GSS Infotech Limited

Technology — Information Technology Services · NSE

₹10.28+₹0.08 (+0.78%)

DalalBaazaar Score

31 / 100

🔴 Weak

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, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:27 pm

Understanding the Business

Company site ↗

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

What does this company do?

GSS Infotech Limited, together with its subsidiaries, provides information technology (IT) services in India, Bangladesh, and the United States.

IndustryInformation Technology Services

SectorTechnology

Employees48

Annual revenue₹88 Cr

How does it make money?

Turns over ₹88 Cr a year. Of every ₹100 of sales, about ₹-57 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation. Each of its 48 employees supports ₹1.84 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.84 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 -10.9% 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 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 -23% while net margin moved -540% 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-23%

Margin effect-540%

DalalBaazaar Score

31/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 8.3% a year
✗ Profit fell 3580.2% in the latest year

Quality vs. Valuation

Company Quality

27/ 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

No P/E — the company is lossmaking

EV/EBITDA

42.4x

PEG

—

What's Good / What's Bad

🟢 What's Going Well0

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

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 7.2% to -16.7% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 8.0% to -10.9% — often a sign of competition or overexpansion.

Red Flags

8 items require attention · 6 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 1178% over 3 years, from ₹12 Cr to ₹158 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only -51.7x — little room if earnings dip.
🔴Free cash flow negative for 3 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 -₹50 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 9.6 points, from 14.4% to 4.7%.
🔴Receivables growing faster than salesFinancial
Receivables up 100% against revenue up -23% — sales are being booked faster than they are collected.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from -0.2x to -51.7x.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 56% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 14.4% to 4.7%. 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 37.9x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 100% against revenue up -23%. 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 7.2% to -16.7%. 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 3%✓ 4.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 37.9x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹65 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ -51.7x
How much operating profit can fall before interest stops being comfortably covered.
5ROCE stays above 8%✗ -10.9%
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

₹27 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

0.09x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-18.55

Loss-making

Negative earnings per share — the business is losing money

ROE

-16.7%

Weak

Weak capital efficiency

ROCE

-10.9%

Weak

Low return on total capital employed

Debt/Equity

0.48x

Low

Conservative leverage

Revenue Growth (YoY)

-2.4%

Shrinking

Sales are contracting

Profit Growth (YoY)

-3580.2%

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

-₹65 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

1.8%

Weak

Thin margins leave little room for error

Net Margin

-54.5%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.93

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.57

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

10.3 / 11.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

41.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹114 Cr	₹171 Cr	₹125 Cr	₹88 Cr	-8.3%
EBITDA	₹16 Cr	₹4 Cr	₹2 Cr	₹4 Cr	-36.7%
EBITDA Margin	14.4%	2.5%	1.7%	4.7%	—
PAT (Net Profit)	₹15 Cr	₹7 Cr	-₹1 Cr	-₹50 Cr	—
EPS	₹7.53	₹4.07	₹-0.52	₹-19.27	—
ROE	7.2%	2.1%	-0.4%	-16.7%	—
ROCE	8.0%	2.7%	-0.0%	-10.9%	—
Total Debt	₹12 Cr	₹12 Cr	₹176 Cr	₹158 Cr	+133.8%
Free Cash Flow	₹14 Cr	-₹157 Cr	-₹121 Cr	-₹65 Cr	—

🔴 Revenue has shrunk at 8.3% a year over 3 years.

🔴 EBITDA has shrunk at 36.7% a year over 3 years.

🔴 EBITDA Margin has fallen from 14.4% to 4.7% over 3 years (-9.6 pts).

🔴 PAT (Net Profit) has turned negative, from ₹15 Cr to -₹50 Cr.

🔴 EPS has turned negative, from ₹7.53 to ₹-19.27.

🔴 ROE has fallen from 7.2% to -16.7% over 3 years (-23.9 pts).

🔴 ROCE has fallen from 8.0% to -10.9% over 3 years (-18.9 pts).

🔴 Total Debt has grown at 133.8% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹14 Cr to -₹65 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹483 Cr

Total Liabilities

₹182 Cr

Cash & Equivalents

₹8 Cr

Operating Cash Flow

-₹65 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

1.2%

Insider Holding

37.0%

Corporate Actions

Ex-Dividend Date

21 Dec 2010

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

Compare GSS INFOTECH with

Equitymaster, 14 Oct

GSS Infotech AGM resolutions pass; MD appointment gets 98.83% votes

scanx.trade, 15 Oct

GSS Infotech Share Price Forecast: 3 Year Outlook to 2030

Univest, 17 Jul

GSS Infotech Dips 1.82% to ₹11.9: Stock Holds Key Support amid IT Sector Caution - Float Adjusted Cap

https://www.siam.in/, 01 Sept

Investors Don't See Light At End Of GSS Infotech Limited's (NSE:GSS) Tunnel

Simply Wall Street, 20 Nov

Why Is GSS Infotech Share Price Falling Key Reasons 2026

Univest, 18 JunPrice 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.

Watch Items

Revenue growth is negative (-2.4%) on the latest reported period — check if this is one-off or a trend.
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

MiddlingFinancial Health · Valuation

WeakBusiness Quality · Growth · 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.

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