Excelsoft Technologies Limited

Technology — Software - Application · NSE

₹85.00+₹1.57 (+1.88%)

DalalBaazaar Score

65 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by moderate debt load, negative free cash flow, 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 both sales and profits growing well. Cash generation is currently 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 Excelsoft Technologies Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Excelsoft Technologies Limited, a software as a service (SaaS) company, designs and develops technology-based solutions in the education and e-learning space.

IndustrySoftware - Application

SectorTechnology

Annual revenue₹273 Cr

How does it make money?

Turns over ₹273 Cr a year. Of every ₹100 of sales, about ₹16 reaches shareholders as profit, with ₹34 left at the operating level before interest, tax and depreciation.

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 10.3% 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?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +40% while net margin moved +39% 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+40%

Margin effect+39%

DalalBaazaar Score

65/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

69/ 100

Good

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

Valuation

71/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

19.3x

1.1Y Median

24.8x

13 monthly readings · mean 25.6x · range 17.0x–39.7x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 22% below its 1.1y median of 24.8x. 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 16% above the peer median of 16.5x.

vs. its own history

Cheap

24.8x median over 13 months · -22%

vs. sector peers

Fair

16.5x median of 4 peers · +16%

vs. generic bands

Fair

15x–35x

EV/EBITDA

10.0x

PEG

0.78

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 95% 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

1 item require attention · 1 watch

🟡Free cash flow is negativeFinancial
Free cash flow was -₹19 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 95% 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 22% 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.
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?

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 9% a year✓ 11.8% CAGR
Latest reported year was 44.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 32%✓ 33.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹19 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%✓ 10.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 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

3 good · 6 neutral · 2 weak

Market Cap

₹978 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

19.3x

Fair

Fairly valued against the generic band

P/B Ratio

1.69x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹4.41

Profitable

Profitable on a per-share basis

ROE

7.5%

Weak

Weak capital efficiency

ROCE

10.3%

Moderate

Moderate return on the capital in the business

Debt/Equity

1.14x

Moderate

Moderate leverage

Revenue Growth (YoY)

44.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

33.3%

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

-₹19 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

15.7x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

8.1%

Average

Average margins

Net Margin

15.7%

Good

Strong bottom-line conversion

Current Ratio

3.84

Comfortable

Healthy short-term liquidity

52W Range Position

24%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

82.2 / 77.2

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

46.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹195 Cr	₹198 Cr	₹233 Cr	₹273 Cr	+11.8%
EBITDA	₹68 Cr	₹62 Cr	₹87 Cr	₹92 Cr	+10.6%
EBITDA Margin	34.7%	31.1%	37.3%	33.7%	—
PAT (Net Profit)	₹22 Cr	₹13 Cr	₹35 Cr	₹43 Cr	+24.6%
EPS	₹1.95	₹1.11	₹3.01	₹4.12	+28.4%
ROE	8.1%	4.3%	9.3%	7.5%	—
ROCE	11.3%	7.6%	15.8%	10.3%	—
Total Debt	₹121 Cr	₹78 Cr	₹35 Cr	₹7 Cr	-62.1%
Free Cash Flow	₹41 Cr	₹40 Cr	₹34 Cr	-₹19 Cr	—

🟢 Revenue has grown at 11.8% a year over 3 years.

🟢 EBITDA has grown at 10.6% a year over 3 years.

🔴 EBITDA Margin has fallen from 34.7% to 33.7% over 3 years (-1.1 pts).

🟢 PAT (Net Profit) has grown at 24.6% a year over 3 years.

🟢 EPS has grown at 28.4% a year over 3 years.

🟡 ROE has held roughly flat at 7.5% over 3 years.

🔴 ROCE has fallen from 11.3% to 10.3% over 3 years (-1.0 pts).

🟢 Total Debt has shrunk at 62.1% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹41 Cr to -₹19 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹678 Cr

Total Liabilities

₹100 Cr

Cash & Equivalents

₹65 Cr

Operating Cash Flow

₹50 Cr

Capex

-₹69 Cr

Shareholding (proxy)

Institutional Holding

1.1%

Insider Holding

63.9%

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

1 positive5 general

Excelsoft Technologies: Best Stock in Its Sector? Key Metrics

Univest, 25 Sept

Excelsoft FY26 net profit rises 25% to ₹43.38 crore

scanx.trade, 05 OctResults

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

EXCELSOFT TECHNOLOGIES L Share Price

Upstox, 05 May

Excelsoft Technologies Ltd Key Financial Ratios – Valuation, Profitability & More

Value Research, 30 Aug

EXCELSOFT Stock Price and Chart — NSE:EXCELSOFT

TradingView, 26 Nov

Excelsoft Technologies IPO: Price Band, Dates, P/E Ratio & How to Apply

INDmoney, 26 Mar

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Valuation

MiddlingFinancial Health · Profitability

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑