Ramco Systems Reports Drop in Q2 FY27 Profit Amid Higher Expenses

Chennai-based software firm Ramco Systems reported a sharp decline in its net profit for the quarter ended September 2026, driven by higher other expenses. Consolidated revenue also saw a marginal dip, even as the company registered higher order bookings and outlined a focus on AI-native solutions.

Chennai-headquartered software products company Ramco Systems has reported a steep decline in its net profit for the second quarter of fiscal year 2027 (Q2 FY27), ended September 2026. According to an exchange filing by the Ramco Group firm, the quarterly net profit dropped to $0.05 million, compared to $1.47 million during the same period in the previous fiscal year.

The company's consolidated revenue for the quarter stood at $19.2 million, marking a 5% decrease from $20.3 million recorded in Q2 of the previous year. According to the company, growth in other expenses weighed heavily on the bottom line during the quarter.

Despite the revenue and profit contraction, Ramco Systems reported positive momentum in its order book and annual recurring revenue. The company's annual recurring revenue stood at $12.09 million, while the unexecuted order book was reported at $161 million. Additionally, the company's cash balance at the end of Q2 FY27 stood at $161 million.

Abinav Raja, Managing Director of Ramco Systems, commented on the company's ongoing strategic adjustments. He stated that the focus remains on strengthening execution discipline, improving organizational effectiveness, and building engineering talent density. Raja added that the company is refining its product development processes and accelerating the transition of its portfolio toward fully AI-native solutions to support long-term growth.

Sandesh Bilagi, CEO of Ramco Systems, noted that the company's AI-native products are gaining traction among customers. According to Bilagi, order bookings for the quarter reached their highest level in eight quarters, which he described as an indicator of progress in the company's twin priorities of transitioning into an AI-native enterprise and scaling operations.

"The financial results of Ramco Systems highlight a common challenge faced by legacy technology firms undergoing strategic transitions: managing rising expenses while shifting product lines toward emerging technologies like AI. While the sharp drop in net profit and revenue contraction reflect near-term pressures, the record order bookings and robust cash balance indicate that enterprise demand for their newer offerings remains steady. Balancing cost discipline with technology investments will be crucial for sustainable long-term execution." — Dr. Shishir Gupta, Founder & CEO, StartupLanes