Inventurus Knowledge Solutions (IKS) Q3 24/25 earnings summary

Executive summary

• Achieved 16% year-on-year revenue growth in Q3 FY 2025, reaching INR 6,572 mn, with EBITDA margin expanding to 31% and PAT margin at 20%.

• Secured major client wins, including a 15-year, $16.5 million deal with Palomar Health, and partnerships with Radiology Partners and Western Washington Medical Group.

• Launched new GenAI-enabled products such as Scribble Now and established a GenAI Center of Excellence in the U.S.

• Board reviewed and approved unaudited consolidated and standalone financial results for the quarter and nine months ended December 31, 2024.

Financial highlights

• Q3 FY25 revenue was INR 6,572 mn, up 16% year-on-year and 2.2% sequentially; constant currency growth was 12%.

• EBITDA margin reached 30.5%-31%, with Adjusted EBITDA margin at 31.5%.

• PAT grew 28% year-on-year to INR 1,297 mn, with Adjusted PAT at INR 1,455 mn (31% growth).

• EPS for the quarter was nearly INR 8 per share; ROE at 33.2%.

• Operating cash flow was INR 1,544 mn; free cash flow at INR 1,004 mn.

Outlook and guidance

• Expect continued robust growth, targeting revenue growth above the 12% industry outsourced TAM rate.

• Emphasizing automation and AI adoption, with a focus on agentic AI-led automation for scalability.

• New large deals expected to ramp through Q4 FY25 and Q1 FY26, supporting accelerated growth.

• Plan to reduce customer base to 500 large enterprise clients, focusing on high-value cross-sell opportunities.

• Debt expected to be paid off by next fiscal year, barring new capital uses.