Expleo Solutions Limited (EXPLEOSOL) AI Stock Analysis

• Market Cap: ₹11.34B
• Dividend Yield: 4.95%
• Average Volume (3M): 1.35K
• Price to Earnings (P/E): 23.4
• Beta (1Y): 0.97
• 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): 14.26
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ₹829.00 ▼(-17.40% Downside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is driven mainly by strong underlying financial performance and an attractive valuation (moderate P/E and high dividend yield). These positives are partially offset by weak technicals, with the stock trading well below key moving averages and showing bearish momentum.

Positive Factors

Revenue & operating margins

Expleo shows a consistent upward revenue trajectory and strong gross, EBIT and EBITDA margins, indicating durable operating efficiency. This margin profile supports sustainable cash generation and reinvestment capacity, underpinning long-term competitive positioning and scalable growth.

Healthy balance sheet

The company's low leverage and solid equity ratio provide financial flexibility and resilience during downturns. Conservative capital structure reduces refinancing risk, enables strategic investments or M&A, and supports a stable funding base for medium-term growth initiatives and capital allocation.

Cash generation ability

Expleo converts earnings into cash effectively, with positive free cash flow growth and strong operating cash flow relative to net income. Reliable cash conversion supports dividends, capex and working capital needs, enabling durable funding of operations and shareholder returns over the medium term.

Negative Factors

Volatile free cash flow

Fluctuations in free cash flow relative to earnings introduce uncertainty in available liquidity for investment and distributions. Variable FCF can constrain strategic execution, force short-term financing, and complicate multi-quarter planning, reducing predictability of capital allocation across cycles.

Net profit margin decline

A declining net profit margin suggests rising costs or pricing pressure that could erode long-term profitability if persistent. Margin compression would reduce retained earnings and free cash flow, limiting the firm's ability to invest in growth or improve returns to shareholders over time.

Room to improve ROE

ROE not being maximized indicates capital is not fully translating into shareholder returns. Improving asset efficiency, margin recovery or capital allocation discipline is needed to boost long-term shareholder value and strengthen competitive returns versus peers.

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

Strong income statement performance (revenue growth, solid gross/EBIT/EBITDA margins) supported by a healthy balance sheet with low leverage. Cash flow is generally positive with good earnings-to-cash conversion, but fluctuating free cash flow and a slight net margin decline temper the score.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 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: Negative
• Last Price: 1003.65
• 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:EXPLEOSOL, the sentiment is Negative. The current price of 1003.65 is above the 20-day moving average (MA) of 791.78, above the 50-day MA of 871.96, and below the 200-day MA of 1036.19, indicating a bearish trend. The MACD of -37.66 indicates Negative momentum. The RSI at 32.54 is Neutral, neither overbought nor oversold. The STOCH value of 46.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	₹17.55B	35.03	―	6.93%	5.26%	33.11%
AWHCL	72 Outperform	₹13.15B	29.95	―	―	13.12%	24.71%
EXPLEOSOL	71 Outperform	₹11.34B	23.39	―	4.95%	3.80%	-4.66%
TCIEXP	63 Neutral	₹18.49B	25.07	―	1.37%	-2.79%	-26.28%
HATHWAY	60 Neutral	₹17.45B	25.35	―	―	3.88%	-3.40%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
HGS	55 Neutral	₹17.09B	12.17	―	1.51%	-2.43%	-100.43%

Expleo Solutions Limited Corporate Events

Expleo Solutions Files Q3 FY26 Earnings Presentation With Exchanges

Expleo Solutions Limited has submitted its earnings presentation for the quarter and nine months ended December 31, 2025, to the BSE and NSE and has made the document available on its investor relations website. The disclosure underlines the company’s ongoing commitment to transparent communication with the market, providing analysts and shareholders with detailed financial and operational updates for Q3 FY26 to support informed assessment of its performance and outlook.

Expleo Solutions Discloses ITAT Order on ₹25.38 Crore Tax Demand for FY 2021–22

Expleo Solutions Limited has disclosed that the Income Tax Appellate Tribunal ‘D’ Bench in Chennai has issued an order concerning the company’s assessment for the financial year 2021–22, following earlier proceedings before the Assessing Officer and the Dispute Resolution Panel. The case involves significant tax adjustments related to disallowances on service and reimbursement costs paid to subsidiaries and group companies, as well as additions arising from TDS reconciliation differences and interest on trade receivables, leading to a total tax demand of Rs. 25.38 crore, of which the company has already deposited 20 percent; the outcome underscores ongoing tax scrutiny over intra-group transactions and could have implications for Expleo’s financials and compliance posture depending on final resolution of the dispute.

Expleo Solutions Faces Rs 2.55 Crore Tax Demand for AY 2013–14, Sees No Material Impact

Expleo Solutions Limited has disclosed that the Assistant Commissioner of Income Tax, Corporate Circle 1(1), Chennai, has issued an order for Assessment Year 2013–14, raising a tax demand of Rs 2.55 crore arising from the disallowance of Minimum Alternate Tax (MAT) credit of Rs 83 lakh claimed and utilised by the company. The order, issued under Section 115JAA and received on 27 January 2026, has been formally notified to the stock exchanges under SEBI’s disclosure norms, with Expleo stating that the demand is not expected to have a material impact on its financials, operations or other activities, thereby signalling limited immediate risk for shareholders and other stakeholders.

Expleo Solutions Faces Rs 48 Lakh Tax Demand, Sees No Material Business Impact

Expleo Solutions Limited has disclosed that it has received an order from the Assistant Commissioner of Income Tax, Corporate Circle 1(1), Chennai, raising a demand of Rs 48.34 lakh for Assessment Year 2012-13, arising from the disallowance of MAT credit utilisation of Rs 17.42 lakh. The company has stated that this tax demand, communicated in January 2026, will not have a material impact on its financials, operations or other activities, suggesting limited implications for shareholders and minimal disruption to its ongoing business.