Quadpro ITeS Limited

Sector n/a · NSE

₹5.35−₹0.20 (−3.60%)

DalalBaazaar Score

35 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, 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, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

The 60-second version of Quadpro ITeS 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 ₹6 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹19 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Little sign of one

Returns on capital of 2.1% 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?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -26% while net margin moved -65% 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-26%

Margin effect-65%

DalalBaazaar Score

35/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 9.4% a year
✗ Profit has declined at 36.3% a year
✗ Latest-year revenue growth of -17.9% is below the longer-term trend — momentum is fading
✗ Profit fell 67.8% in the latest year

Quality vs. Valuation

Company Quality

34/ 100

Weak

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

Valuation

35/ 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

No P/E available

EV/EBITDA

22.8x

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 4.3% to 1.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 6.1% to 2.1% — often a sign of competition or overexpansion.

Red Flags

6 items require attention · 3 high · 3 watch

🔴High leverageFinancial
Debt/Equity of 5.11x — earnings must service borrowings before shareholders see anything.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 6.0 points, from 24.8% to 18.8%.
🔴Receivables growing faster than salesFinancial
Receivables up 120% against revenue up -26% — sales are being booked faster than they are collected.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 79.5x to 4.7x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹1 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 74% over 3 years.

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 24.8% to 18.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 5.11x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 120% against revenue up -26%. 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 4.3% to 1.0%. 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.

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

1EBITDA margin holds above 17%✓ 18.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 8%✗ 2.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Interest cover stays above 4x✓ 4.7x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

2 / 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

0 good · 5 neutral · 6 weak

Market Cap

₹27 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

1.0%

Weak

Weak capital efficiency

ROCE

2.1%

Weak

Low return on total capital employed

Debt/Equity

5.11x

High

High leverage

Revenue Growth (YoY)

-17.9%

Shrinking

Sales are contracting

Profit Growth (YoY)

-67.8%

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

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Gross Margin

58.8%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

3.2%

Average

Average bottom-line conversion

Current Ratio

6.81

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

4.0 / 3.1

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

50.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹9 Cr	₹9 Cr	₹8 Cr	₹6 Cr	-9.4%
EBITDA	₹2 Cr	₹3 Cr	₹2 Cr	₹1 Cr	-17.4%
EBITDA Margin	24.8%	29.2%	23.1%	18.8%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹1 Cr	₹0 Cr	-36.3%
EPS	₹0.17	₹0.16	₹0.13	—	—
ROE	4.3%	4.2%	3.2%	1.0%	—
ROCE	6.1%	6.2%	4.3%	2.1%	—
Total Debt	—	—	₹1 Cr	₹1 Cr	—
Free Cash Flow	-₹9 Cr	₹0 Cr	₹0 Cr	-₹1 Cr	—

🔴 Revenue has shrunk at 9.4% a year over 3 years.

🔴 EBITDA has shrunk at 17.4% a year over 3 years.

🔴 EBITDA Margin has fallen from 24.8% to 18.8% over 3 years (-6.0 pts).

🔴 PAT (Net Profit) has shrunk at 36.3% a year over 3 years.

🔴 ROE has fallen from 4.3% to 1.0% over 3 years (-3.3 pts).

🔴 ROCE has fallen from 6.1% to 2.1% over 3 years (-4.0 pts).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹22 Cr

Total Liabilities

₹2 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹1 Cr

Capex

-₹0 Cr

Recent News

5 general

Quadpro ITeS Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 04 Sept

Quadpro ITeS IPO Date, Review, Price, Form, Lot, Subscription & Allotment Details

IPO Watch, 16 Sept

HRH Next Services (NSEI:HRHNEXT) - Stock Analysis

Simply Wall Street, 24 Jan

Airan (NSEI:AIRAN) - Stock Analysis

Simply Wall Street, 19 Mar

Fintech Select (TSXV:FTEC) - Stock Analysis

Simply Wall Street, 20 Mar

Watch Items

Revenue growth is negative (-17.9%) on the latest reported period — check if this is one-off or a trend.
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

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

2 of 5 tripwires tripped — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑