Shares of Oracle Financial Services Software (OFSS) rose 5% on Thursday after the company reported a notable rise in the June-quarter earnings. The consolidated net profit increased 121% year-on-year (YoY) to Rs. 1,416 crore in Q1 FY27, supported by a major one-off licensing deal and increased product revenue.
The company had reported a profit of about Rs. 642 crore in the corresponding quarter last year. Profit, on a sequential basis, rose 68% to Rs. 842 crore in the March quarter.
Revenue from operations increased by 69% YoY to Rs. 3,125 crore. Profit before tax rose 114.13% to Rs. 1,938.7 crore from Rs. 905.4 crore, while operating income surged 123% to Rs. 1,861 crore.
The strong performance was mainly driven by an agreement with an existing customer involving a software product licences, personnel, and transition services. The transaction contributed Rs. 935.3 crore in licence revenue and Rs. 19.1 crore in other income.
The products business remained the main growth engine, increasing revenue by 75% to Rs. 2,936 crore, while the revenue from IT solutions and consulting services increased 6.46% to Rs. 189.4 crore.
EBIT rose from 1,050 crore to Rs. 1,050 crore in the last quarter. The operating margin has improved to 59.6% from 50.83%, indicating that revenues increased significantly more than costs did.
The management said the company's AI-first approach and product-modernisation efforts have bolstered its cloud and technology solutions for financial institutions.
“All our operating parameters continue to be healthy. We remain focused on providing our customers unprecedented flexibility in deployment options to meet the unique needs of their business,” Avadhut Ketkar said.
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The Managing Director and CEO, Makrand Padalkar, will be relieved of his duties on July 23, 2026. Avadhut Ketkar, current CFO, has been appointed the new MD and CEO with an effective date of July 24, while Chief Accounting Officer Manish Bhandari will become CFO.
“I am deeply honored by the trust that the board has reposed in me to lead OFSS into its next phase of growth and innovation,” Ketkar said.
The IT stock jumped 5% to its day's high of Rs. 11,395 per share on NSE. However, it later declined over 7% from the day's high to its intra-day low of Rs. 9,937.
The stock hit its 52-week high of Rs. 11,986.90 earlier this month on July 17, 2026, and its 52-week low of Rs. 6,232.20 in March 2026. The stock has gained over 8% in 1 month, 21.5% in 3 months, 34% in 6 months, and 22% in the last 1 year.
According to Jigar S Patel of Anand Rathi Share and Stock Brokers, investors should consider booking profits, while fresh buying should be considered only above Rs. 11,400.
“If there is a strong volume breakout above Rs. 11,400, it will be a better breakout decisively,” he added.