Infollion Resea.

Infollion Research Services Limited reported a mixed second half for FY26. While the company achieved a significant milestone of crossing an assumed ₹100 crores in revenue for the full fiscal year, with EBITDA at ₹14.73 crore and PAT at ₹12.72 crore, the latter half experienced a moderation in volumes. Specifically, H2 FY26 saw 9,800 calls, an 8.88% increase from 9,000 calls in H2 FY25, but March volumes were down almost 25% from the usual run rate, contributing to a flattish annual number.

The company continued its strategic investments in new initiatives, with Huksa, its L&D vertical, crossing ₹1 crore in revenue and expanding to a 50-member team, moving beyond an experimental stage. Approximately ₹1.5-2 crores of employee expenses were allocated to these new ventures, including tech team expansion (20-25 people) and US/MENA market development. Management noted that US operations, including the India to US corridor, are likely already break-even, and they aim to start hiring in the US once revenue reaches ₹8-10 crores.

Gross margins faced pressure, with an estimated impact of ₹3 crore, primarily due to aggressive pricing strategies aimed at gaining market share and client stickiness in a multi-vendor environment. Management stated they are 'leading the charge' in pricing and are structurally capable of absorbing these discounts. They also explained that 1-2% margin fluctuations are not substantial in their business, which is not highly price-sensitive, and that they are gaining market share in India.

Management discussed the dual impact of AI, acknowledging it as both a threat and an opportunity. They believe AI will primarily impact 'shallow and wide research' (secondary data) but will make 'primary data' even more valuable. The company's focus on primary research and 'data which has never been written down' positions them to leverage AI for efficiency, including bot-moderated interviews, while maintaining the value of human-in-the-loop logic. They noted that AI has helped them, and they see opportunities in this space.

While the short-term outlook for H2 FY26 was 'subdued,' management expressed confidence in long-term growth, expecting the business to be 'larger' in a 5-year perspective. The company is actively pursuing a mainboard migration, having met most of the criteria, including crossing ₹100 crores in revenue and having over 1,000 shareholders, and intends to shift when appropriate. They also highlighted a strong cash position with over ₹8 crore in free cash flow, enabling future investments and aggressive pursuit of new opportunities.