EBIX Limited

Technology — Software - Application · NSE

₹16.00−₹0.43 (−2.62%)

DalalBaazaar Score

27 / 100

🔴 Weak

Verdict

HIGH RISK

Risk

Very High

Driven by negative shareholders' equity — the company owes more than it owns, short-term liabilities exceed short-term assets, the company is currently loss-making.

In simple words: The company owes more than it owns — years of losses have wiped out its net worth, but sales are shrinking. Solvency — whether it can keep funding itself at all — is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

EBIX Limited provides software and e-commerce solutions for the insurance, finance, and healthcare industries. It operates through two segments: Insurance and Healthcare.

IndustrySoftware - Application

SectorTechnology

Employees19

Annual revenue₹2,402 Cr

How does it make money?

Turns over ₹2,402 Cr a year. Of every ₹100 of sales, about ₹-17 reaches shareholders as profit, with ₹3 left at the operating level before interest, tax and depreciation. Each of its 19 employees supports ₹126.43 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹126.43 Cr

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 -8.0% 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 +1231773% while net margin moved -144% 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+1231773%

Margin effect-144%

DalalBaazaar Score

27/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Shareholders' equity is negative — accumulated losses exceed the capital in the business

Quality vs. Valuation

Company Quality

29/ 100

Weak

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

Valuation

30/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

Multiples unreliable — equity base is negative

EV/EBITDA

16.7x

PEG

—

Red Flags

9 items require attention · 6 high · 3 watch

🔴Negative shareholders' equityFinancial
Liabilities exceed assets — accumulated losses have wiped out the company's net worth.
🔴Debt has risen sharplyFinancial
Total debt is up 179799% over 3 years, from ₹1 Cr to ₹1,319 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only -6.6x — little room if earnings dip.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴The company is lossmakingFinancial
Net profit of -₹413 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 11.1 points, from 14.5% to 3.3%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from -9.1x to -6.6x.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 1303% over 3 years — each existing share owns a smaller slice of the company.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.78 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Solvency comes before everything else
Liabilities exceed assets. Until net worth is rebuilt, the equity is a claim on a business that owes more than it owns, and further losses or a funding squeeze can leave shareholders with nothing.
Margins are being competed away
EBITDA margin has fallen from 14.5% to 3.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 16.6x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
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

1Revenue growth stays above 1657% a year✓ 2209.5% CAGR
Latest reported year was -5.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 1%✓ 3.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 16.6x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹63 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ -6.6x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

3 / 9 checks passed

✗ Shareholders' equity is positive (assets exceed liabilities)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ 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

Price history

Quick Metrics

1 good · 4 neutral · 6 weak

Market Cap

₹343 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹-21.21

Loss-making

Negative earnings per share — the business is losing money

ROE

Not meaningful

Negative equity

Return on equity can't be read when equity itself is negative

ROCE

-8.0%

Distorted

Distorted by the negative net worth — read this alongside the solvency flag, not on its own

Debt/Equity

Not meaningful

Negative equity

Shareholders' equity is negative, so this ratio can't be read

Revenue Growth (YoY)

-5.5%

Shrinking

Sales are contracting

Profit Growth (YoY)

-15.1%

Falling

Profits are shrinking

Dividend Yield

None

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

Free Cash Flow

₹8 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

ROA

1.0%

Weak

Assets generate little profit

Operating Margin

2.2%

Weak

Thin margins leave little room for error

Net Margin

-16.4%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.78

Tight

Tight short-term liquidity

Beta (vs Nifty)

1.02

Market-like

Moves roughly in line with the market

52W Range Position

11%

Near low

Near its 52-week low

Technical Snapshot

RSI (14)

31.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹0 Cr	₹1 Cr	₹1,463 Cr	₹2,402 Cr	+2209.5%
EBITDA	₹0 Cr	₹0 Cr	₹85 Cr	₹80 Cr	+1313.0%
EBITDA Margin	14.5%	38.7%	5.8%	3.3%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	-₹359 Cr	-₹413 Cr	—
EPS	₹0.05	₹0.02	₹-20.55	₹-21.21	—
ROE	—	2.5%	-474.5%	—	—
ROCE	—	3.4%	-9.8%	-8.0%	—
Total Debt	₹1 Cr	—	₹1,342 Cr	₹1,319 Cr	+1116.2%
Free Cash Flow	-₹1 Cr	-₹7 Cr	-₹231 Cr	-₹63 Cr	—

🟢 Revenue has grown at 2209.5% a year over 3 years.

🟢 EBITDA has grown at 1313.0% a year over 3 years.

🔴 EBITDA Margin has fallen from 14.5% to 3.3% over 3 years (-11.1 pts).

🔴 PAT (Net Profit) has turned negative, from ₹0 Cr to -₹413 Cr.

🔴 EPS has turned negative, from ₹0.05 to ₹-21.21.

🔴 ROCE has fallen from 3.4% to -8.0% over 3 years (-11.4 pts).

🔴 Total Debt has grown at 1116.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3,871 Cr

Total Liabilities

₹3,831 Cr

Cash & Equivalents

₹337 Cr

Operating Cash Flow

-₹23 Cr

Capex

-₹40 Cr

Shareholding (proxy)

Institutional Holding

2.1%

Insider Holding

72.7%

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

6 general

EBIX Stock Price and Chart — NSE:EBIX

TradingView, 17 Aug

Ebix Ltd | Stock Share Price Live

MarketSmith India, 27 Sept

Eraaya Lifespaces Ltd. (EBIX) Share Price Within 2% of 52-Week Low

Univest, 10 Aug

EBIX (BSE:531035) - Stock Analysis

Simply Wall Street, 05 Jul

EBIX Historical Data

Equitypandit, 24 Aug

Small-cap stock under ₹50 Ebix hits 5% upper circuit for sixth straight session | Do you own?

Livemint, 25 Aug

Watch Items

Revenue growth is negative (-5.5%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongGrowth

WeakBusiness Quality · Financial Health · Profitability · Valuation · Risk

Points for each in the Score ↑

Avoid until solvency is resolved

EBIX Limited owes more than it owns. Whatever the operating numbers show, the equity is a residual claim on a business with negative net worth, and that question has to be settled before any of the rest is worth weighing. 6 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑