Oracle Financial Q1 FY26 Revenue Grows 6% YoY to ₹1,852 Crore; Net Profit Up 4% at ₹642 Crore

Mumbai, July 24, 2025 – Oracle Financial Services Software Ltd. (NSE: OFSS, BSE: 532466), part of Oracle Corporation, posted stable results for the quarter ending June 30, 2025. Both revenue and profit saw year-on-year growth. This was driven by strong cloud deal momentum and expanding business overseas.

Consolidated Financial Highlights – Q1 FY26

• Total revenue for the quarter stood at ₹1,852 crore, reflecting a 6% growth compared to ₹1,741 crore in the same period last year.
• Operating income rose slightly to ₹833 crore from ₹825 crore, marking a 1% increase year-on-year.
• Net profit came in at ₹642 crore, up by 4% over the ₹617 crore reported in Q1 FY25.
• Basic Earnings Per Share (EPS) improved to ₹73.88 from ₹71.13, showing a 4% rise.
• Diluted EPS also increased by 4%, reaching ₹73.52 against ₹70.69 in the year-ago quarter.

Segment-Wise Performance

• The Products segment brought in ₹1,674 crore in revenue, marking a 5% increase from last year. It contributed nearly 90% to the company’s total revenue.
• The Services segment reported ₹178 crore in revenue. A 22% growth compared to the same period last year. This segment accounted for the remaining 10% of total revenue.

Despite a 3% decline in segment result for the Products business, the Services segment grew its contribution by 41% YoY, strengthening the company’s margins through high-value engagements.

QoQ Comparison (Q1 FY26 vs Q4 FY25)

• Revenue rose to ₹1,852 crore in Q1 FY26, marking an 8% increase from ₹1,716 crore in the previous quarter.
• Operating income climbed by 10%, reaching ₹833 crore, compared to ₹757 crore in Q4 FY25.
• Net profit, however, saw a marginal decline of 0.3%, coming in at ₹642 crore, compared to ₹644 crore in the preceding quarter.

The company reported a marginal sequential decline in net profit due to higher tax provisioning, which rose 35% QoQ.

Management Commentary

Makarand Padalkar, MD & CEO, said: “Driven by strong cloud wins, our revenues grew 6% year-over-year and 8% sequentially. We offer compelling solutions for financial institutions and see a robust pipeline from both emerging and developed markets.”

Avadhut Ketkar, CFO, noted: “Our Remaining Performance Obligations stand at ₹6,327 crore. Operating margin remains strong at 45%. Days Sales Outstanding (DSO) improved to 62 days. We maintain a disciplined approach to receivables and profitability.”

Strategic Client Wins

The quarter was marked by several notable global client deals, including:

• US Insurer adopting Oracle’s Financial Crime and Compliance Cloud.
• Techcom Bank (Vietnam) signed for IFRS 9-compliant analytics.
• Jana Small Finance Bank (India) signed for next-gen digital banking suite.
• Airtel Nigeria, CSB Bank, and banks in the UAE, Japan, and the Czech Republic expanded their engagements.

These wins reflect Oracle Financial’s dominance in core banking, compliance, and analytics domains, strengthening its recurring revenues across geographies.

Operational Metrics

• Days Sales Outstanding (DSO) increased slightly to 62 days in Q1 FY26 from 58 days in the previous quarter.
• The attrition rate on a trailing twelve-month basis remained steady at 10%, showing stability in workforce retention.
• Total employee strength grew to 9,080 as of Q1 FY26, compared to 8,887 in Q4 FY25, reflecting ongoing team expansion.

Geographic Revenue Mix (Q1 FY26)

• Americas (incl. US): 38%
• Asia Pacific: 20%
• Europe: 13%
• Middle East & Africa: 19%
• India: 10%

Oracle Financial Services Software Stock Performance

Oracle Financial Services shares were trading at ₹8,866, representing a 0.99% gain, as of July 24, 2025, at 11:18 AM IST. Oracle Financial Services shares have dipped 20% in the last year, 29% in the year-to-date, and 3.18% in the previous month.

The stock opened at ₹8,947.50, reached a high of ₹8,987.00. The stock touched a low of ₹8,758.00 during the trading session. The company’s market capitalization stands at approximately ₹77,030 crore. The dividend yield is relatively attractive at 2.99%, with a quarterly dividend payout of ₹66.27 per share. Over the past year, the stock has moved between a 52-week high of ₹13,220.00 and a 52-week low of ₹7,038.00.

About Oracle Financial Services Software

Oracle Financial Services Software Ltd, listed on NSE and BSE, is a leading provider of IT solutions to the banking industry. It is majority-owned by Oracle Corporation and operates globally with a portfolio that includes core banking, analytics, compliance, and digital banking platforms.

Oracle Financial continues to demonstrate resilience through its global reach, product innovation, and strong client renewals, positioning itself as a dominant force in the BFSI technology landscape.

REF:https://www.bseindia.com/xml-data/corpfiling/AttachLive/aee37233-05e4-4d69-9039-ecfa9686b649.pdf

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