InfoBeans Technologies Limited — Q4 FY26 earnings call

Call held 4 May 2026

Management summary

InfoBeans Tech. reported a strong Q4 and full-year FY26, with significant growth in revenue, EBITDA, and PAT, driven by existing clients and new AI-led development. Margins expanded considerably, though management expressed caution on sustaining the peak levels. The company is aggressively pursuing AI integration, aiming for 100% AI-augmented development revenue within 12 months, and made strategic investments in an IT park while maintaining a healthy cash position and declaring a dividend.

Highlights

  • Full-year revenue of ₹539 crores, up 32% YoY (24% in USD terms).

  • Full-year EBITDA of ₹138 crores, up 64.3% YoY, with margin expanding from 20% to 26%.

  • Full-year PAT of ₹87 crores, up 128% YoY, with margin expanding from 9% to 16%.

  • Q4 revenue grew 6.5% QoQ, with PAT margins up 5 percentage points and EBITDA margins up 1 percentage point.

  • 43% of revenue from AI-augmented software development, targeting 100% in the next 12 months.

  • Headcount increased by 200 in the last quarter to 1790, fulfilling demand.

  • 90% repeat business from existing clients and 24 new clients onboarded this year.

Concerns

  • Receivables increased by ₹22 crores, attributed to longer payment cycles from Fortune 500 clients.

  • Management indicated that current high margins (26% EBITDA, 16% PAT) might not be sustained, targeting 24% EBITDA and 14% PAT as acceptable levels.

  • The company has no hedging policy in place since January this year after experimenting with various strategies.

Key financials

  1. Revenue (Full Year) ₹539 Cr +32%YoY
  2. EBITDA (Full Year) ₹138 Cr +64.3%YoY
  3. PAT (Full Year) ₹87 Cr +128%YoY
  4. EBITDA Margin (Full Year) 26%
  5. PAT Margin (Full Year) 16%
  6. Revenue Growth (QoQ) 6.5% +6.5%QoQ
  7. Cash & Cash Equivalents ₹339 Cr
  8. Headcount 1,790

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

medium confidence

Composition

Mix 4 geographies
  • US 53%
  • Europe 35%
  • Middle East UAE 7%
  • India and APAC 4%

Share of order book by geography

The company maintains strong client relationships with over 90% repeat business and has expanded its client base, including 18 Fortune 500 companies and 24 new clients onboarded this year.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex Capex disclosed
    • IT Park development for strategic purposes, not as a new business line
    Let me clarify this is not a line of business for us. We are not a real estate company. The reason why we chose to acquire this piece of land from the MP government is because it is literally given for free in the middle of the city. It is extremely strategic for our team. So you know we've been occupying the space that we are talking from for the last twelve years and we've been paying rent to the government. What we anticipate is we create a state of the art campus which allows us in various ways. One is increasing the creativity in the minds of the stakeholders particularly the customers and the team. Secondly you know create a facility which meets the industrial standards. Third you know all the RFPs that we serve today have a demand from us as to what are the ESG ratings that we follow as a company whether we have green campus, whether we follow green environmental norms because we are in a leased premises we can't do anything like we can't even deploy solar panel or a sewage treatment plant or whatever. So the campus allows all of that plus it is financially viable because you know what we have done is we have done a cash flow analysis. We realized that the amount of rent we are paying today here in this campus, you know, the cost can be recovered in nine years if you put your own campus.
  • Dividend ₹1/share (normal and special) Payout ratio 11%
    This year, the board has approved a regular dividend of 1 rupee per share, which is four times what we used to pay last year. The breakout of that 1 rupee is 50 paise is a normal dividend, 50 paise is a special dividend, owing to the excellent growth that we have delivered this year. So we have paid up capital of about 9.7 crores, 9.7 crore shares. So amount went up to 9.7 crores. This represents 11% of the profit after tax for this fiscal year.
  • Liquidity Cash ₹339 Cr Cash and cash equivalents include accounts receivable of 108 crores.
    PAT is 87 crores, cash and cash equivalent is 339, that includes AR of 108.

Guidance & targets

Revenue Mix

  • AI-augmented software development revenue percentage Revenue Mix · next 12 months · High confidence 100%

    From 43% today

    We aim to make this 100% in the next 12 months.

    — Avinash Sethi

Profitability

  • EBITDA Margin Profitability · ongoing · Medium confidence 24%
    We always maintain that we are happy with 24% EBITDA margin and 14% PAT margins. We are doing better this year, which is a good sign, but would we be able to sustain this margin? The attempt is yes, we will try to, but if we are doing 24%, if we are doing 14% PAT, we are happy. This is the target that we maintain. So don't be, don't be upset if we go back to 24%.

    — Avinash Sethi

  • PAT Margin Profitability · ongoing · Medium confidence 14%

    — Avinash Sethi

Shareholding

  • Promoter share dilution/pledge Shareholding · until October 2026 · High confidence up to 3%
    There is a public statement that we made in October where we said we will dilute up to 3% or we will pledge up to 3%. So either of that can happen over a period of time. We have sold I would say 0.5% or so in last quarter. So it is something that we anticipate to do over a period of a year. So until October 26, we have that window open. So we are well ahead of that.

    — Avinash Sethi

What to watch in Q1 FY27

AI-augmented software development revenue percentage

next quarter (as part of 12-month target)
Current 43%
Target Progress towards 100%

Why it matters

This is a key strategic initiative for future growth and efficiency, indicating the company's adaptation to GenAI.

This year, we have generated 43% of our revenue through AI augmented software development work. So you can say 43% of our team technically is capable of delivering software solutions using AI tools. We aim to make this 100% in the next 12 months.

Risks & concerns

  • Increase in receivables

    medium

    Receivables increased by ₹22 crores due to longer 90-day payment cycles from Fortune 500 clients, but management states no anticipated risk and maintains provisions.

    Analyst acknowledged

  • Sustainability of high margins

    medium

    While current EBITDA (26%) and PAT (16%) margins are high, management is content with 24% EBITDA and 14% PAT, implying potential moderation as they invest in business.

    Management acknowledged

  • Lack of hedging policy

    medium

    The company has stopped its hedging policy since January 2026 after experimenting, citing difficulty in finding a consistent strategy for the volatile macro environment.

    Management acknowledged

Q&A highlights

7 direct, 1 evasive
Contribution of new vs existing clients to revenue growth Direct
We have about 7% business coming from the new clients. And I think you have to understand in the services industry, a new client has a very long tenure.

Provides clarity on the source of revenue growth and the long-term strategy for new client acquisition.

Asked by Mehul

Explanation of Insane SDD AI Direct
In its very fundamental aspect, insane SDD brings a lot of speed using the power of AI for software development. So software development traditionally being done had a certain speed. Insane SDD fast tracks it very, very rapidly.

Clarifies the core benefit and strategic importance of the newly launched AI product for clients.

Asked by Mehul

Revenue growth and margin guidance for next year Evasive
Mihir, unfortunately, we do not give any guidance. But as I said, if you look at the last four quarters, the growth momentum is there. And we're growing both with the existing clients and the new clients. So, that's a good sign.

Management explicitly declined to provide forward-looking numerical guidance, indicating a cautious outlook despite recent growth.

Asked by Mihir

Impact of Salesforce Headless on business Direct
any new technology that comes into the market, it actually offers a new set of tools for people like us. And in this case, in this particular case, it actually does the same as well. We have seen some uptake from our existing clients who want to use that tool. And we're hopeful that it will just offer more opportunities to expand what we're trying to do.

Highlights management's view on new technologies as opportunities for expansion rather than threats.

Asked by Tushar

Rationale behind gifting shares to a charitable trust Direct
I think there is no such rationale as such. We didn't want to incur the capital cost, I mean the capital gain tax on us as a burden. And the recipient was willing to consume it over a period of time. So it was a good idea to just pass on the shares in one go rather than worrying about it in future.

Explains a specific capital allocation decision and its tax implications for the promoters.

Asked by Hitesh

Conviction on achieving 100% AI-led development revenue in 12 months Direct
So it is a multi-pronged strategy. The first strategy is in-house. As Mitesh said, we developed this process and this tool in-house so that we can enable our teams to work better, faster, enable our clients to go to market faster. So this is definitely our internal strategy that we have been trying over the past 12 to 18 months.

Provides insight into the company's aggressive AI adoption strategy, driven by both internal initiatives and client demand.

Asked by Mehul

Increase in receivables by ₹22 crores Direct
I think what is happening is with large companies, if you look at the Fortune 500 customers have increased. They come up with their 90-day kind of a payment cycle, which is where the receivables has been increasing for us. But we don't anticipate any risk there. Plus, we also have, as a cautious company, we always keep a provision in advance into the box. So we are fairly covered.

Addresses a potential concern about working capital, attributing it to client mix and reassuring about risk mitigation.

Asked by Mehul

Alignment of IT Park investment with core business Direct
Let me clarify this is not a line of business for us. We are not a real estate company. The reason why we chose to acquire this piece of land from the MP government is because it is literally given for free in the middle of the city. It is extremely strategic for our team.

Clarifies the strategic rationale behind a significant investment, emphasizing its support for core operations and ESG goals rather than diversification into real estate.

Asked by Hitesh

2 min read 5 chapters

Detailed narrative

Robust Financial Performance in FY26

InfoBeans Technologies Limited delivered a strong financial performance in FY26, with full-year revenue reaching ₹539 crores, marking a 32% year-on-year growth (24% in USD terms). EBITDA surged by 64.3% to ₹138 crores, and PAT saw an impressive 128% increase to ₹87 crores. This led to significant margin expansion, with EBITDA margin improving from 20% to 26% and PAT margin from 9% to 16% for the full year. The company also reported a healthy cash and cash equivalent balance of ₹339 crores.

Strategic Focus on AI and Innovation

A key highlight for the year was the company's aggressive push into AI-augmented software development, which contributed 43% of the total revenue. Management has set an ambitious target to increase this to 100% within the next 12 months, indicating a deep commitment to leveraging AI for efficiency and solution delivery. The company also launched new AI products like Insane SDD 2.0 and RAI, designed to accelerate software development and ensure reliability of AI outputs, positioning InfoBeans at the forefront of AI-led transformation engineering.

Client Relationships and Geographic Diversification

InfoBeans continues to benefit from strong client relationships, with over 90% of its business coming from existing customers. The company successfully onboarded 24 new clients during the year, with new clients contributing approximately 7% to the overall business. The client base includes 18 Fortune 500 companies and 32 large enterprises valued over a billion dollars. Geographically, the revenue mix shows diversification, with the US contributing 53%, Europe 35%, Middle East UAE 7%, and India & APAC 4%, with Germany showing particularly strong performance.

Capital Allocation and Shareholder Returns

The board approved a dividend of ₹1 per share for FY26, comprising 50 paise as normal dividend and 50 paise as special dividend, representing 11% of the fiscal year's profit after tax. The company also disclosed plans to dilute or pledge up to 3% of promoter shares by October 2026, having already sold approximately 0.5% in the last quarter. A strategic investment was made in an IT park, acquired at a nominal cost from the government, intended to enhance creativity, meet industrial standards, and improve ESG ratings, rather than as a new real estate business venture.

Talent Development and ESG Initiatives

The company's headcount grew by 200 in the last quarter, reaching 1790, reflecting the fulfillment of demand. InfoBeans continues its CSR activities through the InfoBeans Foundation, onboarding underprivileged students for software engineering training. ESG efforts include planting over 3,300 trees in the last two years and the new IT park is designed to meet ESG standards. The company was also certified as a Great Place to Work and received the ServiceNow Partner Award for the APAC region, highlighting its commitment to talent and operational excellence.

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