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By Dalal Street Investment Journal (DSIJ)
Oracle Financial Services Software delivered a strong Q4 FY26, with net profit rising 38% QoQ and margins crossing 51%, marking its best quarter in seven periods. Growth was driven by products and global deals. FY26 saw steady double-digit growth, strong deal pipeline, and ₹400 dividend payout, positioning the company well for AI and cloud-led banking transformation.
Oracle Financial Services Software had an excellent performance in the quarter and year ending March 31, 2026, due to the growth in all areas including product, service, and international deals.
The March 2026 quarter marked a decisive turnaround in operational performance, with the company posting its highest-ever quarterly revenue and operating profit margins. The net sales figure was up at ₹2,065.20 crore compared to ₹1,965.90 crore in the December quarter. The profit margin ratio also rose significantly from 41.69% to 51.15% in the same period.
Net profit surged 38.07% quarter-on-quarter to ₹841.70 crore and 30.72% year-on-year. The stock responded by jumping 9%, trading at ₹8,854 as of 11.42 AM on April 23, 2026.
OFSS share price has seen its sharpest single-day rally in over 7-months and the total trade volume recorded on NSE is highest since August 2025.
The quarter ending March 31, 2026 witnessed great performance in terms of financial figures. For the fourth quarter of fiscal year 2026, the revenue amounted to ₹2,065 crore, which is a 20% growth from last year. The net income in Q4 saw a remarkable rise of 31%, amounting to ₹842 crore. Operating income rose 39% to ₹1,049 crore. The operating margin in Q4 grew remarkably to reach 51%, against 41.7% recorded in the same quarter last year.
Metric | Mar'26 | Dec'25 | Sep'25 | Jun'25 | Mar'25 | Dec'24 | Sep'24 |
Revenue (₹ Cr) | 2,065.20 | 1,965.90 | 1,788.80 | 1,852.20 | 1,716.30 | 1,715.20 | 1,673.90 |
QoQ Change (%) | 5.05% | 9.90% | 3.42% | 7.92% | 0.06% | 2.47% | — |
Net Profit (₹ Cr) | 841.7 | 609.6 | 546.1 | 641.9 | 643.9 | 541.3 | 577.7 |
QoQ Change (%) | 38.07% | 11.63% | -14.92% | -0.31% | 18.95% | -6.30% | — |
Operating Margin (%) | 51.15% | 41.69% | 42.22% | 45.69% | 44.56% | 41.62% | 44.84% |
PAT Margin (%) | 40.76% | 31.01% | 30.53% | 34.66% | 37.52% | 31.56% | 34.51% |
The products segment contributed ₹6,942 crore accounting for about 90% of revenue in FY26, growing 12% year-on-year. The services segment delivered ₹730 crore with 16% growth. In Q4 specifically, products revenue stood at ₹1,871 crore, up 21%, while services contributed ₹194 crore, up 11%.
The company recorded consolidated revenue of ₹7,672 crore in FY26, reflecting a 12% increase over the previous year. Operating income rose to ₹3,410 crore, up 13%, while net income stood at ₹2,639 crore, growing 11%.
The company reported remaining performance obligations of ₹7,761 crore as of March 31, 2026, indicating a strong deal pipeline and future revenue visibility. Multiple deal wins were recorded across global markets, including partnerships with banks and financial institutions for core banking, analytics, risk management, and cloud-based financial services solutions.
Metric | FY 2026 | FY 2025 | Growth (%) |
Revenue | ₹7,672 crore | ₹6,847 crore | 12% |
Operating Income | ₹3,410 crore | ₹3,007 crore | 13% |
Net Income | ₹2,639 crore | ₹2,380 crore | 11% |
Products Revenue | ₹6,942 crore | ₹6,214 crore | 12% |
Services Revenue | ₹730 crore | ₹632 crore | 16% |
Employee count stood above 9,100 at the end of FY26, reflecting workforce expansion to support global operations. Employee turnover rate remained controlled at around 9 to 10%, indicating workforce stability.
The Board of Directors declared a second interim dividend of ₹270 per equity share for the financial year 2025-26. The record date for the dividend is May 7, 2026. Earlier in FY26, the company had also declared an interim dividend of ₹130 per share in October 2025. Including the second interim dividend of ₹270, the total dividend outflow for the year comes to ₹400 per share, reinforcing the company's consistent track record of returning cash to shareholders. The company has been maintaining a healthy dividend payout of 99.3% and has a 3-year return on equity of 27.8%.
Ex-Date | Dividend Amount | Dividend Type | Record Date |
07 May 2026 | 270 | INTERIM | 07 May 2026 |
03 Nov 2025 | 130 | INTERIM | 03 Nov 2025 |
08 May 2025 | 265 | INTERIM | 08 May 2025 |
07 May 2024 | 240 | INTERIM | 07 May 2024 |
09 May 2023 | 225 | INTERIM | 09 May 2023 |
13 May 2022 | 190 | INTERIM | 17 May 2022 |
17 May 2021 | 200 | INTERIM | 18 May 2021 |
19 May 2020 | 180 | INTERIM | 20 May 2020 |
The company keeps its efforts on leveraging artificial intelligence and cloud-based platforms to create efficiency, automation, and speed in development processes. The cloud-deployment features of Oracle FLEXCUBE products have been an important selling point for its offerings to the customers in the banking industry that is undergoing modernization of their core platforms. Banks across the world are currently modernizing their systems, adopting new digital solutions, and upgrading their payments and risk and compliance infrastructures, which makes OFSS a primary beneficiary of the trends mentioned above.
Oracle Financial Services Software Limited, trading at NSE & BSE as OFSS, is the largest Indian company providing software solutions to financial institutions. It is an affiliate company of Oracle Corporation, which designs software applications utilized by financial institutions globally. One of its main products is Oracle FLEXCUBE, which is among the most popular core banking solutions worldwide. The firm generates most of its income from its products and services businesses.
SEBI Registered Research Analyst (INH000006396).
Founded in 1986, Dalal Street Investment Journal (DSIJ) brings decades of experience in India’s equity markets. DSIJ's research combines fundamental analysis with price action, guided by disciplined risk management and capital preservation. They follow a structured, data-driven approach designed to help investors and traders make informed decisions beyond short-term market noise.
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