iValue Infosolutions Limited: Q2 FY26 Marks a Historic High Amidst Strategic Growth

iValue Infosolutions Limited, a prominent strategic technology advisor, has announced stellar financial results for the second quarter and half year ended September 30, 2025. The company reported its highest-ever gross sales in a single quarter, reaching an impressive INR 887.7 crore in Q2 FY26, marking a robust 37.1% year-on-year (YoY) growth. This strong performance was complemented by a significant surge in Profit After Tax (PAT), which grew by 57.3% YoY to INR 29.7 crore. For the first half of the fiscal year (H1 FY26), gross sales stood at INR 1,494.2 crore, up 33.6% YoY, with PAT increasing by 42.9% YoY to INR 40.1 crore.

Chairman and Managing Director, Sunil Pillai, emphasized that Q2 FY26 was the best quarter in iValue's 18-year history, reflecting the strength of its business model and execution excellence. The growth was broad-based, with all four key technology segments—Cybersecurity, Data Centre Infrastructure (DCI), Information Lifecycle Management (ILM), and Application Lifecycle Management (ALM), Cloud & Others—recording double-digit growth. Cybersecurity, which constitutes 48% of gross sales in H1 FY26, grew by 29% YoY, while DCI saw a remarkable 71% YoY growth. The annuity-led business, a key driver of revenue visibility and resilience, contributed 42.3% of gross sales and grew by 39.2% YoY in H1 FY26.

Chief Financial Officer, Swaroop Muvvala, highlighted that the company achieved this record performance without placing additional pressure on working capital, with networking capital days remaining constant at 46. This reflects robust operational discipline and steady demand. The company's adjusted ROCE significantly improved to 41.6% in Q2 FY26 from 27.8% in Q2 FY25, and ROE increased to 23.5% from 18.9%, underscoring enhanced capital efficiency and profitability. The management's focus remains on ensuring scalability as it expands its digital and hybrid multi-cloud solution offerings.

Strategic Initiatives and Market Outlook

iValue Infosolutions is strategically positioned to capitalize on the evolving technology landscape. The company's leadership team, including co-founder Sriram who heads the strategy office, is dedicated to identifying and integrating upcoming technologies that complement existing offerings. This proactive approach ensures the company remains at the forefront of innovation and expands its solution portfolio.

AI is a significant focus area, with management recognizing its potential to reshape lives and drive digitization. AI is creating new opportunities in protected data, AI models, and digital assets. The company anticipates substantial investments in modernizing data centers to support AI workloads, given the high-density computing power, advanced cooling, and robust networking required. The cybersecurity market, a mainstay for iValue, is also expected to grow significantly due to increasing AI adoption and associated threats, with projections of reaching $20 billion by 2032 in India.

Operational Excellence and Future Growth

The company's operational discipline is evident in its cost management strategies. For instance, the annual celebration format was changed to a regional model, resulting in approximately INR 4 crore in cost savings. This new model is sustainable and reflects the company's commitment to efficiency as it grows. Furthermore, iValue maintains an in-house talent development group training academy, which is currently running its sixth batch. This academy trains and upskills employees, particularly in AI, ensuring a ready workforce to meet future demands.

iValue's approach extends beyond pure distribution, combining technology distribution with solution design, integration, and lifecycle support. This value-added model has fostered long-standing relationships with clients, system integrators, and OEMs. The company's strong network, technical expertise, and execution reliability create significant entry barriers for competitors. The management also plans to expand into adjacent geographies, such as Southeast Asia, with a focus on sustainable, profitable growth rather than mere volume expansion.

In conclusion, iValue Infosolutions Limited has demonstrated exceptional performance in Q2 and H1 FY26, marked by record-breaking sales and profitability. The company's strategic focus on high-growth technology segments, proactive investment in AI-driven solutions, and commitment to operational excellence position it well for sustained growth. With a clear vision for market expansion and talent development, iValue is poised to continue its journey of value creation for all stakeholders.