Logica Infoway posted a strong FY26 performance with a 17.6% revenue growth to ₹13,157 million and a 35% rise in profit after tax to ₹142 million. The company is actively shifting its business model from traditional distribution to a retail-led approach, expanding its COCO store network to 77 locations. While retail growth remains robust, investors should note the rise in debt-to-equity to 1.8x and an extended cash conversion cycle of 62 days as the business scales.
Logica Infoway FY26 PAT Up 35% to ₹142 Million
Revenue at ₹13,157 million rose 17.6% YoY; Retail segment grows by 60.1%.
Reader Takeaway: Robust retail pivot drives profit growth, though scaling pressures are visible in rising debt and inventory cycles.
What just happened
Logica Infoway Limited released its FY26 annual results, highlighting a year of significant operational transition. The company reported a profit after tax of ₹142 million, a 35% increase compared to ₹105 million in FY25. Revenue from operations climbed 17.6% to reach ₹13,157 million, comfortably exceeding the company's initial guidance of 12-16% growth. The company is aggressively moving toward a retail-led model, currently operating 77 company-owned, company-operated (COCO) stores.
Why this matters
The company’s strategy to shift focus from distribution to retail is yielding results, with the retail vertical’s revenue growing 60.1% YoY. Retail now accounts for 21% of total revenue, up from 16% in the previous year. Management has set an ambitious long-term goal of reaching 500 stores. Additionally, the company upgraded its IT backbone by migrating to SAP Business One in April 2025 to support its expanding footprint.
Corporate Actions
At the upcoming 31st Annual General Meeting on September 30, 2026, shareholders will vote on key corporate changes, including:
- Renewal of related party transaction limits with Sonartari Tradelink, Himadri Dealcom, and Logica Systems & Peripherals.
- Revised remuneration packages for Managing Director Gaurav Goel and Whole-time Director Shweta Goel.
Risks to watch
Investors should monitor the deteriorating cash conversion cycle, which has stretched from 45 days in FY24 to 62 days in FY26, driven by higher inventory and receivables. Furthermore, the debt-to-equity ratio has increased to 1.8x from 1.4x due to additional working capital requirements. The company also faces ongoing GST-related litigation currently under appellate review.
What to track next
The primary focus remains on the scalability of the COCO network and management's ability to normalize EBITDA margins toward the targeted 2.7–3.0% range as new stores mature.