💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue for H1 FY26 was INR 47.97 Cr. The parent company (Software Development) contributed INR 26.08 Cr (54.4%), while six subsidiaries (Techlabs, Infrastructure, Games, I Solve, Astro, and Fitness) contributed INR 21.89 Cr (45.6%). Annualized revenue of ~INR 96 Cr represents a ~7% decline compared to FY25 revenue of INR 103.48 Cr.

Geographic Revenue Split

Not disclosed in available documents, though the company maintains a strong international presence across global markets.

Profitability Margins

The company maintains a high Net Profit Margin of 68.38%. For H1 FY26, the consolidated Profit Before Tax (PBT) was INR 27.15 Cr, representing a PBT margin of 56.6% on total income of INR 55.55 Cr.

EBITDA Margin

Core profitability is strong with a Return on Equity (ROE) of 25.04% and a Return on Capital Employed (ROCE) of 29.71%.

Capital Expenditure

In H1 FY26, the company invested INR 11.37 Cr in Property, Plant, and Equipment (PPE) and Capital Work-in-Progress (CWIP), plus INR 3.09 Cr in Intangible Assets under development, totaling INR 14.46 Cr.

Credit Rating & Borrowing

Infomerics assigned a long-term rating of IVR BBB- with a Stable outlook and a short-term rating of IVR A3. Current borrowings stand at INR 5.26 Cr with a very low Debt-to-Equity ratio of 0.03 times.

⚙️ Operational Drivers

Raw Materials

As an IT firm, primary costs are 'Cost of Material and Service' (10.5% of revenue) and 'Employee Benefits Expense' (30% of revenue).

Capacity Expansion

Not applicable for software development; however, the company is expanding its business scope by acquiring a 43% stake in Innovana Real Estate Private Limited in November 2025.

Raw Material Costs

Cost of Material and Service for H1 FY26 was INR 5.03 Cr, representing 10.5% of revenue.

Manufacturing Efficiency

Not applicable for IT services.

Logistics & Distribution

Not applicable for IT services.

📈 Strategic Growth

Expected Growth Rate

2.70%

Growth Strategy

Growth is targeted through diversification into real estate (43% stake in Innovana Real Estate), expansion into AI-driven technologies, and scaling niche subsidiary segments including gaming (Innovana Games Studio), astrology (Innovana Astro), and fitness (Innovana Fitness Labs).

Products & Services

Software products, mobile applications, gaming software, digital solutions, astrology services, and fitness applications.

Brand Portfolio

Innovana, Innovana Techlabs, Innovana Games Studio, Innovana Astro, Innovana Fitness Labs.

New Products/Services

New focus on AI-driven technologies and cybersecurity services to meet accelerating global demand.

Market Expansion

Targeting global markets with a focus on e-commerce and fintech industry growth.

Strategic Alliances

Acquisition of a 43% stake in Innovana Real Estate Private Limited by wholly-owned subsidiary Innovana Infrastructure Limited.

🌍 External Factors

Industry Trends

The IT sector is shifting toward AI-driven technologies, cybersecurity, and digital solutions, with global growth expected to remain below pre-pandemic averages at 2.7%.

Competitive Landscape

Intense competition in the global IT market from both established players and emerging tech startups.

Competitive Moat

The company's moat is built on exceptionally high Net Profit Margins (68.38%) and a nearly debt-free balance sheet (0.03 D/E), providing significant financial flexibility to outlast competitors.

Macro Economic Sensitivity

Sensitive to global growth stabilization (expected at 2.7%) and dampened consumer confidence due to high interest rates.

Consumer Behavior

Discouraged big-ticket expenditures and slower investment cycles due to global economic uncertainty.

Geopolitical Risks

Geopolitical and trade uncertainties are resetting the global trade system, creating risks for cross-border operations.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with Ind AS 34 and SEBI Listing Obligations (Regulation 33); subject to evolving global data privacy and cybersecurity regulations.

Taxation Policy Impact

Current tax liabilities stand at INR 4.35 Cr as of September 30, 2025.

Legal Contingencies

No investor complaints were pending as of September 30, 2025.

⚠️ Risk Analysis

Key Uncertainties

Cybersecurity threats and data breaches represent significant risks to the company's data-driven business model; shortage of skilled IT professionals could impact project delivery timelines.

Third Party Dependencies

Dependency on other auditors for the review of six key subsidiaries.

Technology Obsolescence Risk

High risk due to rapid technological advancements in the software and AI sectors.

Credit & Counterparty Risk

Trade receivables and other financial assets stood at INR 11.37 Cr as of H1 FY26.