3i Infotech Limited (3IINFOLTD)
₹22.32 -0.67% last close, 16 Oct
Q2 FY27 results
📅 Next results: 29 Oct 2026 (board meeting)3i Infotech Limited's board meets on 29 Oct 2026 to consider its Q2 FY27 results (July-September 2026).
In its latest reported quarter, Q4 FY26, 3i Infotech's revenue was ₹176 Cr (-6.0% year on year, +2.1% on the previous quarter), and net profit ₹7.3 Cr (-73.0% year on year); the operating margin was -5.5%.
| Q4 FY26 (₹ Cr) | Value | YoY vs Q4 FY25 | QoQ |
|---|---|---|---|
| Revenue | ₹176 | -6.0% | +2.1% |
| Operating profit | ₹-9.6 | to loss | to loss |
| Net profit | ₹7.3 | -73.0% | +247.8% |
| EPS (₹) | 0.35 | -73.1% | +250.0% |
| Operating margin | -5.5% | — | — |
3IINFOLTD exchange data
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📢 Recent Corporate Announcements
Capital NxT LLP along with Persons Acting in Concert (PAC) disclosed an acquisition of 6,01,008 shares (0.29% of voting capital) of 3i Infotech Limited on August 10, 2026. This transaction raised their aggregate holding from 8.88% (18,418,143 shares) to approximately 9.17% (exceeding the 9% regulatory threshold). The acquirer does not belong to the promoter group. The filing was executed pursuant to Regulation 29(1) of the SEBI SAST Regulations, 2011.
- Capital NxT LLP and PAC acquired 6,01,008 equity shares representing 0.29% of total voting capital on August 10, 2026.
- Prior to the transaction, the group held 18,418,143 shares or 8.88% of total voting capital (8.66% diluted).
- Aggregate shareholding crossed the 9% threshold, triggering the SEBI SAST Regulation 29(1) filing.
- The acquirer confirms they do not belong to the Promoter or Promoter Group.
3i Infotech Limited has secured an additional purchase order worth ₹1,02,31,832 (approximately ₹1.02 crore) from a leading domestic commodity exchange in India. The contract covers 24x7 disaster recovery operations and datacentre management support for a tenure of 3 years spanning FY 2026-27 to FY 2028-29. Relative to the company's TTM revenue of ₹601 crore, the order represents roughly 0.17% of annual sales, indicating minimal financial impact. The company disclosed this contract on a voluntary basis.
- Order value of ₹1,02,31,832 (approx. ₹1.02 crore) exclusive of applicable taxes
- Contract duration is 3 years, covering FY 2026-27 to FY 2028-29
- Scope entails 24x7 Disaster Recovery operations and datacentre management support
- Client is a leading domestic commodity exchange in India (PO No. NCDEX/2026-2027/EQ/062)
3i Infotech Limited filed a follow-on complaint with SEBI on September 8, 2026, requesting an investigation into coordinated voting patterns observed during its 33rd Annual General Meeting held on August 28, 2026. The company alleges potential violations of the SEBI Takeover Regulations, questioning whether shareholders acted in concert to acquire control. This follows earlier complaints lodged on February 12, 2026, and August 26, 2026. Given the company's lack of an identifiable promoter and a market capitalization of Rs 460 Cr, the outcome could significantly affect governance and board control.
- Follow-on complaint filed with SEBI on September 8, 2026, at around 4:00 PM
- Requests SEBI probe into coordinated voting patterns at the 33rd AGM held on August 28, 2026
- Alleges possible concerted action and control acquisition under SEBI Takeover Regulations (Regulations 2(1)(q) and 2(1)(e))
- Follows previous complaints submitted to SEBI on February 12, 2026, and August 26, 2026
3i Infotech Limited has announced the deregistration and voluntary closure of its wholly owned step-down subsidiary, 3i Infotech Netherlands B.V., from the Dutch Chamber of Commerce (KVK) trade register on September 3, 2026. The closure is effective retrospectively from April 30, 2026, following prior board approval on May 8, 2026. The dormant entity contributed NIL turnover and NIL net worth to the consolidated financials during the last fiscal year. The move is a routine administrative clean-up with zero material financial impact.
- Deregistered from the trade register of Chamber of Commerce (KVK) on September 3, 2026
- Effective date of closure is April 30, 2026
- Turnover and net worth contribution of the subsidiary was NIL in the last financial year
- Closure follows board approval dated May 8, 2026 for entity rationalization
3i Infotech Limited announced changes to its senior leadership team effective September 3, 2026. The Board approved designating Ms. Shavee Sehajpal (CHRO, 24 years of experience) and Mr. Manish Falwaria (Business Head – BPS, 20+ years of experience) as Senior Management Personnel (SMPs). Additionally, Mrs. Shilpa Pai has been re-designated as Business Head – APAC & HCM India from her earlier role as Senior Vice President – HR. These leadership updates align with the company's organizational structuring across HR, BPS, and regional operations.
- Designated Ms. Shavee Sehajpal, Chief Human Resources Officer with 24 years of experience, as Senior Management Personnel
- Designated Mr. Manish Falwaria, Business Head – BPS with over 20 years of experience, as Senior Management Personnel
- Re-designated Mrs. Shilpa Pai as Business Head – APAC & HCM India (previously Senior VP – HR)
- All appointments and redesignations took effect immediately on September 3, 2026
3i Infotech has received final settlement orders (Form 4) under the Direct Tax Vivad Se Vishwas Scheme, 2024 from the Principal Commissioner of Income Tax, Mumbai. The settlement resolves disputed additions and disallowances totaling approximately ₹79,838 lakhs (₹798.38 Cr) across five assessment years (AY 2012-13, 2013-14, 2014-15, 2016-17, and 2018-19). The settlement amount is adjusted against accumulated brought forward tax losses, resulting in zero incremental cash outflow for the company.
- Settled aggregate disputed income tax additions/disallowances of ~₹79,838 lakhs (₹798.38 Cr)
- Covers 5 assessment years: AY 2012-13, AY 2013-14, AY 2014-15, AY 2016-17, and AY 2018-19
- Final Form 4 settlement orders received from the PCIT Mumbai on September 2, 2026
- No cash outflow as the settlement payable was adjusted against accumulated brought forward losses
3i Infotech Limited has received a purchase order extension worth approximately Rs 1.70 crore (Rs 1,69,92,956.04) from a leading domestic consumer durables company. The contract spans a 12-month period from August 1, 2026, to July 31, 2027. The scope covers End User Support (EUS) and Data Centre (DC) managed services across onsite and Global Command Centre delivery models. Given the company's TTM revenue of Rs 601 crore, this contract contributes ~0.28% to annual revenue, representing a small routine renewal.
- Committed contract value of Rs 1,69,92,956.04 (approx Rs 1.70 crore) exclusive of taxes
- Execution tenure of 12 months spanning August 1, 2026 to July 31, 2027
- Scope includes EUS, DC managed services, shared GCC support, PAV, VAPT, and AMC
- Order size represents ~0.28% of TTM revenue of Rs 601 crore
At the 33rd Annual General Meeting held on August 28, 2026, 3i Infotech saw three Non-Executive Non-Independent Directors exit the board. Shareholders passed an ordinary resolution to remove Umesh Mehta under Sections 115 and 169 of the Companies Act, while the appointment resolution for Sanjay Vatsa failed to achieve the requisite majority. Additionally, Ambarish Dasgupta retired by rotation without seeking reappointment, reducing the company's total board strength to 4 directors.
- Board strength reduced to 4 directors following shareholder voting outcomes at the AGM on August 28, 2026
- Umesh Mehta removed from the office of Director pursuant to a shareholder special notice under Sections 115 and 169
- Sanjay Vatsa ceased to hold office as his appointment resolution failed to secure the requisite majority
- Ambarish Dasgupta retired by rotation after choosing not to seek reappointment
3i Infotech submitted the voting results of its 33rd Annual General Meeting held on August 28, 2026, revealing substantial shareholder dissent. Ordinary Resolution 1 to adopt the FY26 Audited Financial Statements was rejected with 51.22% votes cast against (2.87 crore shares). Additionally, shareholders defeated the proposed ESOP 2023 modifications (53.39% against) and the appointment of Sanjay Vatsa as Director (50.88% against), while approving the removal of Director Umesh Mehta with 58.30% in favour.
- Adoption of FY26 Audited Standalone & Consolidated Financial Statements was defeated with 51.22% votes against (2,86,99,672 votes)
- ESOP 2023 modification proposal rejected by shareholders, receiving 53.39% votes against (3,01,43,304 votes)
- Appointment of Sanjay Vatsa as Non-Independent Non-Executive Director defeated with 50.88% votes against
- Removal of Director Umesh Mehta approved with 58.30% majority (3,02,41,006 votes in favour)
- Meeting had 80 public shareholders attending via video conference out of 2,38,212 total shareholders as on record date August 21, 2026
3i Infotech held its 33rd Annual General Meeting on August 28, 2026, transacting five key resolutions. The Chairman highlighted that the company's ₹64 crore Rights Issue was oversubscribed 1.47 times and noted six consecutive profitable quarters. Key agenda items put to vote included modifications to ESOP 2023, appointment of Mr. Sanjay Vatsa, and a special notice resolution regarding the removal of Mr. Umesh Mehta as Director. Scrutinizer voting results are scheduled to be published on or before September 1, 2026.
- Rights Issue of ₹64 crore successfully oversubscribed by 1.47 times
- Management highlighted achievement of 6 consecutive profitable quarters
- Transacted 5 resolutions including ESOP 2023 modification and director removal under Section 169
- E-voting scrutinizer report and final results to be announced on or before September 1, 2026
3i Infotech Limited has filed a follow-on complaint with SEBI on August 26, 2026, at 6:37 PM, requesting an investigation under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. This filing is in continuation of an initial complaint lodged on February 12, 2026, and a prior stock exchange update on August 18, 2026. The company is actively escalating regulatory examination regarding potential non-compliance or undisclosed substantial acquisition of its shares. The outcome remains uncertain pending SEBI's review and formal proceedings.
- Follow-on complaint submitted to SEBI on August 26, 2026, at 6.37 pm
- Requests SEBI to initiate investigation under SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011
- Follows initial complaint filed earlier with SEBI on February 12, 2026
- Earlier disclosure was part of Note 10 (Consolidated) and Note 9 (Standalone) in Q3 FY26 results
3i Infotech Limited has issued an addendum to the notice of its 33rd Annual General Meeting (AGM) scheduled for August 28, 2026. The addendum includes a special business resolution received under Section 115 from shareholder NMS Leasing and Infotech Private Limited (holding 2,074,845 shares or ~1.00% equity) seeking the removal of Non-Executive Director Mr. Umesh Mehta. The Board of Directors has included the item for shareholder voting but has officially stated that it does not recommend approval of the removal resolution.
- AGM scheduled for August 28, 2026, at 11:30 a.m. IST via Video Conferencing
- Special notice moved by NMS Leasing and Infotech Private Limited holding 2,074,845 shares (1.00039% stake)
- Resolution seeks removal of Mr. Umesh Mehta (DIN: 09244647) under Section 169 of the Companies Act, 2013
- Board of Directors formally opposes the resolution and does not recommend it for shareholder approval
3i Infotech received an intimation from the Economic Offence Wing (EOW), Navi Mumbai regarding its February 3, 2026 complaint involving alleged fraud of over Rs 128 crore plus interest and damages. The EOW's preliminary inquiry concluded that the matter appears to be of a civil nature, advising the company to seek redressal from the concerned department. The alleged amount of over Rs 128 crore represents ~53.8% of the company's net worth (Rs 238 crore) and ~21.3% of its TTM revenue (Rs 601 crore). The company is currently obtaining legal opinions to decide its next course of action, while the financial impact remains yet to be ascertained.
- Economic Offence Wing (EOW) preliminary inquiry concluded the >Rs 128 crore complaint is of a civil nature
- Complaint was originally filed by 3i Infotech on February 3, 2026 with EOW Navi Mumbai
- Amount involved exceeds Rs 128 crore plus interest and damages (~53.8% of net worth)
- Company received EOW's response letter dated August 13, 2026 and is obtaining legal counsel for next steps
3i Infotech has received a communication dated August 13, 2026, from the Economic Offence Wing (EOW), Navi Mumbai Police Commissionerate, regarding a complaint originally filed by the company on February 3, 2026. The EOW completed its preliminary inquiry and concluded that the subject matter appears to be of a civil nature, directing the company to seek redressal from the relevant department. 3i Infotech is currently obtaining legal opinion to evaluate and decide its next course of action.
- EOW Navi Mumbai letter received on August 13, 2026, following preliminary inquiry
- Complaint originally filed by the company on February 3, 2026
- EOW concluded the matter is civil in nature rather than criminal
- Company is in the process of securing legal opinion to determine future legal remedies
3i Infotech is facing a significant board restructuring as members have proposed 12 new candidatures for Non-Executive Director positions. This influx could push the board beyond its current 15-member limit, necessitating a special resolution to amend the Articles of Association. Additionally, a special notice has been received for the removal of Mr. Umesh Mehta, which will be voted on at the upcoming AGM on August 28, 2026. The board has expressed concerns regarding the administrative and cost implications of managing a board of this size relative to the company's Rs 601 Cr TTM revenue operations.
- 12 new candidatures proposed for Non-Executive Director positions by company members.
- 15 directors is the current maximum permissible strength under Article 122 of the Articles of Association.
- Special Notice received under Section 115 for the removal of Mr. Umesh Mehta as a Director.
- AGM scheduled for August 28, 2026, will now include the removal of Mr. Umesh Mehta as Item No. 5.
- Nomination and Remuneration Committee (NRC) to evaluate 'Fit and Proper' criteria for all 12 candidates.
Financial Performance
Revenue Growth by Segment
Q2 FY26 revenue was led by the Application-Automation-Analytics (AAA) vertical at INR 123 Cr (70.3% of total), followed by Infrastructure Services (IS) at INR 34.6 Cr (19.8%) and Digital Business Process Services (Digital BPS) at INR 16.8 Cr (9.6%).
Geographic Revenue Split
The company has a majority export-based revenue profile with a presence in South Asia, Asia-Pacific, Middle East, North America, and Western Europe. In Q2 FY26, 14 new clients were onboarded, primarily from the US market.
Profitability Margins
Q2 FY26 Gross Margin stood at INR 26.5 Cr (15.1% margin), up from INR 19.1 Cr in Q1 FY26. Net Profit Margin for FY 2024-25 improved to 17.18% from -229.10% in FY 2023-24 due to the reversal of investment diminution and credit loss allowances.
EBITDA Margin
Operating EBITDA margin reached 18% (INR 31.4 Cr) in Q2 FY26, a 74% growth QoQ. On a consolidated basis, FY 2024-25 EBITDA was INR 20.94 Cr, recovering from a loss of INR 299.53 Cr in the previous fiscal year.
Capital Expenditure
The Board approved a fundraise of up to INR 100 Cr through a Rights Issue on May 14, 2025, to enhance business capabilities and capital structure. Previously, the company used INR 1,000 Cr from a software business sale to repay all term debt.
Credit Rating & Borrowing
CRISIL and CARE ratings reflect a healthy financial risk profile due to nil term debt. Interest coverage ratio improved to 14.92 in FY 2024-25. Rating sensitivity for an upgrade requires revenue to exceed INR 800 Cr and operating margins to stay above 10%.
Operational Drivers
Raw Materials
Skilled Human Capital represents 100% of the core service delivery cost, as the business is an IT services provider.
Import Sources
The primary talent pool is sourced from India (South Asia), with additional global delivery capabilities in the US, Middle East, and Europe.
Key Suppliers
Not disclosed in available documents; however, the company relies on global recruitment agencies and talent platforms for its 4,000+ employee base.
Capacity Expansion
Current workforce exceeds 4,000 employees. Expansion is driven by the strategic alliance with HCL Software and the onboarding of 14 new clients in Q2 FY26 to support the AAA and IS verticals.
Raw Material Costs
Employee costs are the primary expense; the company maintains an attrition rate of 16%, which is aligned with industry norms but remains a key monitorable for cost stability.
Manufacturing Efficiency
Operational efficiency is tracked via the attrition rate (16%) and debtors turnover ratio, which improved significantly to 6.13 in FY 2024-25 from 1.46 in FY 2023-24.
Logistics & Distribution
Not applicable for IT services; distribution is handled via global digital infrastructure and onsite/offshore support models.
Strategic Growth
Expected Growth Rate
7%
Growth Strategy
Growth will be achieved through the 'Vision 2030' strategic reset, focusing on high-margin AAA vertical deals (INR 123 Cr revenue), a strategic alliance with HCL Software, and a planned INR 100 Cr Rights Issue to fund digital and AI-led capabilities.
Products & Services
IT services including application development, infrastructure management, Digital BPS (Business Process Services), IT consulting, and 5G-enabled EDGE computing solutions.
Brand Portfolio
3i Infotech (formerly ICICI Infotech Ltd).
New Products/Services
Expansion into AI-led capabilities, 5G-enabled services, and robotic process automation (RPA) to keep solutions relevant in the evolving cybersecurity landscape.
Market Expansion
Targeting the US market, where 14 new clients were recently onboarded, and expanding the fast-growing quick commerce segment in India.
Market Share & Ranking
Identified as a mid-size player in the IT services industry, competing against large domestic and multinational corporations.
Strategic Alliances
Forged a strategic alliance with HCL Software to strengthen core market offerings and operational excellence.
External Factors
Industry Trends
The Indian IT sector continues to grow through digital transformation and technology adoption (NASSCOM data), with a shift toward offshore revenue models and 5G/AI integration.
Competitive Landscape
Dominated by large players such as DXC Technology and IBM, which creates persistent pressure on the company's 5-6% service business margins.
Competitive Moat
Moat is built on a diversified revenue profile and established global presence. Sustainability is challenged by the small scale of operations relative to global majors like IBM.
Macro Economic Sensitivity
Sensitive to global technology spending, which saw a 3.2% decline in 2020, impacting demand for outsourcing and consulting services.
Consumer Behavior
Enterprises are shifting toward outcome-driven, scalable digital solutions and AI-led automation, prompting the company's pivot to the AAA vertical.
Geopolitical Risks
Country risk mitigation involves geographic diversification and regular business assessments in operating regions like North America and the Middle East.
Regulatory & Governance
Industry Regulations
Operations are aligned with the Companies Act, 2013 and global data protection and privacy standards to maintain the trust of global clientele.
Taxation Policy Impact
The company opted for the 'Direct Tax Vivad Se Vishwas Scheme, 2024' to settle income tax litigations for FY 2013-14 for its material subsidiary, 3i Infotech Digital BPS Limited.
Legal Contingencies
Pending income tax disputes for FY 2013-14 are being settled under the Vivad Se Vishwas Scheme 2024; other contingencies include country-specific compliance managed by local experts.
Risk Analysis
Key Uncertainties
High attrition rate of 16% and intense competition from larger IT firms are the primary risks to sustaining the 17% EBITDA margin achieved in Q2 FY26.
Geographic Concentration Risk
Revenue is geographically diversified, though the US remains a critical growth engine for new client onboarding.
Third Party Dependencies
Dependency on skilled talent pools and strategic partners like HCL Software for market expansion.
Technology Obsolescence Risk
Risk of falling behind in AI and ML capabilities; mitigated by the strategic reset and focus on the AAA vertical.
Credit & Counterparty Risk
Receivables quality is healthy, with DSO improving to 56 days and debtors turnover ratio rising to 6.13.
