3i Infotech reports 55% EBITDA growth in Q2 FY25 amid resilient revenue

3i Infotech Limited, a prominent player in digital transformation and technology solutions, revealed its financial results for Q2 FY25, demonstrating significant growth and stability amid challenging global economic conditions. For the quarter ending September 30, 2024, the company reported consolidated revenue of Rs 177.6 crore, maintaining steady performance compared to Rs 179.8 crore in Q1 FY25 and Rs 210.3 crore in the same quarter last year. The most notable highlight was the 55% quarter-on-quarter surge in operating EBITDA, reaching Rs 5.5 crore from Rs 3.5 crore in the previous quarter.

Gross margins in Q2 FY25 stood at Rs 20.3 crore, reflecting strategic cost optimization efforts and operational improvements. This figure represented an increase from Rs 16.9 crore in Q2 FY24, showcasing enhanced efficiency. Regionally, India led with Rs 87.4 crore in revenue, followed by the US with Rs 61.2 crore. The company attributed a considerable part of its success to its Application-Automation-Analytics (AAA) division, which generated Rs 114.8 crore, reinforcing its position as the leading revenue contributor.

Acting CEO Raj Ahuja commented that the company’s growth reflects strategic investments and disciplined revenue enhancement. He emphasized 3i Infotech’s focus on next-gen solutions and investments in AI, positioning the company for sustained growth.

3i Infotech’s financial performance was bolstered by contributions across regions, with notable results from India and the US. The company continued to focus on the Banking and Financial Services (BFS) sector, which accounted for 45% of total revenue. This emphasis aligns with its strategic vision to enhance offerings in key sectors through digital innovation.

The company’s new client acquisitions reached 23, underscoring strong market engagement. Infrastructure Management Services (IMS) and Business Process Services (BPS) also contributed robustly, with revenues of Rs 31.6 crore and Rs 26.2 crore, respectively.

Industry analysts noted that 3i Infotech’s commitment to expanding its AAA services and integrating AI solutions positions the firm well for future growth. The company’s recognition by Everest Group’s PEAK Matrix 2024 for mid-market digital transformation services further validates its strategic initiatives.