IBL Finance Limited

Sector n/a · NSE

₹52.20−₹0.30 (−0.57%)

DalalBaazaar Score

51 / 100

🟡 Moderate

Verdict

CAUTION

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 modest growth. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:47 pm

Understanding the Business

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

How does it make money?

Turns over ₹17 Cr a year. Of every ₹100 of sales, about ₹14 reaches shareholders as profit, with ₹29 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Little sign of one

Returns on capital of 2.6% 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.

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 +29% while net margin moved -7% 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+29%

Margin effect-7%

DalalBaazaar Score

51/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✓ Profits have been consistent from year to year
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

53/ 100

Average

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

Valuation

18/ 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

No P/E available

EV/EBITDA

36.7x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 9.9% to 4.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 13.8% to 2.6% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 3 high

🔴Debt has risen sharplyFinancial
Total debt is up 63330% over 3 years, from ₹0 Cr to ₹58 Cr.
🔴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.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 15.6 points, from 44.8% to 29.2%.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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?

Margins are being competed away
EBITDA margin has fallen from 44.8% to 29.2%. 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 11.6x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Returns on shareholder capital are falling
ROE has dropped from 9.9% to 4.0%. 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.
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

1EBITDA margin holds above 27%✓ 29.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 11.6x
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✗ -₹4 Cr
Profit that never becomes cash eventually stops being profit.
4Revenue growth stays above 7% a year✓ 8.8% CAGR
Latest reported year was 32.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5ROCE stays above 8%✗ 2.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 9 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
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

1 good · 7 neutral · 3 weak

Market Cap

₹129 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

4.0%

Weak

Weak capital efficiency

ROCE

2.6%

Weak

Low return on total capital employed

Debt/Equity

0.95x

Moderate

Moderate leverage

Revenue Growth (YoY)

32.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

3.6%

Modest

Slow profit growth

Dividend Yield

None

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

Free Cash Flow

-₹4 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Gross Margin

51.0%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

14.2%

Good

Strong bottom-line conversion

Current Ratio

12.18

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

61.3 / 61.1

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

39.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹13 Cr	₹14 Cr	₹13 Cr	₹17 Cr	+8.8%
EBITDA	₹6 Cr	₹6 Cr	₹4 Cr	₹5 Cr	-5.7%
EBITDA Margin	44.8%	45.9%	32.1%	29.2%	—
PAT (Net Profit)	₹2 Cr	₹2 Cr	₹2 Cr	₹2 Cr	+6.0%
EPS	₹0.83	₹1.17	₹0.95	—	—
ROE	9.9%	4.1%	4.0%	4.0%	—
ROCE	13.8%	5.1%	2.7%	2.6%	—
Total Debt	₹0 Cr	₹5 Cr	₹44 Cr	₹58 Cr	+759.2%
Free Cash Flow	-₹8 Cr	-₹32 Cr	-₹47 Cr	-₹4 Cr	—

🟢 Revenue has grown at 8.8% a year over 3 years.

🔴 EBITDA has shrunk at 5.7% a year over 3 years.

🔴 EBITDA Margin has fallen from 44.8% to 29.2% over 3 years (-15.6 pts).

🟢 PAT (Net Profit) has grown at 6.0% a year over 3 years.

🔴 ROE has fallen from 9.9% to 4.0% over 3 years (-5.9 pts).

🔴 ROCE has fallen from 13.8% to 2.6% over 3 years (-11.2 pts).

🔴 Total Debt has grown at 759.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹130 Cr

Total Liabilities

₹69 Cr

Cash & Equivalents

₹4 Cr

Operating Cash Flow

-₹3 Cr

Capex

-₹1 Cr

Recent News

1 mixed5 general

IBL Finance Ltd Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 30 Sept

IBL Finance Limited proposes a public issue of Secured, Rated, listed, and Redeemable NCDs aggregating up to Rs 50 crore

Business Standard, 13 OctFunding

🟡Mixed / dependsNew funding changes the capital structure. Debt raises leverage; an equity raise dilutes existing holders.

IBL Finance Plans ₹50 Cr NCD Issue With Up to 12.12% Yield

HDFC Sky, 08 Oct

IBL Finance NCD Issue 2026: Dates, Yields and Investment Details

Kalkine India, 10 Oct

IBL Finance NCD October 2026 – Effective Yield 12.12% p.a.

IPO Watch, 12 Oct

IBL Finance allots NCDs worth ₹33 lakh at 13% coupon

scanx.trade, 27 Sept

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

MiddlingBusiness Quality · Financial Health · Growth · Profitability · Valuation

WeakRisk

Points for each in the Score ↑

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.

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