Kellton Tech Solutions Ltd. (KELLTONTEC) AI Stock Analysis

• Market Cap: ₹10.53B
• Dividend Yield: N/A
• Average Volume (3M): 317.56K
• Price to Earnings (P/E): 11.0
• Beta (1Y): 1.37
• Revenue Growth: 13.11%
• EPS Growth: 19.26%
• Country: IN
• Employees: 1,370
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.48
• Shares Outstanding: 527,804,700
• 10 Day Avg. Volume: 190,019
• 30 Day Avg. Volume: 317,560
• PEG Ratio: 0.53
• Price to Book (P/B): 1.97
• Price to Sales (P/S): 0.96
• P/FCF Ratio: -27.06
• 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: 58 Neutral
• Price Target: ₹16.50 ▼(-12.93% Downside)
• Action: Reiterated Date: 11/25/25
• Date: Action: Reiterated 11/25/25

Kellton Tech Solutions Ltd. has a moderate overall stock score driven by strong financial performance in terms of revenue growth and profitability, but is offset by significant cash flow challenges. Technical indicators suggest bearish momentum, while valuation appears reasonable. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Consistent revenue growth

Sustained top-line growth near 13% indicates enduring demand for the company’s digital transformation and software services. Over 2–6 months this supports stable backlog conversion, revenue visibility from project and managed-service pipelines, and scalability of client engagements.

High gross margin and improving net margin

A ~51% gross margin reflects strong pricing power and efficient delivery for service projects. The shift to positive net margins shows improving operating leverage, enabling reinvestment in growth and cushioning against cyclical demand swings over the medium term.

Low leverage and solid ROE

Low leverage and a robust equity base provide financial flexibility to fund investments or absorb shocks without heavy refinancing. A near-15% ROE signals effective capital deployment, supporting sustainable shareholder returns and long-term strategic initiatives.

Negative Factors

Negative operating and free cash flow

Operating and free cash flow turning negative indicates the company is not converting earnings into cash, creating liquidity pressure. Persisting cash deficits can force reliance on external financing, constrain capex and hiring, and raise execution risk over coming quarters.

Moderate operating margins

Relatively modest EBIT/EBITDA margins limit the buffer against pricing pressure and rising costs in a competitive services market. Sustained margin improvement is needed to fund growth internally; otherwise profitability remains sensitive to contract mix and utilization.

Limited product/IP and partnership disclosures

Reliance primarily on project and managed services with no disclosed product/IP revenue or major partnerships suggests lower revenue scalability and recurring income. This raises structural concentration and client churn risks versus firms with platform or licensing revenue.

Kellton Tech Solutions Ltd. Business Overview & Revenue Model

Company Description

Kellton Tech Solutions Limited provides digital transformation, ERP, and other IT services worldwide. The company offers agile software development, digital commerce and marketing, digital integration solutions, outsourced product development, platform modernization, professional, research and development, technology consulting, and testing and automation services. It also provides digital transformation solutions, including artificial intelligence and machine learning, augmented and virtual reality, block chain, data science and analytics, design, enterprise mobility, Internet of Things, and robotic process automation. In addition, the company offers Kellton4Media, a solution that gives control for ad publishing; KLGAME, a location-based gamification, analytics, and messaging engine platform; Optima, an IoT enabled digital oilfield analytics platform; and tHRive, a human capital management solution, which engages in real-time staff tracking, performance governance, and operations. Further, it provides KeLive, a white-labeled, cloud-based building management solution; and backend, front end, cloud based, devops, content management system, hybrid integration, mobile application development, and stack open-source services. Kellton Tech Solutions Limited was incorporated in 1993 and is headquartered in Hyderabad, India.

How the Company Makes Money

KELLTONTEC generates revenue primarily through its diverse range of IT services, including consulting, software development, and digital transformation projects. The company operates on a project-based revenue model, where it charges clients for the delivery of specific projects and services. Key revenue streams include custom software development, application management, and ongoing IT support services. Additionally, KELLTONTEC benefits from long-term contracts and partnerships with major enterprises, which provide a steady flow of income. The company also engages in strategic alliances with technology providers to enhance its service offerings, further contributing to its earnings.

Kellton Tech Solutions Ltd. Financial Statement Overview

Summary

Kellton Tech Solutions Ltd. shows strong revenue growth and improved profitability with a solid balance sheet. However, significant cash flow challenges, including negative free and operating cash flows, pose potential risks to financial stability.

Income Statement

Kellton Tech Solutions Ltd. has shown a consistent increase in total revenue over the years, with a notable revenue growth rate of 11.67% in the most recent year. The gross profit margin is healthy at approximately 51.4%, and the net profit margin has improved to 7.26% from previous losses, indicating an upward trajectory in profitability. However, the EBIT and EBITDA margins, while positive, are still relatively moderate at 10.08% and 11.82% respectively, suggesting room for operational efficiency improvements.

Balance Sheet

The company's balance sheet reflects solid financial health, with a debt-to-equity ratio of 0.30, demonstrating low leverage and effective debt management. The equity ratio stands strong at 67.85%, indicating robust shareholder backing. Return on equity is at 14.89%, showcasing efficient use of equity to generate profits. The overall asset base has expanded, supporting the company's growth trajectory.

Cash Flow

Cash flow analysis highlights some concerns, with a negative free cash flow and operating cash flow for the latest period, indicating potential liquidity issues. Free cash flow growth shows volatility, having swung into negative territory recently. The operating cash flow to net income ratio is negative, suggesting that the company may not be generating sufficient cash from its operations relative to its net income. This could pose risks if the trend continues.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	11.31B	10.98B	9.83B	9.17B	8.43B	7.76B
Gross Profit	5.97B	5.64B	1.80B	4.53B	8.40B	7.61B
EBITDA	1.33B	1.30B	1.04B	-883.74M	1.06B	1.12B
Net Income	824.32M	797.24M	640.11M	-1.27B	704.45M	711.24M
Balance Sheet
Total Assets	0.00	7.89B	6.60B	5.96B	6.72B	6.32B
Cash, Cash Equivalents and Short-Term Investments	275.30M	2.97B	276.97M	298.28M	248.15M	388.17M
Total Debt	0.00	1.63B	1.56B	1.62B	1.22B	1.09B
Total Liabilities	-5.35B	2.54B	2.17B	2.23B	1.93B	2.11B
Stockholders Equity	5.35B	5.35B	4.43B	3.73B	4.79B	4.21B
Cash Flow
Free Cash Flow	0.00	-390.47M	164.79M	34.86M	-114.17M	737.63M
Operating Cash Flow	0.00	-144.00M	561.99M	242.82M	6.69M	794.78M
Investing Cash Flow	0.00	-245.41M	-396.44M	-721.31M	-41.44M	315.60M
Financing Cash Flow	0.00	387.75M	-186.85M	528.61M	-105.27M	-1.02B

Kellton Tech Solutions Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.95
• 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:KELLTONTEC, the sentiment is Positive. The current price of 18.95 is above the 20-day moving average (MA) of 17.70, above the 50-day MA of 17.53, and below the 200-day MA of 22.58, indicating a neutral trend. The MACD of 0.84 indicates Negative momentum. The RSI at 64.42 is Neutral, neither overbought nor oversold. The STOCH value of 60.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:KELLTONTEC.

Kellton Tech Solutions Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DSSL	74 Outperform	₹11.87B	14.32	―	0.05%	16.27%	24.79%
SILVERTUC	66 Neutral	₹18.14B	58.01	―	0.06%	16.93%	36.77%
ADSL	66 Neutral	₹6.72B	19.83	―	0.96%	20.23%	-17.78%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
KELLTONTEC	58 Neutral	₹10.53B	11.04	―	―	13.11%	19.26%

Kellton Tech Solutions Ltd. Corporate Events

Kellton Tech Releases Q2 FY26 Earnings Call Recording

Kellton Tech Solutions Ltd. announced the availability of the audio recording for their Q2 FY26 earnings call, which discusses the company’s financial results for the quarter and half-year ending September 30, 2025. This announcement is part of their compliance with SEBI regulations, and the availability of the recording on their website reflects transparency and engagement with stakeholders, potentially impacting investor relations positively.