💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue from operations grew by 49.38% YoY, reaching INR 7,730.32 Lakh in FY25 compared to INR 5,174.83 Lakh in FY24. H1 FY26 revenue showed a 45.2% YoY increase to INR 510.93 Mn from INR 351.89 Mn, driven by increased demand for expert consultations and contingent hiring.

Geographic Revenue Split

Not disclosed in available documents, though the company operates from Gurugram, India, and serves a global B2B human cloud market.

Profitability Margins

Gross Profit Margin stood at 45.63% in FY25 (INR 3,527.62 Lakh), a slight dip from 46.19% in FY24. Net Profit Margin was 16.02% in FY25 (INR 1,238.78 Lakh) compared to 16.56% in FY24. The slight compression is attributed to reclassification of prior period expenses and the impact of free Corporate Development (CD) calls.

EBITDA Margin

EBITDA Margin was 18.96% in FY25 (INR 1,465.75 Lakh), down 63 bps from 19.59% in FY24. H1 FY26 EBITDA margin further compressed to 16.97% due to higher operational expenses and investment in supply-side capacity.

Capital Expenditure

Net cash used in investing activities was INR 1.51 Cr (INR 150.76 Lakh) in FY25, primarily directed towards technology upgrades and software development initiatives to enhance the proprietary expert-matching framework.

Credit Rating & Borrowing

Finance costs increased by 174% YoY to INR 36.69 Lakh in FY25 from INR 13.38 Lakh in FY24, indicating higher utilization of working capital lines or new debt; specific credit ratings were not disclosed.

⚙️ Operational Drivers

Raw Materials

The primary 'raw material' is 'Fee to Experts' (cost of sales), which accounts for 54.36% of total revenue (INR 4,202.70 Lakh). Employee benefit expenses represent the second largest cost at 22.29% of revenue (INR 1,723.47 Lakh).

Import Sources

Sourced globally through a proprietary network of subject matter experts; specific geographic sourcing percentages for experts are not disclosed.

Key Suppliers

The company utilizes a 100% invitation-based empanelment for its network of independent subject matter experts rather than corporate suppliers.

Capacity Expansion

Current capacity is defined by the expert network size; expansion is focused on 'Managed Training Services' to unlock opportunities in mid-tier and large corporations, aiming to increase the addressable market size multifold.

Raw Material Costs

Cost of Sales (Expert Fees) grew by 50.93% YoY to INR 4,202.70 Lakh in FY25, closely tracking revenue growth of 49.38%, maintaining a stable direct cost structure.

Manufacturing Efficiency

Not applicable as a service firm; however, the Trade Receivables Turnover Ratio was 5.40 in FY25, down from 6.10 in FY24, indicating a slight slowdown in collection efficiency.

Logistics & Distribution

Not applicable; services are delivered digitally via knowledge-sharing sessions and consultations.

📈 Strategic Growth

Expected Growth Rate

45%

Growth Strategy

Growth will be achieved by expanding into 'Managed Training Services' for large corporations, leveraging the existing expert network to increase the addressable market. The company is also investing in technology upgrades (INR 1.51 Cr) to improve matching efficiency and scaling its contingent hiring and SOW employee contracting divisions.

Products & Services

Expert consultations, contingent hiring, temporary workforce management, Statement of Work (SOW) employee contracting, and knowledge-sharing sessions.

Brand Portfolio

Infollion.

New Products/Services

Managed Training Services and end-to-end managed solutions for mid-tier companies, expected to leverage the supply side of the existing expert network.

Market Expansion

Targeting mid-tier and large corporations globally to move beyond niche consulting into broader corporate training and staffing.

Market Share & Ranking

Positioned in the 'premium tier' of the gig economy/B2B human cloud segment; specific market share percentage not disclosed.

🌍 External Factors

Industry Trends

The B2B Human Cloud and gig economy are growing as companies shift toward flexible staffing and on-demand expertise. Infollion is positioning itself to capture this by moving from pure consultations to managed services.

Competitive Landscape

Operates in a competitive environment with other expert networks and gig economy platforms; competition is based on expert quality and speed of matching.

Competitive Moat

Moat is built on a proprietary technological framework and a 100% invitation-based expert network, which creates high barriers to entry regarding expert quality and trust. This is sustainable as long as the platform maintains its 'premium tier' reputation.

Macro Economic Sensitivity

Highly sensitive to corporate spending on consulting and R&D; a slowdown in the global gig economy or B2B hiring would directly impact demand.

Consumer Behavior

Shift toward 'contingent hiring' and 'temporary workforce management' by large corporations seeking to reduce fixed employee costs.

Geopolitical Risks

Regulatory changes in labor laws or gig economy classifications could impact the 'contingent hiring' and 'SOW contracting' business models.

⚖️ Regulatory & Governance

Industry Regulations

Subject to the Companies Act, 2013 and SEBI (LODR) Regulations. Compliance is monitored by an Audit Committee that interacts with Statutory Auditors (Sudesh Kumar & Company).

Environmental Compliance

Not applicable for a service-based research firm; CSR obligation for FY25 was INR 10.25 Lakh.

Taxation Policy Impact

Effective tax rate was 24.5% in FY25 (INR 402.12 Lakh tax on INR 1,640.91 Lakh PBT).

Legal Contingencies

No material fraud or non-material fraud committed by or on the company was reported during the FY25 audit. No long-term contracts with material foreseeable losses were identified.

⚠️ Risk Analysis

Key Uncertainties

Revenue concentration risk (high impact if top clients churn) and regulatory changes affecting the gig economy workforce (potential impact on SOW contracting margins).

Geographic Concentration Risk

Not disclosed, but operations are centralized in Gurugram, India.

Third Party Dependencies

High dependency on independent experts; while no single expert is likely a major risk, the collective availability of the network is critical.

Technology Obsolescence Risk

Risk of proprietary matching framework becoming outdated; mitigated by ongoing INR 1.51 Cr investment in software development.

Credit & Counterparty Risk

Trade Receivables stood at a level resulting in a turnover ratio of 5.40; management noted improved debtor collection cycles in FY25 to aid cash flow.