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

• Market Cap: ₹1.85B
• Dividend Yield: 0.33%
• Average Volume (3M): 4.64K
• Price to Earnings (P/E): 332.9
• Beta (1Y): 1.75
• Revenue Growth: -31.06%
• EPS Growth: -97.39%
• Country: IN
• Employees: 148
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -1.40
• Shares Outstanding: 25,831,211
• 10 Day Avg. Volume: 6,623
• 30 Day Avg. Volume: 4,644
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹77.00
• Price Target Upside: 7.39% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 61 Neutral
• Price Target: ₹77.00 ▲(7.39% Upside)

RS Software's overall stock score is primarily driven by its improved financial performance, with profitability and balance sheet strength being key strengths. However, the high P/E ratio suggests significant overvaluation, which negatively impacts the score. Technical indicators show mixed signals, with bearish momentum prevailing. The absence of earnings call data and notable corporate events limits additional insights.

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

R. S. Software (India) Limited generates revenue through a diversified model centered around providing software solutions and services. The company's key revenue streams include project-based contracts for software development, where it designs and implements custom payment solutions for clients. It also generates income through maintenance services, ensuring ongoing support and updates for its software products. Additionally, the company offers testing services to ensure software reliability and performance, contributing to its earnings. Significant partnerships with leading financial institutions and technology providers further bolster its revenue, enabling access to larger projects and enhanced service offerings.

R. S. Software (India) Limited Financial Statement Overview

Summary

RS Software has shown significant progress in financial performance, turning previous losses into profits. Despite a decline in revenue growth, profitability and balance sheet strength have markedly improved, with low leverage and high equity. Cash flow management shows improvements but still requires attention to sustain long-term growth.

Income Statement

In the latest annual period, RS Software showed an improvement in profitability with a net profit margin of 15.22%, up from previous losses. However, the revenue growth rate was a negative 3.73% from the previous year, indicating a decline. The gross profit margin stood at 47.03%, reflecting strong cost management, and EBIT margin improved to 47.03% from negative margins in prior years, signaling operational efficiency gains.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 78.66%, indicating financial stability. The debt-to-equity ratio is low at 0.01, minimizing financial risk. Return on equity improved to 15.22%, supported by profitable operations, enhancing shareholder value.

Cash Flow

Cash flow from operations decreased significantly, and free cash flow turned positive at 9.56 million, showing a recovery from past deficits. The operating cash flow to net income ratio of 0.93 indicates that cash generation aligns well with reported profits, although the free cash flow growth rate was negative compared to the previous year.

Breakdown	TTM	Dec 2025	Dec 2023	Dec 2022	Dec 2021	Dec 2021
Income Statement
Total Revenue	463.40M	573.21M	595.42M	301.27M	354.57M	275.24M
Gross Profit	130.59M	269.60M	284.93M	77.72M	-35.15M	7.43M
EBITDA	49.53M	141.91M	232.72M	-42.86M	-158.21M	-77.95M
Net Income	5.33M	87.28M	181.08M	-81.46M	-200.46M	-151.27M
Balance Sheet
Total Assets	697.11M	728.85M	683.33M	432.14M	715.62M	478.50M
Cash, Cash Equivalents and Short-Term Investments	266.18M	230.19M	222.28M	82.33M	156.05M	128.34M
Total Debt	2.75M	5.48M	15.53M	24.14M	78.01M	866.00K
Total Liabilities	-12.63B	141.86M	192.25M	125.13M	146.78M	81.22M
Stockholders Equity	13.32B	573.31M	481.87M	302.72M	545.23M	387.81M
Cash Flow
Free Cash Flow	-119.91M	9.57M	96.82M	-105.24M	-150.78M	91.46M
Operating Cash Flow	-41.42M	81.46M	158.47M	-96.06M	-150.28M	91.46M
Investing Cash Flow	-84.21M	-77.02M	-2.94M	64.67M	147.57M	-19.95M
Financing Cash Flow	-8.76M	-3.76M	43.00K	2.28M	-5.11M	-84.21M

R. S. Software (India) Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 71.70
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 71.7 is below the 20-day moving average (MA) of 73.59, below the 50-day MA of 75.99, and below the 200-day MA of 97.29, indicating a bearish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 44.84 is Neutral, neither overbought nor oversold. The STOCH value of 47.01 is Neutral, 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	71 Outperform	1.62B	12.41	5.55%	―	5.05%	16.32%
RSSOFTWARE	61 Neutral	₹1.85B	332.87	―	0.33%	-31.06%	-97.39%
COMPUSOFT	58 Neutral	1.47B	40.96	1.05%	1.08%	-48.42%	-7.00%
XELPMOC	50 Neutral	1.51B	-21.60	-12.62%	―	-19.09%	48.94%
CTE	43 Neutral	754.62M	-1.93	-70.74%	―	-5.70%	-1665.52%
SECURKLOUD	41 Neutral	769.11M	-0.52	-56.85%	―	-54.55%	-317.72%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%