Xchanging Solutions Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Xchanging Solutions Ltd trades at ₹65.7, in a downtrend and 89 weeks into that stage. That is −8.6% against its own 200-day average. It sits at 33% of a 52-week range of ₹51 to ₹95. On relative strength it is currently behind the NIFTY 500 on a trailing-13-week view (6 weeks and counting).

Today the stock is in a downtrend — week 89 of stage 4, confirmed. At ₹65.7 it trades −8.6% versus its 200-day average and sits at 33% of its 52-week range (₹51–₹95).

Against the market, two honest reads. Cumulative: over the last 10.3 years the stock moved +46% while the NIFTY 500 moved +274% — behind the index over the full window. Recent form: on a trailing-13-week view the stock is currently behind (6 weeks and counting; last ahead the week of 2026-06-19) — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

→ The trend is one thing; the bill is another. Are you paying up for it? Next: the P/E sits at the 13th percentile of its own range.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Xchanging Solutions Ltd trades at 12.0× P/E, near the bottom of its own range — cheaper only 13% of the time. Its long-run median P/E is 18.9×, measured across 10.4 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 12.0× is near the bottom of its own range — cheaper only 13% of the time, against a long-run median of 18.9× measured over 10.4 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

One caveat before moving on: margins are the best this company has ever printed — cheap against its own history on record margins is not the same thing as cheap. If profitability mean-reverts, today's multiple is higher than it looks.

Why the multiple sits where it does: over the past year annual EPS moved +20.0% against a −30.7% price move — earnings outran the price, pushing the multiple DOWN its own range.

The price move, decomposed: over 5y, of the −7.4%/yr price move, ~−0.9%/yr came from earnings growth and ~−6.5 pp from the multiple (compressing); over 10y, of the −3.6%/yr price move, ~+7.4%/yr came from earnings growth and ~−11.0 pp from the multiple (compressing). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is low against its own past, so the story rests on the earnings line underneath it, not the multiple.

A quarterly PEG curve, which only the second data source carries, is not drawn on this page: its two data sources do not share enough overlapping reported history to be compared. A figure nobody could check is not used to price growth — the gap is a decision, not missing data.

→ Cheap or dear rides on the earnings. Are they actually growing? Next: the fundamental stage — where the business sits in its arc, and how growth has compounded.

Stage: Mixed Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Xchanging Solutions Ltd reads as mixed on its fundamental arc. Mixed — no clean majority across the growth curves, ROCE lifting at 18.0% — the per-curve reads carry the story. The read is built from 10 quarters across 3 curves, on partial evidence.

Why it matters: when the curves disagree, the per-curve reads above matter more than any single verdict.

One or more growth curves carry a base-effect spike — a large year-on-year move off a near-zero or loss-making comparable quarter. Those spikes are capped before the classifier reads the trajectory, and shown pinned on the chart, so a single distorted quarter does not drive the stage call.

Return readings here are annual, not quarterly — read as level and direction only; they can confirm the growth curves but never drive the stage on their own.

A partial read: at least one curve is short, or the returns curve is not the computed quarterly series — hold the stage word a little more loosely.

→ The stage names the trajectory. Next: the revenue line that produces it, quarter by quarter.

4-Factor Sector Score

54.5/100 — rank 20 of 63 in IT - Software · 77% evidence confidence

Xchanging Solutions Ltd scores 54.5 out of 100 against the 63 companies it is compared with in IT - Software, ranking 20. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 21.1 + 14.9 + 13.3 + 5.2 = 54.5. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Xchanging Solutions Ltd reported ₹51.0 Cr of revenue in the Mar 26 quarter, +0.0% year on year. Over 11 years it has compounded at −2.8% a year. The last full year, FY26, came in at ₹203 Cr. The last four reported quarters add to ₹203 Cr.

Xchanging Solutions Ltd reported ₹51.0 Cr of revenue in the Mar 26 quarter, +0.0% year on year. Over 11 years it has compounded at −2.8% a year. The last full year, FY26, came in at ₹203 Cr. The last four reported quarters add to ₹203 Cr.

FY26 revenue came in at ₹203 Cr (+9.7% on the year), capping 11 years at −2.8% compound. The latest quarter (Mar 26) printed ₹51.0 Cr, +0.0% year on year.

Pace check: the last four quarters averaged +10.2% growth against the decade's −2.8% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +9.7% over the last 4 quarters against +8.3%/yr over the last 8 — stabilising; TTM profit +18.0% vs +113.0%/yr — rolling over.

→ Revenue grew — did margins hold as it scaled? Next: 37.0% this quarter (+3.0 pp YoY).

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Xchanging Solutions Ltd's operating margin is 37.0% in the Mar 26 quarter, +3.0 percentage points against the same quarter a year ago. That is the widest this company has ever printed on a full-year basis. Across 13 fiscal years the operating margin has ranged 0.0% to 34.0%. The current quarter is running above every full year in that window.

Xchanging Solutions Ltd's operating margin is 37.0% in the Mar 26 quarter, +3.0 percentage points against the same quarter a year ago. That is the widest this company has ever printed on a full-year basis. Across 13 fiscal years the operating margin has ranged 0.0% to 34.0%. The current quarter is running above every full year in that window.

The latest quarter's operating margin is 37.0%, +3.0 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 0.0%–34.0%, and FY26's 34.0% is the top of that band — a record year.

Why the margin moved: operating margin went +3.0 pp year on year while gross margin went −2.5 pp — the gain came mostly from the gross line: input costs and pricing.

Worth repeating from the valuation section: cheap against its own history on record margins is not the same thing as cheap — a record margin flatters every ratio built on top of it.

→ Margins held — did that reach the bottom line? Next: profit +6.7% in the latest quarter.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Xchanging Solutions Ltd earned ₹16.0 Cr of net profit in the Mar 26 quarter, +6.7% year on year. Full-year FY26 profit was ₹59.0 Cr. The 11-year compound rate is 6.7%. That is 31.4% of the quarter's revenue. The same quarter a year earlier earned ₹15.0 Cr. 2 of the last 12 reported quarters were loss-making.

Xchanging Solutions Ltd earned ₹16.0 Cr of net profit in the Mar 26 quarter, +6.7% year on year. Full-year FY26 profit was ₹59.0 Cr. The 11-year compound rate is 6.7%. That is 31.4% of the quarter's revenue. The same quarter a year earlier earned ₹15.0 Cr. 2 of the last 12 reported quarters were loss-making.

Mar 26 profit was ₹16.0 Cr, +6.7% year on year. On the full year, FY26 printed ₹59.0 Cr (+18.0%), and the 11-year compound rate is 6.7%.

Why profit moved: revenue contributed +0.0% and the margin +3.0 pp — the quarter was margin-led: most of the profit growth came from keeping more of each sale.

Pace comparison, last four quarters: profit +21.7% vs revenue +10.2%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

→ Profit rose — but did the cash follow? Next: 62% of the last 3 years' profit arrived as cash.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 62% of Xchanging Solutions Ltd's reported profit arrived as operating cash — most of the profit is real cash. In FY26 that was ₹41.0 Cr of operating cash against ₹59.0 Cr of profit. After ₹0.0 Cr of capital spending, ₹41.0 Cr was left as free cash.

FY26: operating cash of ₹41.0 Cr against reported profit of ₹59.0 Cr, leaving free cash of ₹41.0 Cr after ₹0.0 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 62% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

🚨 Why conversion sits at 62%: the cash cycle stretched 13 days between FY21 and FY26 — more of each rupee of profit waits inside the cycle before arriving. Less than 70% of profit arriving as cash is the thing to watch on this page.

Router verdict: conversion is below par and the cash cycle has stretched 13 days — the next section's job is to find where the cash is stuck.

→ So follow the cash to where it goes. Next: the 30-day cycle, in money terms.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Xchanging Solutions Ltd's cash conversion cycle runs 30 days in FY26, up from 17 days in FY21. Capital spending ran ₹−1.0 Cr over the last 3 years. At FY26 sales of ₹203 Cr each day of that cycle holds about ₹0.6 Cr, so roughly ₹17.0 Cr sits inside the business at any moment.

FY26: debtors at 30 days, inventory at 0 days — roughly 0.0 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 30 days, looser than FY21's 17.

In money terms: at FY26 sales of ₹203 Cr, each day of the cycle holds about ₹0.6 Cr — so the 30-day loop keeps roughly ₹17.0 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹−1.0 Cr over the last 3 fiscal years against ₹1.0 Cr of depreciation — spending at or below maintenance level. Capital work-in-progress stands at ₹0.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the working-capital loop is the cash sink the router flagged — watch the cycle, not the P&L.

→ Does all this activity actually earn its cost of capital? Next: ROCE is 18% and the ROIC − WACC spread is +22.6 pp.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.⚠ unverified

Xchanging Solutions Ltd earns a ROCE of 18% in FY26. That is up from a trough of 6% in FY17. Return on invested capital clears the cost of that capital by +22.6 percentage points, so growth here adds value rather than only size. The wiring behind it is 29.1% net margin on 0.39× asset turns.

FY26 ROCE is 18%, recovered from a FY17 trough of 6% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 29.1% net margin × 0.39× asset turns × 1.32× balance-sheet leverage ≈ 15.0% on equity. Margin is doing the heavy lifting; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 34.6% − 12.0% = a +22.6 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. A spread this wide means every rupee reinvested creates more than a rupee of value — the engine compounds.

→ Returns like these — is the balance sheet borrowing to make them? Next: debt-to-equity is 0.18.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.⚠ unverified

Xchanging Solutions Ltd carries total debt of ₹71.0 Cr against shareholder equity of ₹396 Cr as of Mar 26, a debt-to-equity of 0.18 — effectively unlevered. On the annual view that ratio went from 0.00 in FY22 to 0.18 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Mar 26: total debt of ₹71.0 Cr against shareholder equity of ₹396 Cr — a debt-to-equity of 0.18. On the annual view, debt-to-equity went from 0.00 (FY22) to 0.18 (FY26). The returns on this page are earned, not borrowed.

→ Who owns this, and are they adding or leaving? Next: the register is quiet.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

No holder of Xchanging Solutions Ltd moved a full percentage point over the last two years — the register is quiet. Domestic institutions moved −0.1 points over the same window, to 0.2%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Foreign institutions: −0.1 points over 8 quarters to 0.0%; Domestic institutions: −0.1 points over 8 quarters to 0.2%; Promoters: +0.0 points over 8 quarters to 75.0%.

→ One last check: does the safety math agree? Next: the balance-sheet safety line.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Xchanging Solutions Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

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