Infinity Infoway Q2 FY27 Earnings Call — Analysis (BSE: 544567)
Infinity Infoway reported strong H1 FY27 results with revenue doubling to ₹16.81 Cr and EBITDA margins expanding to 50.68%, supported by an order book of ₹78 Cr.
Result quality: stable — Results context unavailable. Management sentiment: optimistic.
The take
H1FY27 Revenue from Operations ₹16.81 Cr ( +106.22% YoY ) . New guidance — FY29 zerotouch revenue mix 20-22% . New story: Commercialisation of ZeroTouch IP .
Results
H1 FY27 revenue rose 106.22% YoY to ₹16.81 Cr, EBITDA grew 109.68% YoY to ₹8.52 Cr (margin 50.68%), and PAT jumped 79.36% YoY to ₹5.02 Cr.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Revenue from Operations | ₹16.81 Cr | +106.22% | yoy · H1FY27 · vs H1FY26 ₹8.15 Cr |
| EBITDA | ₹8.52 Cr | +109.68% | yoy · H1FY27 · vs H1FY26 ₹4.06 Cr |
| EBITDA Margin | 50.68% | +84bps | yoy · H1FY27 · vs H1FY26 49.84% |
| PAT | ₹5.02 Cr | +79.36% | yoy · H1FY27 · vs H1FY26 ₹2.80 Cr |
| PAT Margin | 29.89% | -447bps | yoy · H1FY27 · vs H1FY26 34.36% |
| Order Book | ₹78 Cr | point_in_time · H1FY27 · as of 30-Sep-2026 |
Guidance
Management targets maintaining the ~100% growth run rate for FY27 with H2 expected to be stronger than H1, while projecting ZeroTouch to contribute 20-22% of revenue within 2 years.
What management committed to
- ZeroTouch revenue is expected to contribute 20-22% of [Infinity Infoway's] total revenue in the next 2 years. — 20-22%, FY29
- [Infinity Infoway] plans and has a pipeline to maintain the same run rate [~100% YoY growth] for FY27. — same run rate, FY27
- ZeroTouch product carries more than 50%-60% plus EBITDA margin. — More than 50%-60% plus, next 2 years
- [Infinity Infoway] expects H2 FY27 to be better than H1 FY27 in line with seasonal trends. — better than H1, H2FY27
- [Infinity Infoway] expects initial international revenue from private clients within FY27. — FY27
Key themes
SaaS to AI ERP expansion and ZeroTouch commercialisation
How the narrative shifted
- Commercialisation of ZeroTouch IP: Management positions ZeroTouch as a high-margin, patented hardware/software examination security solution serving government and university exams on a per-student-per-paper recurring model.
- Transition to AI-Powered ERP Suite: Evolving from traditional transactional SaaS ERP into AI-enabled operational platforms, supported by in-house GPU servers and proprietary LLM training.
- Geographic and International Expansion: Expanding across 10 Indian states while targeting phased entry into Gulf, Southeast Asia, and European private education markets.
- Margin Sustainability via Operating Leverage: High EBITDA margins of ~50% are deemed sustainable in the near term as internal AI adoption offsets expansion costs and recurring SaaS revenues scale.
Operational commentary
- Commercialisation of ZeroTouch (patented secure on-demand examination paper printing solution) commenced in H1 FY27, with significant ramp expected in Q3 during exam season.
- Order book stood at ₹78 Cr as of September 30, 2026, providing robust revenue visibility.
- Team expanded from 156 to 178 members to strengthen outbound sales, execution, and regional presence across 10+ Indian states.
- Added high-performance GPUs and physical server infrastructure in-house to develop proprietary LLMs and AI data models.
- Executing Season 3 of Gujarat Gyan Guru Quiz (G3Q) with the Government of Gujarat, integrated with AI-powered learning modules.
- Customer footprint includes 61+ education clients (28 recurring) and 35+ industry enterprise clients (16 recurring).
Analyst Q&A
Q. What is the revenue contribution from ZeroTouch in H1 FY27 and what are its medium-term targets and margin profile?
ZeroTouch revenue in H1 was at a nominal early stage, but Q3 is expected to see strong ramp as exams begin. In 2 years, ZeroTouch is expected to contribute 20-22% of revenues with 60%+ EBITDA margins due to proprietary IP and volume-based pricing.
Q. What is the reason for the steep increase in depreciation and property, plant & equipment?
Depreciation commenced as ZeroTouch and other R&D products transitioned from development to commercial use. PPE additions were driven by upgrading ZeroTouch hardware devices and purchasing GPU infrastructure for in-house AI and LLM training.
Q. What are the plans for international expansion and which markets are being targeted?
The company is targeting private K-12 schools first, rolling out in phases to the Gulf region first, followed by Southeast Asia and Europe, with initial revenue expected within FY27.
Research and educational content only. Not investment advice.