Infollion Research Services' audit record is clean on its face, but the board's pay decisions and the company's own accounting choices deserve attention. The company has repeatedly approved steep Managing Director remuneration increases under "inadequate profits" provisions, and it has reshaped reported profit through capitalisation of technology salaries and prior-period corrections. Operating cash flow has lagged reported profit cumulatively, and related-party dealings include a growing software-services relationship with a director-linked entity.
Key findings
- MD pay up 80% in three years under "inadequate profits" rules, with three company secretaries in 12 months
Major- Mr. Gaurav Munjal's approved maximum remuneration rose from ₹1,00,00,000 per annum (approved November 30, 2022) to ₹1,50,00,000 (approved September 16, 2024) to a proposed ₹1,80,00,000 for five years from FY 2026-27, approved by the NRC and Board on August 25, 2026. The company invoked Schedule V "Inadequate Profits" provisions in both the FY 2023-24 and FY 2025-26 AGM notices. Three Company Secretaries held office within roughly 12 months: Ms. Madhumita Pramanik resigned effective July 18, 2025, Ms. Megha Rastogi served from August 6, 2025 to July 23, 2026, and Ms. Aastha Talwar was appointed effective July 23, 2026. - Accounting changes and prior-period corrections have repeatedly reshaped reported profit
Major- Infollion capitalised ₹2.76 crore of employee benefits as 'Intangible Asset Under Development' in FY26, of which ₹1.41 crore related to prior periods. The FY26 P&L also carried a ₹86.55 lakh prior-period charge from correcting the treatment of unrequested expert payments, alongside ₹54.82 lakh of prior-period income. In FY2023-24, the company changed its revenue recognition policy with retrospective effect, adding ₹3.31 crore to opening Reserves and Surplus. - Operating cash flow lags profit cumulatively, while tech salaries are capitalised and no dividend is paid
Major- Cumulative CFO of ₹25 crore was 0.64x cumulative EBITDA of ₹40 crore over FY24-FY26. FY26 CFO was ₹10.51 crore against PAT of ₹12.72 crore, and FY25 CFO was ₹5.62 crore against PAT of ₹12.44 crore. Intangible Assets Under Development rose from ₹2.37 crore to ₹5.26 crore during FY26, driven by capitalised tech salaries, and no dividend was recommended for FY2025-26. - Related-party dealings centre on a director-linked software firm and a foreign-currency loan to the US subsidiary
Major- Infollion paid Simplifii Labs Private Limited, an entity with common director Munish Bansal, 1.11 crore for software development in FY2024-25, up from ₹18.29 lakh the prior year. The loan to wholly owned subsidiary Infollion Research Services Corp. rose on paper from ₹85.43 lakh to ₹94.65 lakh during FY2025-26 solely due to exchange-rate restatement, with no fresh lending. The Board's Report for FY2025-26 states no material related-party transactions occurred and Form AOC-2 was not attached. - Revenue quality metrics improve, but client concentration risk is repeatedly flagged
Minor- Revenue crossed ₹100 crore for the first time at ₹100.32 crore in FY26, up 30% from ₹77.30 crore in FY25, while receivables grew only 4.5% and DSO improved from 83 to 67 days. Operating cash flow nearly doubled to ₹10.51 crore in FY26. Management has stated in FY25, FY24, and FY22 that revenues are "highly dependent on a limited number of clients". - Group structure is a single Delaware subsidiary, properly disclosed
Clean- Infollion had no subsidiary as of FY2021-22, and the Board approved a wholly owned Delaware subsidiary on February 8, 2024, which became effective July 16, 2024. The subsidiary was incorporated April 1, 2025, and AOC-1 for FY2025-26 confirms no subsidiaries were liquidated and no associates or joint ventures existed.
What to watch
- MD remuneration vote. Shareholders vote on the Special Resolution to raise Mr. Munjal's remuneration to ₹1,80,00,000 per annum at the forthcoming AGM, following the August 25, 2026 Board approval.
- Capitalised salaries hitting P&L. Management indicated in the Q4 FY26 transcript that capitalised tech salaries will flow through the P&L once the platform moves to maintenance phase.
- Intangible amortisation. Amortisation of the ₹5.26 crore Intangible Assets Under Development balance is to commence once the platform's feature set and stability are satisfactory, per the FY26 annual report.
- Revenue recognition restatement. Watch whether the ₹3.31 crore retrospective AS 9 adjustment to opening reserves from FY2023-24 is revisited in future restatements.
Bottom line: This is a disclosed record with a simple group structure and improving receivables discipline. The risk sits in the board's pay decisions under inadequate-profit provisions and in the accounting choices that have repeatedly reshaped reported profit. Read the capitalised technology salaries and the related-party software payments with that in mind, and watch the AGM vote and the amortisation trigger.