Indrayani Biotech Limited

Industrials — Specialty Business Services · BSE

₹8.15+₹0.13 (+1.62%)

DalalBaazaar Score

37 / 100

🔴 Weak

Verdict

CAUTION

Risk

Moderate

Driven by moderate debt load, 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. Thin profit margins are the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Indrayani Biotech Limited, together with its subsidiaries, engages in the food and hospitality, dairy, healthcare and pharma, engineering, biotech, agriculture, and infrastructure businesses. It offers catering and food supply services.

IndustrySpecialty Business Services

SectorIndustrials

Annual revenue₹138 Cr

How does it make money?

Turns over ₹138 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA 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 6.2% 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 ROE15.2%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -15% while net margin moved -71% 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-15%

Margin effect-71%

DalalBaazaar Score

37/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 5.4% a year
✗ Profit has declined at 37.2% a year

Quality vs. Valuation

Company Quality

32/ 100

Weak

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

Valuation

59/ 100

Fair

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

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

20.4x

3Y Median

13.4x

40 monthly readings · mean 17.3x · range 5.2x–37.6x

Sector Median

88.8x

median of 3 sector peers

⚠️Current valuation is approximately 52% above its 3y median of 13.4x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 77% below the peer median of 88.8x.

vs. its own history

Expensive

13.4x median over 40 months · +52%

vs. sector peers

Cheap

88.8x median of 3 peers · -77%

vs. generic bands

Fair

15x–35x

EV/EBITDA

11.3x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 15.9% to 3.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 20.6% to 6.2% — often a sign of competition or overexpansion.

Red Flags

7 items require attention · 4 high · 3 watch

🔴Debt has risen sharplyFinancial
Total debt is up 83% over 3 years, from ₹70 Cr to ₹128 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.0x — little room if earnings dip.
🔴Receivables growing faster than salesFinancial
Receivables up 95% against revenue up -15% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 209% against revenue up -15% — stock may not be moving.
🟡Profit is decliningFinancial
Net profit is down 75% over 3 years.
🟡Margins are compressingFinancial
EBITDA margin is down 2.6 points over 3 years.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 33% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 77% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 13.0% to 10.3%. 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 9.0x 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 95% against revenue up -15%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 52% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 15.9% to 3.0%. 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.

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

1EBITDA margin holds above 8%✓ 10.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 9.0x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ 1.0x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹25 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ 6.2%
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

5 good · 4 neutral · 2 weak

Market Cap

₹37 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

20.4x

Fair

Fairly valued against the generic band

P/B Ratio

0.51x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.4

Profitable

Profitable on a per-share basis

ROE

3.0%

Weak

Weak capital efficiency

ROCE

6.2%

Weak

Low return on total capital employed

Debt/Equity

1.26x

Moderate

Moderate leverage

Revenue Growth (YoY)

27.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

295.3%

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

₹25 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

1.0%

Weak

Thin margins leave little room for error

Net Margin

0.5%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.71

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.19

Defensive

Steadier than the market

52W Range Position

20%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

9.4 / 8.8

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

23.6

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹163 Cr	₹166 Cr	₹130 Cr	₹138 Cr	-5.4%
EBITDA	₹21 Cr	₹25 Cr	₹9 Cr	₹14 Cr	-12.4%
EBITDA Margin	13.0%	14.8%	7.2%	10.3%	—
PAT (Net Profit)	₹9 Cr	₹10 Cr	-₹6 Cr	₹2 Cr	-37.2%
EPS	₹2.05	₹1.4	₹-1.35	—	—
ROE	15.9%	15.5%	-8.4%	3.0%	—
ROCE	20.6%	14.2%	3.6%	6.2%	—
Total Debt	₹70 Cr	₹113 Cr	₹137 Cr	₹128 Cr	+22.3%
Free Cash Flow	-₹27 Cr	-₹47 Cr	-₹8 Cr	₹25 Cr	—

🔴 Revenue has shrunk at 5.4% a year over 3 years.

🔴 EBITDA has shrunk at 12.4% a year over 3 years.

🔴 EBITDA Margin has fallen from 13.0% to 10.3% over 3 years (-2.6 pts).

🔴 PAT (Net Profit) has shrunk at 37.2% a year over 3 years.

🔴 ROE has fallen from 15.9% to 3.0% over 3 years (-12.9 pts).

🔴 ROCE has fallen from 20.6% to 6.2% over 3 years (-14.4 pts).

🔴 Total Debt has grown at 22.3% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹27 Cr to ₹25 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹253 Cr

Total Liabilities

₹151 Cr

Cash & Equivalents

₹4 Cr

Operating Cash Flow

₹32 Cr

Capex

-₹7 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

55.9%

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

1 mixed5 general

Indrayani Biotech Rights Issue 2026 Date, Price, Allotment, Ratio

IPO Watch, 30 Sept

Indrayani Biotech Rts Q1 Results

Livemint, 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.

Indrayani Biotech Limited Clarifies Share Price Movement Following Rights Issue and Demerger Intimations

scanx.trade, 09 Apr

Indrayani Biotech postpones rights issue until further notice

scanx.trade, 22 Jun

Indrayani Biotech sells 1.83% stake in subsidiary Dindigul Farm

scanx.trade, 30 Sept

Indrayani Biotech Ltd. Peer Comparison – Compare with Others

Value Research, 30 Aug

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

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

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