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

• Market Cap: ₹1.36B
• Dividend Yield: 0.5%
• Average Volume (3M): 5.66K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.76
• Revenue Growth: -52.09%
• EPS Growth: -142.64%
• Country: IN
• Employees: 148
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -2.29
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: ₹46.00 ▼(-8.22% Downside)

RS Software's overall stock score is primarily influenced by its improved financial performance, with profitability and balance sheet strength being key positives. However, technical indicators suggest a bearish trend, and valuation concerns due to a negative P/E ratio and low dividend yield weigh down the score.

Positive Factors

Profitability Improvement

The improvement in profitability demonstrates effective cost management and operational efficiency, which can enhance long-term financial stability and shareholder value.

Balance Sheet Strength

A strong equity position with low debt enhances financial stability, providing the company with flexibility to invest in growth opportunities and withstand economic downturns.

Cash Flow Recovery

Positive free cash flow indicates improved cash generation ability, supporting sustainable operations and potential reinvestment in business growth.

Negative Factors

Declining Revenue Growth

Declining revenue growth may signal challenges in market expansion or competitive pressures, potentially impacting future profitability and market position.

Cash Flow Management Challenges

Decreased operational cash flow suggests potential challenges in cash management, which could affect the company's ability to fund operations and growth initiatives.

Negative Revenue Growth

A significant decline in revenue growth indicates potential market share loss or reduced demand, which could impact long-term business sustainability and competitive edge.

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

Company Description

R. S. Software (India) Limited (RSSOFTWARE) is a leading IT solutions provider based in India, specializing in delivering software and technology solutions primarily for the financial services sector. Established in 1991, the company focuses on a range of services including software development, system integration, and IT consulting, catering to clients in banking, payment systems, and other financial institutions. RSSOFTWARE leverages its expertise in digital payments and financial technologies to innovate and enhance its clients' operational efficiencies.

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

RS Software has shown significant progress in financial performance, turning previous losses into profits. While revenue growth has declined, profitability and balance sheet strength have markedly improved, with low leverage and high equity. Cash flow management shows improvements but still requires attention to sustain 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 2023	Dec 2021	Dec 2021
Income Statement
Total Revenue	463.40M	573.21M	301.27M	595.42M	354.57M	275.24M
Gross Profit	130.59M	269.60M	77.72M	284.93M	-35.15M	7.43M
EBITDA	49.53M	141.91M	-42.86M	232.72M	-158.21M	-77.95M
Net Income	5.33M	87.28M	-81.46M	181.08M	-200.46M	-151.27M
Balance Sheet
Total Assets	697.11M	728.85M	432.14M	683.33M	715.62M	478.50M
Cash, Cash Equivalents and Short-Term Investments	266.18M	230.19M	82.33M	222.28M	156.05M	128.34M
Total Debt	2.75M	5.48M	24.14M	15.53M	78.01M	866.00K
Total Liabilities	-12.63B	141.86M	125.13M	192.25M	146.78M	81.22M
Stockholders Equity	13.32B	573.31M	302.72M	481.87M	545.23M	387.81M
Cash Flow
Free Cash Flow	-119.91M	9.57M	-105.24M	96.82M	-150.78M	91.46M
Operating Cash Flow	-41.42M	81.46M	-96.06M	158.47M	-150.28M	91.46M
Investing Cash Flow	-84.21M	-77.02M	64.67M	-2.94M	147.57M	-19.95M
Financing Cash Flow	-8.76M	-3.76M	2.28M	43.00K	-5.11M	-84.21M

R. S. Software (India) Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 50.12
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 50.12 is below the 20-day moving average (MA) of 55.52, below the 50-day MA of 64.79, and below the 200-day MA of 70.59, indicating a bearish trend. The MACD of -5.21 indicates Positive momentum. The RSI at 35.81 is Neutral, neither overbought nor oversold. The STOCH value of 27.32 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	₹1.61B	12.29	―	―	5.39%	1.02%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
COMPUSOFT	55 Neutral	₹1.45B	40.47	―	1.18%	-25.74%	115.90%
RSSOFTWARE	52 Neutral	₹1.36B	-13.09	―	0.50%	-52.09%	-142.64%
SECURKLOUD	46 Neutral	₹800.52M	―	―	―	-48.96%	-422.00%
CTE	45 Neutral	₹830.39M	―	―	―	-4.97%	32.59%
XELPMOC	45 Neutral	₹1.88B	―	―	―	-30.22%	25.16%

R. S. Software (India) Limited Corporate Events

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.