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    Infollion Resea.

    INFOLLION
    Services·17 Oct 2025
    Management Summary

    Infollion Research Services Limited reported a robust H1 FY26, with significant revenue growth of 46% to ₹52.67 crores and PAT growth of 23% to ₹7.30 crores. The company is actively pursuing geographic expansion and AI-driven initiatives, while managing a slight dip in gross margins due to accounting adjustments and strategic client acquisition efforts. Management expressed confidence in their business model and continued growth trajectory, particularly in the US market and through the Huksa initiative.

    Highlights

    5

    • Revenue grew by 46% to ₹52.67 crores in H1 FY26, demonstrating strong top-line performance.

    • EBITDA increased by 21% to ₹8.67 crores, and PAT rose by 23% to ₹7.30 crores, indicating healthy profitability.

    • Generated positive cash flow from operations of ₹4.27 crores, reflecting efficient working capital management.

    • Successfully expanded into new geographies, with the US market now contributing over a quarter of calls and showing an uptrend.

    • The Huksa (UPSA) initiative is gaining traction, targeting corporates and adding many large logos, expanding the company's market reach.

    Concerns

    2

    • Gross margins dipped by 2-3% or ₹1-1.5 crores, attributed to a technical reclassification by a new auditor and strategic free 'CD calls' for new partners.

    • Other expenses increased by 75% YoY, from ₹1.4 crores to ₹2.5 crores, primarily due to administrative costs like rent and software.

    What Changed2

    vs Q4 FY26

    Guidance items4 → 0 (-4)Risks discussed4 → 3 (-1)

    Key financials

    Single quarter

    07 metrics
    1. 01Revenue₹52.67 Cr+46%YoY
    2. 02EBITDA₹8.67 Cr+21%YoY
    3. 03PAT₹7.3 Cr+23%YoY
    4. 04Cash Flow from Operations₹4.27 Cr
    5. 05Gross Margin40%

    Huksa (UPSA) Performance Metrics

    end of the year
    Current'Out of the blocks', adding logos, especially large corporates.
    TargetSpecific numbers on growth, client additions, or revenue contribution.

    Why it matters

    Huksa is a key long-term bet for expanding into the corporate market, and specific metrics will validate its success.

    Okay, so we will maybe now, half year is not the right time, but I think at the end of the year, we should be able to disclose some numbers. We have been adding a lot of logos, and we have shared regularly on LinkedIn on the kind of logos, Very large corporates, within the country.

    How to verify

    detailed_narrative[title='Huksa (UPSA) Initiative Progress']

    Risks & concerns

    3
    RiskSeverity

    Gross Margin Compression

    Management attributed the 2-3% dip in gross margin (₹1-1.5 crores) to a technical reclassification by a new auditor and strategic 'CD calls' (free calls) for new partners, stating it's not a significant or recurring issue. — Analyst downplayed

    low

    Increasing Other Expenses

    Other expenses increased by 75% YoY from ₹1.4 crores to ₹2.5 crores, which management explained as basic administrative costs like rent and software, implying it's not a core operational concern. — Analyst acknowledged

    low

    Competitive Service Delays / Loss of Projects

    An analyst mentioned hearsay that Infollion's projects were sometimes delayed compared to competitors, leading to lost opportunities. Management denied this, asserting their service quality is 'as good, if not better'. — Analyst downplayed

    medium

    Q&A highlights

    8

    “There are 2-3 aspects to it. I don't think it was dipped significantly. I think gross margin from last, it should be about 2-3%. In absolute terms, it's a number which is less than a crore. There are two aspects to it. One was technical aspect. the some part of it, in fact, substantial part of it, was due to an auditor change who had some kind of different opinion on how to classify it, so... so we have some prior period income and expenses which has been adjusted... Besides that, no, we are not giving any discounts to existing clients. In fact, we've probably... Doing a fair amount of what you call as CV calls, or corporate development calls, especially in newer geographies and newer kind of clients, in the... So, that's it from my... on it from my side. So, I think it is about, the precise number is somewhere around 1, 1.5 crores, 1.5 crores...”

    Clarifies the reasons behind the reported gross margin dip, attributing it to accounting reclassification and strategic client acquisition costs rather than core business issues or discounts.

    asked by Tej Patel

    2 min read6 chapters

    Detailed Narrative

    01

    H1 FY26 Financial Performance

    Infollion Research Services Limited delivered a strong financial performance in H1 FY26, with revenue growing by 46% to ₹52.67 crores compared to the same period last year. EBITDA increased by 21% to ₹8.67 crores, and PAT rose by 23% to ₹7.30 crores. The company also generated a positive cash flow from operations of ₹4.27 crores, reflecting healthy operational efficiency.

    02

    Geographic Expansion & New Initiatives

    The company is actively expanding into new geographies, particularly the US, Western Europe, and the Middle East, with the US market already contributing over a quarter of its calls and showing an uptrend. The Huksa initiative, now classified as UPSA, is gaining traction with large corporates, expanding the market beyond traditional consulting and investment funds. Management plans to disclose specific numbers for Huksa by the end of the financial year.

    03

    Gross Margin & Expense Analysis

    Gross margins remained broadly stable at 40-45%, despite a 2-3% dip (₹1-1.5 crores) attributed to a technical reclassification by a new auditor and strategic 'CD calls' (free calls) to acquire new partners in emerging geographies. Other expenses, however, increased by 75% YoY, from ₹1.4 crores to ₹2.5 crores, primarily due to administrative costs such as rent and software. Management clarified that debtor days remain consistent at 75-80 days.

    04

    AI Strategy & Innovation

    Infollion is strategically leveraging AI for internal use cases, including vendor mapping and product discovery, focusing on deriving deep insights from unstructured data rather than competing in the data/report services market. The company has launched a beta phase for a marketplace of AI agents and is experimenting with pay-per-use models. Management emphasized a cautious approach to AI investments, prioritizing clear ROI and internal efficiency over aggressive external ventures.

    05

    Business Model & Client Engagement

    The company's business model involves paying experts within 2-5 days and billing clients on a regular cycle (10 days for large clients, twice a month for mid-sized, monthly for small). A portion of the business, particularly with financial teams, operates on a subscription basis, which positively impacts cash flows. Management highlighted that the financial part of the business, especially private equity, has grown faster than other segments.

    06

    Competitive Landscape & Service Quality

    Management addressed concerns about competitive delays, asserting that their service quality and turnaround times are 'as good, if not better' than most competitors. They differentiate themselves through a deeper tech-driven approach, enabling more calls per person and broader domain access, allowing them to discover a wide range of experts across various domains.

    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.