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    InfoBeans Tech.

    INFOBEAN
    Information Technology·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

    7

    • 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

    3

    • 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

    Single quarter

    08 metrics
    1. 01Revenue (Full Year)₹539 Cr+32%YoY
    2. 02EBITDA (Full Year)₹138 Cr+64.3%YoY
    3. 03PAT (Full Year)₹87 Cr+128%YoY
    4. 04EBITDA Margin (Full Year)26%
    5. 05PAT Margin (Full Year)16%

    Order Book

    medium confidence

    Composition

    Mix4 geographys
    • US53.0%
    • Europe35.0%
    • Middle East UAE7.0%
    • India and APAC4.0%

    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

    3
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Dividend

    ₹1/share (other)

    Payout ratio 11.0%

    Liquidity

    Cash ₹339 crores

    Cash and cash equivalents include accounts receivable of 108 crores.

    Guidance & targets

    4
    CategoryTargetPriority
    Revenue Mix
    AI-augmented software development revenue percentage
    100%
    		High
    Profitability
    EBITDA Margin
    24%
    		Medium
    Profitability
    PAT Margin
    14%
    		Medium
    Shareholding
    Promoter share dilution/pledge
    up to 3%
    		High

    AI-augmented software development revenue percentage

    next quarter (as part of 12-month target)
    Current43%
    TargetProgress 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.

    How to verify

    key_financials.metrics[label='AI augmented software development revenue']

    Risks & concerns

    3
    RiskSeverity

    Increase in receivables

    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

    medium

    Sustainability of high margins

    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

    medium

    Lack of hedging policy

    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

    medium

    Q&A highlights

    8

    “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

    2 min read5 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.