XTGlobal Infotech Limited

Technology — Software - Application · NSE

₹28.24−₹0.12 (−0.42%)

DalalBaazaar Score

49 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by 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, with modest growth. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

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

What does this company do?

XTGlobal Infotech Limited provides software product development, training, and related software services in India and internationally.

IndustrySoftware - Application

SectorTechnology

Employees533

Annual revenue₹369 Cr

How does it make money?

Turns over ₹369 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 533 employees supports ₹69.2 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹69.2 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?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +52% while net margin moved -23% 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+52%

Margin effect-23%

DalalBaazaar Score

49/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROCE of 8.4% is below 10% — capital is not working hard
✗ ROCE has fallen by 3.0 points — returns are eroding
✗ EBITDA margin of 7.3% is thin — little cushion if costs rise
✗ Net margin of 4.0% is slim
• Revenue has compounded at 15.1% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

47/ 100

Average

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

Valuation

48/ 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

33.2x

2Y Median

45.7x

27 monthly readings · mean 45.6x · range 33.1x–62.8x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 27% below its 2y median of 45.7x. 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 101% above the peer median of 16.5x.

vs. its own history

Cheap

45.7x median over 27 months · -27%

vs. sector peers

Expensive

16.5x median of 4 peers · +101%

vs. generic bands

Fair

15x–35x

EV/EBITDA

15.4x

PEG

6.08

What's Good / What's Bad

🟢 What's Going Well2

Very low debt
Debt/Equity of 0.24x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 11.4% to 8.4% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 1 high · 3 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.
🟡Debt is increasingFinancial
Total debt is up 39% over 3 years.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹1 Cr in the latest year.
🟡Margins are compressingFinancial
EBITDA margin is down 4.8 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 27% 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?

Margins are being competed away
EBITDA margin has fallen from 12.1% to 7.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
A premium to the sector to defend
It trades 101% above the peer median. That premium needs a reason that persists, or it closes.
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 11% a year✓ 15.1% CAGR
Latest reported year was 1.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 5%✓ 7.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.9x
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

6 / 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

2 good · 7 neutral · 2 weak

Market Cap

₹379 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

33.2x

Fair

Fairly valued against the generic band

P/B Ratio

2.59x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.85

Profitable

Profitable on a per-share basis

ROE

7.2%

Weak

Weak capital efficiency

ROCE

8.4%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.24x

Low

Conservative leverage

Revenue Growth (YoY)

1.1%

Modest

Modest growth

Profit Growth (YoY)

4.5%

Modest

Slow profit growth

Dividend Yield

0.35%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

6.1%

Average

Average margins

Net Margin

4.0%

Average

Average bottom-line conversion

Current Ratio

3.21

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.94

Market-like

Moves roughly in line with the market

52W Range Position

19%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

28.3 / 29.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

40.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹242 Cr	₹217 Cr	₹234 Cr	₹369 Cr	+15.1%
EBITDA	₹29 Cr	₹27 Cr	₹24 Cr	₹27 Cr	-2.6%
EBITDA Margin	12.1%	12.5%	10.4%	7.3%	—
PAT (Net Profit)	₹12 Cr	₹12 Cr	₹10 Cr	₹15 Cr	+5.5%
EPS	₹1.01	₹0.86	₹0.66	₹0.84	-6.0%
ROE	8.0%	6.9%	5.4%	7.2%	—
ROCE	11.4%	9.7%	7.9%	8.4%	—
Total Debt	₹36 Cr	₹43 Cr	₹35 Cr	₹50 Cr	+11.6%
Free Cash Flow	-₹4 Cr	-₹1 Cr	₹20 Cr	-₹1 Cr	—

🟢 Revenue has grown at 15.1% a year over 3 years.

🔴 EBITDA has shrunk at 2.6% a year over 3 years.

🔴 EBITDA Margin has fallen from 12.1% to 7.3% over 3 years (-4.8 pts).

🟢 PAT (Net Profit) has grown at 5.5% a year over 3 years.

🔴 EPS has shrunk at 6.0% a year over 3 years.

🟡 ROE has held roughly flat at 7.2% over 3 years.

🔴 ROCE has fallen from 11.4% to 8.4% over 3 years (-3.0 pts).

🔴 Total Debt has grown at 11.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹288 Cr

Total Liabilities

₹77 Cr

Cash & Equivalents

₹14 Cr

Operating Cash Flow

₹6 Cr

Capex

-₹7 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

87.7%

Corporate Actions

Dividend Rate

₹0.1

Ex-Dividend Date

23 Sept 2026

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 positive5 general

XT Global Infotech promoters confirm no encumbrance on shares in FY26

scanx.trade, 13 Oct

XT Global Infotech Share Price near 52-week low: analysis

Univest, 14 Oct

Small-cap stock hits 20% upper circuit as arm bags order from US govt entity; check details

Upstox, 26 FebOrder win

🟢Potentially positiveOrder wins add to future revenue, though the effect depends on the contract's size against annual sales and on when it is executed.

Tech Stock Below Rs 50 Surges 17% After Bagging Multi-Year US Government Opportunity

Dalal Street Investment Journal, 03 Sept

XT Global Infotech (NSE:XTGLOBAL) Jumps 20% on 88% Sales Growth

Kalkine India, 26 Feb

Xtglobal Infotech Shares Hit 20% Upper Circuit on Project Win

Equitypandit, 26 Feb

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health

MiddlingGrowth · Valuation · Risk

WeakBusiness Quality · Profitability

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

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑