Infollion Research Services: Navigating Growth in the B2B Human Cloud

Infollion Research Services Limited, a key player in the B2B Human Cloud segment, has reported a robust performance for the first half of the financial year 2026 (H1 FY26). The company's financial results underscore a period of significant growth and strategic expansion, reinforcing its position in the expert network industry. Revenue from operations surged by an impressive 46% year-on-year, reaching INR 51.09 crore. This strong top-line growth was complemented by a healthy increase in profitability, with EBITDA rising 21% to INR 8.67 crore and Profit After Tax (PAT) climbing 23% to INR 7.30 crore. These figures align with the management's long-term growth trajectory, which has consistently averaged around 40%.

The company's performance reflects its effective strategy in leveraging a comprehensive expert network and proprietary technology to connect clients with specialized talent. Infollion's core business, which facilitates knowledge-sharing sessions and flexible staffing solutions, continues to be a strong driver. The management highlighted that the first half of FY26 met expectations, indicating stable operational execution and market demand. This consistent growth is particularly noteworthy given the dynamic nature of the gig economy and the increasing demand for specialized expertise across various sectors.

Strategic Initiatives and Market Expansion

Infollion's growth narrative is not solely about numbers; it is deeply rooted in strategic initiatives aimed at expanding its market footprint and service offerings. A significant development is the evolution of 'Huksa,' now classified as UPSA (Umbrella Term for Professional Services Agreements). This initiative, initially a placeholder for long-term engagements, is now specifically targeted at corporate clients, differentiating it from traditional consulting and investment funds. Management views Huksa as a key long-term bet, expected to open up an entirely new market segment and provide additional growth avenues beyond organic expansion. The company has already secured new corporate logos and is actively promoting this service.

Geographical expansion, particularly into international markets, remains a core strategic pillar. The USA is a primary focus, where Infollion has established a subsidiary and is observing an uptrend in activity. The company is also exploring opportunities in Western Europe, the Middle East, and considering Southeast Asia. This global outreach is designed to leverage existing client relationships and tap into the sizable international market for expert networks. While US revenues are currently small, the strategy involves building a robust network before committing to high-cost sales personnel, ensuring sustainable growth.

Technology and Operational Efficiency

Technology development is another critical area of focus for Infollion. The company is committed to enhancing its proprietary tech platform, which serves as a seamless integration tool for connecting clients with curated talent. Future plans include introducing cutting-edge tools like SaaS platforms to support client research and hiring processes. Internally, Infollion aims to boost employee productivity by automating workflows, thereby improving operational efficiency. The Value Chain Mapping web-app, utilizing high-tech data visualization, is a testament to their commitment to simplifying expert discovery and shortlisting for clients.

Infollion is also venturing into AI initiatives, having launched a beta phase for a marketplace of AI agents for research. They are exploring white-collared gig marketplaces for AI tasks such as tagging, annotation, and Reinforcement Learning from Human Feedback (RLHF). The approach is pragmatic, focusing on internal use cases and external offerings with clear Return on Investment (ROI) visibility, rather than speculative investments.

Financial Health and Outlook

Despite the strong growth, there was a slight dip in gross margins during H1 FY26. Management attributed this to a reclassification of prior period income and expenses due to an auditor change, and the strategic use of 'development calls' (free calls to new partners in new geographies) as a marketing expense. They clarified that this was not due to discounts to existing clients and that the impact was not material in absolute terms. The company maintains a 'Zero Debt' status and reported positive cash flow from operations of INR 4.27 crore, highlighting its strong financial health and disciplined capital allocation.

Infollion's diversified revenue streams, with significant contributions from Consumer Goods, TMT, Manufacturing, Life Sciences, and BFSI sectors, demonstrate a resilient business model. The company's ability to generate over 80% of its revenue from pre-paneled experts further underscores its operational efficiency and profitability. Management expressed confidence in maintaining stable profit margins and continuing aggressive growth, aiming to dominate the existing market without compromising financial prudence.

Concluding Thoughts

Infollion Research Services Limited is charting a clear course for sustained growth, driven by strategic expansion, technological innovation, and a robust expert network. The H1 FY26 results reflect strong execution, and the company's focus on new client categories, international geographies, and AI-driven solutions positions it well for future opportunities in the evolving gig economy. With a disciplined approach to capital allocation and a commitment to operational excellence, Infollion aims to solidify its leadership in the B2B Human Cloud segment.