InfoBeans Q3 Results: PAT Soars 173%, Board OKs 3:1 Bonus

Introduction

InfoBeans Technologies Limited (NSE: INFOBEAN) announced a robust financial performance for the third quarter of fiscal year 2026, which concluded on December 31, 2025. The AI-led digital transformation company reported a significant surge in profitability and steady revenue growth, complemented by a shareholder-friendly announcement of a 3:1 bonus share issue. The positive results led to a notable uptick in the company's share price, reflecting strong investor confidence.

Stellar Q3 Financial Performance

The company's performance was marked by strong year-on-year growth across key financial metrics. Revenue from operations for the October-December quarter increased by 38% to ₹138 crore, compared to ₹100 crore in the same period of the previous fiscal year. This growth was attributed to sustained demand for its services across all geographies. In dollar terms, the revenue growth stood at a healthy 30%.

Profitability metrics showed even more impressive gains. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) nearly doubled, rising by 89% year-on-year to ₹33 crore from ₹18 crore. The most significant highlight was the Profit After Tax (PAT), which jumped by a remarkable 173% to ₹19 crore, up from ₹7 crore in Q3 FY25. This substantial increase in profit underscores improved operating leverage and effective cost management strategies.

Sequential Performance Analysis

On a quarter-on-quarter basis, the company maintained its growth momentum with a 6% rise in revenue from ₹130 crore in Q2 FY26. However, profitability saw a slight moderation sequentially. EBITDA declined by 6% and PAT fell by 15% compared to the preceding quarter. The management attributed this dip to strategic investments in scaling the business and higher operating expenses incurred during the period to fuel future growth.

Financial Snapshot

Bonus Share Announcement

In a move to reward its shareholders, the Board of Directors approved a bonus issue of equity shares in the ratio of 3:1. This means that for every one fully paid-up equity share of ₹10 face value held, an eligible shareholder will receive three additional fully paid-up equity shares. The company has fixed Friday, February 27, 2026, as the record date to determine shareholder eligibility for the bonus issue. This action is subject to the necessary approvals from shareholders and regulatory authorities.

Operational Strength and Expansion

During the third quarter, InfoBeans continued to expand its business operations and delivery capabilities. The company successfully onboarded three new clients, broadening its customer base. It also strengthened its workforce by adding 77 new employees, enhancing its capacity to manage and execute projects. These operational developments are aligned with the company's strategy to support its ongoing growth trajectory.

Management's Growth Outlook

Avinash Sethi, Co-Founder of InfoBeans Technologies, commented on the strong performance. He stated that the revenue growth was driven by robust demand across regions, while margin improvements were a result of disciplined cost management. Looking ahead, Sethi confirmed that the company plans to continue its aggressive investment strategy. This includes scaling sales initiatives, building specialized high-growth teams, and deepening engagement with large enterprise clients to secure long-term value.

Market Reaction and Stock Performance

The market responded positively to the strong quarterly numbers and the bonus issue announcement. Ahead of the results on Thursday, the stock closed 6.29% higher at ₹894. On Friday, January 23, the share price rose by nearly 3% in early trade to ₹920.05. The stock has delivered impressive returns of over 90% in the past year and continues to trade above its 50-day and 200-day simple moving averages, indicating a strong bullish trend.

Conclusion

InfoBeans Technologies has delivered a strong performance in Q3 FY26, with exceptional year-on-year growth in profit and a healthy increase in revenue. The announcement of a 3:1 bonus issue further enhances shareholder value and signals management's confidence in the company's future prospects. While sequential profitability moderated due to planned investments, the overall outlook remains positive, supported by operational expansion and a clear strategy for future growth. Investors will now look towards the February 27 record date for the bonus issue as the next key event.