Airan Limited

Technology — Information Technology Services · NSE

₹14.70+₹0.23 (+1.59%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with modest growth. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

The 60-second version of Airan Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Airan Limited, together with its subsidiaries, provides information technology (IT) and IT-enabled services in India and internationally.

IndustryInformation Technology Services

SectorTechnology

Employees1,512

Annual revenue₹112 Cr

How does it make money?

Turns over ₹112 Cr a year. Of every ₹100 of sales, about ₹11 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation. Each of its 1,512 employees supports ₹7.4 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹7.4 lakh

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSULTANCY SERV LT, INFOSYS LIMITED, HCL TECHNOLOGIES LTD, WIPRO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 9.3% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE32.0%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +15% while net margin moved +1% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+15%

Margin effect+1%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 4.8% — barely ahead of inflation
✗ Profit CAGR of only 5.2%

Quality vs. Valuation

Company Quality

56/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

76/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

12.2x

3Y Median

26.7x

40 monthly readings · mean 23.9x · range 8.7x–37.6x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 54% below its 3y median of 26.7x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 26% below the peer median of 16.5x.

vs. its own history

Cheap

26.7x median over 40 months · -54%

vs. sector peers

Cheap

16.5x median of 4 peers · -26%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

10.6x

PEG

2.34

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 79% over 3 years.
Cash generation is improving
Free cash flow is up 143% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 2 watch

🟡Margins are compressingFinancial
EBITDA margin is down 4.5 points over 3 years.
🟡Receivables growing faster than salesFinancial
Receivables up 49% against revenue up 15% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 79% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 54% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 26% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 19.5% to 15.1%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 49% against revenue up 15%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 4.8% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 13%✓ 15.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✓ 4.8% CAGR
Latest reported year was 3.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹1 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 9.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 5 neutral · 1 weak

Market Cap

₹184 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

12.2x

Cheap

Cheap against the generic band

P/B Ratio

1.37x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹1.2

Profitable

Profitable on a per-share basis

ROE

7.7%

Weak

Weak capital efficiency

ROCE

9.3%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.62x

Moderate

Moderate leverage

Revenue Growth (YoY)

3.3%

Modest

Modest growth

Profit Growth (YoY)

108.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹1 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

8.4%

Average

Average margins

Net Margin

13.9%

Good

Strong bottom-line conversion

Current Ratio

5.33

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.61

Defensive

Steadier than the market

52W Range Position

17%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

15.7 / 15.6

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

20.4

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹97 Cr	₹105 Cr	₹106 Cr	₹112 Cr	+4.8%
EBITDA	₹19 Cr	₹22 Cr	₹21 Cr	₹17 Cr	-3.8%
EBITDA Margin	19.5%	21.0%	20.0%	15.1%	—
PAT (Net Profit)	₹10 Cr	₹13 Cr	₹18 Cr	₹12 Cr	+5.2%
EPS	₹0.83	₹1	₹1.48	₹0.97	+5.4%
ROE	9.1%	10.0%	12.8%	7.7%	—
ROCE	11.0%	12.1%	14.7%	9.3%	—
Total Debt	₹5 Cr	₹1 Cr	₹2 Cr	₹1 Cr	-40.4%
Free Cash Flow	₹0 Cr	-₹9 Cr	₹16 Cr	₹1 Cr	+34.5%

🟢 Revenue has grown at 4.8% a year over 3 years.

🔴 EBITDA has shrunk at 3.8% a year over 3 years.

🔴 EBITDA Margin has fallen from 19.5% to 15.1% over 3 years (-4.5 pts).

🟢 PAT (Net Profit) has grown at 5.2% a year over 3 years.

🟢 EPS has grown at 5.4% a year over 3 years.

🔴 ROE has fallen from 9.1% to 7.7% over 3 years (-1.4 pts).

🔴 ROCE has fallen from 11.0% to 9.3% over 3 years (-1.7 pts).

🟢 Total Debt has shrunk at 40.4% a year over 3 years.

🟢 Free Cash Flow has grown at 34.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹193 Cr

Total Liabilities

₹28 Cr

Cash & Equivalents

₹6 Cr

Operating Cash Flow

₹4 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

72.2%

Peer Comparison

Company	P/E	ROE
TATA CONSULTANCY SERV LT	17.3x	45.6%
INFOSYS LIMITED	15.8x	32.0%
HCL TECHNOLOGIES LTD	20.4x	24.6%
WIPRO LTD	14.5x	15.9%

Recent News

2 mixed4 general

Airan Limited's (NSE:AIRAN) 30% Share Price Surge Not Quite Adding Up

Simply Wall Street, 13 FebPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Compare with

Equitymaster, 17 Oct

Airan Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Airan Ltd AGM approves new directors and statutory auditor for FY26

scanx.trade, 29 Sept

Why Is Airan Share Price Falling: Key Reasons and Investor Analysis 2026

Univest, 14 MayPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Airan Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 30 Aug

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingBusiness Quality · Profitability · Risk

WeakGrowth

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you.

All 5 tripwires holding · see Key things to watch ↑