GSS Infotech Limited (GSS) AI Stock Analysis

• Market Cap: ₹286.20M
• Dividend Yield: N/A
• Average Volume (3M): 5.71K
• Price to Earnings (P/E): 50.4
• Beta (1Y): 0.71
• Revenue Growth: -14.85%
• EPS Growth: -128.21%
• Country: IN
• Employees: 65
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.08
• Shares Outstanding: 26,156,843
• 10 Day Avg. Volume: 9,574
• 30 Day Avg. Volume: 5,713
• PEG Ratio: 0.57
• Price to Book (P/B): 0.25
• Price to Sales (P/S): 0.71
• P/FCF Ratio: -0.73
• 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: 44 Neutral
• Price Target: ₹12.00 ▼(-29.41% Downside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

The score is driven primarily by weak financial performance (declining revenue/profitability and severely ухудing cash flows) and bearish technical signals (below major moving averages with negative MACD and very low RSI/Stoch). Valuation is an additional headwind due to the high P/E and lack of dividend support.

Positive Factors

Strong equity base

A high equity ratio provides a structural capital buffer that supports operations through cyclical downturns and losses. This durable strength helps preserve solvency, maintain creditor confidence, and gives management optionality to restructure or fund strategic initiatives without immediate external financing.

Lean headcount

A small, focused employee base can indicate a lean cost structure and operational agility. Over the medium term this can enable faster restructuring, lower fixed overhead, and more direct management oversight, aiding margin recovery if revenue stabilizes or business mix shifts toward higher‑margin services.

Lower market sensitivity

A below‑one beta suggests the company’s equity has shown lower correlation to market swings, which can reflect stable contract profiles or less cyclical revenue. This relative stability supports capital preservation and makes multi‑quarter recovery plans easier to execute without amplified market financing stress.

Negative Factors

Declining revenue and margins

Sustained revenue decline and negative gross margins erode the core ability to cover variable costs and invest in product or sales capacity. Over several quarters this undermines scale economics, weakens customer bargaining position, and makes margin recovery more difficult without structural change to pricing or service mix.

Severe cash flow deterioration

Negative operating and free cash flow is a durable red flag: it limits the firm’s ability to fund operations, capex, or strategic initiatives internally. Persistent cash burn increases reliance on external financing, raises refinancing risk, and constrains the company’s capacity to recover over a multi‑quarter horizon.

Rising leverage and negative ROE

Increasing debt combined with negative ROE indicates leverage is rising while returns are deteriorating. This structural imbalance increases financing costs, reduces financial flexibility, and magnifies downside in prolonged downturns, hindering investment and making turnaround initiatives more costly.

GSS Infotech Limited Business Overview & Revenue Model

Company Description

GSS Infotech Limited provides information technology (IT) services and solutions in India, Bangladesh, and the United States. The company provides consulting services in the areas of digital transformation, professional, application management, and managed services. It also offers applied intelligence solutions, such as artificial intelligence, data science and machine learning, Internet of Things, and automation; enterprise security solutions, including digital identity governance, application security, and cyber security services; and cloud infrastructure, cloud migration, and hybrid cloud management services. In addition, the company offers TruVu, a data visualization and simplification platform; UniDesk, a cloud based managed service desk; and ibStream, a mobile marketing solution, as well as IT service support management tools, including enterprise identity and data management, unified cloud platform (UCP), and UCP software interfaces. It serves government, telecom, cloud, and healthcare sectors, as well as small, medium, and large businesses. The company was formerly known as GSS America Infotech Limited and changed its name to GSS Infotech Limited in March 2011. GSS Infotech Limited was founded in 1999 and is headquartered in Hyderabad, India.

How the Company Makes Money

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GSS Infotech Limited Financial Statement Overview

Summary

Weak fundamentals: income statement shows declining revenue and profitability (net income turned negative), while cash flows deteriorated sharply with negative free cash flow. The balance sheet has a solid equity base, but rising debt and negative return on equity increase risk.

Income Statement

The income statement reveals significant challenges for GSS Infotech. There is a noticeable decline in total revenue from 2024 to 2025, accompanied by a negative gross profit margin and shrinking EBITDA. The net income turned negative in the latest period, indicating profitability issues. Overall, the income statement reflects a downward trajectory in financial performance.

Balance Sheet

The balance sheet indicates a strong equity position with a high equity ratio. However, the debt-to-equity ratio has increased significantly due to a rise in total debt, suggesting potential leverage concerns. Return on equity has turned negative, reflecting the recent net losses. The balance sheet shows both strength in equity and potential risks from rising debts.

Cash Flow

The cash flow statement highlights severe cash flow issues, with a dramatic decline in operating cash flow and negative free cash flow in the latest year. The free cash flow to net income ratio is unfavorable, indicating inefficiencies in cash generation relative to earnings. Overall, cash flow management appears to be a critical challenge for the company.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.05B	1.25B	1.71B	1.14B	1.17B	1.15B
Gross Profit	78.05M	117.97M	238.47M	266.90M	137.60M	71.61M
EBITDA	5.00M	20.21M	124.18M	170.10M	318.03M	-14.85M
Net Income	-28.39M	-13.70M	74.53M	148.53M	303.49M	-36.80M
Balance Sheet
Total Assets	5.22B	5.40B	5.36B	2.34B	2.03B	1.74B
Cash, Cash Equivalents and Short-Term Investments	275.02M	272.06M	99.66M	62.68M	64.32M	186.60M
Total Debt	1.44B	1.64B	116.25M	123.77M	106.28M	235.25M
Total Liabilities	1.72B	1.90B	1.87B	276.26M	252.80M	385.15M
Stockholders Equity	3.50B	3.50B	3.49B	2.06B	1.78B	1.36B
Cash Flow
Free Cash Flow	-144.43M	-1.21B	1.08B	140.93M	-228.67M	145.64M
Operating Cash Flow	-144.43M	-1.17B	1.36B	244.15M	-188.65M	146.11M
Investing Cash Flow	-64.50M	-26.97M	-2.92B	-95.07M	-39.16M	29.96M
Financing Cash Flow	211.58M	1.19B	1.61B	-143.77M	105.50M	-44.39M

GSS Infotech Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:GSS, the sentiment is Negative. The current price of 17 is above the 20-day moving average (MA) of 13.38, above the 50-day MA of 14.63, and below the 200-day MA of 23.86, indicating a bearish trend. The MACD of -1.01 indicates Positive momentum. The RSI at 11.61 is Positive, neither overbought nor oversold. The STOCH value of 7.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:GSS.

GSS Infotech Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ADROITINFO	55 Neutral	₹504.93M	9.19	―	―	38.47%	-83.43%
GSS	44 Neutral	₹286.20M	50.36	―	―	-14.85%	-128.21%
CTE	42 Neutral	₹481.55M	15.47	―	―	-4.97%	32.59%
QUINTEGRA	40 Underperform	₹49.34M	-405.00	―	―	―	―
RSSOFTWARE	40 Underperform	₹694.86M	-3.84	―	0.46%	-52.09%	-142.64%