Infinity Infoway H1FY27 Results (BSE: 544567)
Signal: Steady quarter
The read
H1FY27 marks a sharp earnings inflection: revenue grew 8.3% to 1681.15 lakh, while PAT rose 79.4% to 502.43 lakh and operating cash flow reached 513.19 lakh; however, employee costs rose 28.8% and EPS growth of 27.4% materially trailed PAT growth because of dilution.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹16.81 Cr | +8.3% | N/A |
| Net profit | ₹5.02 Cr | +79.4% | |
| EPS | ₹9.21 | +27.4% | |
| EBIT margin | N/A |
P&L walk
Consolidated revenue was 1681.15 lakh, up 8.3% YoY, while PAT rose to 502.43 lakh, up 79.4%; the profit acceleration reflects sharply higher operating profitability and lower relative non-operating drag, although EPS rose only 27.4% because of the enlarged post-IPO share base.
Segments
The company reports a single ERP software and related-services segment with no reportable segment split; standalone PAT of 504.57 lakh was 2.14 lakh above consolidated PAT of 502.43 lakh, so subsidiaries or non-controlling interests were a small drag.
Key positives
- PAT rose 79.4% YoY to 502.43 lakh versus revenue growth of 8.3% to 1681.15 lakh, showing strong earnings conversion relative to topline growth.
- Operating cash flow increased to 513.19 lakh from 117.70 lakh, exceeding PAT of 502.43 lakh and improving earnings quality.
- Cash and cash equivalents rose to 1640.19 lakh from 1113.78 lakh while short-term borrowings were only 7.25 lakh, preserving balance-sheet flexibility.
- Property, plant and equipment plus intangible assets under development increased to 961.87 lakh from 863.57 lakh, consistent with the 172.71 lakh depreciation charge coming on stream.
Key concerns
- Revenue growth moderated to 8.3% YoY, while employee costs increased 28.8% to 437.95 lakh and rose to 26.1% of revenue.
- EPS increased only 27.4% to ₹9.21 despite PAT growth of 79.4%, reflecting dilution from the enlarged equity base.
- Depreciation increased 528.9% to 172.71 lakh, raising the execution requirement for recently added technology and intangible assets.
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