Paramatrix Technologies Ltd. (PARAMATRIX)
SME CapIT stocks · SME cap · NSE
Paramatrix Technologies Ltd. (Paramatrix) is an IT solutions provider specializing in software development, IT consulting, and system integration. It delivers enterprise applications, data analytics, and digital transformation services across BFSI, government, healthcare, and education. The company leverages AI, cloud, blockchain, and big data, with products like Playmity and XSIGHT.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is acceptable, price trend is neutral, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Bad · 0/100PAT -116% YoY · margin compression · Rev +4% YoY
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹14.8 Cr | +4.2% | +4.9% |
| EBITDA | ₹-1.6 Cr | -152.4% | -192.6% |
| Operating margin | -11.0% | -3212 bps | -2354 bps |
| PAT | ₹-0.4 Cr | -116.4% | -113.1% |
| PAT margin | -2.6% | -2569 bps | -2317 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Paramatrix reported strong H2 FY25 performance with Total Income up 14.46% YoY to ₹16.60 Cr, EBITDA surging 49.55% YoY to ₹4.96 Cr, and Net Profit increasing 46.85% YoY to ₹3.41 Cr. Full-year FY25 also saw Total Income rise to ₹31.33 Cr and Net Profit to ₹5.76 Cr.
The company demonstrated robust H2 FY25 financial growth, driven by new client engagements and international expansion. Strategic initiatives like the Japan acquisition and equity buyback reflect management's confidence. While full-year FY25 revenue growth was modest, profitability improved significantly from FY24, suggesting operational leverage.
Revenue by Services (FY25)
Latest issuer-disclosed distribution across 2 reported categories.
New Client Engagements & Long-term Contracts
Secured ₹24.43 Cr in long-term contracts in 2025, adding fresh energy to the business.
International Expansion
Expansion into new geographies, including Japan and Southeast Asia, opened exciting avenues.
Digital Transformation Services
79% of FY25 revenue from Digital Transformation Services, indicating strong demand.
Proprietary Products & Accelerators
Flagship products Playmity and XSIGHT enhance employee engagement and data-driven decision-making.
Japan Acquisition
Acquisition in Japan laid the foundation for deeper international integration.
Global Presence
Established Paramatrix Technologies KK (Japan) subsidiary.
Global Digital Transformation Momentum
Momentum behind digital transformation, AI adoption, and cloud migration continues to accelerate.
Indian IT Services Export Growth
Export earnings grew 11% YoY in FY2023, expected to grow at 8-9% CAGR from FY2023-2027.
Indian Technology SME Industry Growth
Projected to grow at 14-16% CAGR from FY2023-2027, reaching $29.5–31.5 billion by FY2027.
Strong Demand in Key Sectors
Strong demand in BFSI, FinTech, and Cybersecurity markets.
High Client Concentration
The Top 10 Clients Accounted For 89% Of The Total Revenue FY25.
Competition
The IT industry is competitive, with risks related to the company's ability to successfully implement its strategy (Disclaimer).
Technological Implementation & Advancements
Risks include technological implementation, changes and advancements (Disclaimer).
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The presentation explicitly provides H2 FY25 vs H2 FY24 and FY25 vs FY24 comparisons, which are suitable for assessing performance trends over time, especially for a service-oriented business.
Total Income (H2 FY25)
₹16.60 Cr, up 14.46% YoY from ₹14.50 Cr in H2 FY24.
EBITDA (H2 FY25)
₹4.96 Cr, up 49.55% YoY from ₹3.32 Cr in H2 FY24. EBITDA margin improved to 29.88% from 22.87%.
Net Profit (H2 FY25)
₹3.41 Cr, up 46.85% YoY from ₹2.32 Cr in H2 FY24. Net Profit margin improved to 20.54% from 16.01%.
Total Income (FY25)
₹31.33 Cr, up from ₹28.60 Cr in FY24.
Strong H2 FY25 Momentum
H2 FY25 has been a defining chapter, with strong momentum across core service areas, new client engagements, and long-term contracts.
Strategic Initiatives
Acquisition in Japan laid foundation for deeper international integration; equity buyback reflects conviction in long-term value.
Future Growth Focus
Continue to invest in delivery excellence, talent development, and emerging technologies like AI.
Global Business Strategy
Expand footprint across new industries and untapped geographies like the Middle East and East Asia, strengthening presence among large corporate accounts.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| International Expansion | Expanded into Japan and Southeast Asia, established Paramatrix Technologies KK (Japan). | Further expansion into Middle East and East Asia, success in strengthening presence among large corporate accounts. |
| Client Concentration | Top 10 clients account for 89% of FY25 revenue. | Diversification of client base to reduce revenue concentration risk. |
| Product & Accelerator Development | Flagship products Playmity and XSIGHT, commitment to advancing accelerators. | New product launches, adoption rates, and revenue contribution from proprietary solutions. |
| Profitability & Margins | H2 FY25 EBITDA margin 29.88%, Net Profit margin 20.54%. | Sustained or improved margins amidst expansion and investment in new technologies. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
51NeutralSMA20 -7.3% / mo · MACD + · near 52W low
Technical chart
PARAMATRIXdaily · 1Y · AUTO-19.5%Daily technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 51. Wait for confirmation.
- SMA20 falling (~7.9% over last month) — short-term momentum negative.
- RSI(14) at 51 — rising, no extreme reading.
- MACD above signal, histogram expanding — bullish momentum building.
- 37% off 52W high · 18% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation & score drivers
U-Score 14 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 14 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Balance sheet contributes 11/15 to the score.
- Cash flow contributes 4/10 to the score.
- Valuation contributes 3/30 to the score.
Main drags
- Penalty bucket subtracts 8 points.
- Fair-value margin of safety is negative at -632.5%.
- Quality is weaker at 0/20; verify the latest quarterly trend.
IT valuation: PE and EV/EBITDA against growth and margins
Asset-light IT companies deserve valuation support only when growth, margins, and cash conversion hold up.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: -1 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 38th percentile of the scored universe and 36th percentile within IT. Main check: financial discipline is weak at 22/100.
Healthy Trust Lite: Promoter holding is 57.1%. Key concern: ROCE is low at 4.2%.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · IT: 36th pctile, median 69 · SME: 45th pctile, median 64
2 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 57.1%.
- ▸Promoter pledge is zero.
- ▸Promoter holding increased 2.3%.
- ▸5 years of positive FCF.
Trust risks
- ▸ROCE is low at 4.2%.
- ▸ROE is low at 4%.
- ▸ROCE trend is -7.8%.
- ▸1 of the latest 4 quarters had PAT decline worse than 25% YoY.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 26.60
- P/B
- 1.10
- EV/EBITDA
- 50.29
- Market Cap
- 69.50Cr
Profitability
- ROE
- 4.03%
- ROCE
- 4.18%
- ROA
- 2.97%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 3.00%
- EPS 5Y
- -11.00%
- Revenue 3Y
- 1.00%
- EPS 3Y
- -6.00%
Balance Sheet
- Debt/Equity
- 0.21
- Interest Coverage
- 5.87×
- Altman Z
- 3.44
- Book Value
- 55.10
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 5/5
- OCF
- 6.93 Cr
- EPS TTM
- 2.27
Shareholding
- Promoter Hold
- 57.05%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 21%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in IT, ranked by similarity
Peers
Business-comparable names in IT, ranked by similarity
Peers
Business-comparable peers in IT — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.