―		―	-19.09%	48.96%
CTE	43 Neutral	₹822.54M	―		―	-3.54%	-734.20%
SECURKLOUD	39 Underperform	₹799.18M	―		―	-50.73%	61.74%

R. S. Software (India) Limited Corporate Events

R. S. Software Engages Stakeholders in Investor Call

R. S. Software (India) Limited held an investor call on May 2, 2025, to discuss their financial results and other relevant updates. The call, conducted at the company’s registered office in Kolkata, was aimed at providing transparency and engaging with stakeholders, reflecting the company’s commitment to maintaining strong investor relations.