3i Infotech Ltd: Q3 FY26 Performance Analysis
Status: Under-Watch (Operational Turnaround vs. Non-Operating Gains)
Company Overview:
Headquartered in Navi Mumbai, 3i Infotech is a mid-tier IT services firm specializing in digital transformation, cloud services, and infrastructure management. The key sectors include BFSI (Banking, Financial Services, and Insurance) and Healthcare.
Q3FY26 Financial Snapshot
Results declared on January 23, 2026. Figures in ₹ Crores.
| Metric | Amount (₹ Cr) | Key Takeaway |
|---|---|---|
| Total Income | 181.41 | Modest 2.1% QoQ growth. |
| Operating Profit | 0.52 | Razor-thin margins; core efficiency is low. |
| EBITDA Margin | 6.4% | Improved from 3.1% in Q2 FY26. |
| Profit After Tax (PAT) | 40.60 | Alert: Heavily boosted by ₹38.9 Cr Forex gains. |
Market Sentiment & Valuation
🔹Price Action: Hit a 52-week low of ₹14.40 on Jan 27, 2026.Critical Insights for Investors:
The Profit Mirage
Investors should look past the headline PAT of ₹40.60 Cr, since ₹38.9 Cr came from Forex gains. The operational strength is still missing. For every ₹100 earned, less than ₹1 is currently translating into operating profit.
Geographic Performance Split
The US Region remains the bright spot with ~21% sequential growth. Conversely, the India Region saw a ~10% de-growth, suggesting a loss of market share or losss of domestic pricing power.
Improvement in Collections
A significant operational positive is the reduction in Days Sales Outstanding (DSO) from 98 days to 81 days, which improved the company's liquidity position.
Conclusion: What to Watch
The stock is currently trading below its key moving averages. Until the Operating Profit moves from ₹0.52 Cr to a more sustainable ₹5–10 Cr range without relying on currency fluctuations, the market is likely to remain cautious.
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Disclaimer: This report is for educational purposes only and not financial advice. Indian markets are subject to high volatility...
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