Infollion in FY26: Crossing INR 100 Crore Revenue While Investing Into Huksa, US and MENA

Infollion Research Services Limited operates an expert network platform that connects global clients with curated subject matter experts for consultations and flexible engagement formats. In FY26, the company reported revenue from operations of INR 1,003.20 million, or about INR 100.32 crore, up 29.8% from FY25. Profitability, however, softened as the company increased go-to-market investments and expanded internationally. FY26 EBITDA stood at INR 147.31 million (INR 14.73 crore) with an EBITDA margin of 14.68%, versus 18.96% in FY25. FY26 PAT was INR 127.19 million (INR 12.72 crore) with a PAT margin of 12.68%.

Management described FY26 as a year of solid execution with a visible slowdown in the second half. The company saw moderation in project inflows, particularly in March, where management noted the per-day project run rate was about 25% below typical levels. April showed some improvement, but not a meaningful step-up. Despite this, total expert calls increased to 20,736 in FY26 from 16,695 in FY25, indicating continued scale-up at the annual level.

What changed in FY26: growth continued, but margins fell

The company attributed the margin decline primarily to aggressive investments behind three growth initiatives: Huksa (L&D), US operations, and MENA. Other expenses increased due to travel and business development for international expansion, higher research subscription costs as new markets were added, and a one-time ROC fee related to authorised capital expansion. Management also spoke about strategic fee waivers and volume-based discounts to improve client stickiness in a multi-vendor environment.

From an operational lens, Infollion expanded its expert network meaningfully. The number of subject matter experts rose to 1,36,461 in FY26 versus 1,04,094 in FY25. The sector mix of experts was diversified, spanning consumer goods, life sciences, manufacturing, TMT, BFSI, chemicals and energy, among others.

The company also highlighted increasing global delivery. Over one-third of total business is now delivered through experts outside India. However, revenue remains heavily India-led, with FY26 geographical revenue mix at 93.48% domestic and 6.52% international.

Huksa, US and MENA: early milestones but still small

A key highlight in the investor presentation was that all three new business verticals, Huksa (L&D), US Operations, and MENA, each crossed INR 1 crore in annual revenue. Management positioned this as an inflection point, shifting these initiatives from experimental to early-scale mode.

Huksa appears to be the most distinct adjacency. The company added 40 new client logos in the L&D vertical, with paying clients spread across 20 sectors. It delivered over 100 L&D projects during FY26, including expert-led training, e-learning content curation, leadership and CXO programmes, assessments, and instructional design. In the concall, management explained that vendor registrations are a primary customer acquisition investment for Huksa, with the expectation that being an approved vendor can lead to recurring training demand.

The US initiative is being built more cautiously. Management said it has been maintaining a presence in the US for at least a month per quarter, but has not yet started local hiring due to cost. It suggested that hiring in the US would be justified around a US$1 million revenue scale, described as roughly INR 8 to 10 crore.

For MENA, management indicated early momentum, describing it as growing faster than other initial businesses due to time-zone accessibility and regional dynamics. It also suggested MENA can largely be serviced from India with limited on-ground hiring.

Technology platform: value chain maps, open APIs and measured AI adoption

Infollion continues to highlight technology as a strategic moat, describing an in-house platform that supports expert sourcing and client servicing. The company’s value chain mapping tool is presented as a sector research and expert browsing system that reduces research time for clients and serves as a CRM-style interface.

On the concall, management said the company has completely open APIs and has been investing in workflow automation. It also mentioned bot-moderated calls as a newer format that can reduce analyst time and enable more scalable data collection.

Management addressed AI directly, stating that while AI may reshape secondary research, primary research is less likely to be structurally disrupted because the value lies in unwritten, experience-based knowledge. At the same time, it acknowledged that meaningful AI investment requires capital far beyond what the company wants to deploy today without clear ROI.

Balance sheet and cash: strong liquidity supports optionality

The company’s balance sheet remained liquid. Cash and cash equivalents were INR 434.85 million (INR 43.49 crore) in FY26. The investor presentation also positions the company as a zero-debt business. Finance costs of INR 4.41 million in FY26 were clarified by the CFO as bank and transaction charges, especially for international payments, rather than borrowing costs.

Cash generation was another positive disclosure. The CFO stated that FY26 operating cash flow was over INR 10 crore and free cash flow was over INR 8 crore. Management also noted it has been evaluating M&A opportunities, with 2 to 3 potential targets under consideration, though no deals were announced.

Takeaways: scaling with intentional margin trade-offs

Infollion’s FY26 narrative is best understood as a deliberate trade-off. The company grew revenue strongly to cross the INR 100 crore mark and expanded its expert base and call volumes. At the same time, margins compressed as management invested in international go-to-market, expanded Huksa, and used pricing levers to strengthen client relationships.

The near-term monitorable indicators from management’s commentary are the recovery in project inflows after the March slowdown, the pace at which Huksa converts vendor registrations into recurring revenue, and whether international expansion can scale beyond the current 6.52% revenue contribution. Management did not provide numeric guidance, but reiterated that, over a multi-year horizon, it expects the business to be larger and sees international growth as a key driver.