The stock was locked at ₹710.95 after the company reported a 97.8% year-on-year decline in net profit for the quarter ended June 2026. This marked the biggest single-day fall since July 2022.
Ramco Systems posted a net profit of ₹56 lakh for the quarter, compared with ₹25 crore a year ago. Revenue from operations rose 7.5% year-on-year to ₹173 crore from ₹161 crore, marking the company’s first quarter of single-digit revenue growth since the June 2024 quarter.
Operating performance weakened during the quarter, with Earnings before Interest, Tax, Depreciation, Amortisation (EBITDA) declining 11.7% year-on-year to ₹24.9 crore from ₹28.2 crore. EBITDA margin contracted to 14.4% from 17.5% a year earlier, its lowest level in six quarters.
The company’s other expenses rose nearly 23% year-on-year to ₹66.9 crore from ₹54.4 crore, while total expenses increased 11% over the same period. Other income declined 37% year-on-year, weighing further on profitability.
In dollar terms, revenue stood at $18.38 million, down 3% sequentially from $18.95 million in the March quarter.
Despite the weak quarter, the company said its unexecuted order book totaled $152.3 million, providing visibility into future execution and revenue recognition. Recurring revenue during the quarter stood at $12.15 million.
Managing Director Abinav Raja said the company continues to make progress in its transition to an AI-native business. “AI is becoming an integral part of how we build, deliver, and enhance our products, helping us accelerate innovation, improve engineering productivity, and create more intelligent enterprise applications,” he said.
Raja added that these initiatives are strengthening Ramco’s competitive position and supporting sustainable long-term growth.
Chief Executive Officer Sandesh Bilagi said customer interest in the company’s products remains strong despite macroeconomic headwinds. “Customer interest in our solutions is strong, reflected in healthy pipeline growth and active engagement across our business lines,” he said, adding that the increasing share of recurring revenue is making performance more predictable and less dependent on the timing of new order wins.
Bilagi noted that geopolitical uncertainty has lengthened decision cycles in some regions but said the company expects “improving momentum in the quarters ahead” backed by a healthy opportunity pipeline.
Shares of the company were locked in the 10% lower circuit at ₹710.95 on Friday. The stock has gained about 25% so far in 2026, and nearly 77% over the last 12 months. It is one among the few companies who are still trading with gains on a year-to-date basis.
