3i Infotech Limited (3IINFOLTD) AI Stock Analysis

• Market Cap: ₹3.17B
• Dividend Yield: N/A
• Average Volume (3M): 43.79K
• Price to Earnings (P/E): 2.9
• Beta (1Y): 1.80
• Revenue Growth: -6.88%
• EPS Growth: N/A
• Country: IN
• Employees: 5,600
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 1.09
• Shares Outstanding: 207,396,270
• 10 Day Avg. Volume: 27,579
• 30 Day Avg. Volume: 43,787
• PEG Ratio: -0.13
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 0.51
• P/FCF Ratio: 9.28
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: ₹15.50 ▼(-18.68% Downside)

3i Infotech Limited's overall stock score reflects a challenging financial performance and bearish technical indicators. The stock's low P/E ratio suggests potential undervaluation, but operational inefficiencies and negative market momentum weigh heavily on the score. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Recurring revenue mix

A meaningful portion of revenue comes from managed services and support contracts, which are typically multi-year SLAs. This recurring income creates more predictable cash flows and customer stickiness, supporting long-term revenue visibility and lower renewal-driven volatility.

Free cash flow recovery

Reported recovery in free cash flow and a healthy operating cash flow to net income ratio indicate the company can generate cash from operations. Sustained cash generation enables reinvestment, debt repayment, and cushions against market cyclicality over the medium term.

Declining debt reliance

A falling debt-to-equity ratio points to reduced leverage and improved financial flexibility. Lower reliance on debt decreases interest burden and refinancing risk, giving management more room to fund strategic initiatives or weather industry headwinds without jeopardizing solvency.

Negative Factors

Negative operating margins

Persistently negative EBIT margins show the core business is not generating operating profitability. Without structural margin improvement—through pricing, mix shift to higher-margin recurring services, or cost rationalization—sustained losses can erode equity and limit capacity to invest for growth.

Declining revenue trend

A negative and volatile revenue growth profile constrains scale benefits and makes long-term planning difficult. Continued top-line weakness reduces potential for margin recovery, weakens bargaining power with clients, and raises the bar for management to regain consistent demand across verticals.

Asset/equity volatility

Significant equity and asset volatility undermine balance-sheet predictability, complicating capital allocation and investor confidence. Variability in the asset base can magnify funding needs during downturns and increases the likelihood of reactive rather than strategic financial decisions.

3i Infotech Limited Business Overview & Revenue Model

Company Description

3i Infotech Limited provides IP based software solutions and information technology services in India, North America, the Asia Pacific, the Middle East, Africa, the Kingdom of Saudi Arabia, and South Asia. The company offers NuRe Edge that provides consolidated secure access services in one single platform; NuRe desk, a next-generation virtual desktop solution that has a virtualization engine; NuRe 3i that designs, constructs, and manages full-stack cloud solutions, including maintain crucial operational applications supporting the entire Eco-system in the cloud; and NuRe 3i+, an enterprise-grade cloud converged infrastructure that allows customers to consolidate business critical middleware and application workloads on the Oracle OCI or at the edge. It also provides MAGGIET, an integrated intelligent process automation solution; Flexib, a unique digital testing platform to accelerate QAOps for functional and Non-functional test automations in a DevOps and non-DevOps environments; Momenta, a solution with integrated AI and data science analytics platform; 3iAires Suite that digitizes enterprise's core processes to orchestrate a robust brand experience across all engagement channels; and Universo, a scheme management solution with modular and configurable options, which is developed on Open Source technologies to enable quick automation of the scheme management process right from beneficiary management to benefit disbursement and reconciliation through various intermediate processes. The company serves customers in banking, insurance, capital markets, asset and wealth management, government, manufacturing, retail, distribution, telecom, and healthcare industry verticals. 3i Infotech Limited was incorporated in 1993 and is headquartered in Navi Mumbai, India.

How the Company Makes Money

3i Infotech generates revenue through multiple streams, primarily from the sale of software products, IT services, and consulting engagements. Its key revenue streams include licensing fees from its software products, fees for IT infrastructure management, and consulting services tailored to specific industry needs. Additionally, the company engages in long-term contracts for business process outsourcing, which provides a steady income flow. Strategic partnerships with technology providers and industry leaders also enhance its service offerings and market reach, further contributing to its earnings.

3i Infotech Limited Financial Statement Overview

Summary

3i Infotech Limited shows mixed financial performance. The income statement indicates operational inefficiencies with negative EBIT margins and volatile revenue growth. The balance sheet is moderately healthy with a declining debt-to-equity ratio, but asset base volatility is a concern. Cash flow statements show recovery in free cash flow, though growth is inconsistent.

Income Statement

The income statement reflects a challenging financial performance. Gross profit margin is declining, and EBIT margins are consistently negative, indicating operational inefficiencies. Net profit margin has improved from severe losses, yet remains under pressure. Revenue growth has been volatile, highlighting inconsistent business performance and market challenges.

Balance Sheet

The balance sheet shows moderate financial health with a declining debt-to-equity ratio, suggesting decreasing reliance on debt. However, equity has fluctuated significantly, and the equity ratio remains average. The company maintains a reasonable cash position, but asset base volatility poses potential risks.

Cash Flow

Cash flow statements indicate a recovery in free cash flow, despite historical volatility. Operating cash flow to net income ratio is healthy, suggesting effective cash generation relative to earnings. However, the free cash flow growth rate is inconsistent, highlighting potential operational uncertainties.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.17B	7.26B	8.14B	7.29B	6.77B	6.09B
Gross Profit	773.10M	782.00M	907.20M	284.80M	973.40M	705.40M
EBITDA	621.40M	469.80M	-2.47B	364.70M	-294.30M	3.74B
Net Income	415.00M	253.50M	-2.98B	13.70M	-574.90M	3.91B
Balance Sheet
Total Assets	0.00	5.73B	6.64B	9.72B	9.60B	14.86B
Cash, Cash Equivalents and Short-Term Investments	596.50M	1.22B	495.30M	606.00M	1.28B	6.76B
Total Debt	0.00	635.10M	844.90M	992.40M	1.19B	1.39B
Total Liabilities	-3.07B	2.66B	3.71B	3.29B	2.57B	7.33B
Stockholders Equity	3.07B	3.07B	2.93B	6.43B	7.04B	7.53B
Cash Flow
Free Cash Flow	0.00	397.40M	596.70M	355.20M	-607.90M	790.30M
Operating Cash Flow	0.00	442.00M	731.50M	1.45B	-500.40M	790.30M
Investing Cash Flow	0.00	5.90M	-83.60M	-1.06B	-39.40M	8.03B
Financing Cash Flow	0.00	-259.10M	-251.80M	-412.00M	-4.94B	-2.96B

3i Infotech Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:3IINFOLTD, the sentiment is Positive. The current price of 19.06 is above the 20-day moving average (MA) of 15.10, above the 50-day MA of 15.98, and below the 200-day MA of 20.37, indicating a neutral trend. The MACD of -0.29 indicates Negative momentum. The RSI at 46.82 is Neutral, neither overbought nor oversold. The STOCH value of 54.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:3IINFOLTD.

3i Infotech Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DCI	68 Neutral	₹3.78B	20.66	―	―	20.39%	11.63%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
INSPIRISYS	61 Neutral	₹3.38B	9.41	―	―	-1.07%	187.83%
3IINFOLTD	55 Neutral	₹3.17B	2.90	―	―	-6.88%	―
MOLDTECH	54 Neutral	₹3.92B	135.43	―	0.63%	-17.65%	-89.27%
FCSSOFT	52 Neutral	₹2.97B	681.48	―	―	―	―

3i Infotech Limited Corporate Events

3i Infotech Lodges Police Complaint Over ₹128 Crore eMudhra Fraud

The company has escalated a large-scale fraud case tied to the decade-old disinvestment of its former subsidiary eMudhra Limited and the disputed redemption of eMudhra preference shares, filing a complaint with Navi Mumbai’s Economic Offence Wing after accepting recommendations from a High Powered Committee. Management estimates losses exceeding ₹128 crore and plans parallel action with SEBI, signaling a forceful legal push to recover value, protect stakeholders, and potentially reshape its governance controls amid heightened scrutiny of related-party transactions.

3i Infotech Penalty of ₹14.14 Crore Scrapped by Income Tax Appellate Tribunal

3i Infotech Limited has announced that the Income Tax Appellate Tribunal has deleted a penalty of ₹14.14 crore that had been levied on the company under Section 271G of the Income Tax Act for assessment year 2013-14, reducing the outstanding tax demand against it to nil. The company had already filed an appeal before the Commissioner of Income Tax (Appeals) as a precautionary measure, which remains pending, but the tribunal’s order removes a significant contingent liability and provides clarity on a long-standing tax matter, easing potential financial and regulatory overhang for the company and its stakeholders.

3i Infotech Expands Equity Through Employee Stock Options

3i Infotech Limited has announced the allotment of 1,360 equity shares to its employees under the Employee Stock Option Scheme 2018. This move increases the company’s paid-up equity share capital to Rs. 2,073,962,670, reflecting a total of 20,73,96,267 fully paid-up equity shares. The allotment is part of the company’s strategy to incentivize and retain talent, potentially enhancing employee engagement and aligning their interests with the company’s growth objectives.