IT stock skyrockets after reporting 187% YoY net profit increase in Q1

Synopsis:
InfoBeans Technologies hit the 20% upper circuit after reporting a strong Q1 FY26 performance. Net profit rose 130% QoQ and 187.5% YoY, backed by new client wins and improved margins. A new subsidiary was also announced for its Green IT Park project, further boosting investor confidence in the stock.

One of India’s emerging digital transformation and AI-led tech services companies grabbed investor attention today after posting a stellar Q1 FY26 performance. The stock surged 20 percent, hitting the upper circuit limit following strong growth across revenue and profitability metrics.

The company in focus is InfoBeans Technologies Ltd, with a market capitalization of Rs. 1,311 crore. The stock opened at Rs. 524.90 compared to its previous close of Rs. 450.75 and hit an intraday high of Rs. 540.90, marking a 20 percent jump and triggering the upper circuit.

What’s the News?

InfoBeans reported a strong Q1 FY26 with improved profitability and new subsidiary formation. The quarter also included a one-time benefit of Rs. 6 crore from the US government’s Employee Retention Credit scheme, filed in 2022. Additionally, the company approved the formation of a subsidiary, Ecoplex Infra Private Limited, for its Green IT Park Project. InfoBeans will hold a 76 percent stake by subscribing to 7,600 equity shares of Rs. 10 each.

Consolidated Quarter-on-Quarter Performance Between March 2025 and June 2025, revenue from operations increased by 8.7 percent from Rs. 103 crore to Rs. 112 crore. Operating profit rose 21 percent from Rs. 19 crore to Rs. 23 crore. Profit before tax nearly doubled, rising 93.3 percent from Rs. 15 crore to Rs. 29 crore. Net profit surged by 130 percent, increasing from Rs. 10 crore to Rs. 23 crore.

Consolidated Year-on-Year Performance, revenue rose by 15.5 percent from Rs. 97 crore to Rs. 112 crore. Operating profit grew by 43.7 percent from Rs. 16 crore to Rs. 23 crore. Profit before tax increased by 163.6 percent from Rs. 11 crore to Rs. 29 crore. Net profit jumped 187.5 percent from Rs. 8 crore to Rs. 23 crore.

InfoBeans derives a major share of its revenue from international markets, with the USA contributing 57 percent, followed by Europe at 28 percent, the UAE at 9 percent, and India accounting for the remaining 6 percent. In terms of business segmentation, 86 percent of the revenue comes from InfoBeans, while 14 percent is generated through its subsidiary, InfoBeans CloudTech.

Also read: 3250% Dividend: Auto stock in focus as company set to turn ex-dividend tomorrow

Comments from the Management

Avinash Sethi, co-founder of InfoBeans, commented on the company’s performance, – “Demand across all geographies contributed to revenue growth, and cost optimization efforts led to improvement in EBITDA and PAT margins. During the quarter, InfoBeans signed 6 new clients, out of which 3 are large enterprise clients, and onboarded 67 new team members. The company continues to invest aggressively in sales efforts, high-growth teams, and its focus on large enterprise clients.”

About the Company

InfoBeans specializes in AI-led software solutions for enterprise clients, helping solve complex business problems. The company partners with Salesforce, ServiceNow, Microsoft, and agineo to enable digital transformation. Its CSR arm, InfoBeans Foundation, trains underprivileged individuals through free one-year programs to make them employable.

Written by – Manan Gangwar 

Disclaimer

The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.