lnspirisys Solutions Limited (INSPIRISYS) AI Stock Analysis

• Market Cap: ₹3.38B
• Dividend Yield: N/A
• Average Volume (3M): 1.43K
• Price to Earnings (P/E): 9.4
• Beta (1Y): 0.81
• Revenue Growth: -1.07%
• EPS Growth: 187.83%
• Country: IN
• Employees: 1,621
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 1.87
• 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: ₹94.00 ▲(3.07% Upside)

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

Operating cash generation

Consistent positive operating cash flow and rising free cash flow indicate the business converts reported earnings into cash efficiently. That durable cash generation supports reinvestment, funds working capital needs for projects and recurring contracts, and provides flexibility to de-lever over the medium term.

High gross margins

A near-50% gross margin signals healthy project and service pricing or favorable input cost structure in core offerings. Sustained high gross margins provide a buffer to absorb SG&A or downturns, enabling the company to restore operating profitability even if revenue growth is inconsistent.

Service breadth and recurring mix

Broad IT service coverage, including managed services, cloud and cybersecurity, gives multiple, durable revenue channels and cross-sell potential. Recurring managed services and cloud operations create sticky revenue, improving predictability and long-term client relationships across industries.

Negative Factors

High leverage

Material leverage increases financial risk and reduces flexibility to fund bids, absorb project overruns, or invest in growth without raising costlier capital. High debt levels constrain strategic options and make results more sensitive to interest costs over the medium term.

Revenue instability

A meaningful recent revenue decline and inconsistent top-line growth imply challenges in new sales, contract renewals, or pricing. For a services integrator, unstable revenue undermines capacity utilization and forecasting, making margin and cash outcomes less predictable across quarters.

Modest net margins & ROE distortion

While return on equity appears high, it is driven by a low equity base rather than expansive earnings scale; net margins remain modest. This combination limits margin resilience and means profitability metrics may swing materially if equity is rebuilt or revenue margins compress.

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

Inspirusys generates revenue through multiple streams, primarily by providing consulting services, IT infrastructure solutions, and managed services. The company charges clients for project-based work, ongoing support contracts, and subscription models for cloud services. Significant partnerships with technology vendors and software providers enhance its service offerings and drive additional revenue through reselling and integration services. Additionally, the company's focus on digital transformation initiatives allows it to tap into new market opportunities, further contributing to its earnings.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.69B	3.88B	4.90B	3.70B	3.41B	4.04B
Gross Profit	1.89B	578.40M	1.79B	577.90M	1.37B	1.49B
EBITDA	407.30M	372.50M	326.10M	320.70M	3.80M	146.60M
Net Income	353.80M	317.30M	36.70M	-25.40M	-133.40M	-28.60M
Balance Sheet
Total Assets	0.00	2.67B	2.63B	2.12B	2.00B	2.47B
Cash, Cash Equivalents and Short-Term Investments	835.90M	785.20M	591.00M	320.30M	218.30M	308.20M
Total Debt	0.00	845.00M	878.80M	1.05B	1.09B	985.60M
Total Liabilities	-585.30M	2.09B	2.34B	2.20B	1.99B	2.32B
Stockholders Equity	585.30M	585.30M	292.90M	-83.70M	7.90M	152.80M
Cash Flow
Free Cash Flow	0.00	353.20M	248.10M	156.50M	-139.60M	673.90M
Operating Cash Flow	0.00	387.00M	287.70M	181.90M	-119.00M	719.50M
Investing Cash Flow	0.00	-458.60M	-125.40M	2.90M	25.30M	-35.00M
Financing Cash Flow	0.00	-150.30M	9.70M	-108.40M	85.40M	-529.30M

lnspirisys Solutions Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 91.20
• 50DMA: Positive
• 100DMA: Positive
• 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:INSPIRISYS, the sentiment is Positive. The current price of 91.2 is above the 20-day moving average (MA) of 84.11, above the 50-day MA of 87.74, and below the 200-day MA of 96.27, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 60.45 is Neutral, neither overbought nor oversold. The STOCH value of 62.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	71 Outperform	₹5.74B	4.36	―	―	8.35%	794.88%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
INSPIRISYS	61 Neutral	₹3.38B	9.41	―	―	-1.07%	187.83%
3IINFOLTD	55 Neutral	₹3.17B	2.90	―	―	-6.88%	―
FCSSOFT	52 Neutral	₹2.97B	681.48	―	―	―	―
ASMS	47 Neutral	₹3.64B	90.54	―	―	―	―

lnspirisys Solutions Limited Corporate Events

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.