Virinchi Ltd. (VIRINCHI) AI Stock Analysis

• Market Cap: ₹2.13B
• Dividend Yield: N/A
• Average Volume (3M): 49.69K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.09
• Revenue Growth: -1.40%
• EPS Growth: -238.47%
• Country: IN
• Employees: 1,033
• Sector: Healthcare
• Sector Strength: 45
• Industry: Software - Application
• EPS (TTM): -1.32
• Shares Outstanding: 102,646,900
• 10 Day Avg. Volume: 10,427
• 30 Day Avg. Volume: 49,685
• PEG Ratio: -3.21
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 0.74
• P/FCF Ratio: -8.73
• 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: 49 Neutral
• Price Target: ₹20.50 ▼(-13.90% Downside)

Virinchi Ltd.'s stock score is primarily impacted by its weak financial performance and poor valuation metrics. The technical analysis indicates bearish momentum, further contributing to the low score. The absence of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Balance Sheet Strength

A strong equity base and reasonable debt profile provide durable financial resilience, enabling the company to absorb demand shocks, finance working capital, and fund strategic investments or restructuring without immediate dependence on external high-cost financing, supporting long-term stability.

Operating Cash Generation

Positive operating cash flow indicates the core services business generates real cash, supporting day-to-day operations and client delivery. Despite declines, sustained OCF helps fund contracts and payroll and reduces short-term liquidity risk versus firms fully reliant on external funding.

Service-oriented Business Model

A diversified IT services portfolio—application development, maintenance and enterprise solutions—drives recurring client relationships and multi-year contracts. This business model tends to produce steady revenue streams and client stickiness, aligning with long-term structural demand for digital services.

Negative Factors

Declining Profitability

A sharp fall in net margins and lower EBIT/EBITDA margins signal structural pressure on operating efficiency or pricing power. Persistently lower profitability reduces reinvestment capacity, weakens competitive positioning, and can force cost-cutting that undermines growth prospects over the medium term.

Negative Free Cash Flow

Negative free cash flow suggests the firm cannot fully fund capex and investments from operations, increasing reliance on financing or asset disposal. Over time this constrains product development and client delivery investments, raising execution risk and pressure on long-term growth sustainability.

Weak Revenue and EPS Trends

Subpar revenue growth combined with a dramatic EPS decline points to demand, pricing or margin deterioration. Continued negative top-line and earnings momentum hampers the ability to invest in capabilities, retain talent, and pursue larger contracts, undermining medium-term competitiveness.

Virinchi Ltd. Business Overview & Revenue Model

Company Description

Virinchi Limited provides information technology (IT) products and services worldwide. The company operates through Development of Computer Software and Services, IT Enabled Services, and Healthcare Services segments. It offers QFund, an IT solution for short-term mortgage and lending industry; vCard, an UPI-based credit card; V23, a healthcare practice management and patient engagement solution; IT services, such as lifecycle management, ECM services, IT infrastructure management, and IT staff augmentation and consulting services; software development; and data science and analysis services. The company also provides media and entertainment, catering, educational, infrastructure, pharmacy supply chain, fintech, healthcare, financial consulting, and short-term lending services. In addition, it owns and manages Virinchi multi-specialty hospitals and Bristlecone Hospitals. The company was formerly known as Virinchi Technologies Limited and changed its name to Virinchi Limited in January 2016. Virinchi Limited was incorporated in 1990 and is headquartered in Hyderabad, India.

How the Company Makes Money

Virinchi generates revenue through multiple streams including software licensing, consulting services, and maintenance contracts associated with its ERP and IT solutions. The company also earns income from its BPO services by providing outsourced business services to various industries. Additionally, Virinchi capitalizes on its healthcare technology offerings by partnering with hospitals and healthcare organizations, which can include revenue-sharing agreements or ongoing service contracts. The company's strategic alliances with other tech firms and engagement in government projects further contribute to its revenue by expanding its market reach and enhancing service offerings.

Virinchi Ltd. Financial Statement Overview

Summary

Virinchi Ltd. faces challenges in profitability and cash flow, with stable revenue but declining net profit and cash flow margins. The balance sheet remains strong, but operational efficiency is under pressure.

Income Statement

Virinchi Ltd. has shown a challenging revenue performance with a slight increase from 2024 to 2025. The Gross Profit Margin is stable, but Net Profit Margin has seen a sharp decline due to a significant drop in net income. The EBIT and EBITDA margins have also decreased, indicating pressure on operational efficiency.

Balance Sheet

The company maintains a strong equity base with a reasonable Debt-to-Equity Ratio. However, the Return on Equity has decreased significantly, reflecting reduced profitability. The Equity Ratio remains stable, supporting asset-backed equity financing.

Cash Flow

Cash flow from operations remains positive but has decreased from previous years. Free Cash Flow has turned negative, indicating potential issues in covering capital expenditures. The Operating Cash Flow to Net Income Ratio suggests some inefficiencies in converting earnings into cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.05B	3.01B	3.00B	3.12B	3.64B	3.54B
Gross Profit	1.69B	1.35B	1.79B	1.93B	3.36B	3.31B
EBITDA	1.00B	963.86M	1.14B	1.11B	1.04B	1.02B
Net Income	487.00K	7.24M	137.03M	128.49M	143.05M	27.46M
Balance Sheet
Total Assets	0.00	8.47B	8.51B	7.87B	7.03B	6.87B
Cash, Cash Equivalents and Short-Term Investments	77.58M	77.58M	200.25M	307.08M	366.00M	190.21M
Total Debt	0.00	2.92B	3.30B	3.17B	2.76B	2.61B
Total Liabilities	-4.74B	3.73B	3.97B	3.80B	3.33B	3.12B
Stockholders Equity	4.74B	4.76B	4.55B	4.08B	3.71B	3.76B
Cash Flow
Free Cash Flow	0.00	-253.64M	26.54M	-377.22M	525.18M	-1.04B
Operating Cash Flow	0.00	536.65M	1.16B	987.00M	846.73M	498.55M
Investing Cash Flow	0.00	-778.34M	-1.15B	-1.37B	-336.79M	-1.54B
Financing Cash Flow	0.00	119.01M	-127.06M	323.82M	-334.14M	1.15B

Virinchi Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.81
• 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:VIRINCHI, the sentiment is Negative. The current price of 23.81 is above the 20-day moving average (MA) of 21.29, above the 50-day MA of 22.42, and below the 200-day MA of 25.09, indicating a bearish trend. The MACD of -0.85 indicates Positive momentum. The RSI at 35.05 is Neutral, neither overbought nor oversold. The STOCH value of 49.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:VIRINCHI.

Virinchi Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALPA	70 Neutral	₹1.45B	7.64	―	―	14.53%	-10.49%
BAFNAPH	58 Neutral	₹2.72B	32.86	―	―	-0.77%	2055.99%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
VIRINCHI	49 Neutral	₹2.13B	-14.82	―	―	-1.40%	-238.47%
AAREYDRUGS	48 Neutral	₹1.97B	50.02	―	―	-17.47%	-50.07%
KREBSBIO	41 Neutral	₹1.28B	-4.55	―	―	-46.31%	-26.28%

Virinchi Ltd. Corporate Events

Virinchi Board Seeks Shareholder Nod for Promoter’s Investment in Healthcare Subsidiary

Virinchi Limited’s board has approved seeking shareholder approval via postal ballot for a preferential allotment of convertible equity warrants to promoter Viswanath Kompella in its material subsidiary, Virinchi Health Care Private Limited, for an investment of up to 49% of the subsidiary’s equity share capital. The company expects this capital infusion to strengthen the subsidiary’s balance sheet, improve liquidity, and enhance long-term shareholder value, with the move framed as part of a broader push to support ongoing businesses and reinforce the group’s financial and operational positioning, subject to statutory shareholder approvals under SEBI regulations and the Companies Act.

Virinchi Allots 7.4 Million Convertible Warrants to Promoter Group Entity

Virinchi Ltd has approved the allotment of 7.4 million convertible equity warrants at Rs 28 each, carrying a face value of Rs 10 and a premium of Rs 18, on a preferential basis to promoter group entity Vivo Bio Tech Limited. The warrants have been issued after shareholder approval at an extraordinary general meeting and in-principle approvals from both BSE and NSE, with 25% of the issue price already received and the remaining 75% payable upon conversion into fully paid equity shares; as only warrants have been issued so far, there is currently no change in Virinchi’s paid-up share capital, but the move sets up a pathway for potential future equity infusion and promoter group strengthening once the warrants are exercised.

Virinchi Allots 4 Million Convertible Equity Warrants on Preferential Basis

Virinchi Limited has approved the allotment of 4 million convertible equity warrants on a preferential basis to IT Peer Technologies LLC at an issue price of Rs 28 per warrant, comprising a face value of Rs 10 and a premium of Rs 18, following shareholder approval and in-principle clearances from both BSE and NSE. The warrants, issued after receipt of 25% of the consideration, will be convertible into an equal number of fully paid equity shares upon payment of the remaining 75%, and as the conversion has not yet occurred, there is currently no change in the company’s paid-up share capital, indicating a staged capital-raising structure that will only dilute equity once the balance funds are received.

Virinchi Limited Convenes EGM with Full Compliance

Virinchi Limited held its Extraordinary General Meeting (EGM) on November 15, 2025, via video conferencing, in line with regulatory requirements from the Ministry of Corporate Affairs and SEBI. The meeting was attended by 59 public members and several directors, including independent and non-executive directors, as well as the company’s whole-time directors and CFO. The proceedings were conducted in compliance with applicable provisions, ensuring transparency and adherence to corporate governance norms.