IRIS Business Services Ltd. (IRIS) AI Stock Analysis

• Market Cap: ₹7.34B
• Dividend Yield: N/A
• Average Volume (3M): 6.34K
• Price to Earnings (P/E): 52.0
• Beta (1Y): 0.06
• Revenue Growth: 23.14%
• EPS Growth: 45.86%
• Country: IN
• Employees: 458
• Sector: Technology
• Sector Strength: 97
• Industry: Software - Application
• EPS (TTM): N/A
• Shares Outstanding: 20,538,116
• 10 Day Avg. Volume: 2,174
• 30 Day Avg. Volume: 6,338
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ₹407.00
• Price Target Upside: 13.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: ₹407.00 ▲(13.85% Upside)

IRIS Business Services Ltd. demonstrates strong financial performance, with robust revenue and cash flow growth. The technical analysis indicates a positive trend, although valuation concerns with a high P/E ratio suggest caution. The absence of dividend yield further impacts the valuation score.

IRIS Business Services Ltd. Business Overview & Revenue Model

Company Description

IRIS Business Services Ltd. (IRIS) is a global provider of software products and services primarily focused on regulatory compliance, data management, and data analytics. The company serves various sectors including banking, financial services, insurance, and government agencies. Its core offerings include solutions that facilitate the creation, validation, and submission of complex documents in standardized formats such as XBRL, which is widely used for financial reporting.

How the Company Makes Money

IRIS Business Services Ltd. generates revenue primarily through its suite of software products and services that help organizations meet regulatory compliance requirements by converting, validating, and analyzing data in standardized formats. Key revenue streams include software licensing, subscription fees for their cloud-based solutions, and professional services for customization and implementation. The company often partners with regulatory bodies and enterprises to ensure their solutions meet evolving compliance standards, contributing significantly to its earnings. Additionally, IRIS engages in consulting and training services which provide supplemental revenue.

IRIS Business Services Ltd. Financial Statement Overview

Summary

IRIS Business Services Ltd. demonstrates strong financial health with notable revenue and profit growth, effective cost management, and robust cash flow generation. The balance sheet is solid with low leverage and high return on equity, although there is room for asset growth and improved EBITDA margins.

Income Statement

IRIS Business Services Ltd. has shown strong revenue growth with a 22.33% increase from 2024 to 2025. The company's gross profit margin stands at 50.72% for 2025, indicating efficient cost management. Additionally, the net profit margin has improved to 10.34%, reflecting enhanced profitability. EBIT margin is also robust at 50.72%, pointing to effective operational performance. However, the EBITDA margin of 15.09% suggests there is room for improvement in managing depreciation and amortization expenses.

Balance Sheet

The company's balance sheet is relatively strong, with a debt-to-equity ratio of 0.06, indicating low financial leverage and reduced risk of financial distress. Return on equity is impressive at 17.22%, showcasing effective utilization of shareholders' funds. The equity ratio of 60.36% reflects a solid capital structure. However, the relatively low level of total assets might suggest limited growth potential unless further investments are made.

Cash Flow

IRIS Business Services Ltd. exhibits excellent cash flow management, with a free cash flow growth rate of 163.70% from 2024 to 2025. The operating cash flow to net income ratio of 2.13 indicates strong cash generation relative to net income. Furthermore, the free cash flow to net income ratio of 1.58 demonstrates the company's ability to generate free cash flow, surpassing net income and providing ample liquidity for reinvestment or debt repayment.

Breakdown	Mar 2025	Mar 2024	Mar 2022	Mar 2023	Mar 2021
Income Statement
Total Revenue	1.26B	1.02B	612.72M	735.71M	563.08M
Gross Profit	638.88M	546.01M	263.84M	326.53M	252.12M
EBITDA	190.01M	158.83M	79.25M	109.29M	115.98M
Net Income	130.26M	86.94M	9.98M	42.72M	27.17M
Balance Sheet
Total Assets	1.25B	769.04M	603.25M	700.98M	568.60M
Cash, Cash Equivalents and Short-Term Investments	558.05M	157.78M	75.19M	111.89M	48.84M
Total Debt	43.05M	65.21M	66.22M	57.09M	62.31M
Total Liabilities	492.70M	357.62M	330.36M	384.65M	293.73M
Stockholders Equity	756.89M	409.56M	272.62M	315.41M	274.67M
Cash Flow
Free Cash Flow	206.27M	78.24M	-15.67M	32.37M	105.45M
Operating Cash Flow	277.79M	116.97M	-4.12M	57.09M	112.44M
Investing Cash Flow	-268.48M	-36.49M	-444.00K	-19.18M	-5.14M
Financing Cash Flow	174.69M	-12.55M	2.68M	-16.89M	-65.89M

IRIS Business Services Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 357.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:IRIS, the sentiment is Neutral. The current price of 357.5 is below the 20-day moving average (MA) of 371.27, above the 50-day MA of 330.97, and below the 200-day MA of 374.68, indicating a neutral trend. The MACD of 2.18 indicates Positive momentum. The RSI at 39.92 is Neutral, neither overbought nor oversold. The STOCH value of 19.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:IRIS.

IRIS Business Services Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IRIS	70 Outperform	₹7.34B	52.02		―	23.14%	45.86%
INSPIRISYS	69 Neutral	₹4.16B	11.76		―	-27.51%	278.69%
CYBERTECH	66 Neutral	₹5.00B	14.00		1.38%	5.31%	39.51%
Sector *	61 Neutral	$36.32B	7.12	-7.26%	1.97%	7.79%	-9.36%
ONMOBILE	48 Neutral	₹5.67B	―		―	11.65%	-358.35%
HCL.INSYS	41 Neutral	₹4.75B	―		―	-14.71%	-52.55%

IRIS Business Services Ltd. Corporate Events

IRIS Business Services Ltd. Divests GST ASP Business and Subsidiary to Sovos Compliance

IRIS Business Services Ltd. has announced the sale and transfer of its GST ASP Services Business and its 100% equity stake in IRIS Logix Solutions Private Limited to Sovos Compliance Limited for Rs 151.24 crore. This strategic move involves acquiring the remaining 48.99% stake in IRIS Logix to make it a wholly owned subsidiary before selling it to Sovos, indicating a significant shift in IRIS’s business focus and potentially impacting its market positioning.

IRIS Business Services to Divest GST ASP Services to Sovos for Rs 151.24 Crore

IRIS Business Services Limited has announced the sale and transfer of its GST ASP Services Business and 100% equity stake in its subsidiary, IRIS Logix Solutions Private Limited, to Sovos Compliance Limited for Rs 151.24 crore. This strategic move involves several steps, including acquiring a minority stake in IRIS Logix, transferring the GST ASP Services Business to IRIS Logix, and ultimately selling the entire stake to Sovos, which may impact the company’s market positioning and operational focus.

IRIS Business Services Ltd. Divests Stake in IRIS Logix to Sovos

IRIS Business Services Ltd. has announced the divestment of its entire stake in its subsidiary, IRIS Logix Solutions Private Limited, to Sovos Compliance Limited, UK, for Rs 151.24 crore. This strategic move involves several steps, including acquiring a minority stake to make IRIS Logix a wholly owned subsidiary before the sale, and transferring the GST ASP Services Business to IRIS Logix before finalizing the sale to Sovos. The transaction is expected to streamline IRIS’s operations and potentially enhance its market positioning by focusing on core business areas.

IRIS Business Services to Divest Tax Technology Business to Sovos

IRIS Business Services announced an agreement to divest its Tax Technology (GST) ASP business to Sovos for INR 1512.4 million. This move is part of IRIS’s strategy to simplify its operations and focus on the global RegTech market, using the transaction proceeds to fund growth in other business lines. The divestiture is expected to enhance shareholder value and provide non-dilutive capital for expansion. The transaction, which includes the transfer of products, customers, and employees, is anticipated to close in August 2025, pending shareholder approval.