Epuja Spiritech Limited

Consumer Cyclical — Personal Services · BSE

₹0.97₹0.00 (0.00%)

DalalBaazaar Score

41 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, the company is currently loss-making.

In simple words: The company is currently losing money, though profits are falling even as sales grow. Debt is the main factor to watch.

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 Epuja Spiritech Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Epuja Spiritech Limited operates as a faith-tech platform company in India.

IndustryPersonal Services

SectorConsumer Cyclical

Annual revenue₹2 Cr

How does it make money?

Turns over ₹2 Cr a year. Of every ₹100 of sales, about ₹-564 reaches shareholders as profit, with ₹-556 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. 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 -62.9% 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 ROE25.9%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +32% while net margin moved +3481% 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+32%

Margin effect+3481%

DalalBaazaar Score

41/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative
✗ ROE has fallen by 60.3 points over the period

Quality vs. Valuation

Company Quality

40/ 100

Weak

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

Valuation

36/ 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

No P/E — the company is lossmaking

EV/EBITDA

—

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Debt is being paid down
Total debt is down 53% over 3 years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from -3.7% to -64.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from -3.0% to -62.9% — often a sign of competition or overexpansion.

Red Flags

8 items require attention · 6 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 1.66x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only -2833.4x — 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 -₹10 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 543.6 points, from -12.4% to -556.0%.
🔴Receivables growing faster than salesFinancial
Receivables up 106% against revenue up 32% — sales are being booked faster than they are collected.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 120.5x to -2833.4x.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 182% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 53% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from -12.4% to -556.0%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 1.66x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 106% against revenue up 32%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from -3.7% to -64.0%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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.

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

1EBITDA margin holds above -558%✓ -556.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹6 Cr
Profit that never becomes cash eventually stops being profit.
3Interest cover stays above 3x✗ -2833.4x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 7% a year✓ 9.6% CAGR
Latest reported year was 5575.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5ROCE stays above 8%✗ -62.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 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

2 good · 2 neutral · 7 weak

Market Cap

₹11 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

0.66x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-0.86

Loss-making

Negative earnings per share — the business is losing money

ROE

-64.0%

Weak

Weak capital efficiency

ROCE

-62.9%

Weak

Low return on total capital employed

Debt/Equity

1.66x

High

High leverage

Revenue Growth (YoY)

5575.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-6879.2%

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

-₹6 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

2.8%

Weak

Thin margins leave little room for error

Net Margin

-103.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

13.64

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.89

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

1.0 / 1.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

50.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1 Cr	₹1 Cr	₹9 Cr	₹2 Cr	+9.6%
EBITDA	-₹0 Cr	-₹0 Cr	₹0 Cr	-₹10 Cr	—
EBITDA Margin	-12.4%	-49.6%	3.7%	-556.0%	—
PAT (Net Profit)	-₹0 Cr	-₹0 Cr	₹0 Cr	-₹10 Cr	—
EPS	₹-0.06	₹-0.06	₹0.02	₹-0.93	—
ROE	-3.7%	-2.9%	0.8%	-64.0%	—
ROCE	-3.0%	-2.6%	0.8%	-62.9%	—
Total Debt	₹1 Cr	₹2 Cr	₹1 Cr	₹0 Cr	-22.3%
Free Cash Flow	-₹1 Cr	-₹6 Cr	-₹4 Cr	-₹6 Cr	—

🟢 Revenue has grown at 9.6% a year over 3 years.

🔴 EBITDA Margin has fallen from -12.4% to -556.0% over 3 years (-543.6 pts).

🔴 ROE has fallen from -3.7% to -64.0% over 3 years (-60.3 pts).

🔴 ROCE has fallen from -3.0% to -62.9% over 3 years (-59.9 pts).

🟢 Total Debt has shrunk at 22.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹18 Cr

Total Liabilities

₹1 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹6 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

47.1%

Corporate Actions

Ex-Dividend Date

20 Sept 2019

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

1 positive2 mixed3 general

Epuja Spiritech gets BSE nod for reclassifying two promoters

scanx.trade, 26 Sept

Epuja Spiritech seeks approval for ₹100 crore loan limit and sector expansion

scanx.trade, 25 JulCapacity

🟡Mixed / dependsCapacity additions can raise revenue over two to three years, but the capital spend usually pressures free cash flow first. Worth checking whether the capex is funded from operations or from borrowing.

Epuja Spiritech Limited Scrutinizer Report: Postal Ballot Results on April 25, 2026

scanx.trade, 25 AprResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Mercury EV-Tech consolidated net profit rises 29.92% in the June 2026 quarter

Business Standard, 14 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Epuja Spiritech gets in-principle nod for 3 crore share ESOP scheme

scanx.trade, 21 Sept

Epuja Spiritech passes all resolutions at FY26 annual general meeting

scanx.trade, 02 Oct

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongGrowth

MiddlingFinancial Health · Valuation

WeakBusiness Quality · Profitability · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 6 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Free cash flow remains positive; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑