OFSS Q2 Net Profit Rises 29% to ₹702 Crore

(OFSS) reported a 7% year-on-year increase in consolidated revenue to ₹1,907 crore in Q2 FY27, compared with ₹1,789 crore in the corresponding quarter last year. Net profit rose 29% to ₹702 crore from ₹546 crore, while operating income increased 25% to ₹911 crore. The company’s operating performance improved, with operating margin expanding to approximately 47.8% from 40.9% a year ago. Net profit margin increased to around 36.8%, reflecting improved operating efficiency and profitability. The products business generated revenue of ₹1,716 crore, up 6% YoY, while services revenue grew 15% to ₹191 crore. Remaining performance obligations stood at ₹7,211 crore, an increase of 14% year-on-year, providing visibility into future business. Geographically, revenue grew 16% in India, 22% in Europe, 18% in Asia Pacific and 26% in the Middle East and Africa. However, revenue from the Americas declined 13% during the quarter. For investors, key monitorables include revenue growth, operating margins, new banking technology contracts and conversion of remaining performance obligations into revenue. Although profitability and margins improved, reported net profit of ₹702 crore was below the market estimate of ₹740 crore cited in the provided update. Disclosure: I do not hold any position or financial interest in the mentioned stock.