Summary
InfoBeans Technologies Ltd - Q3 FY26 Earnings Call Summary Friday, January 23, 2026, 09:00 A.M. IST
Event Participants
Executives 5 Avinash Sethi (Co-founder), Krunal Sanghvi (Associate Director-Finance), Mitesh Bohra (Co-founder), Siddharth Sethi (Co-founder), Surbhi Jain (Company Secretary)
Analysts 6 Ankit Kumar, Ankur, Gaurav, Mehul, Srinivasu, Sumukh
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue (Quarterly) | ₹142 crores | +38% YoY, +6% QoQ growth; showing strong momentum despite US slowdown. |
| Revenue (9 Months) | ₹392 crores | Represents a revenue CAGR of 24% since 2021. |
| EBITDA (Quarterly) | ₹34.1 crores (approx) | +89% YoY, -6% QoQ; margin normalized to 24% from 29% in the previous quarter. |
| PAT (Quarterly) | ₹24.2 crores (approx) | +173% YoY, -15% QoQ; decrease attributed to increased employee and AI investment costs. |
| Cash & Equivalents | ₹319 crores | Includes ₹108 crores in accounts receivables; strong liquidity position. |
| Headcount | 1,600+ members | Net addition of 77 people in Q3 FY26 to support growth targets. |
| Client Retention | 91% Renewal Rate | Average customer relationship age exceeds nine years. |
Geographic & Segment Commentary
- USA: Contributing 55% of revenue, the segment saw a slight top-line slowdown in Q3 compared to the previous quarter. Management is responding by investing in the sales team, adding six new members in the American region led by the CRO.
- Europe/Germany: Contributing 33% of revenue, up significantly from 16% in FY25. Growth is driven by a strong 2.5-year partnership in Germany and deep engagement with a large logistics client where InfoBeans is now a top-five global vendor.
- Middle East & India: The Middle East accounts for 7% of revenue while India and other regions contribute 5%. Indian operations primarily serve as global delivery centers in Indore, Pune, Chennai, and Bengaluru.
Company-Specific & Strategic Commentary
- AI & Innovation: Launched “Insane SDV” (Spec-Driven Development), an accelerator claiming 50% gains in speed and 50% reduction in developer days. Upcoming launch of Expona 2.0 will utilize Graph RAG technology to reduce LLM hallucinations for enterprise clients.
- Shareholder Value: Announced a 3:1 bonus equity issue (three shares for every one held) to reward long-term shareholders and increase market participation.
- Corporate Structuring: The merger of InfoBeans Cloudtech with the main entity is currently in progress to streamline operations and reporting.
- Regulatory Compliance: Management confirmed that the new labor code has no material financial impact as the basic pay structure was already aligned at 50%.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| EBITDA Margin | 24% (Steady State) | Management considers the previous 29% an outlier and views 24% as the sustainable long-term target. |
| Revenue Momentum | Positive / Increasing | Growth expected to continue based on current momentum and sales hiring, though specific numbers were not provided. |
| Employee Cost | Increasing | Costs will rise in line with net hiring and the impact of October appraisals through the fiscal year. |
Risks & Constraints
| Risk | Context |
|---|---|
| Client Concentration | Top 10 customers contribute over 70% of revenue, with one German client accounting for nearly 20%. Management aims to cap single-client exposure at 25%. |
| Geographic Softness | The US market showed a slight sequential slowdown (approx. ₹34cr vs ₹39cr); mitigation involves heavy investment in US-based sales leadership. |
| Margin Volatility | Recent quarters have shown fluctuations (18% to 29% EBITDA); management warned that high PAT margins of 17% are “unsustainable outliers.” |
Q&A Highlights
Growth Strategy vs. Large IT Peers
- Question: What is InfoBeans doing differently to grow faster than giants like TCS or Wipro? (Mehul)
- Answer: Performance is attributed to higher “hunger,” agility, and the results of investments made 18 months ago starting to materialize. Management noted they cannot compare directly with giants but focus on showing up more often for clients. (Siddharth Sethi, Avinash Sethi)
AI Monetization & Technology
- Question: How are you different in AI and how do you monetize accelerators like Expona 2.0? (Srinivasu)
- Answer: Expona 2.0 moves from traditional RAG to Graph RAG technology for higher accuracy. Monetization comes from delivering projects in half the time; historically, such productivity leads to increased client demand rather than lower revenue. (Mitesh Bohra)
Client Concentration Risk
- Question: Is relying on one German client for 20% of revenue a risk? (Gaurav)
- Answer: The relationship is a sign of strength as InfoBeans serves 8-9 different entities under one global MSA. Being a top-five global vendor for a large enterprise provides stability despite the high percentage. (Avinash Sethi)
Key Takeaway
InfoBeans delivered a strong Q3 FY26 with 38% YoY revenue growth to ₹142 crores, supported by a significant expansion in the European market, which now represents 33% of the mix. While EBITDA margins normalized to a steady-state 24% due to October appraisals and a net addition of 77 employees, the company remains highly profitable with a 173% YoY jump in PAT. Strategically, the firm is pivoting toward an “AI-first” approach, launching proprietary accelerators like Insane SDV and Expona 2.0 to drive developer productivity. The board’s decision to issue a 3:1 bonus share reflects confidence in the company’s ₹319 crore cash position. Despite a sequential dip in US revenue and high client concentration in the top 10 accounts, management is aggressively investing in US sales leadership to sustain long-term growth momentum.
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