Infollion Resea. — Q2 FY26 earnings call

Call held 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

  • 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

  • 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.

Key financials

  1. Revenue ₹52.67 Cr +46%YoY
  2. EBITDA ₹8.67 Cr +21%YoY
  3. PAT ₹7.3 Cr +23%YoY
  4. Cash Flow from Operations ₹4.27 Cr
  5. Gross Margin 40%
  6. Debtor Days 75 days
  7. Other Expenses ₹2.5 Cr +75%YoY

What they filed

Q4 FY26: revenue up 81.5%, net profit up 25.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY23Q4 FY23Q2 FY24Q4 FY24Q2 FY25Q4 FY25Q2 FY26Q4 FY26
Revenue14 20 25 27 35 +150%42 +110%51 +104%49 +81%
EBITDA3 2 5 5 7 +133%8 +300%9 +80%6 +20%
Net profit2 2 4 4 6 +200%6 +200%7 +75%5 +25%
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.

What to watch in Q3 FY26

Huksa (UPSA) Performance Metrics

end of the year
Current 'Out of the blocks', adding logos, especially large corporates.
Target Specific 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.

Risks & concerns

  • Competitive Service Delays / Loss of Projects

    medium

    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

  • Gross Margin Compression

    low

    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

  • Increasing Other Expenses

    low

    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

Q&A highlights

7 direct
Gross Margin Decline Direct
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

US Expansion Progress Direct
So we've already discussed last, last, just last, in the last AGM, I said that it was almost, more than a quarter of our calls are now coming from US, and it is on an uptrend.

Provides an update on the significant contribution of the US market to the company's call volume and its positive growth trajectory.

Asked by Tej Patel

Huksa (UPSA) Initiative Update Direct
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.

Indicates the progress and strategic focus of the Huksa initiative, with a promise of more detailed disclosure by year-end, suggesting it's gaining traction with large clients.

Asked by Tej Patel

Billing Cycle and Subscription Model Direct
We really tend to pay an expert within 2-3 days, or sometimes four to five days, as soon as the call is confirmed from the client. And we do regular billings with our clients, with larger clients every 10 days, with mid-sized clients every, you know, two times a month, and with small clients once a month. Some part of the same business is actually subscription-based... With small teams, especially financial teams, it tends to work on a subscription basis. So, yes, it helps us in the cash flows, so we always try to increase that.

Explains the company's working capital management related to expert payments and client billing, highlighting the cash flow benefits of the subscription model, particularly with financial clients.

Asked by Bhavik Narang

CXO vs Mid-Manager Calls & Gross Margin Profile Direct
That's a tough question to be answered, top of my head, but at last count, we had, roughly 2,500 CXOs, and about, 5-6,000 executives, From a total of about 100,000... Not too much of a difference. Yeah, broadly similar, broadly similar. It's mostly the same only, the entire, like, 40-45% is the gross margin.

Provides insight into the composition of their expert network and clarifies that gross margins are consistent across different expert levels, indicating a stable pricing model.

Asked by Shubham Jhawar

Increase in Other Expenses Direct
Yeah, I will tell you the exact amount. So, almost other expenses gone up from 1.4 crore last H1, last year H1 to 2.5 crore now anything what is this expense... These are basically the admin expenses, like rent, some kind of software expenses.

Addresses the significant year-on-year increase in other expenses, attributing it to routine administrative costs, which helps clarify the nature of the expense growth.

Asked by Gaurav Nigam

Order Book, Competitors, and Debtor Days Partial
I'm not sure, if order book is I mean, we don't get, like long-term projects, we just have long-term clients who give us lots of short-term projects. So, I'm not sure how to answer the order book questions... No, definitely very, very, consistent, in about 75-80 range for a very long time.

Clarifies that the company's business model doesn't involve a traditional 'order book' for long-term projects and corrects an analyst's perception about increasing debtor days, confirming their consistency.

Asked by Kumar Divyanshu

AI Strategy and Investments Direct
So, we have always positioned ourselves as a Business, where research which has already been done is added upon by research which has never been written down... We are not in the data slash report slash information services written information services business, right? So that's a different business. Good or bad, it's a different problem, but we are not in that business. We are in deep insights... we are not aggressively going ahead and doing M&As or anything of that sort, but we are given a framework of sorts, at least what are the areas we are interested in... we'll be doing a lot of experiments internally, both for our own use cases, we have already integrated our core VC chains with the Vendor mapping and value, chains with our,core tech product, which is which brings me to your next answer, how do they discover?

Details the company's nuanced approach to AI, focusing on internal use cases for deep insights and operational efficiency rather than aggressive external M&A or competing in the data/report business.

Asked by Rohit Balakrishnan

2 min read 6 chapters

Detailed narrative

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.

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.

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.

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.

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.

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.

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