hSenidBiz starts FY26 strong with steady recurring revenue and margin gains

Chairman Dinesh Saparamadu

CEO Sampath Jayasundara

hSenid Business Solutions PLC (hSenidBiz) announced its financial results for the first quarter of FY2026, reporting a stable topline performance and the continuation of profitability improvements seen in the prior quarter. 

Total revenue for the quarter reached Rs.471.7 million, with recurring subscription revenues growing 36 percent year-on-year (YoY) in LKR terms. A decline in professional services revenue, particularly from large on-premise projects, partially offset the strong growth in recurring revenues resulting in a modest one percent YoY growth in LKR terms and 2 percent in constant currency (USD) terms.

The PeoplesHR Cloud segment remained the core driver of growth, recording a robust 32 percent YoY increase in both LKR and USD terms. Subscription revenues contributed 88 percent of the segment, reaffirming hSenidBiz’s strong commitment to expanding its long-term, recurring revenue base. Overall, recurring revenues contributed 72 percent of total revenue.

New deal closures for the quarter amounted to US $ 440,998, a 34 percent increase compared to the same period last year, with 91 percent of deals attributed to the PeoplesHR Cloud business. 

Founder and Chairman Dinesh Saparamadu stated, “With ongoing investments across product innovation and go-to-market efforts, we remain optimistic about our ability to scale in key markets and deliver sustained value to our stakeholders.”

Normalised EBITDA margin stood at 2 percent, marking the second consecutive quarter of positive normalised EBITDA, while the company also continued to generate positive free cash flows. hSenidBiz reported a net loss of Rs.35.7 million, which included a foreign exchange gain of Rs.12.8 million during the quarter. CEO Sampath Jayasundara commented, “With a clear focus on strengthening our ARR-led growth, we remain committed to driving operational efficiency and progressing steadily towards long-term profitability.”