Innovana Thinklabs Reports Robust Q2 Growth: Net Profit Rises 16.5% YoY

Innovana Thinklabs Limited has announced strong financial results for the second quarter of the fiscal year 2025-26, demonstrating significant growth across key metrics.

Financial Highlights

The company's consolidated performance for Q2 FY2025-26 shows impressive year-over-year growth:

Metric	Q2 FY2025-26	Q2 FY2024-25	YoY Growth
Net Profit	₹127.00 crore	₹109.00 crore	16.51%
Revenue	₹327.00 crore	₹229.00 crore	42.79%
EBITDA	₹142.00 crore	₹123.00 crore	15.45%

Revenue and Profitability

Innovana Thinklabs has reported a substantial increase in revenue, jumping to ₹327.00 crore in Q2 FY2025-26 from ₹229.00 crore in the same quarter last year, marking a robust growth of 42.79%. This significant top-line growth has translated into improved profitability, with the company's net profit rising to ₹127.00 crore, up from ₹109.00 crore in the corresponding quarter of the previous fiscal year, representing a 16.51% increase.

EBITDA Performance

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also saw a notable improvement, increasing to ₹142.00 crore from ₹123.00 crore year-over-year, indicating a growth of 15.45%. This rise in EBITDA suggests enhanced operational efficiency and stronger core business performance.

Margin Analysis

Despite the overall positive results, it's worth noting that the EBITDA margin experienced a decline:

Metric	Q2 FY2025-26	Q2 FY2024-25	Change
EBITDA Margin	43.43%	53.71%	-10.28 percentage points

The EBITDA margin decreased from 53.71% to 43.43%, a reduction of 10.28 percentage points. This decline in margin percentage, despite higher absolute EBITDA, may be attributed to the faster growth in revenue compared to the increase in EBITDA, possibly due to higher operational costs or changes in the product mix.

Segment Performance

As per the company's segment information, Innovana Thinklabs operates primarily in software development. However, its subsidiaries are engaged in diverse segments including:

Software development (Innovana Techlabs Limited)
Gym and fitness activities (Innovana Fitness Labs Limited)
Construction and infrastructure development (Innovana Infrastructure Limited)
Online astro services and gaming (Innovana Astro Services Limited and Innovana Games Studio Limited)
Client-based development services (I Solve Software Services Limited)
Green energy (Innovana Green Energy Private Limited)

This diversified portfolio may contribute to the company's overall growth strategy and risk mitigation.

Conclusion

Innovana Thinklabs' Q2 FY2025-26 results demonstrate strong growth in revenue and profitability, reflecting the company's ability to capitalize on market opportunities. The significant increase in top-line growth, coupled with improved net profit, indicates effective execution of the company's business strategies. However, the decline in EBITDA margin suggests that the company may need to focus on cost management and operational efficiency to maintain profitability levels in line with its revenue growth.

Investors and stakeholders may view these results positively, given the robust growth in key financial metrics. However, they may also keep a close eye on the company's margin performance in the coming quarters.

Note: The financial figures mentioned in this article are based on the consolidated results provided by Innovana Thinklabs Limited for the quarter ended September 30, 2025.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.07%	-0.01%	-0.68%	+36.86%	+2.53%	+1,129.08%

Innovana Thinklabs Limited , a company listed on both the National Stock Exchange and Bombay Stock Exchange, has made a significant move in its capital structure. The company's promoters, led by Chandan Garg, have been allotted 860,000 warrants through a preferential issue, as announced by the company's Board of Directors on September 5, 2025.

Warrant Allotment Details

The preferential issue has resulted in the following changes to the company's shareholding structure:

Total warrants allotted: 860,000
Promoter group's equity shareholding: Remains at 68.95%
Additional warrant holding by promoters: 0.56%

Impact on Share Capital

The warrant allotment has implications for Innovana Thinklabs' share capital:

Current equity share capital: 2.05 crore shares of Rs. 10 each
Total diluted share capital (including warrants): 2.136 crore shares

Promoter Group Participation

The warrants were allotted to several members of the promoter group, including:

Chandan Garg (Acquirer)
Kapil Garg
Priyanka Garg
Swaran Kanta
Nancy
Akash Bansal
Narendra Kumar Garg

Chandan Garg, the primary acquirer, was allotted 120,000 warrants, representing 0.56% of the total diluted share capital.

Shareholding Structure

The current shareholding structure of Innovana Thinklabs, post-warrant allotment, is as follows:

Shareholder	Equity Shares	% of Total Equity	Warrants	% of Warrants
Chandan Garg	14,608,400	68.95%	120,000	0.56%
Kapil Garg	398,000	1.86%	-	-
Other Promoters	6,000	Negligible	-	-
Public Shareholding	5,487,600	29.19%	740,000	3.47%
Total	20,500,000	100.00%	860,000	4.03%

Additional Corporate Updates

In a separate development, Innovana Thinklabs announced the resignation of Mr. Hemant Koushik (DIN: 08853746) as an Independent Director, effective September 5, 2025. Mr. Koushik cited preoccupation and personal commitments as reasons for his departure. He also serves as an Independent Director at Mach Conferences and Events Limited and Innovana Techlabs Limited.

The preferential allotment of warrants to the promoter group signifies a potential increase in their stake in the company, subject to the conversion of these warrants into equity shares. This move may be seen as a sign of the promoters' confidence in the company's future prospects.