Infollion Research Services Ltd. (INFOLLION)
SME CapServices stocks · SME cap · NSE
Infollion Research Services Ltd. provides expert network and research services. The company is expanding into new business verticals like Learning & Development (Huksa) and growing its international presence in the US and MENA regions, leveraging its proprietary technology platform and expert base.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Investable fundamentals, management trust is supportive, price trend argues for patience, and recent execution is mixed.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Average · 52/100margin compression · Rev +81% YoY · PAT +25% YoY
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹49 Cr | +81.5% | -3.9% |
| EBITDA | ₹6 Cr | -25.0% | -33.3% |
| Operating margin | 12.0% | -600 bps | -500 bps |
| PAT | ₹5 Cr | +25.0% | -28.6% |
| PAT margin | 10.2% | -409 bps | -353 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
FY26 Revenue up 30% YoY to ₹102.99 Cr, but EBITDA grew only 1% to ₹14.73 Cr and PAT 2% to ₹12.72 Cr, indicating significant margin compression due to expansion costs.
While revenue growth remains strong, significant margin compression (EBITDA margin from 18.4% to 14.3%) due to aggressive headcount additions and business development expenses is concerning. Softening client growth and volume drops in H2 FY26, particularly Q4, suggest demand challenges despite strategic investments.
New Business Verticals
Huksa (L&D), US Operations, and MENA each achieved their first ₹1 Crore in annual revenue, marking significant milestones.
International Expansion
International expansion continued, with more than one-third of the business now served through experts based outside India. US revenue crossed ₹1 Cr.
M&A Opportunities
The Company is actively evaluating multiple M&A opportunities and is moving closer to deployment, leveraging its ₹43 Crore cash reserve.
Headcount Addition
The Company added 71 employees on a net basis during FY26, bringing the total headcount to 271, primarily across newer teams and geographies.
Proprietary Technology Platform
₹289 Lakh 'Software Under Development' represents capitalised salary expenses for the technology team building out the platform, with core development substantially complete.
AI-driven Market Expansion
AI-driven bot-moderated expert calls have the potential to significantly expand the addressable market size, a model Infollion has operated for over a year.
AI-in-Action (AI-IA) Offerings
The Company is building a library of AI case studies and anecdotes from experts to be offered as micro-courses or modules within training programs.
Domain-specific AI Workshops
Positive response for domain-specific Generative AI and Agentic AI workshops, executed through the Huksa vertical.
Softening Client Growth & Volumes
Client growth softened in H2 FY26, particularly in Q4, with volumes dropping by approximately 20–25% in the final month.
Gross Margin Compression
Gross margins declined from 44% to 41% due to client development calls for new international clients and fee waivers on large projects for client stickiness.
Increased Operating Expenses
EBITDA margin declined from ~18.4% to ~14.3% due to aggressive headcount additions, increased travel, and business development expenditure for new verticals and geographies.
AI Threat to Secondary Research
AI-powered tools are increasingly replacing the collated research and syndicated reports market, though management believes this overlaps less with Infollion's core primary insights.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY comparison is essential for full-year financial performance. However, QoQ/HOH comparison is crucial to understand the sequential softening of client growth and volumes in H2 FY26, which impacted margins despite strong annual revenue growth.
New Client Logos
A meaningful number of new client logos were added across all verticals during the year.
L&D Projects Delivered (Huksa)
Huksa delivered over 100 L&D projects during the year, including expert-led trainings, e-learning content curation, and leadership programs.
North American Expert Pool
The North American expert pool now constitutes approximately 15% of the total expert base, with strong representation across TMT, Healthcare & Life Sciences, and Financial Services.
Days Sales Outstanding (DSO)
DSO reduced from 83 days in FY25 to 67 days in FY26, attributed to less pronounced revenue concentration in March 2026 compared to March 2025.
Strategic Investment for Long-Term Growth
Management views current margin compression as a strategic investment in long-term growth, not a structural decline in profitability, due to aggressive headcount and business development.
Prioritizing Market Position over Near-Term Margins
Near-term priority is to consolidate market position and achieve dominance before pivoting toward margin optimisation, acknowledging some operational 'flab' during rapid expansion.
No Immediate Dividend or Buyback Plans
The Company intends to accelerate investment in new growth opportunities and currently has no plans to pay dividends or undertake a buyback.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Revenue Growth (YoY) | 30% | Sustained high growth rates, especially given H2 softening and Q4 volume drops. |
| EBITDA Margin | 14.3% | Stabilization or improvement in margins as new verticals and geographies scale and operational 'flab' is addressed. |
| Client Growth & Volumes | Softening in H2, Q4 volumes down 20-25% | Reversal of the softening trend in client additions and volume growth in the core business and new verticals. |
| M&A Progress | Evaluating 2-3 targets, moving closer to deployment | Announcement and successful integration of inorganic growth opportunities. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
42NeutralSMA20 -4.2% / mo · MACD + · near 52W low
Technical chart
INFOLLIONdaily · 1Y · AUTO-50.2%Daily technical trend read
Mixed signalsSignals are conflicting — long-term trend down. RSI 50. Wait for confirmation.
- Price below SMA200 (long-term downtrend) — short-term bounces likely countertrend.
- SMA20 falling (~4.3% over last month) — short-term momentum negative.
- RSI(14) at 50 — rising, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- 71% off 52W high · 6% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation & score drivers
U-Score 63 · UNDERVALUED · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 63 · UNDERVALUED · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
UNDERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 5.2%.
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 53.5%.
Main drags
- Penalty bucket subtracts 7 points.
- Valuation is weaker at 16/30; verify the latest quarterly trend.
- Balance sheet is weaker at 8/15; verify the latest quarterly trend.
Blended valuation: PE, EV/EBITDA, FCF yield, and balance-sheet checks
For this sector, IndiaPulse uses a blended lens rather than relying on a single valuation ratio.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: -1 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 83rd percentile of the scored universe and 89th percentile within Services. Main check: results consistency is weak at 55/100.
High Trust Lite: Promoter pledge is zero.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Services: 89th pctile, median 66 · SME: 97th pctile, median 64
12 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is 5.2%.
- ▸Debt/equity is 0.00.
- ▸ROCE is 28.6%.
Trust risks
- ▸No major Trust Lite risk flags.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 12.20
- P/B
- 2.31
- EV/EBITDA
- 10.33
- Market Cap
- 155.00Cr
Profitability
- ROE
- 21.00%
- ROCE
- 28.60%
- ROA
- 18.31%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 38.68%
- EPS 5Y
- 20.19%
- Revenue 3Y
- -6.00%
- EPS 3Y
- -6.00%
Balance Sheet
- Debt/Equity
- 0.00
- Interest Coverage
- —
- Altman Z
- 9.59
- Book Value
- 69.40
Cash Flow
- FCF Yield
- 5.16%
- FCF Positive Y
- 3/5
- OCF
- 11.00 Cr
- EPS TTM
- 13.10
Shareholding
- Promoter Hold
- 51.65%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 2%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in Services, ranked by similarity
Peers
Business-comparable names in Services, ranked by similarity
Peers
Business-comparable peers in Services — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.