Expleo Solutions Limited (EXPLEOSOL) AI Stock Analysis

• Market Cap: ₹16.86B
• Dividend Yield: 4.56%
• Average Volume (3M): 1.35K
• Price to Earnings (P/E): 16.2
• Beta (1Y): 0.89
• Revenue Growth: 3.80%
• EPS Growth: -4.66%
• Country: IN
• Employees: 4,291
• Sector: Services
• Sector Strength: N/A
• Industry: Information Technology Services
• EPS (TTM): 25.62
• Shares Outstanding: 15,519,739
• 10 Day Avg. Volume: 431
• 30 Day Avg. Volume: 1,355
• PEG Ratio: 0.87
• Price to Book (P/B): 2.00
• Price to Sales (P/S): 1.24
• P/FCF Ratio: 7.43
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ₹1,118.00 ▲(2.93% Upside)

Expleo Solutions Limited has a solid financial foundation with strong revenue growth and profitability. The technical analysis shows short-term bullish momentum, but caution is advised due to potential overbought conditions. The valuation is fair, with an attractive dividend yield enhancing the stock's appeal.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market reach and effective service offerings, supporting long-term business sustainability.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability and provides flexibility for future investments and growth.

Cash Generation Ability

Positive cash flow growth indicates strong cash generation capabilities, ensuring the company can fund operations and strategic initiatives.

Negative Factors

Net Profit Margin Decline

Declining net profit margins could impact profitability if cost efficiencies are not improved, potentially affecting long-term earnings.

Cash Flow Volatility

Fluctuating cash flow ratios may indicate instability in cash reserves, which could challenge financial planning and investment capacity.

Room for ROE Improvement

While ROE is solid, enhancing it could maximize shareholder value and demonstrate more efficient use of equity capital.

Expleo Solutions Limited Business Overview & Revenue Model

Company Description

Expleo Solutions Limited, together with its subsidiaries, primarily provides software validation and verification services to the banking, financial services, and insurance industries worldwide. It offers quality engineering, quality management, software testing, DevOps, and test automation services. The company was formerly known as SQS India BFSI Limited and changed its name to Expleo Solutions Limited in April 2019. Expleo Solutions Limited was incorporated in 1998 and is based in Chennai, India. Expleo Solutions Limited Limited is a subsidiary of Expleo Technology Germany GmbH.

How the Company Makes Money

Expleo Solutions Limited generates revenue through a combination of consulting services, project-based engagements, and long-term contracts with clients in its core sectors. The primary revenue streams include fees for consulting services, project management, and engineering solutions, where they charge clients based on the scope of work and time invested. The company also generates income from software solutions and tools that enhance operational efficiency for its clients. Strategic partnerships with technology providers and engineering firms further bolster its offerings, allowing EXPLEOSOL to tap into new markets and expand its client base, thereby contributing significantly to its earnings.

Expleo Solutions Limited Financial Statement Overview

Summary

Expleo Solutions Limited demonstrates strong revenue growth and profitability, supported by a stable balance sheet with low leverage. Cash flow performance is generally positive, but some fluctuations indicate areas for potential improvement. Overall, the company is on a solid financial footing with opportunities to enhance shareholder returns further.

Income Statement

Expleo Solutions Limited demonstrates strong revenue growth with a consistent upward trajectory over the past years. The gross profit margin is impressive, suggesting effective cost management. The EBIT and EBITDA margins indicate robust operating efficiency. However, a slight decline in net profit margin over recent years may pose a risk if not addressed.

Balance Sheet

The company maintains a healthy financial position with a solid equity ratio, indicating a strong asset base funded by equity. The debt-to-equity ratio is low, reflecting conservative leverage usage. The return on equity has shown solid performance, but there is room for improvement to maximize shareholder value.

Cash Flow

Expleo Solutions exhibits positive free cash flow growth, reflecting efficient cash management. The operating cash flow to net income ratio is strong, indicating the company's ability to convert earnings into cash. However, the free cash flow to net income ratio has been fluctuating, suggesting potential volatility in cash reserves.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	10.32B	10.25B	9.65B	9.03B	7.43B	3.01B
Gross Profit	3.99B	4.09B	1.92B	3.54B	3.73B	1.28B
EBITDA	1.78B	1.82B	1.56B	2.15B	1.30B	751.61M
Net Income	997.66M	1.03B	904.39M	1.34B	676.78M	504.41M
Balance Sheet
Total Assets	0.00	8.31B	7.65B	7.30B	5.94B	2.64B
Cash, Cash Equivalents and Short-Term Investments	2.18B	2.95B	1.96B	1.53B	1.76B	1.30B
Total Debt	0.00	297.98M	260.56M	262.58M	147.09M	65.38M
Total Liabilities	-6.36B	1.95B	1.54B	2.00B	1.99B	624.63M
Stockholders Equity	6.36B	6.36B	6.11B	5.30B	3.95B	2.02B
Cash Flow
Free Cash Flow	0.00	1.72B	517.31M	-211.14M	-11.93M	619.53M
Operating Cash Flow	0.00	1.79B	692.14M	230.81M	242.35M	664.41M
Investing Cash Flow	0.00	-531.60M	-291.89M	-359.88M	41.67M	-430.11M
Financing Cash Flow	0.00	-870.97M	-152.01M	-65.71M	-103.64M	-28.25M

Expleo Solutions Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1086.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:EXPLEOSOL, the sentiment is Positive. The current price of 1086.15 is above the 20-day moving average (MA) of 1049.54, above the 50-day MA of 1023.37, and above the 200-day MA of 1031.69, indicating a bullish trend. The MACD of 23.37 indicates Negative momentum. The RSI at 56.42 is Neutral, neither overbought nor oversold. The STOCH value of 72.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:EXPLEOSOL.

Expleo Solutions Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACCELYA	75 Outperform	₹20.70B	16.05	―	6.92%	5.26%	33.11%
EXPLEOSOL	73 Outperform	₹16.86B	16.20	―	4.56%	3.80%	-4.66%
TCIEXP	63 Neutral	₹22.57B	27.53	―	1.36%	-2.79%	-26.28%
AWHCL	60 Neutral	₹13.18B	15.11	―	―	13.12%	24.71%
HATHWAY	60 Neutral	₹24.14B	24.73	―	―	3.88%	-3.40%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
HGS	49 Neutral	₹23.99B	-89.84	―	1.45%	-2.43%	-100.43%

Expleo Solutions Limited Corporate Events

Expleo Solutions Releases Investor Call Recording

Expleo Solutions Limited announced that the audio recording of its recent investor call is now available on the company’s website. This move aligns with regulatory requirements and enhances transparency for stakeholders by providing insights into the company’s discussions with analysts and investors.

Expleo Solutions Reports Strong Q2 FY26 Performance Amid Challenging Market Conditions

Expleo Solutions Limited reported a robust financial performance for the second quarter of FY26, with a 10.8% quarter-on-quarter increase in total income, reaching Rs 2,954 million, and an adjusted EBITDA margin of 17.1%. Despite challenging market conditions, particularly in Europe, the company experienced growth across all key markets, with notable momentum in North America and the Middle East. The company achieved record-high utilization levels and launched an organization-wide AI training initiative to enhance operational efficiency, while investments in AI and digital transformation initiatives have begun to generate revenue and new business opportunities.

Expleo Solutions Releases Q2 FY26 Earnings Presentation

Expleo Solutions Limited has submitted its earnings presentation for the quarter ended September 30, 2025, to the stock exchanges. This announcement is expected to provide stakeholders with insights into the company’s financial performance and strategic direction, potentially impacting its market position and investor relations.

Expleo Solutions to Close Coimbatore Centre for Operational Consolidation

Expleo Solutions Limited has announced the closure of its Competence Centre in Coimbatore, Tamil Nadu, as part of a strategic move to consolidate operations with its MEPZ branch office in Chennai. This decision is aimed at improving delivery efficiency and administrative oversight, reflecting the company’s ongoing efforts to optimize its operational framework.

Expleo Solutions Concludes 27th AGM with Key Approvals

Expleo Solutions Limited announced the successful conclusion of its 27th Annual General Meeting held on August 21, 2025, where both ordinary and special business items were approved by a requisite majority. The voting results and scrutinizer’s report have been made available on the company’s website and the e-voting platform, reflecting the company’s commitment to transparency and regulatory compliance.