hSenid Business Solutions PLC (hSenidBiz) announced its financial results for the second quarter of FY2027.
The quarter reflected continued progress in the quality of the company’s recurring revenue base and the strength of the underlying operating performance, even as sequential revenue was modestly softer, due to the timing of large project invoicing.
Total revenue for the quarter reached Rs.598.6 million, up 16 percent year-on-year (YoY). Recurring revenue accounted for 76 percent of total revenue and exit annualised recurring revenue stood at US $ 5.7 million, also up 16 percent YoY and broadly in line with the prior quarter.
Sequential revenue was marginally lower, reflecting softer contributions from OnPrem and payroll outsourcing solutions, partly offset by the higher tracking-device sales. The company views the sequential movement as consistent with the normal variability of a multi-product business that is steadily increasing the weight of its higher-quality recurring SaaS revenue.
The underlying operating performance continued to strengthen. Gross profit rose 25 percent YoY to Rs.300.3 million at a 50 percent margin. The EBITDA, excluding the foreign exchange losses, increased 141 percent YoY to Rs.72.0 million, equivalent to a 12 percent margin.
The appreciation of the Sri Lankan rupee resulted in a foreign exchange loss, contributing to a net loss of Rs.9.3 million for the quarter. This net loss was 64 percent narrower than the corresponding quarter of the prior year. Operating cash flow returned to positive territory at Rs.70.6 million and the free cash flow was also positive.
Founder and Chairman Dinesh Saparamadu stated, “The opportunity in AI-enabled workforce management continues to expand, particularly across emerging markets. Our focus remains on building a durable SaaS platform that can capture this demand at scale. The progress we have made in recurring revenue quality, margin structure and cash generation over the past several quarters give us a stronger foundation to do so.”
Chief Executive Officer Sampath Jayasundara commented, “We continue to advance the PeoplesHR platform and Lexi AI capabilities so that the customers can move from basic HR administration to faster, better-informed workforce decisions. Our priority is disciplined execution—improving go-to-market effectiveness, deepening customer adoption and converting product investment into sustainable recurring growth.”
