IRIS Business Services Ltd. (IRIS) AI Stock Analysis

• Market Cap: ₹5.14B
• Dividend Yield: N/A
• Average Volume (3M): 5.86K
• Price to Earnings (P/E): 4.1
• Beta (1Y): -0.09
• Revenue Growth: 8.35%
• EPS Growth: 794.88%
• Country: IN
• Employees: 458
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 2.58
• Shares Outstanding: 20,568,247
• 10 Day Avg. Volume: 2,067
• 30 Day Avg. Volume: 5,858
• PEG Ratio: 1.25
• Price to Book (P/B): 9.88
• Price to Sales (P/S): 5.94
• P/FCF Ratio: 36.25
• 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: 71 Outperform
• Price Target: ₹283.00 ▼(-10.04% Downside)
• Action: Upgraded Date: 11/19/25
• Date: Action: Upgraded 11/19/25

IRIS Business Services Ltd. scores well due to its strong financial performance and attractive valuation. However, mixed technical indicators suggest caution in the short term. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Cash generation

Exceptional free cash flow growth (163.7%) and operating cash flow well above net income show durable cash conversion. This strengthens the company's ability to self-fund investments, repay any debt, and support cyclical resilience without relying on external capital for 2–6 month to multi-year initiatives.

Balance sheet strength

Very low financial leverage and a solid equity ratio indicate low default risk and financial flexibility. A 17.22% ROE signals efficient use of shareholder capital. Together these structural strengths support sustained investment capacity and resilience to adverse shocks over the medium term.

Revenue growth and margins

Double-digit revenue growth alongside a high gross margin (50.7%) shows durable demand and pricing/operational efficiency in its outsourced services model. Improving net margin demonstrates converting top-line growth into lasting profitability, supporting reinvestment and competitive positioning.

Negative Factors

Limited asset base

A relatively small asset base can constrain the company's ability to scale operations, invest in capacity, or pursue large client engagements without additional capital. Over 2–6 months this may limit market-share expansion or require external financing for growth initiatives.

EBITDA margin headroom

A modest EBITDA margin relative to gross and EBIT margins indicates depreciation/amortization or cost structure pressures that compress operational cash profitability. Sustained margin recovery may need capex optimization or pricing improvements to protect free cash flow over the medium term.

Limited investor disclosure

Absence of earnings calls or formal management commentary reduces visibility into strategy, guidance, and emerging risks. That limited disclosure can hinder investor confidence and make it harder to assess medium-term execution risks and management priorities over the next several quarters.

IRIS Business Services Ltd. Business Overview & Revenue Model

Company Description

IRIS RegTech Solutions Ltd. is a holding company, which engages in the provision of software products and solutions for compliance, data, and analytics. It operates through the Collect, Create, and Consume. The Collect segment focuses on the regulatory platform. The Create segment includes the enterprise platform. The Consume segment refers to the data consumption platform and content services. The company was founded by Subramaniam Swaminathan, Krishnan Balachandran, and Deepta Rangarajan on October 3, 2000 and is headquartered in Navi Mumbai, India.

How the Company Makes Money

IRIS generates revenue through multiple streams, including subscription fees for its software products, consulting services, and support packages. The company charges clients for access to its regulatory compliance tools and platforms, particularly those related to financial reporting and data management. Additionally, IRIS earns revenue from bespoke consulting services aimed at helping clients navigate complex regulatory requirements. Significant partnerships with regulatory bodies and financial institutions also enhance its credibility and lead to new business opportunities, contributing to its overall earnings.

IRIS Business Services Ltd. Financial Statement Overview

Summary

IRIS Business Services Ltd. demonstrates strong financial health with significant revenue and profit growth, robust margins, low leverage, and excellent cash flow management. Minor improvements are needed in depreciation management and asset growth.

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	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.28B	1.26B	1.02B	735.71M	612.72M	571.50M
Gross Profit	493.61M	549.72M	546.01M	233.41M	175.78M	168.08M
EBITDA	175.12M	190.01M	154.93M	109.29M	79.25M	115.98M
Net Income	103.83M	130.26M	86.94M	42.72M	9.98M	41.35M
Balance Sheet
Total Assets	0.00	1.25B	769.04M	700.98M	603.25M	568.60M
Cash, Cash Equivalents and Short-Term Investments	558.05M	558.05M	139.61M	111.89M	74.38M	84.81M
Total Debt	0.00	43.05M	65.21M	57.09M	66.22M	62.31M
Total Liabilities	-761.01M	492.70M	357.62M	384.65M	330.36M	293.73M
Stockholders Equity	761.01M	756.89M	409.56M	315.41M	272.62M	260.25M
Cash Flow
Free Cash Flow	0.00	206.27M	78.24M	32.37M	-15.67M	105.45M
Operating Cash Flow	0.00	277.79M	116.97M	57.09M	-4.12M	112.44M
Investing Cash Flow	0.00	-268.48M	-46.35M	-19.18M	-444.00K	-5.14M
Financing Cash Flow	0.00	174.69M	-12.55M	-16.89M	2.68M	-65.89M

IRIS Business Services Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 314.60
• 50DMA: Negative
• 100DMA: Negative
• 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:IRIS, the sentiment is Negative. The current price of 314.6 is above the 20-day moving average (MA) of 268.69, above the 50-day MA of 284.01, and above the 200-day MA of 311.40, indicating a bearish trend. The MACD of -7.72 indicates Negative momentum. The RSI at 41.02 is Neutral, neither overbought nor oversold. The STOCH value of 45.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	71 Outperform	₹5.14B	4.10	―	―	8.35%	794.88%
CYBERTECH	71 Outperform	₹3.60B	11.24	―	13.69%	4.44%	21.20%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
INSPIRISYS	61 Neutral	₹3.51B	7.90	―	―	-1.07%	187.83%
TRACXN	52 Neutral	₹3.45B	-26.90	―	―	―	―
ONMOBILE	47 Neutral	₹5.48B	31.58	―	―	15.85%	―
HCL.INSYS	40 Underperform	₹4.30B	-18.18	―	―	-22.96%	28.55%

IRIS Business Services Ltd. Corporate Events

IRIS RegTech shareholders clear appointment of independent director via postal ballot

IRIS RegTech Solutions Limited has announced that shareholders have approved, via postal ballot and electronic voting, a special resolution appointing Madhavan Hariharan as an Independent Director of the company. The vote, conducted under the Companies Act and SEBI’s listing regulations, was scrutinised by an independent company secretary, with the resolution passed by the requisite majority on January 17, 2026. The company has filed the voting results with the BSE and NSE in the prescribed formats, uploaded them in XBRL mode as required by the exchanges, and published the outcome on its website, underscoring its adherence to governance and disclosure norms as it refreshes its board with an independent appointment.

IRIS RegTech Announces Resignation of Senior HR Manager from Senior Management

IRIS RegTech Solutions Limited has announced the resignation of Senior Management Personnel and Senior Manager Human Resources, Ms. Nisha Rai, effective from the close of business on 31 December 2025. The company has attributed her departure to personal reasons and disclosed the change in line with its obligations under SEBI’s listing regulations, signalling a leadership transition within its human resources function but without indicating any broader strategic or operational shift at this time.

IRIS RegTech Seeks Shareholder Nod via E-Vote to Appoint Independent Director

IRIS RegTech Solutions Limited has initiated a postal ballot process, conducted exclusively through remote e-voting, to seek shareholder approval for the appointment of Mr. Madhavan Hariharan as an Independent Director of the company via a special resolution. The company has set out a detailed voting timetable running from 19 December 2025 to 17 January 2026, engaged National Securities Depository Limited to provide the e-voting facility, and is dispatching the notice electronically in line with SEBI Listing Regulations and recent Ministry of Corporate Affairs circulars, underscoring its adherence to evolving corporate governance norms and digital-first shareholder engagement practices.

IRIS RegTech Schedules Investor Meeting with KamayaKya Wealth Management

IRIS RegTech Solutions Limited has announced a scheduled meeting with KamayaKya Wealth Management Pvt Ltd, set to take place on December 9, 2025, in Navi Mumbai. This meeting is part of the company’s ongoing engagement with analysts and investors, ensuring transparency and maintaining relationships with key stakeholders, while ensuring no unpublished price-sensitive information is disclosed.