1. At a Glance – Blink and You’ll Miss the Plot Twist
InfoBeans Technologies Ltd decided Q3 FY26 was the right time to wake up and choose violence (the good kind). Revenue clocked ₹138 Cr, up 38% YoY, while PAT jumped 173% YoY to ₹19 Cr. And just when investors were catching their breath—boom, 3:1 bonus announced. Classic “results + reward” combo, straight out of the small-cap IT playbook.
Market cap sits around ₹2,033 Cr, CMP near ₹839, with the stock already running 68% in 3 months and 118% in 1 year. Valuations? P/E ~26.5, slightly above industry median ~24.4, EV/EBITDA ~15.6. Not dirt cheap, not nosebleed expensive—awkward middle child territory.
But here’s the masala: margins had collapsed in FY24 due to poor utilization, everyone panicked, and now Q3 FY26 shows operating leverage kicking back in like a delayed Diwali bonus. Question is—is this a one-quarter firecracker or the start of a steady lantern festival?
2. Introduction – From “Utilization Trauma” to “Utilization Drama”
InfoBeans is that classic Indian mid-cap IT story: founded in 2000, survived Y2K, dot-com bust, global financial crisis, COVID, and still shipping code while half the world argues about AI replacing developers.
FY24 was… uncomfortable. EBITDA margins slid from 21% to 17%, PAT margins from 9% to 6%. Why? Low team utilization (~74%) for the first three quarters. Translation: engineers on payroll, projects not billing. Every IT CFO’s worst nightmare.
Then Q4 FY24 showed utilization improving to ~80%, and FY25–FY26 followed through. Q3 FY26 numbers now look like the company finally got its bench under control and clients back on speed dial.
So the narrative flipped:
- From “Is growth dead?”
- To “Okay fine, maybe they just tripped for a year.”
But before we clap too hard—is InfoBeans structurally stronger, or just riding a cyclical bounce?
3. Business Model – WTF Do They Even Do? (Explained Like You’re Busy)
InfoBeans lives
in the IT-BPM services universe, split neatly into two halves:
1) Product Engineering – 52% of FY24 Revenue
This is the nerdy, sticky stuff:
- Product design & innovation
- Rapid prototyping
- Enterprise app development (web & cloud)
- Ongoing maintenance and sustenance
Basically: “You built a product, now keep it alive and evolving.” High switching costs, long client relationships, decent margins when utilization behaves.
2) Digital Transformation – 48% of FY24 Revenue
Buzzword alert 🚨 but still billable:
- Application modernization
- Cloud-native development
- DevOps, automated QA
- UX/UI design
This segment feeds off legacy enterprises panicking about tech debt. Not sexy like GenAI startups, but reliable—like an uncle with a fixed deposit.
Client mix is the real flex:
- 193 clients
- 14 Fortune 500
- 15 enterprises with >$1bn revenue
- 92% revenue from existing clients
- Top 10 clients = 50% revenue, average relationship ~9 years
That’s not churny freelance IT. That’s marriage with renewal clauses.
4. Financials Overview – Numbers That Deserve a Second Look
Quarterly Performance Table (₹ Cr)
| Metric | Latest Qtr (Q3 FY26) | YoY Qtr | Prev Qtr (Q2 FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 138 | 100 | 125 | +38% | +10% |
| EBITDA | 30 | 14 | 31 | +114% | -3% |
| PAT | 19 | 7 | 23 | +173% | -17% |
| EPS (₹) | 7.96 | 2.90 | 9.33 | +174% | -15% |
Commentary (No Sugarcoating):
- Revenue growth is clean and broad-based
- EBITDA margin ~22%—back to respectable IT territory
- QoQ PAT dip is tax + normalization, not operational panic
- EPS volatility quarter-to-quarter is normal in mid-cap IT
