ICRA upgrades ratings of iValue Infosolutions to 'A+/A1+' with 'stable' outlook

The agency has also upgraded the company's short-term rating to '[ICRA]A1+' from '[ICRA]A2+'.

ICRA stated that the ratings upgrade of Ivalue Infosolutions (IIPL/Ivalue) considers the scale-up in operations over recent years, as a value-added distributor of IT hardware and software products, while maintaining a healthy financial risk profile, which it is expected to sustain going forward as well.

The company reported a gross operating income (GOI) of Rs. 2,912.0 crore in FY2026, registering a year-on-year (YoY) growth of 18.9%, aided by a stable business profile with healthy demand for its offerings across cybersecurity, data centre infrastructure, cloud and information life cycle management.

The healthy business outlook from end-customers, coupled with its strengthened technological capabilities and diversified offerings are likely to support revenue growth going forward as well. While the operating profit margin (OPM) remains modest at 4.7% (as a % of GOI) in FY2026 (FY2025: 5.3%), reflecting the structural characteristics of the business, the company?s capital structure and coverage indicators continue to be healthy.

This is underpinned by limited capital expenditure (capex) requirements and steady internal accruals over the years, a trend expected to persist going forward.

The ratings also factor in the company?s comfortable financial risk profile, with limited dependence on external debt and a negative net debt position since March 2020. Debt metrics are expected to remain healthy over the medium term, given its minimal capex plans and limited debt-servicing obligations over the next three years.

The ratings, however, continue to be constrained by the working capital-intensive nature of the business, low margins and moderate scale of operations.

However, ICRA takes note of the company?s efforts to manage its working capital efficiently, as reflected in the reduction in its working capital intensity to 10.8% in FY2026, from 12.6% in FY2025.

The scale of operations remains relatively moderate in the IT distribution space compared to other established players, despite healthy revenue growth over the last five years.

Also, its operating margins continue to be range-bound at 4.5-5.5%, owing to the nature of the distribution business, although it is better than pure-play hardware distributors.

IIPL is a value-added distributor of IT hardware and software products, offering consulting solutions and associated services in data, network, application protection and management, along with digital asset protection. The company partners with over 115 OEMs and offers more than 300 products to over 800 system integrators, serving more than 8,000 customers.

The scrip shed 0.89% to currently trade at Rs 284.30 on the BSE.

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