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

• Market Cap: ₹975.13M
• Dividend Yield: 0.46%
• Average Volume (3M): 5.66K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.94
• Revenue Growth: -52.09%
• EPS Growth: -142.64%
• Country: IN
• Employees: 148
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -3.26
• Shares Outstanding: 25,831,211
• 10 Day Avg. Volume: 6,392
• 30 Day Avg. Volume: 5,655
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: ₹40.00 ▼(-22.04% Downside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is held down primarily by weak financial performance (TTM revenue decline, swing to losses, negative free cash flow, and higher leverage). Technicals add modest pressure with a bearish longer-term trend and negative MACD, while valuation is only neutral because the negative P/E is not informative amid current losses.

Positive Factors

Niche payments specialization

A concentrated focus on payments and financial-services technology creates durable demand from card networks, issuers, acquirers and processors. The domain specificity raises switching costs, supports long-term client relationships, and positions the company to capture recurring modernization and compliance-driven spend.

Recurring managed-services revenue

A business model that mixes project work with time-and-materials and managed services provides recurring revenue streams and ongoing client engagement. Dedicated teams and maintenance contracts support predictable utilization and client stickiness, smoothing revenue volatility over multi-quarter horizons.

Positive operating cash flow history

Positive operating cash flow in the TTM, combined with recent profitable years, indicates the company can generate cash from core operations. This operational cash generation is a durable foundation for funding working capital and service delivery while management addresses margin and revenue issues.

Negative Factors

Material revenue decline

Sustained revenue declines reduce scale and impair fixed-cost absorption, leading to volatile margins and lower utilization. Over several quarters this erodes pricing leverage and client mix, increases execution risk for delivery teams, and makes recovery reliant on new large client wins or renewed spend levels.

Negative free cash flow

Persistently negative free cash flow constrains the company’s ability to invest in product development or absorb cyclical slowdowns without external funding. Over months this forces higher reliance on debt or equity, limits strategic flexibility, and can necessitate scaling back investments that drive long-term competitiveness.

Rising financial leverage

An increase to ~0.75 debt-to-equity raises refinancing and interest-rate exposure. With current negative profitability, higher leverage reduces financial cushioning, limits ability to bid on large contracts, and increases pressure to restore margins or restructure balance-sheet items to maintain liquidity.

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

Company Description

R S Software (India) Limited provides software solutions to electronic payment industries in India, the United States, and Japan. It engages in the development, testing, and maintenance of software products. The company's products include RS RTPS, RS DigitalEdge, RS RealEdge, RS BillAbhi-Central, RS BillAbhi-Bank, RS IntelliEdge – Central, RS IntelliEdge – Banks, RS iFinSwitch, RS MerchantEdge, and RS Test2Pay 3DS2.0. It also offers payments modernization, ISO 20022, switching and authorization, clearing and settlement, dispute management, data management and analytics, fraud and risk management, acceptance, electronic bill payments, testing and certification, and tokenization services. The company's solutions cover digital payments, data analytics, emerging payments, merchant acquiring, security and compliance, QA and testing, payment processing, and platform architecture solutions, as well as Payabbhi, a digital payments platform. It serves payment networks, payment processors, banks, merchants, national payments infrastructure, and payment service providers. The company was incorporated in 1987 and is based in Kolkata, India.

How the Company Makes Money

RSSOFTWARE generates revenue through a diverse range of services, including software development projects, consulting services, and system integration solutions tailored for financial institutions. The company's primary revenue streams include fixed-price contracts for software development, time and materials contracts for consulting, and ongoing maintenance and support agreements. Additionally, RSSOFTWARE benefits from strategic partnerships with major financial organizations and technology firms, allowing it to expand its market reach and enhance its service offerings. The company's focus on emerging technologies and the growing demand for digital payment solutions also contribute significantly to its earnings.

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

Summary

Fundamentals are pressured: TTM revenue is down ~20.8% with sharply negative gross/operating/net margins and a swing to sizable losses. Leverage has risen materially in TTM (debt-to-equity ~0.75) versus low leverage in FY2024–FY2025, while free cash flow is negative (~-25.2M) despite positive operating cash flow (~58.1M). Prior profitable years (FY2024–FY2025) and positive equity help, but current execution risk is elevated.

Income Statement

TTM (Trailing-Twelve-Months) performance is weak, with revenue down ~20.8% and profitability deeply negative (gross, operating, and net margins all sharply below zero), pointing to a material cost/price and/or utilization issue. While the company delivered solid profitability in FY2024 and remained profitable in FY2025, the sharp swing to large losses in TTM (and historical losses in FY2022 and FY2021) highlights a highly volatile earnings profile and limited consistency.

Balance Sheet

The balance sheet shows a notable deterioration in leverage in TTM (debt-to-equity ~0.75 vs very low leverage in FY2024–FY2025), reducing financial flexibility and raising refinancing/interest-risk if weak earnings persist. Equity remains positive, but the negative return on equity in TTM signals shareholder capital is currently not being rewarded and that profitability needs to stabilize for leverage to be sustainable.

Cash Flow

TTM (Trailing-Twelve-Months) operating cash flow is positive (~58.1M), but free cash flow is negative (~-25.2M) and down sharply (~-74.4%), indicating cash generation is not translating into surplus after investment needs. Operating cash flow covers less than half of net income in TTM (given the net loss), and the step-down from strong FY2024 cash generation suggests higher working-capital pressure and/or elevated spending.

Breakdown	TTM	Mar 2025	Mar 2023	Mar 2021	Mar 2020	Mar 2019
Income Statement
Total Revenue	278.72M	573.21M	595.42M	275.24M	602.81M	653.93M
Gross Profit	-158.60M	269.60M	284.93M	7.43M	-60.23M	-95.51M
EBITDA	-147.72M	141.91M	232.72M	-77.95M	-409.29M	-312.57M
Net Income	-204.09M	87.28M	181.08M	-151.27M	-719.64M	-261.61M
Balance Sheet
Total Assets	707.41M	728.85M	683.33M	478.50M	885.54M	1.75B
Cash, Cash Equivalents and Short-Term Investments	126.89M	230.19M	222.28M	128.34M	292.50M	593.20M
Total Debt	295.54M	5.48M	15.53M	866.00K	0.00	0.00
Total Liabilities	299.15M	141.86M	192.25M	81.22M	100.18M	124.19M
Stockholders Equity	394.65M	573.31M	481.87M	387.81M	750.90M	1.62B
Cash Flow
Free Cash Flow	-25.19M	9.57M	96.82M	91.46M	-467.78M	-374.06M
Operating Cash Flow	58.13M	81.46M	158.47M	91.46M	-407.46M	-294.71M
Investing Cash Flow	-91.57M	-77.02M	-2.94M	-19.95M	341.21M	170.04M
Financing Cash Flow	-10.00M	-3.76M	43.00K	-84.21M	-25.18M	-16.92M

R. S. Software (India) Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 51.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Negative. The current price of 51.31 is above the 20-day moving average (MA) of 38.57, above the 50-day MA of 45.55, and below the 200-day MA of 62.00, indicating a bearish trend. The MACD of -1.79 indicates Negative momentum. The RSI at 40.17 is Neutral, neither overbought nor oversold. The STOCH value of 28.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	68 Neutral	₹1.35B	10.61	―	―	5.39%	1.02%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
COMPUSOFT	55 Neutral	₹1.15B	43.47	―	1.20%	-25.74%	115.90%
SECURKLOUD	46 Neutral	₹735.03M	-0.48	―	―	-48.96%	-422.00%
RSSOFTWARE	45 Neutral	₹975.13M	-4.86	―	0.46%	-52.09%	-142.64%
CTE	45 Neutral	₹671.18M	-6.92	―	―	-4.97%	32.59%
XELPMOC	45 Neutral	₹1.95B	-25.00	―	―	-30.22%	25.16%

R. S. Software (India) Limited Corporate Events

R. S. Software cites NSE portal glitch for delay in December-quarter results filing

R. S. Software (India) Limited has informed the stock exchange that its delayed filing of the outcome of its 21 January 2026 board meeting and the financial results for the quarter ended 31 December 2025 was due to technical issues on the NSE’s NEAPS portal. According to the company, repeated attempts to upload the outcome letter, standalone and consolidated financial results, and auditor’s reports in machine-readable PDF format were rejected by the system with an error message, prompting the company to notify the exchange via email within the prescribed 30‑minute window and continue retrying until the upload was eventually accepted after the deadline. The company has requested that the exchange not treat this as a regulatory non-compliance under Regulation 30 of the SEBI (LODR) Regulations, arguing that the delay was inadvertent, arose from system-related problems beyond its control, and that it acted in good faith to meet its disclosure obligations, an appeal that will be closely watched by investors and compliance professionals given the strict timelines around result disclosures.

R. S. Software Approves Financial Results with Unmodified Opinions

R. S. Software (India) Limited announced the approval of its audited standalone and consolidated financial results for the period ending September 30, 2025, during a board meeting held on November 5, 2025. The financial results were confirmed to have unmodified opinions from auditors, indicating a clean audit, which may positively impact the company’s credibility and stakeholder confidence.

R. S. Software Announces Investor Call for November 21, 2025

R. S. Software (India) Limited has announced an upcoming investor call scheduled for November 21, 2025, at 12:00 Noon. This call is part of their compliance with Regulation 30 of SEBI’s Listing Obligations and Disclosure Requirements, indicating the company’s commitment to maintaining transparent communication with its stakeholders.