Ivalue’s operating margin jumps 4.84 points as costs lag revenue
Revenue grew 6.82% sequentially while expenses rose 1.09%, though other income contributed 22.56% of pre-tax profit.
Filed 05 Nov 2026, 17:04 IST · after market close · Ivalue Infosolutions Ltd (IVALUE)
Key takeaways
- Consolidated operating margin rose 4.84 percentage points sequentially to 14.53% as revenue grew 6.82% while expenses rose 1.09%.
- Net profit increased 48.73% sequentially to Rs 23.38, but 22.56% of pre-tax profit came from other income.
- Despite the margin rebound, iValue remained 1.82 percentage points below the 16.35% median for 69 reported IT peers.
Price around the results
Revenue growth translated into a sharp profit rebound
Ivalue’s consolidated revenue grew 6.82% sequentially, while operating profit rose 60.20%, showing that the quarter’s profit improvement was driven mainly by operating leverage. Net profit increased 48.73% to Rs 23.38, and EPS rose 46.55% to Rs 4.25.
Lower cost growth lifted margins, but profit quality needs attention
Expenses grew only 1.09% sequentially against 6.82% revenue growth, lifting operating margin by 4.84 percentage points. Interest expense rose 47.59%, partly offsetting the operating improvement, while the tax-rate change was minimal at -0.06 percentage points. Other income contributed 22.56% of pre-tax profit, making it a meaningful part of reported earnings.
Margin recovered from Q1 but stayed below the IT peer median
Operating margin improved from 9.69% in Q1FY27 to 14.53% in Q2FY27, reversing the previous quarter’s weaker level. It was still 1.82 percentage points below the 16.35% median among 69 Information Technology peers that had reported the same quarter.
Management outlined an AI-led expansion of its offering
The presentation said management is positioning iValue as an AI transformation enabler, including AI-powered security operations centres and work on LLM security, AI governance and prompt-injection protection. Management also said it is expanding its Centre of Excellence into an AI validation and interoperability hub and building AI-focused consulting, implementation, managed-services and support capabilities. The company said it had been selected for a technology refresh programme for a national digital infrastructure platform and had won a multi-year engagement with a large public-sector bank.
Results were filed after market close
The consolidated results were filed at 17:04 IST after market close. The immediate market reaction therefore cannot be assessed in this note.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹192 cr | ₹180 cr | +6.82% |
| Other income | ₹7 cr | ₹7 cr | +6.04% |
| Expenses | ₹164 cr | ₹162 cr | +1.09% |
| Operating profit | ₹28 cr | ₹17 cr | +60.20% |
| Operating margin (%) | 14.53% | 9.69% | — |
| Interest | ₹2 cr | ₹1 cr | +47.59% |
| Depreciation | ₹2 cr | ₹2 cr | +0.61% |
| Profit before tax | ₹31 cr | ₹21 cr | +48.62% |
| Tax | ₹8 cr | ₹5 cr | +48.28% |
| Net profit | ₹23 cr | ₹16 cr | +48.73% |
| EPS (₹) | ₹4.25 | ₹2.90 | +46.55% |
Operating margin of 14.53% compares with a Information Technology sector median of 16.35% across 69 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- iValue is positioning itself to become a key AI transformation enabler across the enterprise ecosystem.
New orders
- iValue was selected as a solution partner for a large-scale technology refresh programme for a mission-critical national digital infrastructure platform.
- iValue won a multi-year strategic engagement with a large, complex public-sector bank.
New initiatives
- iValue is delivering AI-powered Security Operations Center architectures.
- The company is working on Security for AI use cases including LLM security, AI governance and prompt-injection protection.
- iValue is expanding its Centre of Excellence into an AI validation and interoperability hub.
- The company is building AI-focused consulting, implementation, managed-services and support capabilities.
- iValue is training internal engineering and partner ecosystems on AI technologies and architectures.
What to watch
- Whether operating margin holds above 14.53% after the sequential rebound.
- Whether revenue growth continues to outpace expense growth, after 6.82% versus 1.09% sequentially.
- Whether other income remains below 22.56% of pre-tax profit.