Inventurus Knowledge Solutions (IKS) Q3 25/26 earnings summary

Executive summary

• Achieved 24% year-on-year revenue growth (19% in constant currency) for Q3 FY26, with EBITDA up 40.4% and adjusted PAT up 48% year-on-year; revenue from operations at INR 8,150 million.

• Strong execution across five strategic pillars, including AI-driven automation, platform expansion, and successful integration of AQuity acquisition.

• Maintained deep client relationships, with 90%+ revenues from repeat customers and 450+ enterprise-level customers.

• Recognized as Best in KLAS for Virtual Scribing Services and received the ET Edge Impactful CEO Award.

• Board approved unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, with statutory auditor review and no material misstatements identified.

Financial highlights

• Q3 FY26 revenue was INR 8,150 million, up 24% year-over-year; EBITDA was INR 2,816 million, up 40.4% year-over-year; adjusted PAT was INR 2,154 million, up 48% year-over-year.

• EPS for Q3 FY26 was 11.0, up 40.5% year-over-year; 9M FY26 EPS was 31, up 51.5% year-over-year.

• Operating and free cash flow conversion from EBITDA and PAT close to 100%, with OCF and FCF for Q3 FY26 growing 84.8% and 79.9% year-over-year.

• Net debt reduced to INR 3,220 million ($35 million) after refinancing term loan to $50 million.

• One-off non-cash write-off of INR 12.7 crore (INR 127 million) due to accelerated loan amortization.

Outlook and guidance

• Expect continued margin optimization, but major EBITDA margin expansion unlikely beyond early-to-mid 30s due to ongoing R&D and SG&A investments.

• Revenue from new deals (Femwell, StrideCare, and two unnamed) to start contributing from Q4 and Q1, with full ramp-up over the next 6–9 months.

• Growth to be benchmarked against outsourced TAM growth of 12%; exceeding this rate indicates market share gains.

• Continued focus on margin expansion and cash generation to support growth aspirations.

• The company will continue to monitor regulatory changes, particularly regarding new labour codes, and will account for any additional impacts as rules are finalized.