Meta Infotech Limited reported a 23% year-on-year increase in revenue to ₹2,700 million for the year ended March 31, 2026, while net profit declined 24% to ₹109 million. The company achieved its highest ever full-year revenue, driven by strong execution of existing orders and robust inflow of new orders. Despite the topline growth, profitability was impacted by strategic investments and front-loading of operating expenses towards expansion into key growth markets such as Hyderabad, Chennai, Bangalore, and Delhi. The company has outlined an aspirational target to grow profit after tax by up to 4x from FY26 levels to FY29, aiming for a PAT margin increase to over 10%.

Financial Performance

For FY26, EBITDA stood at ₹180 million, a decrease of 27% from ₹246 million in the previous year. Profit after tax (PAT) for the year was ₹109 million compared to ₹143 million in FY25. In the second half of FY26 (H2FY26), revenue grew 72% to ₹599 million, while PAT decreased by 86% to ₹4 million. The Board of Directors approved the audited financial results on May 27, 2026, confirming compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Strategic Investments and Growth

The company onboarded 12 new cybersecurity vendors during FY26, expanding its portfolio to include AI security, microsegmentation, patch management, OT security, and post-quantum cryptography. Employee strength increased from 265 as of March 2025 to 309 as of March 2026, with the proportion of experienced employees possessing core technical expertise rising from approximately 50% to 90%. The company also onboarded four seasoned senior professionals to support its next phase of growth. Management stated that services contributed 75% of FY26 earnings before interest and tax, reflecting a strategic shift towards higher-margin offerings.

Order Book and Outlook

The outstanding order book stood at ₹5,060 million as of March 31, 2026, representing approximately 1.9 times the FY26 revenue. This provides strong revenue visibility for the future. The company added 18 new clients during the year across sectors including healthcare, telecom, banking, financial services, and manufacturing. Mr. Venu Gopal Peruri, Chairman and Managing Director, attributed the strong topline performance to deep customer trust and robust recurring revenues. He expressed confidence in sustaining growth given the strong order pipeline and expanding cybersecurity landscape, targeting a 4x growth in PAT by FY29.

Meta shares fell 5.5% on Friday after Hightower Advisors’ Chief Investment Strategist Stephanie Link sold half her position, criticizing the company as “tone-deaf” regarding a report that it is considering raising tens of billions to fund artificial intelligence infrastructure. The stock decline reflects investor anxiety over the company’s plan to significantly increase capital expenditure, which Link argues could depress earnings despite revenue growth. Meta did not immediately respond to requests for comment on the reported fundraising efforts.

Link stated that while revenue numbers are rising, operating margins are moving in the wrong direction, a trend she believes will deter investment. Meta executives have been exploring cash-raising options as the company prepares to boost AI-related capex to as much as $145 billion this year, with further increases expected in 2027, according to a Financial Times report. This spending surge compares to an earlier expectation of $125-$135 billion for this year, up from $74 billion last year. Link noted that Meta has spent $82 billion on Reality Labs since 2021, resulting in $80 billion in operating losses.

“The shareholder base at Meta — they don’t want them to continue to spend like drunken sailors,” Link told CNBC’s Closing Bell. She emphasized that investors are unlikely to support companies where earnings are stagnant or declining. Despite the reduction, Link retains a position in Meta, citing belief in its long-term story, but indicated she will not add back shares until earnings estimates move higher.

Link also commented on the broader AI sector, describing the spend cycle as “accelerating” and advising investors to prepare a shopping list. She identified Broadcom, International Business Machines, and Snowflake as her top picks in the space. Analysts remain divided on the spending strategy; Fundstrat’s Tom Lee noted the move was not surprising, pointing to Google’s success in raising capital, while Alphabet recently raised $85 billion in equity following strong demand.

Trading Metrics and Analyst Ratings

Benzinga Pro data shows Meta closed Friday’s session at $593. The stock has declined 13.38% over the past 12 months and 8.83% year-to-date. The company holds a market capitalization of $1.51 trillion, with a 52-week high of $796.25 and a 52-week low of $520.26.

RBC Capital reiterated its Outperform rating on Meta with a price target of $810 on Monday, implying potential upside of 37.34% from current levels. Benzinga’s Edge Stock Rankings indicate the stock is experiencing short-term upward movement alongside long and medium-term consolidation.