Inventurus Knowledge Solutions reported a strong Q3 FY26 performance, with revenue growing 24% YoY to INR815 crores. Management highlighted significant technology leverage, as headcount grew only 1.5% while revenue expanded significantly, demonstrating successful AI integration. Key strategic progress was noted across five execution pillars, including advancements in their AI-native agentic platform and the integration of the AQuity acquisition.
Q3 FY26 Financial Performance Overview
Inventurus Knowledge Solutions announced robust financial results for the quarter ending December 31, 2025. Revenue reached INR815 crores, marking a 24% year-on-year (YoY) growth (or 19% in constant currency). EBITDA for the quarter stood at INR281 crores, translating to a 40.4% EBITDA growth on a YoY basis alongside 24% revenue growth. Profit After Tax (PAT) was INR183 crores (41% YoY growth). Adjusted PAT, excluding non-cash items like a INR12.7 crore write-off related to term loan refinancing, reached INR215 crores, reflecting an 48% YoY growth.
The company’s commitment to efficiency was clear: headcount grew by only 1.5% (to 13,350) while revenue grew 24% YoY, showcasing a critical break in the linearity between revenue and people growth through technology leverage.
Strategic Execution Pillars Update
CEO Sachin Gupta detailed progress across five critical execution pillars:
1. Platform Transformation: The shift from a human-led model to a true AI-native agentic platform continues. Significant progress was made in automating three key friction points: clinical documentation, medical coding, and prior authorization. The company uses leading external models like Anthropic’s Claude to accelerate development cycles.
2. AQuity Integration: The integration of the AQuity acquisition (completed in November 2023) is deemed more or less complete, achieving margin targets faster than initially expected. The focus now shifts to cross-selling motions within the large health system segment.
3. Market Moat and Platform Strategy: The company targets a $260 billion TAM. It maintains its position as the most comprehensive platform player in the outpatient setting while building a replica for the hospital setting. The go-to-market strategy is stratified: platform sales for mid-to-small systems and point-solution focus for large health systems (over $5 billion in revenue).
4. Net Economic Value Add (NEVA) Model: The company is aligning outcomes further upstream by implementing a model where customers pay a usage fee plus a Net Economic Value Add advance. The first deal with Palomar Health, involving a $16.5 million advance, generated $3 million in value add invoiced in just four months of go-live, validating the model’s potential lucrativeness.
5. Industry Recognition: Progress is gaining traction, evidenced by achieving “best in class” ratings from KLAS in two significant features: clinical documentation and revenue cycle management.
Regulatory Environment and Outlook
In response to investor queries, management acknowledged the highly dynamic US regulatory environment, including Medicare Advantage rate recalibration. They view regulatory pressure as a macro tailwind, increasing the need for providers to optimize costs and risk capture, thereby enhancing the attractiveness of IKS’s value-based care portfolio.
Regarding growth visibility, the company maintains its belief that growing faster than the outsourced market’s 12% growth rate translates to gaining market share. While admitting that growth is not linear, management remains confident that 85% to 90% of future growth will still come from existing customer expansion.
Margin Ceiling and Investments
Management confirmed their expectation of achieving early to mid-30s in EBITDA margins, a goal they reached sooner than anticipated. They do not foresee significant additional margin expansion beyond this comfortable range. Future investments will focus on expanding R&D (currently at 4.7%), marketing spend to address AI hype noise, and sales force expansion across nuanced market segments.
On the balance sheet, the company refinanced its term loan from nearly $146 million down to $50 million, ending the quarter with approximately INR322 crores ($35 million) in net debt. The company prioritized paying down this debt quickly over initiating a dividend policy in the near term.
Source: BSE
