Inventurus Knowledge Solutions (IKS) Q3 24/25 earnings summary

Executive summary

• Achieved 16% year-on-year revenue growth in Q3 FY 2025, reaching INR 6,572 mn, with EBITDA margin expanding to 31% and PAT margin at 20%.

• Strategic focus on integrating AQuity acquisition, optimizing customer base to 500 large enterprise clients, and accelerating cross-sell of the full platform.

• Secured three major new deals, including a 15-year, full-platform contract with Palomar Health, a JV with Radiology Partners, and expansion with Western Washington Medical Group.

• Launched Scribble Now, a GenAI/NLP-enabled clinical documentation suite, and established a GenAI Center of Excellence in the U.S.

• Unaudited consolidated and standalone financial results for the quarter and nine months ended December 31, 2024, were reviewed and approved by the Board on February 5, 2025.

Financial highlights

• Q3 FY25 revenue was INR 6,572 mn, up 16% YoY and 2.2% QoQ; 9M FY25 revenue reached INR 19,400 mn, up 61.9% YoY.

• EBITDA margin reached 30.5%-31%, up from 24% pro forma last year; EBITDA grew 24% YoY.

• PAT margin at 20% with 28% YoY growth; Adjusted PAT margin at 22% with 31% growth.

• EPS at nearly INR 8 per share; ROE at 33.2% for the quarter.

• Operating cash flow at INR 1,544 mn; free cash flow at INR 1,004 mn.

Outlook and guidance

• Expect continued robust growth, targeting revenue growth well above the 12% outsourced TAM growth rate.

• Margin expansion expected to continue, aiming for steady-state EBITDA margins in the mid-30s.

• Full impact of new deals to ramp through Q4 FY 2025 and Q1 FY 2026, supporting further acceleration.

• Emphasizing continued automation and AI adoption, shifting towards agentic AI-led automation for scalability.

• Focus on expanding technology-enabled solutions and deepening client relationships to drive future growth.