FCS Software Solutions Limited (FCSSOFT) AI Stock Analysis

• Market Cap: ₹2.97B
• Dividend Yield: N/A
• Average Volume (3M): 869.28K
• Price to Earnings (P/E): 681.5
• Beta (1Y): 1.37
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 274
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): >-0.01
• Shares Outstanding: 1,709,553,100
• 10 Day Avg. Volume: 403,160
• 30 Day Avg. Volume: 869,285
• PEG Ratio: -0.88
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 11.79
• P/FCF Ratio: 222.27
• 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: 52 Neutral
• Price Target: ₹1.50 ▼(-21.05% Downside)

The score is held up by a low-risk balance sheet and a recovery to profitability, but is weighed down by weak price trends and momentum indicators and an extremely high P/E ratio. Soft revenue growth and less reliable cash conversion further limit the overall rating.

Positive Factors

Conservative Balance Sheet

Zero total debt and low leverage materially reduce financial risk and provide lasting flexibility to fund growth, absorb client churn, or pursue M&A without refinancing pressure. This supports durable capital allocation and resilience through industry cycles.

Return to Profitability and Healthy Margins

Sustained positive net income and mid‑30s gross margin indicate the services mix can generate durable operating cash and cover SG&A. If maintained, these margins provide a stable base for reinvestment, client delivery, and long‑term profitability improvement.

Positive Cash Generation

Recent sustained operating and free cash flow suggest the business can self‑fund operations and investments, reducing reliance on external capital. Persistent cash generation underpins long‑term dividends, buybacks, or strategic investments if converted consistently.

Negative Factors

Weak Revenue Trend

A contracting top line undermines scalability of fixed delivery costs and restricts long‑term margin expansion. For an IT services firm, sustained revenue declines signal client retention or win issues and limit ability to invest in capabilities or expand market share.

Volatile Earnings and Low ROE

Earnings volatility and sub‑1% ROE indicate inconsistent profitability and poor capital efficiency. Over months to years this raises concerns about management's ability to deliver stable returns on shareholder equity and to sustainably monetize investments.

Weakened Cash Conversion Reliability

Declining conversion of profits into cash reduces financial flexibility and increases exposure to working capital swings. For service businesses, weaker cash conversion can limit reinvestment, heighten liquidity risk in downturns, and impair long‑term strategic execution.

FCS Software Solutions Limited Business Overview & Revenue Model

Company Description

FCS Software Solutions Limited provides software development and marketing, and support services to corporate business entities in the BPO, software development, e-learning, and other information technology (IT) enabled services in India and the United States. It offers IT consulting services, including application development and maintenance, portals, mobile apps, product development, software as a service, open-source platforms and applications, predictive data sciences, big data analytics, and automation services; and IT infra management services, such as colocation data centers, virtualization, system and networks support, plug and play infrastructure provisioning, WAN, IP based voice, and cyber security. The company also provides IT enabled services comprising multilingual helpdesk for technical and user support, business process outsourcing, and surveys; and learning solutions includes content aggregation, learning management systems, portals, and assessments. Further, it is involved in the provision of leasing or letting various immovable property, such as IT infrastructural premises. The company was incorporated in 1993 and is headquartered in Noida, India.

How the Company Makes Money

FCS Software Solutions Limited Financial Statement Overview

Summary

Financials are improving but not yet durable: profitability recovered to positive net income with ~10% net margin and ~35% gross margin, and the balance sheet is strong with zero debt. Offsetting this, revenue declined (~2% in FY2025), results have been volatile (large loss in FY2024), ROE is very low (under 1%), and cash conversion weakened in FY2025.

Income Statement

Profitability has improved meaningfully versus the loss-making years (2020–2021) and FY2025 returned to positive net income with a ~10% net margin and solid gross margin (~35%). However, the top line is not growing (FY2025 revenue declined ~2%), and earnings quality looks volatile across years (large loss in FY2024). Overall: better profitability trend, but weak and inconsistent growth and margin stability.

Balance Sheet

The balance sheet appears conservatively positioned with zero total debt in FY2024–FY2025 and very low leverage historically, which reduces financial risk. Equity is large relative to assets, supporting stability. The main weakness is low returns on equity (FY2025 ROE under 1%), suggesting the company is not generating strong profits from its capital base despite the strong balance sheet.

Cash Flow

Cash generation is positive in recent years, with operating cash flow positive in FY2024–FY2025 and free cash flow positive as well. That said, cash conversion weakened in FY2025 (free cash flow was well below net income, and operating cash flow coverage also dropped versus FY2024), indicating less reliable translation of profits into cash. Earlier history also includes negative operating/free cash flow (FY2020), underscoring volatility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	356.76M	365.40M	367.01M	349.14M	346.17M	340.59M
Gross Profit	123.97M	128.38M	114.18M	73.65M	70.50M	134.70M
EBITDA	124.50M	132.60M	-21.25M	81.20M	65.45M	-46.35M
Net Income	27.95M	37.30M	-120.45M	14.60M	-523.00K	-123.22M
Balance Sheet
Total Assets	0.00	4.84B	4.56B	3.89B	3.79B	3.34B
Cash, Cash Equivalents and Short-Term Investments	534.30M	534.30M	198.57M	52.88M	43.84M	35.00M
Total Debt	0.00	0.00	0.00	186.13M	218.13M	246.10M
Total Liabilities	-4.46B	377.65M	170.92M	305.61M	309.85M	365.47M
Stockholders Equity	4.46B	4.35B	4.29B	3.59B	3.48B	2.97B
Cash Flow
Free Cash Flow	0.00	19.38M	137.46M	19.77M	20.50M	19.93M
Operating Cash Flow	0.00	102.06M	150.57M	22.68M	43.78M	38.63M
Investing Cash Flow	0.00	-1.18M	91.08M	20.59M	6.91M	14.10M
Financing Cash Flow	0.00	-52.74M	-249.60M	-49.41M	-50.84M	-48.05M

FCS Software Solutions Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CYBERTECH	71 Outperform	₹4.19B	11.83	―	13.69%	4.44%	21.20%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
MOLDTECH	54 Neutral	₹3.92B	135.43	―	0.63%	-17.65%	-89.27%
SOFTTECH	54 Neutral	₹4.19B	289.46	―	―	27.33%	-61.23%
DIGISPICE	53 Neutral	₹4.69B	-22.98	―	―	9.93%	-161.98%
FCSSOFT	52 Neutral	₹2.97B	681.48	―	―	―	―

FCS Software Solutions Limited Corporate Events

Exchange Seeks Clarification from FCS Software on Q2 FY2025 Results

The stock exchange has sought clarification from FCS Software Solutions Limited regarding its financial results for the quarter ended 30 September 2025 under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company’s response is still awaited, leaving investors and other stakeholders without additional detail on the specific compliance or disclosure issues raised around its quarterly financial reporting.