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    IVALUE

    IVALUE
    Information Technology·27 May 2026
    Management Summary

    iValue Infosolutions reported strong Q4 and full-year FY26 results, with gross sales growing 19.5% and normalized PAT up 20% YoY. The company highlighted robust demand across all technology segments, a healthy qualified opportunity book of INR 5,800 crores, and significant improvements in operating efficiency and cash flow. Management provided positive guidance for FY27, expecting faster growth in both top-line and PAT, while also evaluating capital allocation strategies including potential inorganic growth or enhanced shareholder returns.

    Highlights

    5

    • FY26 Gross sales reached INR 2,913.9 crore, marking a 19.5% year-on-year growth.

    • Normalized PAT for FY26 stood at INR 102.3 crore, reflecting a 20% growth year-on-year.

    • The qualified opportunity book has grown to INR 5,800 crores, providing strong revenue visibility with a 30-35% conversion rate.

    • Net working capital days improved significantly, coming down to 30 days, and cash flow from operations was INR 108 crore.

    • Adjusted ROCE was approximately 40.5% and ROE was around 18% for the full year.

    Concerns

    3

    • A one-time cost of INR 5.2 crore was incurred due to the new Labour Code, impacting reported PAT.

    • The ILM segment experienced a degrowth of 70% QoQ and 20% YoY.

    • A dip in gross margins was observed in Q1 FY26 due to forex changes and component cost changes, though subsequent quarters recovered.

    Key financials

    Metrics

    7

    Periods

    3

    Q4 FY26

    1
    • Gross Sales
      ₹750 Cr
      YoY+12%

    FY26

    5
    • Gross Sales
      ₹2,913.9 Cr
      YoY+19.5%
    • Gross Margins
      ₹266 Cr
    • Net Cash
      ₹212 Cr
    • Adjusted ROCE
      40.5%
    • ROE
      18%

    Normalized FY26

    1
    • PAT
      ₹102.3 Cr
      YoY+20%

    Segment breakdown

    Cybersecurity
    50% Contribution to Gross Sales (FY26)— Growth (FY26)19% Growth (Q4 FY26 YoY)0% Growth (Q4 FY26 QoQ)
    Data Center Infrastructure (DCI)
    29.0% Growth (Q4 FY26)25% Growth (Q4 FY26 QoQ)
    ILM
    -20% Growth (Q4 FY26)-70% Growth (Q4 FY26 QoQ)
    ALM, Cloud and Others
    10% Growth (Q4 FY26)80% Growth (Q4 FY26 QoQ)
    Annuity Business
    42.2% Contribution to Gross Sales (FY26)
    BFSI
    40% Contribution to Total Business
    Government
    20% Contribution to Total Business
    ITES and Telcom
    20% Contribution to Total Business
    Other Verticals (Healthcare, Automobile, Pharma)
    20% Contribution to Total Business
    List

    Order Book

    high confidence

    Total Value

    ₹ 300 crores

    as of 2026-03-31

    quantified

    Execution

    expected to translate into sustained revenues over the next three to five years

    Pipeline

    deal pipeline tcv

    Qualified opportunity book with 30-35% conversion rate

    "The INR 5,800 crore represents qualified leads or opportunities in CRM, not a signed order book, and the INR 300 crore for GCP is a customer commitment based on workloads."

    Source:
    Prepared remarks

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Debt

    Gross ₹40 crores

    Liquidity

    Cash ₹212 crores

    Net cash, cash after adjusting for the debt and borrowings, is around INR 212 crore for the year.

    Guidance & targets

    5
    CategoryTargetPriority
    Revenue
    Top-line growth
    18-20%
    		High
    Profitability
    PAT growth
    20-22%
    		High
    Profitability
    Operating leverage (incremental gross margin to EBITDA)
    >70%
    		High
    Margin
    Gross margins
    around 10%
    		Medium
    Debt
    Gross debt
    INR 40 crore to INR 60 crore
    		High

    FY27 Top-line growth

    FY27
    CurrentFY26 growth of 19.5%
    Target18-20% growth

    Why it matters

    Verifying if the company achieves its accelerated revenue growth target for the next fiscal year.

    Yes, so we would rather maintain and sustain our growth trajectory that we have mentioned to the market. We will continue to sustain and maintain that, Vibhav. Like typically 18% to 20% on the top line and about 20% to 22% on PAT.

    How to verify

    guidance_and_targets[metric='Top-line growth']

    Risks & concerns

    4
    RiskSeverity

    One-time cost from new Labour Code

    A one-time cost of INR 5.2 crore was incurred due to the new Labour Code, impacting PAT for the period. — Management acknowledged

    low

    Q1 FY26 gross margin dip

    Gross margins in Q1 FY26 were impacted by forex changes and component cost changes, but the company has since implemented discipline to manage these factors. — Management acknowledged

    low

    Supply chain disruptions and component availability

    While cybersecurity supply is stable, there could be potential slowdowns in DCI due to component availability, though the market is now tuned to such delays. — Analyst acknowledged

    medium

    Currency volatility

    The company hedges its dollar-to-rupee exposure, a practice maintained for 18 years, to mitigate currency risk. — Analyst acknowledged

    low

    Q&A highlights

    8

    “Yes, we do have because traditionally you know that our Q4 has been a spike in the business. And we do have a little more than couple of deals, large deals that we cracked in Q4. The execution is still on. We have billed them. The service is still on. That's the reason I'm reserving naming those accounts right now, because there are other listed companies who may want to come out with those names. So hence, I'm reserving those names right now here on this call.”

    Management confirmed large deals in Q4 but declined to name them, indicating competitive sensitivity or ongoing processes.

    asked by Vibhav Khandelwal

    2 min read6 chapters

    Detailed Narrative

    01

    Strong Financial Performance in FY26

    iValue Infosolutions delivered robust financial results for FY26, with gross sales reaching INR 2,913.9 crore, marking a 19.5% year-on-year growth. The normalized PAT (excluding one-time📎 Labour Code impact) stood at INR 102.3 crore, demonstrating a 20% growth over the previous year. For Q4 FY26, gross sales were INR 750 crore, an increase of 12% year-on-year, indicating consistent performance.

    02

    Broad-Based Growth Across Technology Segments

    Growth during the year was broad-based across all four technology segments. Cybersecurity remained the core engine, contributing 50% to gross sales and being the fastest-growing segment. Data Center Infrastructure (DCI) also showed strong momentum, growing 29% in Q4 FY26. The annuity business, representing recurring revenue, contributed 42.2% to the gross sales, highlighting a stable revenue stream.

    03

    Strategic Focus Areas for FY27

    For FY27, the company's key focus areas include AI-driven cybersecurity, DCI with emerging opportunities in AI data centers, and next-generation digital infrastructure. Geographic expansion into select ASEAN markets is also being evaluated, with a controlled approach to assess market viability. The cloud business, particularly Google Cloud, secured an order book exceeding INR 300 crore in FY26, providing multi-year revenue visibility.

    04

    Enhanced Operating Efficiency and Capital Management

    The company demonstrated significant improvements in operating efficiency, with over 85% of incremental gross margin flowing down to EBITDA in FY26. Net working capital days were reduced to 30 days, and cash flow from operations reached INR 108 crore, exceeding PAT for the first time. Net cash, after adjusting for debt and borrowings, stood at INR 212 crore, and adjusted ROCE was 40.5% with an ROE of 18%.

    05

    Positive Outlook and FY27 Guidance

    Management expressed optimism for FY27, guiding for faster growth than FY26, with a projected top-line growth of 18-20% and PAT growth of 20-22%. They anticipate maintaining operating leverage, with over 70% of incremental gross margin flowing to EBITDA in the next 2-3 years, and expect gross margins to be around 10% in the short-term future. The qualified opportunity book of INR 5,800 crores provides strong revenue visibility for the upcoming year.

    06

    Capital Allocation Strategy

    The board is actively evaluating various avenues for long-term value creation, including strategic inorganic opportunities and shareholder returns initiatives like dividends or share buybacks. Management indicated that if no suitable inorganic growth opportunity is pursued this year, a policy for enhanced shareholder returns would be announced. The gross debt level is expected to be maintained within the INR 40-60 crore benchmark for the full year.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.