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Xtranet Technologies Limited IPO

₹167 Cr · Fresh Issue · Computers - Software & Consulting

Price Band
₹120 – ₹127
GMP (Grey Market)
No GMP data yet
Issue Size
₹167 Cr
Fresh Issue
Market Cap
₹664.03 Cr
At upper band
P/E Ratio
16.3x
P/S: 1.8x
Listing Date
30 Jul 2026
BSE & NSE
IPO Timeline
Opens
23 Jul 2026
Closes
27 Jul 2026
Allotment
28 Jul 2026
Refund
29 Jul 2026
Listing
30 Jul 2026
📄 Official Docs RHP (Red Herring Prospectus) ↗ DRHP ↗
Listing Performance
Issue Price
₹127
Allotment price
Listing Price
₹130.1
+2.44% on listing day
Current Price (CMP)
₹271.45
+113.7% vs issue
Listed On
30 Jul 2026
BSE & NSE
Our Analysis — Key Points
✓ Strength
Exceptional earnings growth trajectory
Net profit surged 93% over two years (₹10.9 Cr to ₹40.7 Cr) while revenue grew 25.3% CAGR, demonstrating operating leverage and margin expansion from 4.7% to 11.1% NPM. This acceleration outpaces typical software consulting peers and signals improving operational efficiency.
✓ Strength
Valuation discount to sector peers
At 16.3× P/E, the company trades at 0.57× the IT/Software sector midpoint of 28.5×, offering a 43% discount despite profitable, growing operations. ROCE of 32.5% and EBITDA margin of 17.3% justify the valuation and indicate strong capital productivity.
⚠ Risk
Net profit margin below quality threshold
NPM of 11.1% remains materially below the 15% benchmark for premium IT valuations, limiting pricing power or operational efficiency relative to larger peers. Margin expansion must sustain for the valuation to remain justified; any compression would signal competitive pressure or execution challenges.
⚠ Risk
Heavy working capital deployment post-IPO
₹102 Cr of ₹167 Cr net proceeds (61%) is earmarked for working capital, suggesting the company operates on tight cash cycles or is scaling rapidly without sufficient internal cash generation. This capital intensity may constrain future dividend capacity and increase refinancing risk if growth slows.
₹ Valuation
Attractive valuation relative to growth
At 16.3× P/E against 25.3% revenue CAGR and 93% PAT CAGR, the company offers a PEG-like discount. However, the 11.1% NPM limits upside to premium multiples; sustained 20%+ revenue growth with margin expansion to 14–15% would justify re-rating toward 20–22× P/E.
👁 Watch
Monitor margin trajectory post-listing
Track quarterly EBITDA and net margins closely over the next 2–3 quarters. Margin compression below 10% NPM or working capital deterioration would signal execution risk and warrant reassessment of the valuation thesis.
Top Analyst Reviews
Analyst / Firm Rating Known For Review
IPO India Hub
Our independent review
Subscribe Original analysis based on DRHP & public financials This page
Dilip Davda
Chittorgarh.com
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Capital Market (CM Rating)
CapitalMarket.com
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ICICI Securities
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External links go to each platform's IPO section — search for "Xtranet Technologies Limited" to find the specific review. IPO India Hub does not represent the accuracy of third-party ratings.

Company Snapshot
Revenue ₹365.29 Cr
Net Profit ₹40.73 Cr
Industry Computers - Software & Consulting
Issue Type Fresh Issue
Promoters SUKHBIR SINGH KUKREJA, JOGENDRAPAL SINGH ALAGH AND SHINEY SUKHBIR
Lead Managers Share India Capital Services
Frequently Asked Questions
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