Ivalue Infosolutions Limited — Q3 FY26 earnings call

Call held 4 Mar 2026

Management summary

iValue Infosolutions Limited's Q3 FY26 earnings call focused on the transformative impact of AI on its business and the broader IT sector. Management reiterated its FY26 top line growth guidance of 18-20% and PAT growth of 22-25%, emphasizing new opportunities in AI-driven cybersecurity and its role as an AI infrastructure orchestrator. While deal cycles are elongating due to customer AI evaluations, the company views this as a temporary challenge and is investing in talent development to capitalize on the AI shift.

Highlights

  • Reaffirmed FY26 top line growth guidance of 18-20% and PAT growth of 22-25%.

  • AI is opening up new market categories and opportunities, especially in 'Cybersecurity for AI'.

  • iValue's multi-OEM curated solution stacks provide a competitive moat, difficult for hyperscalers to replicate.

  • The company is proactively addressing talent needs by integrating AI into its iAcademy curriculum.

Concerns

  • Management deferred quantifying AI investment until the next quarter's board meeting.

  • Deal cycles are elongating as customers evaluate AI-ready products, potentially causing a 'little dip' in sales velocity.

  • Talent competition and scarcity in AI-related skills remain a challenge, though iValue is investing in training.

What they filed

Q1 FY27: revenue down 29.3%, net profit up 50.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue211 240 255 215 313 +48%209 −13%253 −1%152 −29%
EBITDA26 24 47 10 38 +46%28 +17%48 +2%17 +70%
Net profit19 17 37 10 27 +42%15 −12%41 +11%15 +50%
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.

Order book

low confidence
Management did not provide specific order book or pipeline numbers, referring to maintaining the existing FY26 outlook and deferring FY27 outlook to the next board meeting.

Source: Q&A

Guidance & targets

Revenue

  • Top Line Growth Revenue · FY26 · High confidence 18% to 20%
    We would maintain that whatever we mentioned like, in top line 18% to 20% growth and about 22% to 25% growth on PAT.

    — Swaroop Muvvala

Profitability

  • PAT Growth Profitability · FY26 · High confidence 22% to 25%
    We would maintain that whatever we mentioned like, in top line 18% to 20% growth and about 22% to 25% growth on PAT.

    — Swaroop Muvvala

What to watch in Q4 FY26

AI Investment Quantification

next quarter
Current Not quantified
Target Quantified investment in AI (Rupees/Crores)

Why it matters

Provides insight into the scale of iValue's strategic AI initiatives and capital allocation towards this growth area.

While our budgeting is still on Deepak, I will be able to share you in next quarter for sure, but right now as of now the plan is on. I'm just waiting for my board meeting that is anytime scheduled. Once that is approved, I'm willing to share that with you.

Risks & concerns

  • Complexity of AI Adoption and Governance

    medium

    AI introduces new complexities in IT infrastructure, cybersecurity, and governance, including 'Shadow AI', which organizations must address.

    Management acknowledged

  • Elongated Deal Cycles due to AI Evaluation

    medium

    Customers are taking longer to evaluate AI-ready products, leading to a 'little dip' and elongation in deal cycles for legacy tool renewals.

    Management acknowledged

  • Talent Competition and Scarcity in AI

    medium

    There is a significant shortage of skilled resources in cybersecurity for AI, leading to talent competition, which iValue is addressing through its iAcademy.

    Management acknowledged

Q&A highlights

6 direct, 2 evasive
AI Investment Quantification Evasive
While our budgeting is still on Deepak, I will be able to share you in next quarter for sure, but right now as of now the plan is on. I'm just waiting for my board meeting that is anytime scheduled. Once that is approved, I'm willing to share that with you.

Management deferred quantifying the company's AI investment, indicating that strategic financial details are still being finalized.

Asked by Deepak Poddar

Order Book and Pipeline Outlook Evasive
Deepak, to be very frank, we are not changing our outlook for this year which we have mentioned multiple times. So we continue with that outlook, we'll retain and sustain that outlook for this financial year. Going forward, yes, we will share our outlook for the subsequent financial year after our board meeting.

Management did not provide specific order book or pipeline numbers, instead referring to existing FY26 outlook and deferring FY27 outlook, which limits visibility.

Asked by Deepak Poddar

AI Impact on Productivity and Revenue Model Direct
But you have to understand us, we are what you call it as a value-added distributors wherein we recognize our revenues by selling products, not services. Services is a very small component. So as of now there is no what you call it as a deflation in our revenues as of now.

Management clarified that as a value-added distributor focused on product sales, AI-driven productivity gains in services do not directly deflate their revenue, and AI requires infrastructure upgrades leading to higher invoice values.

Asked by Bhavin Shah

AI Impact on Product Pricing Direct
So, Bhavin, there won't be any change in the pricing of the products. Where the change is going to happen and this, which is very evident that you see across is that, let's say, you take any project. If a project is going towhen it used to take conventionally about a year to roll out, now that will be on a faster pace.

Management stated that product pricing will remain stable, but AI will accelerate project implementation, reducing rollout time rather than impacting product costs.

Asked by Bhavin Shah

FY27 Outlook Moderation due to AI Challenges Direct
Bhavin, we have not lost the zeal or we have not lost the excitement about any financial year, because we have seen this, this is not the first time AI has just come around, we have seen many more than this worst situation and we have been growing. So, keeping our tradition and historical data that it shows, I don't think so we need to worry. We are not worried. If anything is there, we'll definitely highlight it. As of now as we speak, we don't see any situation where we need to be alert about.

Management denied any current concerns about a moderation in the FY27 outlook despite acknowledged challenges like elongated deal cycles, maintaining a positive stance.

Asked by Bhavin Shah

AI-driven Cybersecurity Case Study Direct
Yes, so there is a contract manufacturing company, okay, which is doing contract manufacturing for world's largest Pharma and Consumer company. And that company had a major challenge and major impact in terms of their entire operations in Ireland were actually hacked, and there was a ransomware attack and entire operations were down number one. ... We started implementing certain products for him and that solution stack, where we were able to multiply our point product sale, which was going on, trying to help him recover from ransomware and we ended up selling him five-six products under a single solution.

Provided a concrete example of how iValue's integrated AI-driven solutions helped a client recover from a ransomware attack and led to multi-product sales.

Asked by Patanjali Chinta

Data Center Implementation with AI Direct
Wow. That also I can answer, okay. for a data center to run, let me put it that way, there are 31 different types of products that are needed for a complete data center to run. One of the data centers that we are designing right now and I can speak about that. Because it's absolutely fresh in my mind as well. ... So right from cooling system, cabling, network, so you take network Arista, server compute is super micro, firewall is checkpoint and they're running GPUs on top of it. So, I'm going up to application layer.

Detailed the complexity and breadth of iValue's offerings for AI-ready data centers, involving 31 different products for a BFSI customer, showcasing their orchestration capability.

Asked by Patanjali Chinta

iValue's Moat Against Hyperscalers Direct
No, I think what we are trying to say is that, not that anyone cannot replicate. Technology information is now available. Everyone can replicate it. The point we were trying to say here is that the moat that we created using the curated model of this solution stacks, that moat which we have created and strengthened it by getting Al native products into it, that's the moat which is going to be little difficult to replicate for some time at least.

Management explained that while technology is replicable, their curated multi-OEM stack, enhanced with AI-native products, creates a temporary but significant competitive advantage.

Asked by Karthikeyan V.

3 min read 7 chapters

Detailed narrative

AI's Transformative Impact and Market Shifts

iValue Infosolutions is witnessing one of the most significant changes of the decade with AI reshaping organizations and introducing new complexities in IT infrastructure, cybersecurity, and governance. The company positions itself at the intersection of these shifts, helping organizations transition from their current state to future AI-driven models. AI's power is demonstrated through examples like Face ID authentication, Zomato's weather-based delivery predictions, and real-time fraud detection in FinTech, highlighting its pervasive daily use.

Government of India's AI Mission and Data Center Growth

The Government of India's AI Mission has deployed approximately 38,000 GPUs and registered about 2,300 startups. This initiative emphasizes 'Sovereign Compute,' requiring AI operations and data to remain within India, leading to an explosion in data center growth from providers like Yotta, NextGen, and E2E. The mission's pillars include data models built in-house, sector-wise applications, and safe AI governance to address challenges like 'Shadow AI' where private organizational data might be inadvertently exposed.

AI's Industry-Specific Impact and Complexities

AI has a high impact on industries with real-time data generation, such as BFSI (700-800 applications generating data), Healthcare (DICOM files, health bands for patient outcomes), IT Services (CodeGen, testing automation), and Retail e-commerce (personalization, recommendation engines). While AI brings significant benefits, it also introduces complexities that cannot be solved by a single product. iValue addresses these by integrating multiple products into cohesive solutions, acting as an orchestrator.

Cybersecurity in the Age of AI: New Categories and Challenges

AI is reshaping cybersecurity in two ways: AI for Cybersecurity (AI-driven products reducing false positives, creating Zero Trust architectures) and Cybersecurity for AI (protecting AI implementations themselves). The latter is a new category addressing risks like 'Prompt Injection' and data leaks from employees using generative AI tools. The TAM for Cybersecurity for AI is expected to be massive by 2031, requiring multi-OEM architectures and managed security outcomes to protect confidential data.

iValue's Strategic Positioning and Multi-OEM Curation

iValue is structurally positioned as an 'AI infrastructure orchestrator' due to its multi-OEM curation model, which integrates various products to secure AI systems. The company has signed with OEMs like Supermicro and Lenovo to provide GPU-ready infrastructure for AI workloads. This curated approach, encompassing data pipelines, GPU infrastructure, and regulatory expertise, is considered a moat that is difficult for hyperscalers or startups to replicate in the short term, as it offers an integrated solution for customers.

AI-Driven Business Model and Revenue Outlook

iValue's business model, primarily focused on selling products as a value-added distributor, is not expected to see deflation in revenues due to AI-driven productivity gains in services. Instead, AI is seen as an accelerator, opening new avenues and increasing the value of projects due to the need for underlying infrastructure changes. Management reiterated its FY26 guidance of 18-20% top line growth and 22-25% PAT growth, expressing confidence in the sustainability of its margins and the strength of its moat.

Challenges and Risks in AI Adoption

Despite the opportunities, iValue acknowledges risks such as customers adopting a 'wait and watch' approach, leading to elongated deal cycles as they evaluate AI-ready products. This can cause a 'little dip' in sales velocity for legacy tools. Talent competition and scarcity in AI-related skills also pose a challenge, which the company is addressing through its iAcademy. However, management remains optimistic, stating that no current situation warrants concern regarding the FY27 outlook.

This is an AI-generated summary of a publicly available earnings call transcript.
View original transcript

More Information Technology earnings calls