Inventurus Knowledge Solutions (IKS) Q1 25/26 earnings summary

Executive summary

• Achieved 16% year-on-year revenue growth in Q1 FY26, reaching INR 7,401 million, with EBITDA up 36% to INR 2,378 million and PAT up 59% to INR 1,515 million.

• Maintained strong client relationships, with 95%+ revenues from repeat customers and over 450 enterprise clients.

• Workforce globally diversified with 12,368 employees, including 2,260 clinically trained staff and 45% women.

• Strong execution across five strategic vectors, including AI-native platform, AQuity integration, and outcome-oriented deals.

• Standalone and consolidated unaudited financial results for Q1 FY26 were reviewed and approved by the Board and auditors, with no material misstatements identified.

Financial highlights

• Q1 FY26 revenue was INR 7,401 million, up 15.6% YoY; USD revenue was $87 million, up 13.2% YoY.

• EBITDA margin improved to 32–33.3%, with adjusted EBITDA per employee annualized at INR 0.81 million.

• PAT margin at 20.5%, with basic EPS at INR 8.9, up 57.7% YoY.

• Operating cash flow for the quarter was INR 1,658 million; free cash flow at INR 1,374 million after a $5M performance guarantee.

• Net debt reduced to INR 4,486 million as of June 30, 2025, reflecting ongoing debt repayment.

Outlook and guidance

• Expect continued headwinds from AQuity tail reduction and margin optimization for 2–3 more quarters.

• Focus on margin expansion, technology-led solutions, and outcome-oriented deals to drive future growth.

• Anticipate return to organic growth rates above the 12% outsourced TAM rate post tail-cutting.

• Margin guidance remains early to mid 30s for EBITDA, with stabilization expected after AQuity transition completes.

• Strategic investments and partnerships expected to enhance platform stickiness and support capital-light growth.