Inspirisys Solutions Limited

Technology — Information Technology Services · NSE

₹82.80+₹1.55 (+1.91%)

DalalBaazaar Score

67 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by moderate debt load, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

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

What does this company do?

Inspirisys Solutions Limited provides information technology services in India and internationally.

IndustryInformation Technology Services

SectorTechnology

Employees1,635

Annual revenue₹476 Cr

How does it make money?

Turns over ₹476 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation. Each of its 1,635 employees supports ₹29.1 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹29.1 lakh

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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 21.7%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 40.9% against a peer median of 32.0% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

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 +28% while net margin moved -1356% 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+28%

Margin effect-1356%

DalalBaazaar Score

67/ 100

Good

Weighted across six categories. Every point is explained below.

• Beta of 0.90 — moves roughly with the market
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

68/ 100

Good

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

Valuation

80/ 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

8.9x

2Y Median

13.0x

28 monthly readings · mean 54.6x · range 7.9x–177.7x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 31% below its 2y median of 13.0x. 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 46% below the peer median of 16.5x.

vs. its own history

Cheap

13.0x median over 28 months · -31%

vs. sector peers

Cheap

16.5x median of 4 peers · -46%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

8.4x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 21% over 3 years.
Cash generation is improving
Free cash flow is up 40% over 3 years.
High return on capital employed
ROCE of 21.7% is the mark of a business that converts capital into profit efficiently.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 371.1% to 21.7% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Receivables growing faster than salesFinancial
Receivables up 65% against revenue up 28% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 21.7% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Deleveraging frees up earnings
Debt is down 21% 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 31% 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.
Cheaper than its peers
It trades 46% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 65% against revenue up 28%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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

1EBITDA margin holds above 8%✓ 10.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 7% a year✓ 8.7% CAGR
Latest reported year was 26.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹22 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 19%✓ 21.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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

6 good · 4 neutral · 1 weak

Market Cap

₹328 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

8.9x

Cheap

Cheap against the generic band

P/B Ratio

3.27x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹9.29

Profitable

Profitable on a per-share basis

ROE

40.9%

Strong

Strong capital efficiency

ROCE

21.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.82x

Moderate

Moderate leverage

Revenue Growth (YoY)

26.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-33.1%

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

₹22 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

4.7%

Weak

Thin margins leave little room for error

Net Margin

7.8%

Average

Average bottom-line conversion

Current Ratio

1.67

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.90

Market-like

Moves roughly in line with the market

52W Range Position

20%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

85.0 / 88.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

35.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹370 Cr	₹490 Cr	₹388 Cr	₹476 Cr	+8.7%
EBITDA	₹32 Cr	₹35 Cr	₹33 Cr	₹48 Cr	+14.1%
EBITDA Margin	8.7%	7.1%	8.6%	10.1%	—
PAT (Net Profit)	-₹3 Cr	₹4 Cr	₹32 Cr	₹41 Cr	—
EPS	₹-0.64	₹0.93	₹8.01	₹10.35	—
ROE	—	12.5%	54.2%	40.9%	—
ROCE	371.1%	80.4%	21.2%	21.7%	—
Total Debt	₹105 Cr	₹83 Cr	₹85 Cr	₹82 Cr	-7.7%
Free Cash Flow	₹16 Cr	₹25 Cr	₹35 Cr	₹22 Cr	+11.9%

🟢 Revenue has grown at 8.7% a year over 3 years.

🟢 EBITDA has grown at 14.1% a year over 3 years.

🟢 EBITDA Margin has risen from 8.7% to 10.1% over 3 years (+1.4 pts).

🟢 PAT (Net Profit) has turned positive, from -₹3 Cr to ₹41 Cr.

🟢 EPS has turned positive, from ₹-0.64 to ₹10.35.

🟢 ROE has risen from 12.5% to 40.9% over 3 years (+28.4 pts).

🔴 ROCE has fallen from 371.1% to 21.7% over 3 years (-349.4 pts).

🟢 Total Debt has shrunk at 7.7% a year over 3 years.

🟢 Free Cash Flow has grown at 11.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹359 Cr

Total Liabilities

₹259 Cr

Cash & Equivalents

₹8 Cr

Operating Cash Flow

₹23 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

84.0%

Corporate Actions

Ex-Dividend Date

11 Dec 2012

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

6 general

Inspirisys Solutions vs Nifty 50: Returns Compared

Univest, 30 Sept

Inspirisys Solutions Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 29 Aug

Inspirisys Solutions Ltd. Upper Circuit Today: Price, Data and Peers

Univest, 30 Sept

Is Inspirisys Solutions (NSE:INSPIRISYS) A Risky Investment?

Simply Wall Street, 07 Feb

Inspirisys Solutions: Best Stock in Its Sector? Key Metrics

Univest, 29 Sept

INSPIRISYS SOLUTIONS Share Price

Upstox, 29 Mar

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Growth · Profitability · Valuation

MiddlingBusiness Quality

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 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑