RPSG Ventures Limited

Technology — Information Technology Services · NSE

₹865.00−₹6.90 (−0.79%)

DalalBaazaar Score

47 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, short-term liabilities exceed short-term assets, the company is currently loss-making.

In simple words: The company is currently losing money, with modest growth. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:28 pm

Understanding the Business

Company site ↗

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

What does this company do?

RPSG Ventures Limited, together with its subsidiaries, owns, operates, invests, and promotes business in the fields of information technology, business process outsourcing, property, entertainment, fast moving consumer goods, and sports activities in India.

IndustryInformation Technology Services

SectorTechnology

Employees179

Annual revenue₹11,323 Cr

How does it make money?

Turns over ₹11,323 Cr a year. Of every ₹100 of sales, about ₹-1 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation. Each of its 179 employees supports ₹63.26 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹63.26 Cr

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 7.1% 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.

Peer median ROE32.0%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +58% while net margin moved -43% 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+58%

Margin effect-43%

DalalBaazaar Score

47/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative

Quality vs. Valuation

Company Quality

48/ 100

Average

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

Valuation

54/ 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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

7.4x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 8.4% to 12.5% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on capital is rising
ROCE has improved from 3.3% to 7.1%.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

6 items require attention · 4 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 141% over 3 years, from ₹3,414 Cr to ₹8,243 Cr.
🔴High leverageFinancial
Debt/Equity of 1.89x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.5x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹138 Cr in the latest reported year.
🟡Receivables growing faster than salesFinancial
Receivables up 100% against revenue up 58% — sales are being booked faster than they are collected.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.59 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 8.4% to 12.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 5.8x 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 100% against revenue up 58%. 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.
Several serious flags at once
4 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

1Revenue growth stays above 12% a year✓ 16.5% CAGR
Latest reported year was 20.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 11%✓ 12.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 5.8x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Interest cover stays above 3x✗ 1.5x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹272 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

5 / 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

3 good · 3 neutral · 5 weak

Market Cap

₹2,862 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

1.14x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-39.28

Loss-making

Negative earnings per share — the business is losing money

ROE

-5.5%

Weak

Weak capital efficiency

ROCE

7.1%

Weak

Low return on total capital employed

Debt/Equity

1.89x

High

High leverage

Revenue Growth (YoY)

20.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

9.6%

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

₹272 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

17.0%

Good

Healthy core-business profitability

Net Margin

-1.1%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.59

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.16

Defensive

Steadier than the market

52W Range Position

50%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

853.3 / 858.6

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

56.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹7,166 Cr	₹7,951 Cr	₹9,608 Cr	₹11,323 Cr	+16.5%
EBITDA	₹605 Cr	₹957 Cr	₹1,147 Cr	₹1,416 Cr	+32.7%
EBITDA Margin	8.4%	12.0%	11.9%	12.5%	—
PAT (Net Profit)	-₹153 Cr	-₹42 Cr	-₹49 Cr	-₹138 Cr	—
EPS	₹-53.72	₹-14.26	₹-14.82	₹-41.7	—
ROE	-6.3%	-1.6%	-1.8%	-5.5%	—
ROCE	3.3%	6.8%	7.1%	7.1%	—
Total Debt	₹3,414 Cr	₹4,211 Cr	₹6,152 Cr	₹8,243 Cr	+34.2%
Free Cash Flow	-₹73 Cr	₹217 Cr	₹59 Cr	₹272 Cr	—

🟢 Revenue has grown at 16.5% a year over 3 years.

🟢 EBITDA has grown at 32.7% a year over 3 years.

🟢 EBITDA Margin has risen from 8.4% to 12.5% over 3 years (+4.1 pts).

🟡 ROE has held roughly flat at -5.5% over 3 years.

🟢 ROCE has risen from 3.3% to 7.1% over 3 years (+3.9 pts).

🔴 Total Debt has grown at 34.2% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹73 Cr to ₹272 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹19,049 Cr

Total Liabilities

₹14,668 Cr

Cash & Equivalents

₹674 Cr

Operating Cash Flow

₹1,233 Cr

Capex

-₹961 Cr

Shareholding (proxy)

Institutional Holding

0.5%

Insider Holding

71.1%

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 positive2 mixed3 general

RPSG Ventures Ltd. Peer Comparison – Compare with Others

Value Research, 31 Aug

RPSG Ventures shares soar 17%, rebound 70% from 52-week low; here's why

Business Standard, 01 AprPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

RPSG Ventures Ltd

Equitypandit, 20 Feb

RPSG Ventures Ltd AGM on Sep 11, 2026; Reports Strong FY26 Financial Performance

scanx.trade, 11 Sept

RPSG Ventures Q4 Ventures: Net loss widens from last year despite 15% revenue growth; Stock falls

CNBC TV18, 21 MayResults

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

RPSG Ventures Q1 profit rises marginally to ₹253 crore as Firstsource, sports drive revenue

Storyboard18, 13 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

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

DalalBaazaar Thesis

StrongGrowth

MiddlingBusiness Quality · Valuation

WeakFinancial Health · Profitability · Risk

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

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