lnspirisys Solutions Limited (INSPIRISYS) AI Stock Analysis

• Market Cap: ₹3.12B
• Dividend Yield: N/A
• Average Volume (3M): 1.43K
• Price to Earnings (P/E): 4.7
• Beta (1Y): 0.92
• Revenue Growth: -1.07%
• EPS Growth: 187.83%
• Country: IN
• Employees: 1,621
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 4.70
• Shares Outstanding: 39,616,870
• 10 Day Avg. Volume: 2,209
• 30 Day Avg. Volume: 1,434
• PEG Ratio: 0.01
• Price to Book (P/B): 5.11
• Price to Sales (P/S): 0.77
• P/FCF Ratio: 8.47
• 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: 61 Neutral
• Price Target: ₹83.00 ▼(-8.99% Downside)
• Action: Reiterated Date: 11/08/25
• Date: Action: Reiterated 11/08/25

The overall stock score for Inspirisys Solutions is driven primarily by its financial performance and valuation. The company shows strong cash flow management and profitability improvements, but high leverage and inconsistent revenue growth are concerns. The technical indicators suggest a neutral trend, and the valuation indicates potential undervaluation. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Cash generation

Consistent positive operating cash flow and growing free cash flow indicate the company generates real cash from operations. Durable cash conversion supports funding of working capital, reinvestment in services, and debt servicing without relying solely on external financing, improving long-term financial flexibility.

High gross margins

A ~47.6% gross margin suggests meaningful pricing power or favorable service mix (higher-value services/resale margins). Sustained high gross margins provide a structural cushion to absorb SG&A or R&D investments and enable margin expansion if operating efficiency is improved over time.

Profitability improvement

Sharp EPS growth and a change from negative to positive net income reflect improving underlying profitability and operational fixes. Sustained improvement shows management can restore earnings power, which supports cash flow resilience and reinvestment capacity over the medium term.

Negative Factors

High leverage

A debt-to-equity ratio ~1.44 and low equity share mean elevated financial leverage. This increases interest burden and reduces strategic flexibility, making the company more vulnerable to downturns and constraining capacity to invest organically or pursue acquisitions without improving balance sheet metrics.

Revenue inconsistency

Material revenue decline and volatility point to uneven project timing, client churn, or competitive pressure. For a services integrator, inconsistent top-line undermines predictability of earnings and cash flow, complicates capacity planning, and raises execution risk for sustaining long-term growth.

Modest net margin

Despite high gross margins, a net margin near 8.2% suggests operating costs, interest, or inefficiencies materially compress bottom-line returns. Lower net margins limit retained earnings for reinvestment, increase sensitivity to cost inflation, and require continued focus on scale or cost discipline to improve structural profitability.

lnspirisys Solutions Limited Business Overview & Revenue Model

Company Description

Inspirisys Solutions Limited offers information technology services in India and internationally. The company provides endpoint, network, application, data, and services; and malware defense, risk and compliance, and consulting services, as well as securities operation center service. It also offers cloud solutions, including infrastructure as a service, platform as a service, application services, and management services; and Internet of Things (IoT) solutions, such as digital transformation, support of IoT applications systems, custom IoT, outsourced support of IoT system development, and research and development services. In addition, the company provides infrastructure solutions comprising data center, digital kiosk, staff augmentation, tools and services automation, workplace transformation, managed services, and network services, as well as audit, consulting, and professional services. Further, it offers product engineering and development solutions, such as banking solutions, payment suite for government, business intelligence solutions, artificial intelligence solutions, robotic process automation solutions, multi-function banking kiosks, and application development and maintenance services. Additionally, the company offers warranty management services, including return to bench, onsite warranty support, extended warranty program, warehouse support, logistics, repairs and refurbishments, data recovery, and customized CRM software services. It serves BFSI, telecom, government/PSU, manufacturing, and healthcare industries. The company was formerly known as Accel Frontline Limited and changed its name to Inspirisys Solutions Limited in September 2018. The company was founded in 1991 and is based in Chennai, India. Inspirisys Solutions Limited is a subsidiary of CAC Holdings Corporation.

How the Company Makes Money

Inspirisys makes money primarily by delivering IT services and solutions to enterprise and government customers under project-based and recurring service arrangements. Key revenue streams typically include: (1) Systems integration and IT projects: One-time revenue earned from designing, supplying, integrating, and deploying IT infrastructure (e.g., compute/storage/network), enterprise platforms, and related implementation services; revenue is recognized based on contract terms and delivery milestones. (2) Managed services and support (recurring): Ongoing fees for operating and maintaining customer IT environments—such as infrastructure management, helpdesk/service desk, monitoring, security operations support, and maintenance—often contracted on multi-month/multi-year agreements and billed periodically. (3) Cloud and infrastructure services: Fees tied to cloud migration, cloud operations, and related professional services; if the company resells third-party cloud or software subscriptions, it may earn through service margins or commissions (specifics not publicly confirmed in this response). (4) IT staffing/consulting (where applicable): Time-and-materials billing for deploying technical resources on customer engagements. (5) Product/resale margins (where applicable): Margins earned when the company procures and resells third-party hardware/software as part of larger solutions. Information on specific major partnerships, customer concentration, segment-wise revenue split, or the exact mix of recurring vs. project revenue is null.

lnspirisys Solutions Limited Financial Statement Overview

Summary

Inspirisys Solutions has demonstrated progress in profitability and cash flow management, yet it faces challenges with revenue stability and high leverage. The company's efficiency in cash generation supports its operations, but the reliance on debt financing remains a concern. Continued focus on revenue growth and debt reduction could enhance financial stability.

Income Statement

The company has shown fluctuations in revenue, with a recent decline from 4,904.9M to 3,881.5M. Gross profit margins are strong at 47.6%, but net profit margins are modest at 8.2%. The company has improved its profitability, moving from a negative net income to positive figures. However, revenue growth has been inconsistent, indicating potential market or operational challenges.

Balance Sheet

The debt-to-equity ratio is high at approximately 1.44, indicating significant leverage. The equity ratio is moderate at 21.9%, showing reliance on debt financing. Return on equity stands at 54.2%, which is strong but driven by low equity base. The balance sheet shows improvement in equity, yet the high debt levels pose a risk.

Cash Flow

Operating cash flow has been positive, with a healthy operating cash flow to net income ratio of 1.21, indicating efficient cash generation relative to profits. Free cash flow has grown substantially, and the free cash flow to net income ratio is robust at 1.11, suggesting strong cash management. However, past volatility in cash flows should be monitored.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	4.04B	3.88B	4.90B	3.70B	3.41B	4.04B
Gross Profit	1.63B	578.40M	1.79B	577.90M	1.37B	1.49B
EBITDA	471.50M	372.50M	326.10M	320.70M	3.80M	146.60M
Net Income	390.10M	317.30M	36.70M	-25.40M	-133.40M	-28.60M
Balance Sheet
Total Assets	2.99B	2.67B	2.63B	2.12B	2.00B	2.47B
Cash, Cash Equivalents and Short-Term Investments	925.70M	785.20M	591.00M	320.30M	218.30M	308.20M
Total Debt	867.40M	845.00M	878.80M	1.05B	1.09B	985.60M
Total Liabilities	2.32B	2.09B	2.34B	2.20B	1.99B	2.32B
Stockholders Equity	677.40M	585.30M	292.90M	-83.70M	7.90M	152.80M
Cash Flow
Free Cash Flow	181.40M	353.20M	248.10M	156.50M	-139.60M	673.90M
Operating Cash Flow	188.30M	387.00M	287.70M	181.90M	-119.00M	719.50M
Investing Cash Flow	-345.60M	-458.60M	-125.40M	2.90M	25.30M	-35.00M
Financing Cash Flow	-40.90M	-150.30M	9.70M	-108.40M	85.40M	-529.30M

lnspirisys Solutions Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 91.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:INSPIRISYS, the sentiment is Negative. The current price of 91.2 is above the 20-day moving average (MA) of 83.19, above the 50-day MA of 86.22, and below the 200-day MA of 95.31, indicating a bearish trend. The MACD of -2.67 indicates Positive momentum. The RSI at 40.93 is Neutral, neither overbought nor oversold. The STOCH value of 59.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:INSPIRISYS.

lnspirisys Solutions Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IRIS	69 Neutral	₹4.66B	29.57	―	―	8.35%	794.88%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
INSPIRISYS	61 Neutral	₹3.12B	4.73	―	―	-1.07%	187.83%
3IINFOLTD	55 Neutral	₹2.87B	40.24	―	―	-6.88%	―
FCSSOFT	52 Neutral	₹2.46B	-39.66	―	―	―	―
ASMS	41 Neutral	₹2.38B	37.09	―	―	―	―

lnspirisys Solutions Limited Corporate Events

Inspirisys Publishes Q3 FY26 Unaudited Results in Newspapers in Line with SEBI Norms

Inspirisys Solutions Limited, listed on both the National Stock Exchange of India and BSE, operates in the information technology services sector, offering solutions through its presence in Chennai, Tamil Nadu, and serving a broad base of enterprise customers.

The company notified the exchanges that its Board-approved standalone and consolidated unaudited financial results for the quarter and year-to-date period ended 31 December 2025 have been published as mandated newspaper advertisements under SEBI disclosure rules, with the results carried in the Financial Express (English) and Makkal Kural (Tamil), reinforcing its compliance with regulatory transparency and ensuring wider access to its latest financial performance data for investors and other stakeholders.

Inspirisys Solutions’ Statutory Auditor Converts to LLP, Engagement Unchanged

Inspirisys Solutions Limited has announced a change in the legal constitution of its statutory auditors, MSKA & Associates, which has converted from a partnership firm into a limited liability partnership (LLP) with effect from 13 January 2026 and is now known as MSKA & Associates LLP, Chartered Accountants. The company clarified that this is only a change in the form and name of the audit firm, with no alteration to the existing audit engagement, and that MSKA & Associates LLP will continue to serve as statutory auditors for the remainder of the approved tenure, ensuring continuity in the company’s audit oversight and compliance framework.

Inspirisys Retains Statutory Auditor Amid Conversion of MSKA & Associates to LLP

Inspirisys Solutions Limited has announced that its statutory auditor, MSKA & Associates, Chartered Accountants, has converted from a partnership firm into a Limited Liability Partnership (LLP) under the Limited Liability Partnership Act, 2008, effective January 13, 2026, and will now operate under the name MSKA & Associates LLP with a revised firm registration number. The company emphasized that this change is limited to the legal constitution and name of the audit firm, and does not alter the existing audit engagement or tenure, meaning MSKA & Associates LLP will continue to serve as Inspirisys’ statutory auditor, providing continuity and stability in the company’s audit and compliance framework for stakeholders.