AION-TECH Solutions Limited

Technology — Information Technology Services · NSE

₹40.78+₹0.79 (+1.98%)

DalalBaazaar Score

45 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by negative free cash flow, the company is currently loss-making, micro-cap size, which brings thin liquidity.

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

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

AION-TECH Solutions Limited provides business intelligence (BI), data analytics, and information technology (IT) consulting services in India and internationally. It operates through two segments, Information Technology/Software Services and Software License.

IndustryInformation Technology Services

SectorTechnology

Employees115

Annual revenue₹135 Cr

How does it make money?

Turns over ₹135 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation. Each of its 115 employees supports ₹1.17 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin10.5%

Net margin5.9%

Revenue / employee₹1.17 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.

TATA CONSULTANCY SERV LTP/E 17.3x · ROE 45.6%

INFOSYS LIMITEDP/E 15.8x · ROE 32.0%

HCL TECHNOLOGIES LTDP/E 20.4x · ROE 24.6%

WIPRO LTDP/E 14.5x · ROE 15.9%

What is its competitive advantage?Little sign of one

Returns on capital of 2.5% 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.

ROCE2.5%

ROE2.6%

Peer median ROE32.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +45% while net margin moved +1110% 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+45%

Margin effect+1110%

DalalBaazaar Score

45/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 2.6% is weak

Quality vs. Valuation

Company Quality

45/ 100

Average

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.

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

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

P/E (Trailing)

Not meaningful

P/B

0.70x

EV/EBITDA

21.0x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Margins are improving
EBITDA margin is up from 3.4% to 10.5% over 3 years.

🔴 What Needs Attention2

Debt is rising
Total debt is up 812% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 812% over 3 years, from ₹11 Cr to ₹96 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.4x — 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.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 14.0x to 1.4x.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 51% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 3.4% to 10.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 6.7x 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.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1Revenue growth stays above 10% a year✓ 13.3% CAGR
Latest reported year was 40.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 9%✓ 10.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 6.7x
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✗ -₹23 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 1.4x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

5 / 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 · 2 neutral · 6 weak

Market Cap

₹214 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

0.70x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-1.45

Loss-making

Negative earnings per share — the business is losing money

ROE

2.6%

Weak

Weak capital efficiency

ROCE

2.5%

Weak

Low return on total capital employed

Debt/Equity

0.31x

Low

Conservative leverage

Revenue Growth (YoY)

40.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-19.1%

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

-₹23 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹40.78

Operating Margin

-6.2%

Weak

Thin margins leave little room for error

Net Margin

-1.1%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.18

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.73

Defensive

Steadier than the market

52W Range Position

28%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

42.7 / 46.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

19.1

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹93 Cr	₹93 Cr	₹89 Cr	₹135 Cr	+13.3%
EBITDA	₹3 Cr	₹1 Cr	₹4 Cr	₹14 Cr	+65.6%
EBITDA Margin	3.4%	1.2%	4.9%	10.5%	—
PAT (Net Profit)	₹0 Cr	-₹2 Cr	₹10 Cr	₹8 Cr	+160.0%
EPS	₹0.13	₹-0.63	₹2.86	₹0.2	+15.4%
ROE	0.7%	-3.3%	10.3%	2.6%	—
ROCE	2.7%	-0.9%	13.6%	2.5%	—
Total Debt	₹11 Cr	₹16 Cr	₹7 Cr	₹96 Cr	+109.0%
Free Cash Flow	-₹17 Cr	-₹1 Cr	-₹12 Cr	-₹23 Cr	—

🟢 Revenue has grown at 13.3% a year over 3 years.

🟢 EBITDA has grown at 65.6% a year over 3 years.

🟢 EBITDA Margin has risen from 3.4% to 10.5% over 3 years (+7.2 pts).

🟢 PAT (Net Profit) has grown at 160.0% a year over 3 years.

🟢 EPS has grown at 15.4% a year over 3 years.

🟢 ROE has risen from 0.7% to 2.6% over 3 years (+2.0 pts).

🟡 ROCE has held roughly flat at 2.5% over 3 years.

🔴 Total Debt has grown at 109.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹447 Cr

Total Liabilities

₹135 Cr

Total Debt

₹96 Cr

Cash & Equivalents

₹11 Cr

Operating Cash Flow

-₹14 Cr

Capex

-₹9 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

69.5%

Corporate Actions

Ex-Dividend Date

18 Sept 2008

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 mixed5 general

AION-Tech Solutions Upper Circuit Streak: Day 2 Price and Data

Univest, 12 Oct

AION-TECH SOLUTIONS (GOLDTECH) Share/Stock Price Live, NSE

TechGraph, 08 Oct

Aion-Tech Solutions invests ₹1.30 Cr in ROQIT Greenfleet

scanx.trade, 10 Jul

Does AION-TECH Solutions (NSE:GOLDTECH) Have A Healthy Balance Sheet?

Simply Wall Street, 24 Jan

Aion-Tech Solutions (NSE:GOLDTECH): What Does the Q2 FY27 Share Capital Audit Show?

Kalkine India, 08 OctResults

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

Aion-Tech Solutions (GOLDTECH.NS) Drifts Lower to ₹47.5 as Stock Holds Key ₹45.12 Support - Safe Entry Stocks

siam.in, 09 Sept

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

🔴Business QualityWeak6.2/20

🟡Financial HealthAdequate9.1/20

🟢GrowthStrong16.1/20

🔴ProfitabilityWeak2.6/15

🟡ValuationFair7.1/15

🔴RiskHigh4/10

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. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 10% a year13.3% CAGR
✓EBITDA margin holds above 9%10.5%
✗Debt / EBITDA falls below 3x6.7x
✗Free cash flow remains positive-₹23 Cr
✗Interest cover stays above 3x1.4x