Client Mining Cross Selling Wallet Share
Expected: H1 FY26HIGH confidence
What: IRIS CARBON ARR: INR 32.4 crores
“IRIS CARBON has moved from INR 28.4 crores to around INR 32.4 crores... bulk of this has come from the IRIS Disclosure Management.”
IRIS Regtech Solutions Ltd: Is It a Deep Value Opportunity?
Average
As of , IRIS Regtech Solutions Ltd (IT Enabled Services) has a deep value score of 41/100 (rated Average). 1Y return vs Nifty 500: -34%.
IRIS Regtech Solutions Ltd Key Facts
- PE Ratio
- 37.7x
- Market Cap
- ₹534 Cr
- Value Score
- 41/100
- Margin of Safety
- 366%
- PAT Growth YoY
- +44%
- Revenue Growth YoY
- +32%
- OPM
- 13.7%
PE: Cycle BottomEmerging Opportunity
What's Happening
⏳Steady earner with flat PE — waiting for re-rate catalyst
🏦Virtually debt-free company
👔Promoter stake down 1.1% this quarter
🌐FII stake increased 1.7% this quarter
🏛️DII accumulation — stake up 9.9%
💰Trading 366% below estimated fair value — significant discount
Earnings Acceleration Triggers
1. Client Mining Cross Selling Wallet Share
H1 FY26HIGH
2. Geographical Expansion
H1 FY26MEDIUM
3. Operating Leverage Inflection
FY27MEDIUM
Key Risks
1. Slowdown in ESG mandate rollouts in Europe and the U
MEDIUM2. Employee expenses grew by 26% in H1, significantly outpacing revenue growth
MEDIUM3. Fx
LOWSector-Specific Signals
IRIS CARBON Annual Recurring RevenueINR 32.4 Cr+14%
Cash and InvestmentsINR 170 Cr+123%
Total Permanent Employees440-18.5%
SupTech Operating Margin30%0%
Key Numbers
PAT Growth YoY
+44%
Inflection Up
Revenue YoY
+32%
Inflection Up
Operating Margin
13.7%
-486 bps YoY
PE Ratio
37.7
PEG Ratio
0.04
Current Price
₹257
3Y PAT CAGR
+80%
Market Cap
531 Cr
Valuation
Significantly UndervaluedWhy Are IRIS Regtech Solutions Ltd's Earnings Accelerating?
Based on Q2 FY26 earnings • Updated Apr 19, 2026
Geographical Expansion
Expected: H1 FY26MEDIUM confidence
What: New Logos: 2 (Qatar Central Bank, Qatar Tax Authority)
“We are happy to report that we have added 2 new logos... which is the Qatar Central Bank and the Qatar Tax Authority.”
Operating Leverage Inflection
Expected: FY27MEDIUM confidence
What: Employee Expense Growth: 26%
“Once we cross the threshold scale, the operating leverage will start kicking in and margins will improve.”
Cash balance of INR 170 crores
MEDIUM confidence
What: Cash balance of INR 170 crores
“Our balance sheet has strengthened considerably post the divestment of the TaxTech business. And investment and cash right now in the books is at around INR 170 crores.”
What Are the Key Risks for IRIS Regtech Solutions Ltd?
Earnings deceleration risks from management commentary
Slowdown in ESG mandate rollouts in Europe and the U
MEDIUMTrigger: Policy uncertainties and legislative delays have stalled the expected tailwinds from mandatory ESG reporting.
Management view: Decoupling product offerings from strict mandates by focusing on voluntary disclosure value.
Monitor: regulatory
Employee expenses grew by 26% in H1, significantly outpacing revenue growth
MEDIUMTrigger: Aggressive hiring in sales, marketing, and product development to support the SaaS pivot.
Management view: Management views this as necessary front-loading for future ARR growth.
Monitor: labor
Fx
LOWTrigger: Not Given
Monitor: fx
What Is IRIS Regtech Solutions Ltd's Management Saying?
Key quotes from recent conference calls
“On an average, you can see that our top line has grown at about 27%, 28% in the past three years compared with about 18% growth. [Previous Revenue Growth Average guidance]”
“We are happy to note that the bulk of this ARR growth has also come through our Disclosure Management offering. [Initiative: Disclosure Management rollout]”
“And the fourth layer, which we will be introducing in a pilot manner by end of this month or early December, would be a lending layer. [Initiative: MSME Lending Layer]”
“A lot of ESG mandates started kind of slowing down. There was a bit of a cascade effect. There was also supposed to be an ESG mandate rollout in the U.S. that has also slowed down. [Risk (regulatory): MEDIUM]”
What Did IRIS Regtech Solutions Ltd Report This Quarter?
Headline numbers from the latest earnings call
Other Highlights
• Cash and investments reached INR 170 crores following the divestment of the TaxTech business.
• Net worth increased to INR 189 crores from INR 76 crores in March 2025.
• Book value per share rose to INR 92 from INR 37.
What Sector Metrics Matter for IRIS Regtech Solutions Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
IRIS CARBON Annual Recurring Revenue
INR 32.4 Cr
YoY +14%
Why: Growth driven primarily by the new Disclosure Management offering.
Cash and Investments
INR 170 Cr
YoY +123%
Why: Significant increase following the divestment of the TaxTech business.
Total Permanent Employees
440
YoY -18.5%
Why: Reduction due to the divestment of the TaxTech business where 100 people moved out.
SupTech Operating Margin
30%
YoY 0%
Why: Maintained steady profitability despite investments elsewhere.
Recurring Revenue % of Total
56% - 58%
Why: Increasing share of RegTech business is driving the recurring mix higher.
Sales and Marketing Headcount
50
Why: Expansion of the marketing team based out of Hyderabad for CARBON.
IRIS IDEAL Revenue Blip
INR 2 Cr
Why: Delays in purchase decisions by prospective banks.
Net Worth
INR 189 Cr
YoY +148%
Why: Boosted by exceptional income from the TaxTech divestment.
What Is IRIS Regtech Solutions Ltd's Management Guidance?
Forward-looking targets from management for FY26
Revenue Growth Target
35%
Revenue Outlook
35% ARR growth for IRIS CARBON
Management Tone: CAUTIOUS
Guidance Changes
REAFFIRMED
IRIS CARBON ARR Target: Not Given → 35%
How Fast Is IRIS Regtech Solutions Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +32% | +20% | Inflection Up |
| PAT (Net Profit) | +44% | +80% | Inflection Up |
| OPM | 13.7% | -486 bps | Volatile |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 19, 2026.
Other Deep Value Stocks in IT Enabled Services
Frequently Asked Questions: IRIS Regtech Solutions Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What is IRIS Regtech Solutions Ltd's deep value score?
IRIS Regtech Solutions Ltd has a deep value score of 41/100 (rated Average). This score is calculated from three components
- Earnings Score: 15/40 — measures PAT growth momentum across quarters
- Underperformance Score: 20/35 — how much the stock trails Nifty 500 (deeper underperformance = higher contrarian signal)
- Quality Score: 6/25 — operational quality (margins, revenue growth, valuation)
Is IRIS Regtech Solutions Ltd fundamentally improving?
IRIS Regtech Solutions Ltd's quarterly profit (PAT) growth trajectory
- Latest Quarter PAT Growth (QoQ): -22%
- Previous Quarter PAT Growth (QoQ): -95%
- 2 Quarters Ago PAT Growth (QoQ): +500%
- PAT Acceleration: -260.9pp (profits are decelerating)
Why is IRIS Regtech Solutions Ltd underperforming despite good earnings?
IRIS Regtech Solutions Ltd is underperforming the market despite improving earnings — this is the core deep value thesis
- 1-Year Return vs Nifty 500: -34%
- 6-Month Return vs Nifty 500: -12%
- 3-Month Return vs Nifty 500: +6%
- Yet average quarterly PAT growth is +128% — earnings are improving
- The market often takes time to re-rate stocks with improving fundamentals. This gap between price performance and earnings improvement is what deep value research seeks to identify.
What is the earnings momentum for IRIS Regtech Solutions Ltd?
IRIS Regtech Solutions Ltd's earnings momentum is Decelerating — growth rate is slowing.
- PAT QoQ progression: +500% → -95% → -22% (2Q ago → 1Q ago → latest)
- Acceleration: -260.9pp
- PAT YoY Growth: +44%
Is IRIS Regtech Solutions Ltd undervalued?
IRIS Regtech Solutions Ltd's valuation metrics
- Price-to-Earnings (PE): 4.2x
- Price-to-Book (PB): 2.6x
- PEG Ratio: 0.0x
- Margin of Safety: +366% (appears undervalued)
What are the revenue and margin trends for IRIS Regtech Solutions Ltd?
IRIS Regtech Solutions Ltd's revenue and margin trends
- Latest Quarter Revenue Growth (QoQ): +10%
- Average Quarterly Revenue Growth: +16%
- Revenue Acceleration: -1.7pp
- Latest OPM Change: +0.8pp (margins expanding)
- Average OPM Change: +4.2pp
- Revenue YoY: +32%
What is IRIS Regtech Solutions Ltd's trailing twelve month (TTM) performance?
IRIS Regtech Solutions Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹127 Cr
- TTM PAT Growth: +100.0% YoY
- TTM Revenue: ₹128 Cr
- TTM Revenue Growth: +9.7% YoY
- TTM Operating Margin: 8.1%
What sector does IRIS Regtech Solutions Ltd belong to?
IRIS Regtech Solutions Ltd key facts
- Sector: IT Enabled Services
- Market Cap: ₹531 Cr
- Rank in IT Enabled Services: #5 by value score
- Overall rank among all deep value stocks: #96
Is IRIS Regtech Solutions Ltd a good deep value opportunity to study?
IRIS Regtech Solutions Ltd shows limited deep value signals currently — score is 41/100 (Average). Monitor for improvement.
- Value Score: 41/100 (Average)
- Earnings: Not accelerating
- 1Y Underperformance: -34% vs Nifty 500
What is the bull and bear case for IRIS Regtech Solutions Ltd?
Research Signals (Bull Case)
- Appears undervalued based on fair value analysis
- Operating margins expanding
Risk Factors (Bear Case)
- Earnings growth decelerating
- Significant underperformance (-34% vs Nifty 1Y)
- Margin pressure warning
Which other IT Enabled Services stocks are deep value opportunities?
Other deep value stocks in IT Enabled Services
- Route Mobile Ltd — Score 62/100, Strong, earnings accelerating
- Firstsource Solutions Ltd — Score 44/100, Average, earnings accelerating
- Protean eGov Technologies Ltd — Score 44/100, Average, earnings accelerating
- Happiest Minds Technologies Ltd — Score 44/100, Average, earnings accelerating
How does the IT Enabled Services sector look for deep value?
IT Enabled Services deep value sector overview
- 5 deep value stocks in this sector
- Average value score: 47/100
- Avg PAT acceleration: -22.1pp
- Top pick: Route Mobile Ltd
What is deep value investing?
Deep value investing studies stocks that are underperforming the market despite showing improving fundamentals. The thesis is that the market has not yet recognized the earnings recovery, creating a potential valuation gap. It requires patience — recovery can take several quarters.
How is the deep value score calculated?
The deep value score (0-100) combines three factors:
- Earnings (0-40 pts): PAT growth across last 3 quarters, acceleration, and consecutive growth - Underperformance (0-35 pts): How much the stock trails Nifty 500 over 1Y, 6M, 3M (deeper underperformance = higher score) - Quality (0-25 pts): Revenue growth, margin trends, and valuation metrics (PEG, P/B)
Higher score indicates a stronger contrarian research signal.
What are the growth catalysts for IRIS Regtech Solutions Ltd?
IRIS Regtech Solutions Ltd has 4 key growth catalysts identified from recent earnings analysis
- Client Mining Cross Selling Wallet Share
- Geographical Expansion
- Operating Leverage Inflection
- Cash balance of INR 170 crores
What are the key risks in IRIS Regtech Solutions Ltd?
IRIS Regtech Solutions Ltd has 3 key risks worth monitoring
- Slowdown in ESG mandate rollouts in Europe and the U
- Employee expenses grew by 26% in H1, significantly outpacing revenue growth
- Fx
What did IRIS Regtech Solutions Ltd's management say in the latest earnings call?
In Q2 FY26, IRIS Regtech Solutions Ltd's management highlighted
- "On an average, you can see that our top line has grown at about 27%, 28% in the past three years compared with about 18% growth. [Previous Revenue Gr..."
- "We are happy to note that the bulk of this ARR growth has also come through our Disclosure Management offering. [Initiative: Disclosure Management ro..."
- "And the fourth layer, which we will be introducing in a pilot manner by end of this month or early December, would be a lending layer. [Initiative: M..."
The above FAQs are generated from publicly available earnings data. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.