InfoBeans Tech. Q1 FY27 Results (NSE: INFOBEAN)
Signal: Steady quarter
The read
Infobeans delivered a quality operational quarter: revenue grew 36.6% YoY, the fastest in eight quarters, and EBITDA margin expanded ~90bps YoY (7th consecutive expansion) on operating leverage – employee cost grew slower than revenue, and depreciation/finance costs were flat/low. The PAT decline is entirely a base effect from a one-time CARES Act grant (₹636 Lakh in Q1FY26) that did not recur; core operating profit (EBITDA less other income) rose strongly. EPS adjusted for bonus shows healthy ₹2.23 vs ₹2.39 last year, but on an operating basis the trajectory is accelerating. The standalone results confirm the pattern, with the subsidiary grant skew isolated.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹152.77 Cr | 36.6% | 7.7% |
| EBIT | ₹35.43 Cr | 0.5% | |
| Net profit | ₹21.62 Cr | -7.3% | |
| EPS | ₹2.23 | -6.7% | |
| EBIT margin | 23.3% |
P&L walk
Revenue growth accelerates to 36.6% YoY, the strongest in 8 quarters, led by volume/headcount-driven expansion. Operating leverage is evident: employee cost grew only 35.7% (vs revenue +36.6%), driving 140bps QoQ improvement in employee-cost-to-revenue; EBITDA margin expanded 90bps YoY to ~42.3% (EBITDA = revenue - employee cost - other expenses + other income = ~6,465 Lakh). The big swing is other income, which fell 67.7% YoY due to absence of ₹636 Lakh CARES Act grant received in Q1FY26, pulling PAT down 7.3% despite strong operational growth. EPS of ₹2.23 (post-bonus) lags PAT decline marginally due to slight dilution from ESOP exercises.
Key positives
- Revenue growth accelerated to 36.6% YoY from mid-single digits six quarters ago.
- Operating leverage evident: employee cost grew 35.7% vs revenue 36.6%, driving 430bps YoY improvement in employee-cost-to-revenue ratio.
- EBITDA margin (OPM) expanded 90bps YoY – seventh consecutive quarter of margin expansion.
- Finance costs low and declining; depreciation also fell YoY.
- Basic EPS ₹2.23, solid on an operating basis (ex-one-off grant).
Key concerns
- PAT declined 7.3% YoY due to absence of prior-year ₹636 Lakh CARES Act grant in one subsidiary.
- Other income fell 67.7% YoY; reliance on grant base makes YoY comparables noisy.
- Standalone PAT also down 1.1% YoY, though less impacted.
- EPS declined 6.7% YoY, reflecting PAT dip and minor ESOP dilution.
Research and educational content only. Not investment advice.