Expleo Solutions Limited (EXPLEOSOL) AI Stock Analysis

• Market Cap: ₹14.13B
• Dividend Yield: 4.95%
• Average Volume (3M): 1.35K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.99
• 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): 10.34
• 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: 73 Outperform
• Price Target: ₹1,015.00 ▲(1.13% 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 over multiple years indicates durable market demand and successful execution of the business model. A steady upward trajectory supports long-term investment capacity, helps fund R&D/capex, and reduces reliance on cyclical wins for revenue sustainability.

Balance Sheet Strength

Low leverage and a solid equity base provide financial flexibility to invest, withstand downturns, and pursue M&A or strategic initiatives. Conservative capital structure lowers default risk and preserves optionality for multi-quarter decisions without stressing cash flows.

Margin and Cash Conversion

Strong gross and operating margins combined with effective conversion of earnings into operating cash provide durable earnings quality. This supports reinvestment, dividends, and resilience to cost pressures, making profitability less dependent on short-term revenue spikes.

Negative Factors

Net Profit Margin Trend

A downward trend in net profit margin can erode long-term returns and reduce excess cash available for strategic initiatives. If structural (pricing, rising SG&A or cost inflation), persistent margin erosion weakens competitive positioning and compresses shareholder value over multiple quarters.

Free Cash Flow Volatility

Volatile free cash flow relative to earnings reduces predictability of funding for capex, dividends, and debt service. Over a multi-quarter horizon, inconsistent FCF can force conservative capital allocation, limit growth investments, or necessitate external financing in adverse periods.

Negative EPS Growth

Negative EPS growth signals the company is not expanding per-share earnings, which can reflect margin pressure, dilution, or slower profit expansion. Sustained negative EPS trends constrain reinvestment, make dividend sustainability harder, and may indicate operational challenges needing remediation.

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.

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: 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 929.90, above the 50-day MA of 990.81, and below the 200-day MA of 1045.79, indicating a bearish trend. The MACD of -26.35 indicates Negative momentum. The RSI at 40.86 is Neutral, neither overbought nor oversold. The STOCH value of 45.79 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	₹19.25B	17.87	―	6.93%	5.26%	33.11%
EXPLEOSOL	73 Outperform	₹14.13B	13.58	―	4.95%	3.80%	-4.66%
AWHCL	72 Outperform	₹15.96B	17.35	―	―	13.12%	24.71%
TCIEXP	63 Neutral	₹20.73B	25.28	―	1.37%	-2.79%	-26.28%
HATHWAY	60 Neutral	₹18.82B	18.09	―	―	3.88%	-3.40%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
HGS	49 Neutral	₹19.25B	-2,000.50	―	1.51%	-2.43%	-100.43%

Expleo Solutions Limited Corporate Events

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.

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.