hSenid Business Solutions PLC (hSenidBiz) has achieved profitability and surpassed USD 5 million in exit Annualized Recurring Revenue (ARR) in Q3 FY2026. Driven by strong PeoplesHR Cloud growth, disciplined operations, and product innovation, the HR tech provider is poised to expand across emerging markets while sustaining profitability momentum.
In a defining quarter for Sri Lanka’s pioneering HR technology company, hSenid Business Solutions PLC (hSenidBiz) announced that it has achieved profitability while crossing the USD 5 million exit Annualized Recurring Revenue (ARR) milestone. The third quarter of FY2026 marked a transformative period for the company, underscoring its ability to scale sustainably in emerging markets while reinforcing its position as a trusted provider of human capital management solutions.
The company reported total revenue of LKR 547.6 million, reflecting a year-over-year growth of 27 percent in local currency terms and 23 percent in USD constant currency terms. This performance was anchored by the PeoplesHR Cloud segment, which continued to deliver robust results. The segment recorded a 48 percent year-over-year increase in LKR terms and 42 percent in USD constant currency, with subscription revenues comprising 86 percent of the segment’s total. The strength of recurring revenues was evident across the business, contributing 73 percent of overall revenue, a clear indicator of the company’s sustainable revenue base.
Founder and Chairman Dinesh Saparamadu described the achievement as a landmark in hSenidBiz’s journey. “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,” he said.
The company’s profitability metrics further highlighted the strength of its operational discipline. Normalized EBITDA margin reached 17 percent, reflecting the combined impact of topline growth and efficiency measures. Net profit for the quarter stood at LKR 35 million, while free cash flow generation remained strong, with a Free Cash Flow to Firm (FCFF) margin of 9 percent. These results underscore hSenidBiz’s ability to balance growth with profitability, a rare feat among technology companies in emerging markets.
CEO Sampath Jayasundara emphasized the importance of operational focus in achieving this milestone. “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,” he noted.
Beyond financial performance, hSenidBiz continued to advance its product roadmap during the quarter. Development efforts were concentrated on enhancing artificial intelligence capabilities, including usage monitoring and conversational analytics, while strengthening localization features for key markets such as Indonesia. These innovations are designed to deepen customer engagement and expand the company’s relevance across diverse geographies.
Looking ahead to the final quarter of FY2026, hSenidBiz has set its sights on maintaining profitability while accelerating growth momentum. The company is focused on strengthening its sales pipeline across key markets and capitalizing on ongoing product enhancements to create greater value for HR communities globally. This forward-looking strategy reflects its ambition to consolidate its leadership in HR technology across South Asia, Southeast Asia, the Middle East, and Africa.
PeoplesHR, the company’s flagship human capital management software solution, continues to be the cornerstone of its success. Supporting over 1,700 HR departments across 40 countries, the platform enables organizations to digitize the entire employee journey, from recruitment to retirement. Its widespread adoption underscores the trust hSenidBiz has built among HR professionals and its ability to deliver solutions that resonate across cultural and organizational contexts.
The company’s journey to profitability and scale is particularly significant given the challenges faced by technology providers in emerging markets. Currency fluctuations, diverse regulatory environments, and varying levels of digital adoption often pose hurdles to growth. Yet hSenidBiz’s ability to deliver consistent results across these markets demonstrates the resilience of its business model and the adaptability of its solutions.
The milestone of USD 5.2 million in exit ARR is not merely a financial achievement but a reflection of the company’s strategic clarity. By prioritizing recurring revenues and focusing on subscription-led growth, hSenidBiz has built a foundation that ensures long-term sustainability. The strong pipeline of new deals, amounting to USD 330,046 in the quarter—a 29 percent increase compared to the same period last year—further reinforces this trajectory. Notably, 97 percent of these deals were attributed to the PeoplesHR Cloud business, highlighting the centrality of the platform in driving growth.
As hSenidBiz prepares for the next phase of its journey, the company’s leadership remains committed to balancing innovation with financial discipline. The emphasis on AI-driven enhancements and localization reflects a keen understanding of market needs, while the focus on profitability ensures that growth is not pursued at the expense of sustainability.
For customers, partners, and investors, the company’s latest results signal a new chapter in its evolution. hSenidBiz is no longer just a promising HR technology provider from Sri Lanka; it is now a profitable, scalable enterprise with a proven ability to deliver value across multiple geographies. The achievement of profitability and the USD 5 million ARR milestone mark a turning point, positioning the company to play a larger role in shaping the future of HR technology in emerging markets.
In the words of its leadership, this is only the beginning. With a strong foundation, a clear vision, and a commitment to innovation, hSenidBiz is poised to continue its upward trajectory, creating lasting impact for HR communities worldwide.
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