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Broadly in-line performance

* 3Q USD revenue at INR92.5m was up 18.7% YoY and 2.5% QoQ.

* INR revenue at INR8.2b was up 24% YoY, in line with our est. of INR8.2b.

* EBITDA grew 55.2% YoY to INR2.8b (est. INR2.8b) with EBITDA margin of 34.6% (+700bp YoY, -20bp QoQ).

* PAT rose 41.4% YoY to INR1.8b (est. INR1.9b). ? Over 90% of its revenue came from repeat customers.

* Top-5 and Top-10 clients have average vintage of more than five years.

* Client organizations at 600 vs. 700 in 3QFY25, reduction as per plan.

* Top-10 clients accounted for 48% of revenue.

* Key Deal wins:

1. VitalMD and Femwell group expanded partnerships with IKS to include the ambient solutions that are part of the Scribble Suite in a long-term deal.

2. Texas-based StrideCare partnered with IKS for middle and back-office RCM.

3. Expanded the existing RCM and value-based care partnership with one of the Top-5 health systems to encompass additional regions and states within the scope of IKS.

4. New partnership with a risk-bearing enablement behavioral health system to ensure adequate capture of behavioral health population disease complexity.

Valuation and view

We believe IKS Health is uniquely positioned to benefit from long-term structural tailwinds in US healthcare technology, supported by its strong financial profile, differentiated tech-first platform, and expanding market opportunity. Its deep client stickiness and effective land-and-expand model, reinforced by ongoing R&D and capability-enhancing acquisitions, strengthen its competitive edge. Currently, we have a BUY rating on IKS with a TP of INR2,107, valuing it at 32x FY28E EPS.

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