IVALUE

iValue Infosolutions achieved its best-ever quarter in its 18-year history, with Q2 FY26 gross sales reaching ₹887 crores, marking a 37% year-on-year increase. Net sales for the quarter also saw significant growth, rising 52% year-on-year to ₹329 crores. This strong performance contributed to H1 FY26 gross sales of ₹1,494 crores (up 33.6% YoY) and net sales of ₹557 crores (up 35% YoY), reflecting robust momentum across all business segments.

The company demonstrated strong profitability, with Q2 FY26 operating EBITDA at ₹44.5 crores, a 44% year-on-year growth, and PAT at ₹29.7 crores, a 57% year-on-year increase. For H1 FY26, operating EBITDA stood at ₹60.4 crores (up 31.7% YoY) and PAT at ₹40.1 crores (up 42.9% YoY). Operational discipline led to a marginal improvement in networking capital days to 46 days and significant increases in adjusted ROCE to 41.6% and ROE to 23.5% in Q2 FY26.

iValue is strategically positioned to capitalize on the evolving technology landscape, particularly in AI. The company highlighted the massive investment in Data Center Infrastructure, with India's capacity projected to grow from 1,200 megawatts to 8,000 megawatts by 2030, creating multi-billion dollar opportunities. The cybersecurity market in India, currently $3.3 billion, is expected to reach $20 billion by 2032 due to AI adoption, presenting significant growth avenues for iValue.

The annuity business remains a cornerstone of iValue's model, contributing 42.3% of overall gross sales in H1 FY26 and growing 39% year-on-year. Management aims to maintain this contribution in the 40-45% range. The company primarily engages with end-customers through system integrators, with over 85% of dollar amount and 90% of transaction count flowing through SIs, fostering long-standing relationships and recurring demand patterns.

All four technology segments—Cybersecurity, Information Lifecycle Management, Data Center Infrastructure (DCI), and Application Lifecycle Management—experienced double-digit growth in H1 FY26. Cybersecurity, which accounts for 48% of the total business, grew 29% YoY, while DCI saw a 71% YoY growth. BFSI and government verticals were significant growth drivers in Q2 and H1, collectively contributing approximately 65% of the total business, and are expected to continue this momentum.

Management emphasized that operating leverage will be a key driver for future profitability. They noted that expenses, including manpower and administrative costs, are not expected to grow at the same pace as gross sales, creating room for margin expansion. A one-time^📎 cost of approximately ₹4 crores related to an annual event in the previous year was eliminated by changing its format, contributing to cost savings and sustainable expense management.