Altman Z″
Needs current assets and current liabilities.
XTRANET · IT - Software · INE0NG701011
Analyst mean 0.00 · 0 analysts · 0% bullishThis company listed within the last twelve months, so its prospectus is still the primary source. The figures below were extracted from the DRHP and RHP before listing and scored then, and they are shown here as they stand in the IPO record rather than restated.
Each flag is a fact read in the filing, shown with the context that makes it meaningful.
Stated objects, as worded in the offer document. Deployment against them is tracked separately.
Claims made in the offer document, to be read against what the company has reported since.
Xtranet Technologies Limited is an integrated IT solutions provider headquartered in Bhopal, Madhya Pradesh, with a pan-India presence and an associate in Dubai. The company delivers end-to-end services encompassing enterprise applications, managed services, digital services, and proprietary platforms. Operating predominantly in the B2G and B2B segments, Xtranet derives a substantial 47.06% of its Fiscal 2026 revenue from Government and PSU clients, executing critical smart city, law enforcement, and e-governance IT infrastructure projects. The balance of its revenue is generated from private enterprises across diverse sectors such as healthcare, defense, and financial services. Scale is supported by a large distributed delivery model with major project execution focused in Maharashtra, Madhya Pradesh, and Delhi. The company's supply chain heavily relies on third-party hardware/software OEMs and distributors, posing a high concentration risk as its top 10 suppliers account for 95.24% of total purchases in FY26. What distinguishes Xtranet from pure-play IT integrators is its strong proprietary portfolio, notably the Synergy low-code digital transformation platform and its subsidiary XtraTrust, which operates as a licensed Certifying Authority providing digital signature and e-Sign services. This dual capability allows it to capture higher-margin platform revenues alongside its traditional system integration and infrastructure management contracts.
Proprietary software platforms, notably XtraTrust (a licensed Certifying Authority for digital signatures) and Synergy (a low-code digital transformation platform), which integrate with their large-scale government and enterprise IT infrastructure projects to drive higher margins.
Xtranet Technologies Limited is an integrated information technology solutions provider delivering end-to-end services including enterprise applications, digital services, and managed services. The company earns revenue through fixed-price contracts, time-and-materials arrangements, and recurring service agreements from both government/PSU and private sector clients.
Source: RHP Business Overview p. 254-268
Where the revenue came from, as the document splits it.
| Name | Pct | Source |
|---|---|---|
| Managed services | 40.53 | RHP p. 257 |
| Enterprise Applications | 33.22 | RHP p. 257 |
| Digital services | 15.93 | RHP p. 257 |
| Proprietary platforms & products | 10.33 | RHP p. 257 |
The Indian IT and ITeS industry is undergoing rapid expansion, fueled by widespread digital transformation, robust digital public infrastructure (DPI), and increased government technology spending on e-governance and smart cities. India's IT sector is pivotal globally, characterized by significant shifts toward cloud migration, AI/ML adoption, and managed IT infrastructure services. Specifically for players like Xtranet, the thrust on public sector digitalization, including various state-level automation programs, provides a massive runway. However, the sector is highly competitive and tender-driven, with strict eligibility criteria and continuous need for technological upskilling to maintain margins against established mid-sized and large IT service providers.
Growth rate: 6.9% CAGR (FY26-FY31)
Market size: USD 30,828 crore (FY26)
Sector slug: it-services
Source: RHP Industry Overview p. 255
The comparable set the company chose, which is itself a disclosure.
| Name | Margin | Pb | Pe | Roe | Source |
|---|---|---|---|---|---|
| Silver Touch Technologies Limited | 63.65 | 21.06 | p. 144 | ||
| Dynacons Systems & Solutions Limited | 20.2 | 26.89 | p. 144 | ||
| Coforge Limited | 35.51 | 16.31 | p. 145 |
As presented in the offer document. Post-listing figures are in the statements above.
| Period | Related party revenue cr | Pat cr | Ebitda cr | Pat margin | Revenue cr | Pat margin derived | Cff cr |
|---|---|---|---|---|---|---|---|
| FY26 | 40.7276 | 11.15% | 365.2874 | yes | 40.3164 | ||
| FY25 | 0.0203 | 30.0347 | 10.88% | 276.0815 | yes | 19.7294 | |
| FY24 | 10.9425 | 4.7% | 232.9407 | yes | 19.234 |
Written before listing, answered from the document itself.
Where is the money going?
The IPO is a 100% fresh issue of ₹170.00 crore. The proceeds will be allocated towards working capital requirements (₹102.00 crore), repayment or pre-payment of certain borrowings (₹20.20 crore), and capital expenditure for systems and hardware (₹8.48 crore), with the balance for general corporate purposes.
RHP p. 127
How concentrated is the customer and supplier base?
The company exhibits extreme concentration. In FY26, the top 10 customers accounted for 86.72% of total revenue from operations, while the top 10 suppliers accounted for 95.24% of total purchases.
RHP p. 30-31
Is it profitable and growing?
Yes. Revenue from operations grew from ₹232.94 crore in FY24 to ₹365.28 crore in FY26. Profit After Tax (PAT) grew correspondingly from ₹10.94 crore in FY24 to ₹40.72 crore in FY26, with Return on Equity at 34.78% for FY26.
RHP p. 352
What sits in the footnotes / contingent liabilities?
The company has contingent liabilities totaling ₹42.73 crore in FY26, dominated by bank guarantees of ₹40.09 crore. Footnotes also reveal a statutory auditor's 'Emphasis of Matter' regarding the company's decision not to recognize ₹2.69 crore in interest liabilities owed to MSMEs for delayed payments.
RHP p. 35-36, 47, 676
What the issue priced at, on the figures in the document.
| Date | Name | Shares | Price per share | Category | Source |
|---|---|---|---|---|---|
| 2023-03-10 | Hira Infratek Limited | 1800000 | 50 | other | p. 98 |
| 2024-09-28 | Strategic Sixth Sense Capital Fund | 165500 | 325 | financial investor | p. 98 |
| 2024-09-28 | Minerva Ventures | 76800 | 325 | financial investor | p. 100 |
| 2024-09-28 | Sixth Sense Venture Partners LLP | 35400 | 325 | financial investor | p. 100 |
Ceo: Sukhbir Singh Kukreja (Managing Director)
Against Company: 3 tax proceedings (₹166.05 lakhs) and 2 non-material civil proceedings (₹293.70 lakhs). Against Subsidiaries: 2 tax proceedings (₹32.16 lakhs). Against Promoters: 2 tax proceedings (₹33.66 lakhs).
Pre-issue promoter holding is 77.45%. The IPO is a 100% fresh issue of ₹170.00 crore with no Offer for Sale, indicating promoters are not cashing out and their capital remains locked in to execute the growth strategy.
Emphasis of Matter for FY25: Failure to enable the audit trail (edit log) feature in accounting software. Emphasis of Matter for FY26: Non-recognition of interest liability of ₹269.09 lakhs on delayed payments to MSMEs under the MSMED Act.
Source: RHP p. 35-36, 113, 148, 290, 468-469, 676
A change between the two filings is a disclosure in itself.
| Field | Rhp value | Drhp value | Note | Source |
|---|---|---|---|---|
| Total issue size | Up to ₹17,000.00 lakhs | Up to ₹19,000.00 lakhs | The total issue size (which consists entirely of a fresh issue) was reduced by ₹2,000.00 lakhs between the draft and the final filing. | DRHP p. 176, 217; RHP p. 47, 52 |
| Financial Information Period | Restated financial statements for the years ended March 31, 2026, March 31, 2025, and March 31, 2024 | Restated financial statements for the years ended March 31, 2025, March 31, 2024, and March 31, 2023 | The restated financial statements were rolled forward by one full fiscal year, adding the newly completed FY26 and dropping FY23. | DRHP p. 170, 256; RHP p. 13, 92 |
| Litigation / Employee Claim | A former employee, Pradeep Pathak, filed a claim before the CGIT-cum-Labour Court seeking recovery of ₹1.18 lakh and ancillary compensation of ₹10 lakh. | Not present | A new specific labor-related claim against the company was added to the disclosures in the RHP. | RHP p. 48 |
Numbered markers are corporate actions and, once the filings are read, capital and governance events. Prices are split-adjusted so the series is continuous.
What the numbers mean when read together — computed from the filings, not a score.
Operating cash is 68% of trailing profit — a modest gap worth keeping an eye on.
Why this reading: Noted with caution: a mild gap that is commonly benign (working-capital timing) but worth tracking across years.
Operating cash ₹28 cr vs trailing profit ₹41 cr. Gaps in the 0.5–0.9 range are usually timing, occasionally a early tell.
Free cash flow is negative — the business consumes more than it generates once capex is paid. Fine if it is deliberate growth investment; a problem if it is structural.
Why this reading: Noted with caution — worth watching, but not yet conclusive on its own. Business has ups and downs; one soft reading is not a verdict.
Latest free cash flow ₹-22 cr, negative in 4 of 4 years. Check whether the burn funds expansion (dark stores, plants, ports) or merely sustains operations.
Borrowings rose 110% over two years while the company also carries ₹2 cr in investments. Why borrow at interest while parking money elsewhere is a fair question.
Why this reading: Noted with caution — worth watching, but not yet conclusive on its own. Business has ups and downs; one soft reading is not a verdict.
Borrowings moved to ₹86 cr from ₹41 cr. Simultaneous large investments can be legitimate treasury management, or a sign that reported cash is not freely available.
Capital work-in-progress has stayed high (42% of fixed assets) without converting to productive assets — worth checking whether projects are genuinely progressing.
Why this reading: Noted with caution — worth watching, but not yet conclusive on its own. Business has ups and downs; one soft reading is not a verdict.
CWIP ₹25 cr vs ₹6 cr two years earlier, against fixed assets ₹60 cr. Perennial CWIP that never becomes a fixed asset can hide stalled projects or capitalised costs that should have been expensed.
Debt rose over 3 years, and most of it (112%) has turned into fixed assets and projects under construction — the borrowing is building the business.
Why this reading: A positive signal: leverage taken on is visibly becoming productive capacity, not disappearing.
New borrowing ₹67 cr largely matched by an asset build of ₹75 cr. Debt that funds capacity is a different thing from debt that funds nothing.
Every score below is calculated here from the reported numbers — none of it is asserted. Open the notebook at the foot of the section to see each formula with this company's figures in it.
Needs current assets and current liabilities.
Piotroski F-Score — fundamental momentum — Joseph Piotroski, University of Chicago, 2000, in a study of whether accounting signals could improve returns among cheap stocks.
Nine yes-or-no tests across profitability, leverage and operating efficiency. Each pass scores one. It asks a narrow question: is this business getting better or worse on its own terms, year over year?
How to read it7 or more suggests improving fundamentals; 3 or fewer suggests deterioration. It measures direction, not quality — a weak company improving can score higher than a strong one holding steady.
Where it failsA single year of comparison, so one unusual year distorts it. Says nothing about valuation, competitive position or management. Piotroski designed it to rank already-cheap stocks, not to judge a company in isolation.
Needs trade receivables, current assets, other expenses.
Accruals are 3.9% of assets. Free cash flow negative in 4 of 4 years.
DuPont decomposition — Devised inside the DuPont Corporation in the 1920s and still the standard way to read a return on equity.
Splits return on equity into its three sources, so the same headline number can be traced to very different businesses.
How to read itA 20% ROE built on margin and turnover is a different proposition from a 20% ROE built on 3× leverage. The first survives a downturn; the second amplifies it.
Where it failsA single year. Negative equity makes it meaningless. Leverage is structural for lenders, so the third term carries no signal there.
Capital is going in far faster than revenue is coming out. For a business mid-build that is expected — the test is whether it converts.
cumulative operating cash flow ÷ cumulative net profit
₹36 cr ÷ ₹88 cr, over 4 years
0.41×
Below 1.0 and persistent means profit is being recognised before the cash arrives.(net profit − operating cash flow) ÷ average total assets
(₹41 − ₹28) cr ÷ average assets
3.9%
The share of profit that is accounting entries rather than cash. Above ~10% is where accruals start to dominate.net margin × asset turnover × leverage
11.2% × 1.07 × 2.51
30.1%
Splits ROE into whether returns come from operations or from borrowing.EBIT ÷ finance cost
₹58 cr ÷ ₹6 cr
9.67×
How many times operating profit covers the interest bill.borrowings ÷ net worth
₹86 cr ÷ ₹136 cr
0.63×
Read against the sector — infrastructure carries more than software.growth in fixed assets + CWIP, against growth in revenue
capital +750% vs revenue +64%, FY2023 to FY2026
686pp gap
Money going in far faster than revenue coming out. For an incubator this is expected — the test is whether it eventually converts.Needs more balance-sheet detail (only 3 of 6 flags testable).
NOPAT over equity plus debt less cash, at a notional 25% tax. Incremental ROIC is the return on money put in since then — the number that decides whether growth creates value or consumes it.
Return on invested capital, and incremental ROIC — Standard in corporate finance; the incremental form was popularised by Michael Mauboussin as the test of whether growth creates value.
ROIC measures what the business earns on all the capital it employs — equity plus debt, less cash. Incremental ROIC asks a sharper question: what has it earned on the money put in since a chosen year?
How to read itROIC comfortably above the cost of capital — call it 11–13% in India — means growth compounds. Below it, growth consumes. Incremental below headline means recent investment is earning less than the legacy business.
Where it failsDistorted in the year of a large acquisition. Understated for companies mid-build, where capital is deployed but capacity has not yet been commissioned — an incubator will look poor until it does not.
Read downward. Cash can cover EBITDA and still not survive capex — the third rung is where a capital-hungry business shows itself.
The earnings quality ladder — Not a named model — the standard sequence an analyst walks when testing whether reported profit is real.
Three ratios read in order, each stricter than the last.
How to read itRead downward. Each rung failing where the one above passed tells you exactly where the cash is going.
Where it failsA single year of heavy capex depresses the third rung legitimately. Judge it across a cycle.
Against a policy rate near 6%, most sound Indian corporates borrow between 7% and 10%.
Cost of debt — Interest expense over average borrowings — the effective rate the company actually pays.
What the lenders charge, which is a market verdict on credit quality that no rating agency delay affects.
How to read itAgainst a policy rate near 6%, most sound Indian corporates borrow between 7% and 10%. Read the direction over years as much as the level.
Where it failsUnderstated where a large share of interest is capitalised into projects under construction. Not meaningful for lenders, where interest is cost of goods.
Models that need these lines are withheld rather than estimated: net worth, current assets, current liabilities, trade receivables, inventory, net block. Nothing on this page is back-solved from a figure the company did not publish.
Each framework below is a set of stated, mechanical criteria from published work, run against this company's own filed numbers. Passing or failing a screen is not a verdict — different frameworks disagree by design, and that disagreement is itself informative.
Benjamin Graham's stated criteria for a defensive stock, applied to the filed numbers. A company failing several is not disqualified — Graham designed these to be deliberately strict.
Two ratios only: what the business earns on its capital, and what you pay for those earnings. Designed to be ranked across a universe rather than read in isolation.
The fundamental half of William O'Neil's framework. The market and leadership components are judgement calls and are not scored here.
The characteristics long-term holders commonly look for: cash-backed earnings, high returns on capital, and debt that never forces a decision.
Bars are revenue; the line is net margin. Revenue rising while the line falls is the shape worth noticing.
Operating cash first, then what the business spent and raised.
One year is a snapshot. These are the two lines that matter across a cycle.
Rising debtor or inventory days against flat sales is the earliest visible sign of stress.
Set your own assumptions and watch the numbers move. A scenario calculator — the outputs are the arithmetic of your inputs.
One canonical set of figures — the same numbers used everywhere else on this page and on the screener.
How the register has moved over recent quarters — the direction matters more than the level.
Promoter rose from 62.62% to 83.63% across these quarters.
FII held steady from 4.10% to 4.10% across these quarters.
MF held steady from 0.75% to 0.75% across these quarters.
Other trimmed from 32.53% to 16.37% across these quarters.
Where cash gets stuck. A rising inventory or debtor line against flat sales is the earliest sign of trouble in the numbers.
| Measure | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|
| Debtor days
How long customers take to pay | 267 | 157 | 215 | 114 |
| Inventory days
How long stock sits before it sells | 79 | 133 | 190 | 128 |
| Payable days
How long the company takes to pay suppliers | 371 | 269 | 395 | 147 |
| Cash conversion cycle
Debtor + inventory − payable days | -24 | 22 | 10 | 96 |
| Working capital days | 27 | 43 | 65 | 49 |
| ROCE %
Return on capital employed | — | 31.0% | 43.0% | 33.0% |
The shape of the business over time (annual) — read the direction, not the single print.
| Line | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|
| Revenue from operations | 223 | 233 | 276 | 365 |
| Other income | 1 | 0 | 2 | 1 |
| Depreciation | 3 | 1 | 2 | 6 |
| Finance cost | 3 | 4 | 7 | 6 |
| Profit before tax | 8 | 15 | 40 | 52 |
| Net profit (owners) | 6 | 11 | 30 | 41 |
| EPS (₹) | 8.60 | 15.94 | 37.99 | 10.28 |
Exceptional items, total income and EBITDA are read from the filed statements.
| Metric | Jun 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|
| Revenue | 46 | 161 | 50 |
| Other Income | 0 | 1 | 0 |
| Expenses | 40 | 126 | 40 |
| Depreciation | 1 | 3 | 2 |
| Finance cost | 1 | 2 | 2 |
| Profit before tax | 4 | 31 | 7 |
| Net Profit | 3 | 24 | 6 |
| EPS | 4.44 | 6.15 | 1.55 |
| Item | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|
| Equity Capital | 7 | 7 | 8 | 39 |
| Reserves | 19 | 32 | 88 | 97 |
| Borrowings | 19 | 41 | 39 | 86 |
| Net block | 7 | 12 | 24 | 60 |
| CWIP | 3 | 6 | 17 | 25 |
| Investments | 1 | 0 | 1 | 2 |
| Total Assets | 224 | 203 | 322 | 342 |
| Line | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|
| Cash from operations | 0 | -1 | 9 | 28 |
| Cash from investing | -7 | -16 | -30 | -68 |
| Cash from financing | 6 | 19 | 20 | 40 |
| Free cash flow | -1 | -8 | -17 | -22 |
| Net change in cash | -1 | 2 | -2 | 0 |
Cash from operations is the number profit has to answer to. Free cash flow is what remains after the business pays for its own growth.
These are coverage counts, not ratings. Each one asks a fixed set of questions of the filings and reports how many the company answered. A company that discloses nothing counts nothing here — that is a statement about the disclosure, not about the business.
The same read, applied to the companies this one competes with.