Xchanging Solutions Limited (XCHANGING) AI Stock Analysis

• Market Cap: ₹7.95B
• Dividend Yield: 2.4%
• Average Volume (3M): 68.23K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 1.41
• Revenue Growth: 13.52%
• EPS Growth: 101.98%
• Country: IN
• Employees: 104
• Sector: Services
• Sector Strength: N/A
• Industry: Information Technology Services
• EPS (TTM): 1.46
• Shares Outstanding: 111,403,710
• 10 Day Avg. Volume: 4,303
• 30 Day Avg. Volume: 68,231
• PEG Ratio: 0.08
• Price to Book (P/B): 2.76
• Price to Sales (P/S): 5.35
• P/FCF Ratio: 21.17
• 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: 65 Neutral
• Price Target: ₹77.00 ▼(-5.52% Downside)

Xchanging Solutions Limited has a solid financial performance with strong profitability and low leverage, which is the most significant factor in its overall score. However, the technical analysis indicates a bearish trend, which impacts the stock's attractiveness. The valuation is reasonable, providing some support to the stock's score. The absence of recent earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Strong balance sheet

A very high equity ratio and minimal leverage give durable financial flexibility and resilience. This reduces refinancing and default risk, supports investment in service delivery, and allows the firm to withstand client cycles without relying on costly external capital.

Improved profitability margins

Sustainably higher gross and net margins indicate strong pricing power and effective cost control in core outsourcing services. Higher margins support reinvestment in technology and talent, enhancing competitive advantage and long-term earnings resilience versus lower-margin peers.

Stronger cash generation

The shift to positive free cash flow and near-par operating cash conversion signal improved cash quality. Reliable cash generation reduces dependence on external funding, enables capital allocation to growth or shareholder returns, and improves long-term financial stability.

Negative Factors

Declining asset base

A shrinking asset base can limit capacity to scale operations, invest in platforms, or support larger client contracts. Over months this may constrain revenue expansion and make it harder to pursue strategic investments or win deals that require on‑boarded infrastructure.

Volatile operating cash flow

Even with recent improvement, inconsistent operating cash flow complicates budgeting for transitions, tech investments, and working capital. Persistent volatility increases financing risk during client ramp-ups or downturns and can pressure margins over time.

Pressure on EBITDA margin

A falling and variable EBITDA margin suggests rising relative costs or efficiency slippage in service delivery. Over months this can erode competitive pricing flexibility, reduce reinvestment capacity, and increase sensitivity to pricing pressure from large clients.

Xchanging Solutions Limited Business Overview & Revenue Model

Company Description

Xchanging Solutions Limited provides information technology services in India, Europe, the United States, Singapore, and internationally. The company was formerly known as Cambridge Solutions Limited and changed its name to Xchanging Solutions Limited in June 2012. The company was incorporated in 2002 and is headquartered in Bengaluru, India. Xchanging Solutions Limited is a subsidiary of Xchanging (Mauritius) Limited.

How the Company Makes Money

Xchanging Solutions Limited generates revenue through a combination of service contracts, consulting fees, and software licensing. The company primarily earns money by providing business process outsourcing (BPO) services and IT solutions tailored to the needs of its clients, particularly in the insurance and financial sectors. Key revenue streams include long-term contracts for operational services, project-based consulting assignments, and recurring revenue from software licenses and maintenance agreements. Additionally, XCHANGING may benefit from strategic partnerships with technology firms and industry stakeholders, which can enhance its service offerings and expand its market reach.

Xchanging Solutions Limited Financial Statement Overview

Summary

Xchanging Solutions Limited demonstrates a solid financial foundation with strong profitability and low leverage. The company shows positive revenue and profit growth, coupled with effective equity management. However, attention should be given to maintaining operational efficiency and ensuring consistent cash flow generation to sustain growth.

Income Statement

Xchanging Solutions Limited has shown a stable financial performance with a positive revenue growth rate of 6.02% from 2024 to 2025. The gross profit margin improved significantly to 35.38% in 2025, reflecting strong cost management. Net profit margin also increased to 26.82%, indicating enhanced profitability. However, the EBIT and EBITDA margins have seen slight variations, with EBITDA margin decreasing to 28.58%, which may require attention to operational efficiency.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 71.12% in 2025, showcasing financial stability. The debt-to-equity ratio is low at 0.24, indicating minimal leverage risks. Return on equity is robust at 13.82%, reflecting effective utilization of equity. However, the decline in total assets over the years could be a concern for future growth prospects.

Cash Flow

The cash flow analysis reveals a significant improvement in free cash flow from negative in 2024 to positive in 2025, indicating better cash management. The operating cash flow to net income ratio stands at 0.94, suggesting strong cash generation relative to net income. However, the historical fluctuation in operating cash flow raises concern about cash flow consistency.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.91B	1.85B	1.74B	1.74B	1.74B	1.96B
Gross Profit	839.70M	649.40M	516.00M	1.11B	1.12B	623.30M
EBITDA	703.00M	528.40M	685.70M	603.10M	619.40M	713.10M
Net Income	527.20M	495.80M	137.00M	449.00M	525.70M	624.40M
Balance Sheet
Total Assets	0.00	5.04B	5.23B	7.43B	6.73B	6.25B
Cash, Cash Equivalents and Short-Term Investments	3.00B	3.01B	3.08B	5.15B	4.40B	3.92B
Total Debt	0.00	854.70M	1.05B	13.40M	17.20M	26.50M
Total Liabilities	-3.59B	1.46B	1.69B	669.40M	597.40M	692.60M
Stockholders Equity	3.59B	3.59B	3.54B	6.76B	6.13B	5.56B
Cash Flow
Free Cash Flow	0.00	467.50M	-120.80M	420.30M	348.80M	614.20M
Operating Cash Flow	0.00	467.50M	-120.60M	420.30M	349.70M	619.80M
Investing Cash Flow	0.00	141.40M	354.80M	96.60M	78.70M	77.10M
Financing Cash Flow	0.00	-700.20M	-2.32B	-4.80M	-10.70M	-18.20M

Xchanging Solutions Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 81.50
• 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:XCHANGING, the sentiment is Neutral. The current price of 81.5 is above the 20-day moving average (MA) of 73.91, above the 50-day MA of 79.46, and below the 200-day MA of 87.58, indicating a neutral trend. The MACD of -2.50 indicates Negative momentum. The RSI at 47.79 is Neutral, neither overbought nor oversold. The STOCH value of 72.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:XCHANGING.

Xchanging Solutions Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DREAMFOLKS	74 Outperform	₹4.90B	7.58	―	1.80%	-1.24%	-9.83%
XCHANGING	65 Neutral	₹7.95B	13.43	―	2.40%	13.52%	101.98%
SATINDLTD	61 Neutral	₹9.05B	18.36	―	0.35%	26.49%	7.30%
TRANSWORLD	60 Neutral	₹3.96B	-61.15	―	0.76%	10.69%	-203.58%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
STCINDIA	48 Neutral	₹7.25B	99.85	―	―	―	―

Xchanging Solutions Limited Corporate Events

Xchanging Solutions Clarifies Total Litigation Demand with Updated Interest Estimate

Xchanging Solutions Limited has issued an addendum to its earlier disclosure on pending litigation to clarify the total demand amount arising from the case. The company stated that there is no change to the underlying order, principal demand, or penalty previously reported; the revision solely reflects the quantification and inclusion of an estimated interest component, bringing the total demand as of the order dated November 27, 2025, to INR 1,13,05,32,300. This clarification aligns the current disclosure with the approach taken in 2023 and is intended to give stakeholders a more accurate, up-to-date view of the potential financial exposure while the demand remains unresolved and interest continues to accrue.

Xchanging Solutions Opens Special Window for Share Transfer Requests

Xchanging Solutions Limited has announced the publication of newspaper advertisements regarding the opening of a special window for re-lodgement of transfer requests for physical shares. This move is part of their compliance with SEBI regulations and reflects the company’s commitment to maintaining transparent and efficient shareholder communication.