hSenid Business Solutions PLC (hSenidBiz) recently released its financial results for the third quarter of FY2026, highlighting a pivotal period in which the company achieved profitability and exceeded the USD 5 million exit ARR milestone. The total revenue for the quarter amounted to LKR 547.6 million, showing a year-over-year increase of 27 percent in LKR terms and 23 percent in USD constant currency terms.
The PeoplesHR Cloud segment continued to drive significant performance, posting a remarkable 48 percent year-over-year growth in LKR terms and 42 percent in USD constant currency. Subscription revenues made up 86 percent of the segment, underscoring the strength of the Company’s recurring revenue model. Recurring revenues constituted 73 percent of the total revenue, highlighting the quality and sustainability of hSenidBiz’s revenue base.
The company achieved an exit Annualized Recurring Revenue (ARR) of USD 5.2 million, marking a crucial milestone in its journey as a leading HR technology provider in emerging markets. New deal closures for the quarter reached USD 330,046, a 29 percent increase compared to the same period last year, with 97 percent of deals originating from the PeoplesHR Cloud business.
Founder and Chairman Dinesh Saparamadu commented on the quarter’s results, saying, “Achieving the USD 5 million ARR milestone validates the progress we have made in building a sustainable, recurring revenue-led business. This represents a defining moment in our journey, and we remain focused on expanding our presence across key markets while continuing to deliver innovative solutions that drive value for our customers.”
The company delivered exceptional profitability metrics during the quarter. The normalized EBITDA margin reached 17 percent, reflecting the combined impact of topline growth and sustained operational discipline. hSenidBiz reported a net profit of LKR 35 million for the quarter while maintaining strong free cash flows with a FCFF margin of 9 percent.
CEO Sampath Jayasundara remarked, “Achieving profitability is a testament to the discipline and focus our team has maintained throughout this transformation. The combination of strong revenue growth and operational efficiency positions us well to drive sustained value creation. We remain committed to scaling our business while maintaining the profitability momentum we have established.”
The company continued to advance its product roadmap during the quarter, focusing development efforts on enhancing AI capabilities, including usage monitoring and conversational analytics, and strengthening localization features for key markets such as Indonesia.
Looking ahead to the final quarter of FY2026, the company remains focused on maintaining profitability while accelerating growth momentum, strengthening its sales pipeline across key markets, and leveraging ongoing product enhancements to create greater value for HR communities globally.
PeoplesHR, the company’s flagship human capital management software solution, supports over 1,700 HR departments across 40 countries, including regions in South Asia, Southeast Asia, the Middle East, and Africa, assisting organizations in digitizing the entire employee journey from recruitment to retirement.
Photo Caption- Founder and Chairman of hSenidBiz Dinesh Saparamadu, and CEO Sampath Jayasundara
