InfoBeans Technologies Limited — Q2 FY26 earnings call

Call held 4 Nov 2025

Management summary

InfoBeans Technologies reported a strong Q2 FY26, with significant year-on-year growth across revenue, EBITDA, and PAT. The company highlighted robust demand across all geographies, particularly in AI, ServiceNow, and Salesforce domains, leading to a 5% sequential revenue growth and 98 net employee additions. Management expressed confidence in maintaining growth momentum and targeting a consistent 24% EBITDA margin, while also investing heavily in AI capabilities and CSR initiatives.

Highlights

  • Revenue from operations grew 27.55% YoY to ₹125 crores in Q2 FY26, and 5% QoQ.

  • EBITDA for Q2 FY26 increased 56.52% YoY to ₹36 crores, demonstrating improved profitability.

  • PAT for Q2 FY26 grew 76.92% YoY to ₹23 crores.

  • Added 98 net employees in Q2 FY26, indicating strong demand and talent acquisition.

  • Successfully added 6 new clients, including 3 large ones, maintaining a consistent run rate.

  • Strong cash and cash equivalents of ₹292 crores as of H1 FY26.

Key financials

2 periods

Headline

  • Revenue from Operations
    ₹125 Cr
    YoY +27.6% QoQ +5%
  • EBITDA
    ₹36 Cr
    YoY +56.5%
  • PAT
    ₹23 Cr
    YoY +76.9%
  • Utilization Level
    81%
  • Net Employee Additions
    98 people

H1

  • Revenue
    ₹254 Cr
    YoY +26%
  • EBITDA
    ₹71 Cr
  • PAT
    ₹46 Cr

What they filed

Q1 FY27: revenue up 36.6%, net profit down 4.3% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue98 96 103 112 125 +28%134 +40%142 +38%153 +37%
EBITDA19 14 19 23 31 +63%30 +114%28 +47%31 +35%
Net profit13 7 10 23 23 +77%19 +171%21 +110%22 −4%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

low confidence

Execution

projects are like six months, nine months kind of projects

Management noted that their projects typically have a 6-9 month duration, making it difficult to provide exact multi-year order book numbers, but expressed positivity about continued growth from repeat business.

Source: Q&A

Capital allocation

high confidence
  • Capex Capex disclosed
    • Building own campus/IT park in Indore on 3 acres of land, aiming for 4-5 lakh sq ft.
    Yeah, so Nishant, again, I invite you to our facility in Indore to know since you are here, we are in the Crystal IT Park. Since it is a large premises, and, you know, we've been looking at the development in the city and we were looking at building our own campus. So this is a place that we have, you know, wanted to tender. And that tender was for Pradisipra IT complex. I know if you're aware of that. It is in the electronics park. So we got three acres of land where we should be able to build four to five lakhs of square foot of IT park.
  • Debt Debt disclosed
    It will not because we also take some debt. And as I said, we are generating a good amount of cash, so it should not hurt us in any way.
  • Liquidity Cash ₹292 Cr Cash and cash equivalents as of H1 financials.
    The H1 financials, as we can see here on the screen, is 254 crores of revenue, EBITDA of 71 crores, a PAT of 46 crores, and a large amount of cash and cash equivalent in the business of 292 crores, which gives us a lot of financial strength.

Guidance & targets

Profitability

  • EBITDA Margin Profitability · consistently · High confidence at least 24%
    Unfortunately, we don't give any guidance on the revenue side and also on the EBITDA side. But as a company, our goal is to have at least 24% EBITDA margin maintained. So currently, we're doing better than that. But you know, as I said, that is our target, that if we are able to deliver a 24% margin consistently, then we're doing good justice to the business.

    — Avinash

Revenue

  • Revenue Growth Revenue · future · Medium confidence faster pace
    And we are growing at 24% CAGR since 2021, and we want to maintain a better rate of growth in the future as well.

    — Avinash

  • Quarterly Revenue Revenue · ongoing · High confidence > ₹100 crores
    So I think we are now crossing that number fairly well, because if you notice, the 100 crore revenue was just meeting the threshold of the business for the most part.

    — Avinash

What to watch in Q3 FY26

InfoBeans Cloudtech Merger Conclusion

next six to twelve months
Current Application submitted to NCLT, pending conclusion
Target Merger concluded

Why it matters

The merger will integrate Cloudtech's revenue and profitability, impacting overall company financials and strategic positioning.

InfoBeans Cloudtech, another update here is that InfoBeans Cloudtech merger application is submitted to NCLT and we hope the merger will conclude in the next six to 12 months.

Q&A highlights

5 direct
Outlook for Q3 and Q4 / Business Momentum Direct
the business momentum is there. If you look at the Q1, I mean, March quarter, June quarter, and September quarter, we are building up momentum. And in every commentary, every investor call, we say that there is a good demand scene, like we see from all the three geographies.

Management confirmed strong business momentum and demand across all geographies, indicating positive outlook for the second half of the fiscal year.

Asked by Ankit

Drivers of YoY Revenue Growth Direct
I think it is a combination of both adding up new clients as well as growth from the existing ones. So, yeah, these are both the factors that are contributing to the growth of the business.

Clarified that growth is driven by a balanced approach of acquiring new clients and expanding wallet share with existing customers.

Asked by Sumukh

Demand and Margin Impact from AI/Agentic Workflow Partial
yes, we are seeing significant demand and at the same time, we are upskilling our team, we are investing in these technologies... In terms of margins, at this point we are trying to invest more in this. Margins is a secondary thing for us when it comes to AI.

Management confirmed strong demand for AI-led services but indicated that current focus is on investment and market leadership rather than immediate margin expansion from AI deals.

Asked by Srinivasu

New Client Additions Direct
On an average, we've been adding about six every quarter. Last quarter also we had six and this quarter also we had six. Out of that, I think both of these are three large ones, each of them, each of the quarters.

Provided specific numbers on new client additions, highlighting consistent acquisition of large clients.

Asked by Nishitha

Employee Additions Direct
Yes, in July to September, we added 98 net additions into the company. And when I say net it's after attrition.

Confirmed significant net employee additions, indicating capacity expansion to meet demand and effective talent retention.

Asked by Nishitha

Indore IT Park CapEx and Rationale Direct
So we got three acres of land where we should be able to build four to five lakhs of square foot of IT park... And we figured out that we should be able to recoup the cost of construction in 11 years if we, at the current rental price that we're paying in the Crystal IT park.

Detailed the strategic rationale and financial viability of the new IT park, emphasizing long-term benefits for credibility and growth.

Asked by Nishant

2 min read 5 chapters

Detailed narrative

Strong Q2 FY26 Financial Performance

InfoBeans Technologies reported robust financial results for Q2 FY26, with revenue from operations growing 27.55% year-on-year to ₹125 crores. On a sequential basis, revenue increased by 5%. Profitability saw even stronger growth, with EBITDA rising 56.52% YoY to ₹36 crores and Profit After Tax (PAT) surging 76.92% YoY to ₹23 crores. The company's H1 FY26 financials also showed significant momentum, with revenue at ₹254 crores, EBITDA at ₹71 crores, and PAT at ₹46 crores, reflecting a 26% growth compared to H1 FY25.

Consistent Client Acquisition and Demand Across Geographies

The company continued its strong client acquisition, adding approximately six new clients per quarter, with three of these being large enterprises in Q2 FY26. Management noted robust demand across all three key geographies – Europe, US, and UAE – with Europe showing rapid growth and contributing 31% of revenue, and the US accounting for 56%. This growth is attributed to both new client wins and increased wallet share from existing customers, driven by strong delivery and customer satisfaction.

Strategic Investments in AI and Talent

InfoBeans is heavily investing in AI-led engineering, leveraging tools like GenAI, Windsurf, and Microsoft Copilot, and developing accelerators like Expona. The company is actively partnering with AI startups and participating in AI events to enhance its offerings. While immediate margin uplift from AI is not the primary focus, investments are aimed at improving productivity and accelerating time-to-market. The company also added 98 net employees in Q2 FY26, bringing its utilization level to 81%, demonstrating its commitment to scaling talent to meet demand.

Indore IT Park Development and CSR Initiatives

The company is proceeding with plans to build its own IT park in Indore, acquiring three acres of land to develop 4-5 lakh square feet of space. This strategic CapEx is expected to enhance the company's credibility and attract talent, with a projected recoupment of construction costs within 11 years. InfoBeans also highlighted its successful CSR program, InfoBeans Foundation, which trains underprivileged students in software programming, achieving a 90% success rate in employability. The company was recognized as a 'Best Company for Women in India' for the fourth consecutive year and 'Asia's Best Employer Brand Award' for the ninth year.

Capital Allocation and Liquidity

As of H1 FY26, InfoBeans maintained a strong liquidity position with ₹292 crores in cash and cash equivalents. The company's goal is to consistently maintain an EBITDA margin of at least 24%. While no specific debt figures were provided, management indicated that existing debt would not hurt the company given its strong cash generation. The merger application for InfoBeans Cloudtech is currently with NCLT, with an expected conclusion within the next 6-12 months.

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