Infollion Resea. — Q4 FY26 earnings call

Call held 20 Apr 2026

Management summary

Infollion Research Services Limited reported a mixed H2 FY26, with overall revenue crossing an assumed ₹100 crores and strong profitability metrics including ₹14.73 crore EBITDA and ₹12.72 crore PAT. The company saw an 8.88% increase in H2 call volumes to 9,800, and its new Huksa vertical achieved over ₹1 crore in revenue. However, the second half experienced a moderation in volumes, particularly in March, and gross margins were impacted by approximately ₹3 crore due to aggressive pricing and investments in new initiatives. Management acknowledged the slowdown in India business towards the year-end, attributing it to broader economic conditions and client growth moderation.

Highlights

  • Huksa revenue crossed ₹1 crore, establishing it beyond an experimental stage.

  • H2 FY26 call volumes increased by 8.88% to 9,800 calls compared to H2 FY25.

  • FY26 Revenue crossed ₹100 crores (assuming correction from ₹100,000 in transcript).

  • FY26 EBITDA stood at ₹14.73 crore and PAT at ₹12.72 crore.

  • Generated over ₹10 crore cash flow from operations and over ₹8 crore free cash flow for FY26.

  • Added almost 70 employees, reaching 270 by year-end, with significant expansion in tech and new initiatives.

Concerns

  • Decrease in volumes in H2 FY26, especially in March, with projects received almost 25% lower than the usual run rate.

  • Gross margin impact of approximately ₹3 crore due to new initiatives and aggressive pricing strategies.

  • Slowdown in India business growth towards the end of FY26, attributed to broader economic factors and client growth moderation.

  • Unpredictability of margin recovery due to various external factors like geopolitical events and AI impact.

Key financials

2 periods

Headline

  • Revenue
    ₹100 Cr
  • EBITDA
    ₹14.73 Cr
  • PAT
    ₹12.72 Cr
  • Cash Flow from Operations
    ₹10 Cr
  • Free Cash Flow
    ₹8 Cr
  • Finance Charges
    ₹0.45 Cr

H2

  • Call Volumes
    9,800 calls
    YoY +8.9%

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.

Segment breakdown

  • Huksa (L&D Vertical)
    ₹1 Cr Revenue

Capital allocation

high confidence
  • M&A Deal Acquisition · Exploring

    Actively exploring M&A opportunities, but currently inclined towards organic build in the US.

    Added almost ₹10 crores of cash flow, strengthening M&A capability.

    Yes, we have evaluated that as well. To be honest, either they are too expensive, and if they are not expensive, we haven't really found value in them, but as of now, in US, we are inclined more towards build, but we are actively exploring if we are able to get something. We have filed our, how do we perceive the entire M&A bit and each and every segment, we have given that what is our interest level, given that we have added almost Rs. 10 crores of cash flow, we are in a far bit stronger position than last year as well.
  • Liquidity Liquidity disclosed Company has added a 'meaningfully large amount of cash' and 'free cash flow to our Kitty' (over ₹8 crore for FY26).
    We have added meaningfully large amount of cash, you know, free cash flow to our Kitty, and hopefully we would be able to press the accelerator, and we have all the wherewithal to do it whenever you find the relevant opportunities.

Guidance & targets

New Business Expansion

  • US Hiring Trigger New Business Expansion · When US business reaches 8-10 crores revenue · Medium confidence Start hiring in US
    If we get to about 8-10 crores, we should start hiring in US, that's the idea.

    — Gaurav Munjal

Overall Business Growth

  • Business Size Overall Business Growth · 5-year level · Low confidence Larger
    at a 5-year level, I probably know that this business is going to be larger.

    — Gaurav Munjal

Gross Margin

  • Gross Margin Improvement Gross Margin · Consolidation phase · Medium confidence Increase price/margins
    If we move into the consolidation phase, then probably we can increase the price

    — Gaurav Munjal

  • Expense Bet (Margin Improvement) Gross Margin · If expansion stops · Medium confidence Add 2-3% to expense bet
    So even if you just stop expanding, you can add 2-3% of our expense bet.

    — Gaurav Munjal

What to watch in Q1 FY27

Huksa repeatable vs one-off economics

Next call
Current Sample still very small
Target More color/answers on economics

Why it matters

To understand the scalability and long-term profitability model of the new Huksa vertical.

Probably the next call, I might have some answers for you. Like, the sample is still very small.

Risks & concerns

  • Unpredictability of margin recovery

    high

    Management cannot predict margin recovery in 3-5 quarters due to many variables (war, AI impact, client acquisition).

    Management acknowledged

  • Volume decline in H2 FY26, especially March

    medium

    Projects received in March were almost 25% lower than usual run rate, leading to flattish annual numbers, attributed to broader economy and client growth moderation.

    Management acknowledged

  • Gross margin compression

    medium

    Gross margin impact of ~₹3 crore due to new initiatives and aggressive pricing for market share.

    Both acknowledged

  • AI impact on secondary research

    medium

    Shallow and wide research (secondary data) is likely to be impacted by AI, though primary research remains valuable.

    Both acknowledged

Q&A highlights

4 direct, 1 evasive
Reason for March volume decline and current trend. Partial
In March On a per-day level, the number of projects we received was very low, almost 25% lower than what was the usual run rate... We've seen some improvement in April, but it is still back at a same per day level. We haven't seen a meaningful increase at this stage.

Highlights recent business slowdown and management's observation of no meaningful recovery trend in early April.

Asked by Shikhar Mundra

Employee expenses peaking and future growth. Direct
Of course, we will add more people in FY 27, how can they be peaked out? So, I'm not sure what do we mean by peaked out, but what I can say is that at least, you know, one and a half, two crores of employee expenses have been besides the core business.

Clarifies that employee expenses are expected to continue growing, especially for new initiatives, impacting core business profitability.

Asked by Shikhar Mundra

Impact of discounts on competitive positioning and gross margins. Direct
if you want some kind of client stickiness, we say that if you complete a certain amount of calls with us, towards the end, we would reward you, or we would, you know, waive off the charges of the last few. So that kind of concentrates the calls with you, as opposed to your payers in a multi-vendor setup.

Explains the strategic use of discounts for client stickiness and market share, acknowledging a ~₹3 crore impact on gross margin.

Asked by Rohit Balakrishnan

Break-even timelines for new businesses (Huksa, MENA, US). Partial
If we include the India to US corridor, probably US business is already break-even... Huksa, It's new to us, we don't know how it'll pan out.

Provides some clarity on US business profitability but indicates uncertainty for Huksa and MENA, which are still in early stages.

Asked by Saurabh Kumar

Predictability of margin drag and bottoming out. Evasive
I just cannot even, if I try to even with the best of my abilities, I cannot predict in quotas. In the longer run I don't what's going on, but in 3 quarters, 4 quarters, 5 quarters, I just don't know what will pan out...

Management acknowledges high unpredictability regarding margin recovery due to various external factors like geopolitical events and AI impact.

Asked by Saurabh Kumar

AI impact on call volumes and research business. Direct
with the advent of AI, primary data rarely gets impacted. It is the secondary data which is likely to be impacted... shallow and wide research is definitely going to be impacted, but primary research not and there are enough opportunities as well for it to cover up.

Provides management's view on how AI affects their business, distinguishing between primary and secondary research and highlighting opportunities.

Asked by Darshan Trivedi

Repeatability and economics of Huksa offerings. Partial
Probably the next call, I might have some answers for you. Like, the sample is still very small.

Indicates that Huksa is still in early stages and more data is needed to assess its long-term economic model and scalability.

Asked by Vikas Kasturi

Mainboard migration timeline and criteria. Direct
whenever the mainboard allows whenever we clear all the criteria, we would like to move to the mainboard, if required. And at this stage, I think we clear most of the criteria, except a few.

Confirms the company's intent to migrate to the mainboard once criteria are met, indicating future growth aspirations and compliance.

Asked by Aditya Maheshwari

2 min read 5 chapters

Detailed narrative

H2 FY26 Performance Overview and Volume Moderation

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.

Strategic Investments and New Initiatives Progress

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 Margin Dynamics and Competitive Stance

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.

AI Impact on Research Business Model

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.

Future Outlook and Mainboard Migration Plans

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.

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