IRIS RegTech Solutions Limited

Technology — Software - Application · NSE

₹214.00+₹2.25 (+1.06%)

DalalBaazaar Score

69 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

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

In simple words: Strong business and financial position, with modest growth. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:59 pm

Understanding the Business

Company site ↗

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

What does this company do?

IRIS RegTech Solutions Limited, together with its subsidiaries, provides regulatory technology solutions in India, the Middle East, the Asia Pacific, Africa, the United States, Europe, and the United Kingdom. It operates through SupTech, RegTech, TaxTech, DataTech segments.

IndustrySoftware - Application

SectorTechnology

Employees487

Annual revenue₹129 Cr

How does it make money?

Turns over ₹129 Cr a year. Of every ₹100 of sales, about ₹98 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation. Each of its 487 employees supports ₹26.4 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹26.4 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?Little sign of one

Returns on capital of 8.4% 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 +75% while net margin moved +1595% 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+75%

Margin effect+1595%

DalalBaazaar Score

69/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.79 — historically steadier than the index
✗ 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

73/ 100

Good

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.

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

Historical Valuation

Current P/E

34.7x

3Y Median

55.1x

40 monthly readings · mean 60.5x · range 31.1x–124.4x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 37% below its 3y median of 55.1x. 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 110% above the peer median of 16.5x.

vs. its own history

Cheap

55.1x median over 40 months · -37%

vs. sector peers

Expensive

16.5x median of 4 peers · +110%

vs. generic bands

Fair

15x–35x

EV/EBITDA

21.9x

PEG

0.17

What's Good / What's Bad

🟢 What's Going Well4

Debt is being paid down
Total debt is down 71% over 3 years.
Cash generation is improving
Free cash flow is up 2885% over 3 years.
Return on equity is rising
ROE has improved from 13.5% to 63.0%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 15.8% to 8.4% — often a sign of competition or overexpansion.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 71% 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 37% 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.
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?

A premium to the sector to defend
It trades 110% above the peer median. That premium needs a reason that persists, or it closes.
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

1Revenue growth stays above 15% a year✓ 20.4% CAGR
Latest reported year was 9.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 13%✓ 15.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹97 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 8.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 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

4 good · 7 neutral · 0 weak

Market Cap

₹440 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

34.7x

Fair

Fairly valued against the generic band

P/B Ratio

2.19x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹6.17

Profitable

Profitable on a per-share basis

ROE

63.0%

Strong

Strong capital efficiency

ROCE

8.4%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.83x

Moderate

Moderate leverage

Revenue Growth (YoY)

9.7%

Modest

Modest growth

Profit Growth (YoY)

870.8%

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

₹97 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

-9.5%

Weak

Thin margins leave little room for error

Net Margin

92.1%

Good

Strong bottom-line conversion

Current Ratio

3.52

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.79

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

224.3 / 237.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

27.9

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹74 Cr	₹102 Cr	₹110 Cr	₹129 Cr	+20.4%
EBITDA	₹11 Cr	₹16 Cr	₹21 Cr	₹20 Cr	+22.9%
EBITDA Margin	14.3%	15.2%	19.4%	15.2%	—
PAT (Net Profit)	₹4 Cr	₹9 Cr	₹13 Cr	₹127 Cr	+209.4%
EPS	₹2.21	₹4.46	₹6.74	₹6.82	+45.6%
ROE	13.5%	21.2%	17.2%	63.0%	—
ROCE	15.8%	22.8%	23.5%	8.4%	—
Total Debt	₹6 Cr	₹7 Cr	₹4 Cr	₹2 Cr	-34.0%
Free Cash Flow	₹3 Cr	₹8 Cr	₹20 Cr	₹97 Cr	+210.2%

🟢 Revenue has grown at 20.4% a year over 3 years.

🟢 EBITDA has grown at 22.9% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 15.2% over 3 years.

🟢 PAT (Net Profit) has grown at 209.4% a year over 3 years.

🟢 EPS has grown at 45.6% a year over 3 years.

🟢 ROE has risen from 13.5% to 63.0% over 3 years (+49.5 pts).

🔴 ROCE has fallen from 15.8% to 8.4% over 3 years (-7.4 pts).

🟢 Total Debt has shrunk at 34.0% a year over 3 years.

🟢 Free Cash Flow has grown at 210.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹253 Cr

Total Liabilities

₹52 Cr

Cash & Equivalents

₹13 Cr

Operating Cash Flow

₹105 Cr

Capex

-₹8 Cr

Shareholding (proxy)

Institutional Holding

9.4%

Insider Holding

52.0%

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

IRIS RegTech Solutions (IRIS) Share/Stock Price Live, NSE

TechGraph, 08 Oct

IRIS RegTech Solutions (NSE:IRIS) Is Posting Promising Earnings But The Good News Doesn’t Stop There

Simply Wall Street, 23 MayResults

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

IRIS REGTECH SOLUTION LTD Share Price

Upstox, 05 May

IRIS RegTech Solutions - Madhusudan Kela’s portfolio: 7 stocks rally up to 135% in CY26

The Economic Times, 15 Aug

IRIS RegTech Solutions Bull Case vs Bear Case for 2026

Univest, 11 Sept

IRIS Regtech Solutions Ltd Spurts 2.12%

Business Standard, 08 Jul

Watch Items

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.
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

StrongFinancial Health · Growth · Profitability

MiddlingBusiness Quality · Valuation

WeakRisk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

All 5 tripwires holding · see Key things to watch ↑