Total revenue for the quarter reached LKR 516.9 million, reflecting year-over-year growth of 23 percent in both LKR and USD constant currency terms.
The PeoplesHR Cloud segment continued to drive performance, recording a strong 34 percent year-over-year increase in LKR terms and 35 percent in USD constant currency.
Recurring revenues contributed 72 percent of total revenue, reinforcing the quality and sustainability of the Company's revenue base.
New deal closures for the quarter amounted to USD 381,931, a 48 percent increase compared to the same period last year, with 76 percent of deals attributed to the PeoplesHR Cloud business.
Commenting on the quarter's performance, Founder and Chairman Dinesh Saparamadu stated,
"The combination of accelerated revenue growth and expanded margins validates our strategic approach.
We continue to execute our long-term plan with discipline and are firmly on track to achieving the milestones we set out a few years ago.
Our immediate focus centers on reaching sustained profitability, strengthening our sales pipeline in overseas markets, and capitalizing on the competitive advantages our product innovations will deliver to customers."
Normalized EBITDA margin (adjusted for one-off staff restructuring expenses) reached 11 percent, more than quadrupling the 2.5 percent recorded in 1Q FY26, marking a substantial improvement that positions the Company at the cusp of Normalized EBIT break-even, a critical milestone that reflects the effectiveness of operational discipline and revenue scaling.
hSenidBiz reported a net loss of LKR 25.9 million, which included the one-time staff restructuring expense of LKR 25.5 million.
Free cash flow, after adjusting for the cash outflow related to this one-off restructuring, remained positive.
CEO Sampath Jayasundara commented,
"We are seeing tangible results from our unwavering focus on building a resilient recurring revenue model.
Approaching Normalized EBIT break-even represents a significant milestone, and we remain committed to strengthening our market position through product innovation and disciplined execution."
The Company is advancing key product initiatives with the upcoming launch of PeoplesHR X (Version 10), which introduces Lexi, an AI-powered capability suite featuring an AI navigation agent for enhanced product discoverability and an AI super-agent for task assistance and execution.
These agentic AI features are designed to elevate customer experience and productivity, further strengthening hSenidBiz's competitive position in the HR technology market.
PeoplesHR, the Company's flagship human capital management software solution, now supports over 1,700 HR departments across 40 countries spanning South Asia, Southeast Asia, the Middle East, and Africa, helping organisations digitize the entire employee journey from recruitment to retirement.
Photo Captions : Founder and Chairman of hSenid Business Solutions PLC Dinesh Saparamadu and CEO Sampath Jayasundara.