Vakrangee Limited (VAKRANGEE) AI Stock Analysis

• Market Cap: ₹6.47B
• Dividend Yield: 0.62%
• Average Volume (3M): 331.65K
• Price to Earnings (P/E): 66.6
• Beta (1Y): 0.97
• Revenue Growth: 17.25%
• EPS Growth: 51.76%
• Country: IN
• Employees: 217
• Sector: Services
• Sector Strength: N/A
• Industry: Information Technology Services
• EPS (TTM): 0.03
• Shares Outstanding: 1,083,191,800
• 10 Day Avg. Volume: 198,844
• 30 Day Avg. Volume: 331,654
• PEG Ratio: 3.29
• Price to Book (P/B): 5.41
• Price to Sales (P/S): 4.30
• P/FCF Ratio: -31.35
• 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: 54 Neutral
• Price Target: ₹6.00 ▼(-24.05% Downside)
• Action: Reiterated Date: 03/10/26
• Date: Action: Reiterated 03/10/26

The score is held up by a relatively stable balance sheet and improved profitability margins, but is weighed down by weak/negative operating cash flow and inconsistent revenue. Technically, the stock is in a clear downtrend below key moving averages with negative momentum, and valuation is unattractive given the high P/E and modest dividend yield.

Positive Factors

Balance sheet strength

Low leverage and a meaningful cash/short-term investment buffer give Vakrangee lasting financial flexibility. This supports multi-quarter funding for network upkeep, strategic tech investments, and the ability to absorb service volume swings without urgent refinancing, aiding long-term resilience.

Improved margins

Notable improvement in EBIT and net margins points to better operational efficiency and cost controls. If sustained, higher margins raise cash per transaction, improve franchise unit economics, and provide recurring resources to invest in platform capabilities and partner servicing over coming quarters.

Scalable last-mile network

An asset-light franchise and technology-enabled distribution model creates structural advantages: scalable unit economics, deep local reach, and sticky relationships with banks and product partners. These traits support recurring fee income and long-term revenue potential as network utilization rises.

Negative Factors

Weak operating cash flow

Recent negative operating cash flow and uneven free cash flow limit the company’s ability to self-fund expansion or absorb shocks. Over multiple quarters this can force external financing, slow outlet activations, or delay technology upgrades that underpin competitive positioning and growth.

Inconsistent revenue

Inconsistent and recently declining revenue undermines predictability of network economics and weakens the revenue base backing commissions. Without steadier top-line growth, per-outlet returns and contract leverage with institutional partners may deteriorate, limiting durable margin expansion.

Volatile profitability metrics

Volatile ROE and fluctuating profitability suggest earnings are sensitive to operational swings or one-offs. Persistent volatility complicates capital allocation, raises the cost of external capital, and impairs long-term planning for network investments and partner commitments.

Vakrangee Limited Business Overview & Revenue Model

Company Description

Vakrangee Limited, a technology company, provides banking, ATM, insurance, financial services, e-governance, e-commerce, and logistics services in India. The company offers bank account opening, cash deposits, withdrawals, money transfer, fixed and recurring deposits, balance enquiry, statement of accounts, money disbursement, consumer loans, housing loans, SME and working capital loans, and domestic money transfer services; and life insurance, motor insurance, health insurance, and social security and micro insurance schemes. It also operates assisted online shopping and healthcare, assisted travel services, and telecom and bill payments services platforms, as well as offers courier and logistics services. The company operates approximately 11,730 Vakrangee Kendra outlets. The company was formerly known as Vakrangee Softwares Limited and changed its name to Vakrangee Limited in October 2013. Vakrangee Limited was incorporated in 1990 and is based in Mumbai, India.

How the Company Makes Money

Vakrangee generates revenue primarily through its franchise model, where it earns income from commissions and fees for services offered at its Vakrangee Kendras. Key revenue streams include financial services such as banking transactions, insurance products, and mobile recharges. The company also partners with various financial institutions, government agencies, and technology providers to expand its service offerings and revenue potential. Additionally, VAKRANGEE earns income from selling software solutions and IT services. The growth in digital services and government initiatives aimed at promoting financial inclusion significantly contribute to the company's earnings.

Vakrangee Limited Financial Statement Overview

Summary

Fundamentals are mixed: profitability margins improved (better EBIT and net income margins) and the balance sheet is relatively strong with low leverage and solid liquidity, but revenue has declined most recently and operating/free cash flow have been weak and inconsistent.

Income Statement

Vakrangee Limited's income statement shows a mixed performance. The company reported a significant improvement in EBIT and Net Income margins over the past year, reflecting better operational efficiency. However, revenue growth has been inconsistent, with a decline in the most recent year. The gross profit margin remains modest, indicating potential pricing or cost control challenges.

Balance Sheet

The balance sheet of Vakrangee Limited is relatively strong, highlighted by a low debt-to-equity ratio and a healthy equity ratio, suggesting financial stability. The company has a significant amount of cash and short-term investments, which enhances liquidity. However, the return on equity has been volatile, reflecting fluctuating profitability.

Cash Flow

Vakrangee Limited's cash flow statement highlights some concerns. Operating cash flow has been negative recently, indicating potential issues in cash generation from operations. Free cash flow has also been inconsistent, with a notable decline in the latest period, which could impact future investments and debt servicing.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.69B	2.55B	2.13B	1.97B	1.94B	3.14B
Gross Profit	414.22M	288.69M	272.12M	224.43M	154.53M	2.16B
EBITDA	311.85M	281.23M	292.65M	197.09M	200.58M	976.23M
Net Income	97.81M	66.56M	43.53M	10.05M	42.00K	627.91M
Balance Sheet
Total Assets	3.43B	3.09B	3.00B	2.98B	3.33B	28.76B
Cash, Cash Equivalents and Short-Term Investments	919.14M	818.82M	480.63M	258.83M	475.37M	88.99M
Total Debt	75.75M	45.87M	120.58M	577.71M	272.68M	0.00
Total Liabilities	1.25B	969.72M	1.38B	1.74B	2.05B	2.12B
Stockholders Equity	2.09B	2.02B	1.62B	1.24B	1.28B	26.64B
Cash Flow
Free Cash Flow	105.09M	-349.60M	242.64M	-498.25M	408.51M	-519.57M
Operating Cash Flow	203.48M	-205.82M	311.10M	-416.16M	484.17M	-306.27M
Investing Cash Flow	-72.85M	-120.32M	-66.31M	-51.61M	8.57M	502.43M
Financing Cash Flow	-5.07M	297.41M	-92.60M	252.24M	169.21M	-264.85M

Vakrangee Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.90
• 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:VAKRANGEE, the sentiment is Negative. The current price of 7.9 is above the 20-day moving average (MA) of 6.38, above the 50-day MA of 6.87, and below the 200-day MA of 8.36, indicating a bearish trend. The MACD of -0.29 indicates Positive momentum. The RSI at 35.37 is Neutral, neither overbought nor oversold. The STOCH value of 32.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:VAKRANGEE.

Vakrangee Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
XCHANGING	62 Neutral	₹6.19B	17.10	―	2.40%	13.52%	101.98%
ROHLTD	61 Neutral	₹8.83B	31.71	―	0.61%	10.77%	-4.40%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
VAKRANGEE	54 Neutral	₹6.47B	66.64	―	0.62%	17.25%	51.76%
JITFINFRA	47 Neutral	₹8.80B	-140.00	―	―	-15.85%	-148.91%

Vakrangee Limited Corporate Events

Vakrangee Grants 100,000 Stock Options to Employees Under ESOP 2014

Vakrangee Limited has granted 100,000 stock options to eligible employees under its Employee Stock Option Scheme 2014, following approval by its Nomination, Remuneration and Compensation Committee on 24 January 2026. The options have been priced at Rs. 2 per share in line with the existing scheme terms, reflecting the company’s continued use of equity-based compensation to incentivise and retain key staff, which may help align employee interests with long-term shareholder value.

Vakrangee Triples Q3 Profit as Non-Cash Banking and ATM Subsidiary Drive Margin Expansion

Vakrangee Limited reported a tripling of profit after tax in the third quarter of FY2025-26, with PAT up 201.1% year-on-year to Rs. 315 lakh and cash profit rising 46.9%, even as consolidated total income declined 10.3% due to inter-company sales eliminations and internal ATM supplies. EBITDA grew 48.7% with margins expanding significantly to 15.4%, quarterly gross transaction value exceeded Rs. 13,433 crore with over 2.2 crore transactions, and the company highlighted its strategic pivot toward higher-margin, non-cash banking offerings to support long-term profitability, while maintaining a debt-free balance sheet that underpins its expansion plans. Subsidiary Vortex Engineering delivered 17% revenue growth and shipped 1,462 ATMs in the first nine months of FY2025-26, achieving roughly 4.5 times EBITDA growth and turning net profit positive, indicating strengthening performance in the ATM business aligned with Vakrangee’s broader financial inclusion strategy.

Vakrangee Releases Q3 and 9-Month FY2025-26 Results Update

Vakrangee Limited has released an investor and analyst presentation providing an update on its financial results for the third quarter and nine months ended December 31, 2025, which were approved by the board on January 24, 2026. The update, positioned under its strategy of building India’s largest last-mile distribution platform, is intended to brief market participants on the company’s operating and financial performance during the period, reinforcing its communication with stakeholders and signaling continued focus on scaling its assisted service and distribution network model.