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

• Market Cap: ₹871.03M
• Dividend Yield: 0.46%
• Average Volume (3M): 5.66K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.92
• 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: ₹33.00 ▼(-35.69% 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 & FS focus

Specialization in payments and financial-services software creates durable competitive advantage: deep domain expertise, compliance and integration capabilities, and higher switching costs for clients. This niche focus supports repeat engagements and sticky revenue from platform maintenance and integrations over months.

Positive operating cash flow

Positive operating cash flow despite reported net losses indicates the core business can generate cash from operations. That provides short- to medium-term funding for working capital and projects, lowering immediate liquidity stress and offering runway to stabilize operations if cash generation persists.

Prior profitability & equity buffer

Historic profitability demonstrates the business can achieve sustainable margins under better execution. Positive shareholder equity provides a balance-sheet buffer to absorb current losses and support refinancing or restructuring measures, increasing the odds of recovery over a multi-month horizon.

Negative Factors

Revenue decline

A material TTM revenue decline reduces scale benefits and undermines pricing leverage, making fixed-cost absorption harder and pressuring gross margins. If the revenue base continues shrinking, it limits investment capacity and raises execution risk for returning to consistent profitability over the next several months.

Sharp negative margins & earnings volatility

Deeply negative margins indicate the company's core operations currently lose money, reducing internal funding for growth and increasing reliance on external financing. Historical swings between profit and loss signal execution inconsistency, making margin recovery and planning difficult in the medium term.

Negative free cash flow

Negative free cash flow despite positive operating cash flow shows investment or working-capital demands outstrip cash generation, eroding liquidity and forcing financing needs. Persistently negative FCF constrains strategic flexibility and raises refinancing and interest-rate exposure risks over a 2–6 month horizon.

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: Positive
• RSI: Neutral
• STOCH: Positive

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 37.81, above the 50-day MA of 43.17, and below the 200-day MA of 61.57, indicating a bearish trend. The MACD of -2.23 indicates Positive momentum. The RSI at 30.94 is Neutral, neither overbought nor oversold. The STOCH value of 12.24 is Positive, 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	₹1.13B	8.99	―	―	5.39%	1.02%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
COMPUSOFT	55 Neutral	₹1.08B	42.54	―	1.20%	-25.74%	115.90%
SECURKLOUD	46 Neutral	₹696.61M	-0.47	―	―	-48.96%	-422.00%
RSSOFTWARE	45 Neutral	₹871.03M	-4.27	―	0.46%	-52.09%	-142.64%
XELPMOC	45 Neutral	₹1.84B	-24.04	―	―	-30.22%	25.16%
CTE	42 Neutral	₹539.26M	-5.62	―	―	-4.97%	32.59%

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.