Tuesday Nov 03, 2026
Tuesday Nov 03, 2026
Tuesday, 3 November 2026 04:22 - - {{hitsCtrl.values.hits}}
Founder and Chairman Dinesh (left) and CEO Sampath Jayasundara
hSenid Business Solutions PLC (hSenidBiz) yesterday 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% year-on-year. Recurring revenue accounted for 76% of total revenue, and Exit Annualised Recurring Revenue stood at $ 5.7 million, also up 16% year-on-year 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 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.
Underlying operating performance continued to strengthen. Gross profit rose 25% year-on-year to Rs. 300.3 million at a 50% margin. EBITDA excluding foreign exchange losses increased 141% year-on-year to Rs. 72 million, equivalent to a 12% margin. The appreciation of the 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% narrower than the corresponding quarter of the prior year. Operating cash flow returned to positive territory at Rs. 70.6 million, and free cash flow was also positive.
Founder and Chairman Dinesh Saparamadu said: “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 added: “We continue to advance the PeoplesHR platform and Lexi AI capabilities so that 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.”
During the quarter, hSenidBiz received the Best Investor Relations award at the CFA Society Sri Lanka Capital Market Awards in the category for listed companies with a market capitalisation below Rs. 10 billion. This is the third consecutive year the Company has received the award.
Looking ahead, the company said it will continue to prioritise growth in its cloud and AI-enabled offerings, strengthen commercial execution across its focus markets, and maintain operating discipline. The objective remains the same: to scale a high-quality SaaS business that serves the evolving human capital needs of organisations across emerging markets and delivers sustainable long-term value for shareholders.
