Virinchi Ltd. (VIRINCHI) AI Stock Analysis

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Virinchi Ltd.

(NSE:VIRINCHI)

Select Model

Rating:42Neutral

Price Target:INR 14.00▲(0.29% Upside)

Action:reiterated

Date:11/05/26

The score is primarily held down by weakening financial performance, especially the swing to a FY2026 net loss and deterioration in cash generation (negative operating and free cash flow). Technicals add only limited support due to a short-term rebound that remains below longer-term moving averages and negative MACD. Valuation is not supportive given the negative P/E and lack of dividend yield data.

Positive Factors

Equity SupportA rising equity base and stable asset position provide some resilience despite recent earnings weakness. This support can help the company absorb volatility, maintain operations, and preserve funding flexibility while management works to restore profitability and cash generation.

Negative Factors

Sharp Profitability DeteriorationThe swing into a sizable annual loss materially weakens financial resilience and reduces internally generated capital. Unless profitability recovers, continued losses could constrain investment, weaken debt-service capacity, and make sustainable growth more difficult over the next several quarters.

Virinchi Ltd. (VIRINCHI) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 1.61B
Dividend Yield: ―
Average Volume (3M): 10.56K
Price to Earnings (P/E): -5.5
Beta (1Y): 1.56
Revenue Growth: -2.05%
EPS Growth: -59.59%
Country: India
Employees: 1,160
Sector: General
Sector Strength: 55
Industry: Software - Application

Virinchi Ltd. Business Overview & Revenue Model

Company Description

Headquartered in Hyderabad, India, Virinchi Limited, established in 1990, is a global provider of information technology products and services. The company's activities span three primary segments: software development and services, IT-enabled servic...

How the Company Makes Money

Virinchi Ltd. generates revenue primarily by providing technology services and solutions to clients, typically monetized through service contracts (e.g., project-based fees for implementation/custom development and time-and-materials or managed-servi...

Virinchi Ltd. Financial Statement Overview

Summary

Overall financial health is weak: profitability deteriorated sharply with FY2026 net income swinging to a sizable loss and revenue slightly declining, while operating cash flow turned negative and free cash flow stayed negative, signaling poor cash conversion. The balance sheet is comparatively steadier with a meaningful equity base, but debt remains high and recent losses reduce financial flexibility.

Income Statement

44Neutral

Balance Sheet

63Positive

Cash Flow

28Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	2.75B	2.84B	3.01B	3.00B	3.12B	3.64B
Gross Profit	1.22B	1.17B	1.35B	1.79B	1.93B	3.36B
EBITDA	589.26M	662.03M	963.86M	1.14B	1.11B	1.04B
Net Income	-260.66M	-261.17M	7.24M	137.03M	128.49M	143.05M
Balance Sheet
Total Assets	0	8.50B	8.47B	8.51B	7.87B	7.03B
Cash, Cash Equivalents and Short-Term Investments	86.59M	86.59M	77.58M	200.25M	307.08M	366.00M
Total Debt	0	2.73B	2.92B	3.30B	3.17B	2.76B
Total Liabilities	-4.82B	3.68B	3.73B	3.97B	3.80B	3.33B
Stockholders Equity	4.82B	4.93B	4.76B	4.55B	4.08B	3.71B
Cash Flow
Free Cash Flow	22.61M	-232.34M	-253.64M	26.54M	-377.22M	525.18M
Operating Cash Flow	65.92M	-42.70M	536.65M	1.16B	987.00M	846.73M
Investing Cash Flow	-38.08M	-275.83M	-778.34M	-1.15B	-1.37B	-336.79M
Financing Cash Flow	-49.47M	327.55M	119.01M	-127.06M	323.82M	-334.14M

Virinchi Ltd. Technical Analysis

Technical Analysis SentimentNeutral

Last Price13.96

Price Trends

50DMA13.61Positive

100DMA14.68Negative

200DMA16.38Negative

Market Momentum

MACD0.16Negative

RSI55.37Neutral

STOCH49.41Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:VIRINCHI, the sentiment is Neutral. The current price of 13.96 is above the 20-day moving average (MA) of 13.20, above the 50-day MA of 13.61, and below the 200-day MA of 16.38, indicating a neutral trend. The MACD of 0.16 indicates Negative momentum. The RSI at 55.37 is Neutral, neither overbought nor oversold. The STOCH value of 49.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:VIRINCHI.

Virinchi Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:VIRINCHI against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:INFOBEAN	81Outperform	INR 16.36B	11.19	―	0.59%	35.59%	40.03%
IN:IRIS	78Outperform	INR 4.54B	46.32	―	―	16.16%	-92.25%
IN:SOFTTECH	57Neutral	INR 5.94B	118.31	―	―	35.28%	264.38%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:KELLTONTEC	51Neutral	INR 6.25B	7.29	―	―	9.34%	2.71%
IN:VIRINCHI	42Neutral	INR 1.63B	-5.55	―	―	-2.05%	-59.59%
IN:SECURKLOUD	39Underperform	INR 488.80M	-2.65	―	―	-50.11%	87.17%

* General Sector Average

Performance Comparison

IN:VIRINCHI and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:VIRINCHI	Virinchi Ltd.	13.96	-12.79	-47.81%
IN:INFOBEAN	InfoBeans Technologies Ltd.	169.11	17.56	11.59%
IN:IRIS	IRIS Business Services Ltd.	220.05	-154.70	-41.28%
IN:KELLTONTEC	Kellton Tech Solutions Ltd.	12.18	-9.05	-42.63%
IN:SECURKLOUD	SecureKloud Technologies Limited	15.09	-4.51	-23.01%
IN:SOFTTECH	SoftTech Engineers Ltd.	424.60	93.05	28.07%

Virinchi Ltd. Corporate Events

Virinchi Board Sets AGM Date and Confirms Director Re‑appointment

Aug 22, 2026

Virinchi Limited’s board has scheduled its thirty‑seventh annual general meeting for September 30, 2026, which will be conducted via video conferencing and other audio‑visual means in line with regulatory allowances for remote shareholder participati...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 05, 2026

Virinchi Ltd. AI Stock Analysis