Summary
Inventurus Knowledge Solutions Limited - Q3 FY 2026 Earnings Call Summary Thursday, February 5, 2026, 10:00 AM IST
Event Participants
Executives 3 Nithya Balasubramanian (WTD & CFO), Sachin Gupta (Founder & CEO), Saransh Mundra (VP, Investor Relations)
Analysts 7 Abhishek Maheshwari (SkyRidge Fund Managers), Azim (Barclays), Chirag Kachhadiya (Motilal Oswal), Dhaval Shah (Girik Capital), Jaiprakash Kumhar (Korman Capital), Karan Shah (CWC Advisors), Ruchi Mukhija (ICICI Securities)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue | ₹815 crores | +24.0% YoY, +4.3% QoQ; driven by strong execution across strategic pillars and 19% CC growth. |
| EBITDA | ₹281 crores | +40.4% YoY, +3.6% QoQ; margins reached 34.5% due to AQuity integration efficiencies. |
| Adjusted PAT | ₹215 crores | +48.0% YoY, +8.7% QoQ; excludes ₹12.7 crore non-cash write-off from loan refinancing. |
| Reported PAT | ₹183 crores | +41.0% YoY, +1.4% QoQ; impacted by one-time refinancing and labor code costs. |
| Headcount | 13,350 count | +1.5% YoY; highlights non-linearity as revenue grew 24% with nearly flat hiring. |
| Adjusted FCF | ~100% conversion | FCF remains healthy; actual OCF adjusted for ₹90 crore upfront performance guarantee to a customer. |
| Net Debt | ₹322 crores | Reduced to ~$35 million following refinancing of original $146 million AQuity term loan. |
| Return on Equity | 33% (Adjusted) | Reported at 30%; remains healthy following margin transformation and debt reduction. |
Geographic & Segment Commentary
- Physician/Ambulatory Segment: Core focus area providing 16 integrated chore tasks; management noted a shift toward “platform buying” in mid-to-small segments while large systems remains “point-solution” oriented.
- Hospital/Acute Segment: Strategic expansion area currently building a replica of the ambulatory platform; integration with AQuity has accelerated entry into large health systems.
- Large Health Systems (> $5B): Focus on selling high-impact point solutions (Documentation, Coding) due to complex buying behaviors; seeing increased cross-sell traction post-AQuity integration.
Company-Specific & Strategic Commentary
- AI-First Orchestration: Transitioned from human-led to “agentic” AI native workflows; clinical documentation (Scribble) and autonomous coding are moving toward full autonomy to break revenue-people linearity.
- AQuity Integration: Integration is more or less complete after two years; margins have stabilized sooner than expected, with a focus now shifting to pruning low-margin long-tail customers.
- Net Economic Value (NEV) Model: Deployed a new commercial model guaranteeing EBITDA improvements (700-1000 bps) for clients; Palomar Health deal generated $3M NEV in just four months of full go-live.
- Platform Recognition: Achieved “Best in Class” ratings from KLAS in Revenue Cycle Management and Clinical Documentation, validating the strategy of leading in individual features within a broad platform.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue Growth | > 12% Per Annum | Target to exceed the 12% outsourced TAM growth rate to continue gaining market share. |
| EBITDA Margin | Early-to-mid 30s % | Management intends to reinvest gross margin gains into R&D (currently ~5%) and Sales/Marketing. |
| Effective Tax Rate | ~21% for FY26 | Full-year expectations remain in line with Q3 actuals. |
| Debt Repayment | Accelerated Paydown | Priority is to eliminate the remaining $50 million term loan using strong cash flows. |
Risks & Constraints
| Risk | Context |
|---|---|
| Regulatory/Macro | Changes in Medicare Advantage reimbursement and US labor laws create unpredictability in client volume and spend. |
| Integration Complexity | Integrating with diverse Electronic Health Records (EHR) like Epic can take 3-6 months longer than mid-tier systems, delaying revenue realization. |
| AI Hype vs. Reality | High market noise requires increased marketing and R&D spend to maintain competitive differentiation against “pseudo-competitors” like EHR vendors. |
Q&A Highlights
Deal Pipeline & Revenue Conversion
- Question: When will recently announced deals like Femwell and StrideCare translate to revenue? (Chirag Kachhadiya)
- Answer: Two unnamed deals start in Q4 FY26; StrideCare begins in Q1 FY27. Femwell (800+ providers) will phase in from Q1 to Q3 FY27 (Sachin Gupta).
AI Disruption & Competition
- Question: How does the emergence of Anthropic/Claude affect your IP and competitive moat? (Azim)
- Answer: Tools like Claude accelerate our engineering cycle, allowing us to build in 6 months what previously took 3 years. The real moat is the 18 years of integration with clinical workflows and data at 150,000 providers, which is hard for pure AI players to replicate (Sachin Gupta).
Net Economic Value (NEV) Model
- Question: What is the progress of the “advance” payment model deals like Palomar and WWMG? (Ruchi Mukhija)
- Answer: Palomar generated $3M in NEV in just 4 months against a $16.5M advance. WWMG (on Epic) is on track but takes longer due to complex EHR integration (Sachin Gupta).
EHR Integration (Epic/NextGen)
- Question: Why is integration with Epic a major milestone? (Dhaval Shah)
- Answer: Epic is the dominant “System of Record.” Being in the Epic Showroom allows our products to “read and write” directly to patient records, essential for full task automation (Nithya Balasubramanian).
Key Takeaway
IKS Health delivered a robust Q3 FY26, characterized by 24% YoY revenue growth and a significant EBITDA margin expansion to 34.5%. The quarter’s standout metric was the 1.5% headcount growth against 24% revenue growth, proving the company’s success in leveraging Generative AI to break linear scaling. Strategically, the “Net Economic Value” model is showing early success, with the Palomar Health deal generating $3M in value-add in just four months. Management successfully refinanced AQuity-related debt down to $35M net debt while maintaining an R&D spend of nearly 5% to support “agentic” AI workflows. While macro pressures on US healthcare providers persist, IKS views these as tailwinds that drive outsourcing demand. The company remains focused on maintaining early-to-mid 30% margins while outperforming the 12% industry growth rate.
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