Sector: IT Services, Data-Centre & Digital Technology
Status: Listed — NSE & BSE
NSE Symbol: XTRANET
BSE Code: 544838
ISIN: INE0NG701011
Incorporated: 29 January 2002
Registered Office: Bhopal, Madhya Pradesh
Corporate/Operating Presence: India
Face Value: ₹10 per share
1. Company Overview
Xtranet Technologies Limited is an Indian information-technology solutions and services company with more than two decades of operating history.
The company provides a combination of enterprise applications, IT infrastructure, managed services, digital transformation, data-centre services, cybersecurity and technology consulting.
Its business is increasingly gaining exposure to India’s expanding digital infrastructure and data-centre ecosystem.
Xtranet was originally incorporated as Xtranet Technologies Private Limited in 2002 and was converted into a public limited company in 2025 ahead of its IPO.
The company subsequently completed its IPO in July 2026 and is now publicly traded.
2. Business Model
Xtranet operates across several technology areas:
| Business Area | Key Activities |
|---|---|
| Enterprise IT | ERP, enterprise applications and implementation |
| Digital Transformation | Application development and technology consulting |
| Managed Services | IT infrastructure management and support |
| Data Centres | Data-centre infrastructure and lifecycle services |
| Cybersecurity | Security and digital-trust solutions |
| Digital Services | Digital platforms and technology solutions |
| IT Infrastructure | Hardware, systems integration and networking |
| BPO / ITES | Technology-enabled business-process services |
The company has traditionally operated as an integrated IT solutions provider rather than a pure software-product company.
3. Data-Centre Opportunity
One of the more interesting aspects of the company is its exposure to India’s data-centre expansion.
Xtranet provides data-centre lifecycle services and related infrastructure capabilities.
A recent industry analysis noted that data-centre services contributed approximately 48% of Xtranet’s revenue, while the company had a bid pipeline of approximately ₹1,200 Cr.
This gives Xtranet exposure to several structural trends:
- Cloud adoption
- AI infrastructure
- Data-centre expansion
- Enterprise digitisation
- Cybersecurity
- Government digitisation
- Digital infrastructure spending
The opportunity is attractive, although investors should distinguish between bid pipeline, order book and executed revenue.
4. Key Products & Capabilities
Xtranet’s offering includes:
- Enterprise resource planning
- Application development
- IT infrastructure
- Data-centre solutions
- Managed IT services
- Digital transformation
- Cybersecurity
- Digital signatures / PKI
- Technology consulting
- Business process outsourcing
The company also has proprietary technology platforms and solutions supporting its broader IT-services business.
5. Customer Base
Xtranet serves customers across both public and private sectors.
Its customer exposure includes:
- Government organisations
- Public-sector entities
- Financial services
- Automotive
- Education
- Enterprises
- Data-centre customers
Government and PSU business provides access to large technology projects but also creates exposure to tender cycles, payment delays and project concentration.
6. Order Book & Pipeline
As of 30 April 2026, the company’s unexecuted order book was approximately:
₹356.96 Cr
This represented meaningful revenue visibility relative to FY26 revenue of ₹366 Cr.
Management subsequently reported fresh orders in Q1 FY27, taking the reported order book to around ₹373 Cr, while the broader bid pipeline was approximately ₹1,200 Cr.
Important distinction
Order book ≠ revenue.
Execution timing, project milestones, customer approvals and working-capital availability will determine how much of the order book converts into revenue and cash.
7. Financial Performance
The restated financial statements included in the IPO documents show strong improvement over FY24–FY26.
| ₹ Cr | FY24 | FY25 | FY26 |
|---|---|---|---|
| Revenue | 233.26 | 276.53 | 366.01 |
| EBITDA | 18.86 | 47.20 | 63.18 |
| PAT | 10.94 | 30.03 | 40.73 |
| Net Worth | 38.78 | 95.49 | 136.01 |
| Total Assets | 202.94 | 321.79 | 341.97 |
| Borrowings | 41.19 | 39.24 | 85.45 |
FY24–FY26 revenue increased from approximately ₹233 Cr to ₹366 Cr, while PAT increased from ₹10.9 Cr to ₹40.7 Cr.
FY26 Growth
- Revenue growth: ~32.3%
- PAT growth: ~35.6%
- EBITDA margin: ~17.3%
- PAT margin: ~11.2%
This represents a significant improvement compared with FY24.
8. Profitability
The company’s profitability profile has improved considerably.
FY26
EBITDA: ₹63.18 Cr
EBITDA Margin: ~17.3%
PAT: ₹40.73 Cr
PAT Margin: ~11.15%
The IPO documents indicate:
- RoNW: ~29.6%
- ROE: ~34.8%
- ROCE: ~32.5%
These are healthy returns for a mid-sized IT-services company.
The improvement in margins is one of the stronger parts of the investment thesis.
9. Q1 FY27 Performance
The first quarter after listing remained encouraging.
For Q1 FY27, consolidated results showed:
| ₹ Cr | Q1 FY27 |
|---|---|
| Revenue from Operations | ₹50.46 Cr |
| Other Income | ₹0.46 Cr |
| PBT | ₹7.44 Cr |
| PAT | ₹6.04 Cr |
| EPS | ₹1.55 |
The company’s consolidated Q1 revenue was approximately ₹50.5 Cr and PAT approximately ₹6.0 Cr.
Management commentary also highlighted stronger operating profitability, with operational EBITDA reportedly increasing sharply year-on-year.
10. Strategic Shift Toward Higher-Margin Services
One of the developments worth tracking is the increasing contribution from services.
Management indicated that services were contributing approximately 65–68% of revenue in Q1 FY27, supporting margin expansion.
This is strategically important.
A business mix moving from:
Hardware / project execution → Managed services / recurring technology services
could potentially result in:
- Better margins
- More recurring revenue
- Better customer retention
- Higher revenue visibility
- Better valuation multiples
However, this transition needs to be demonstrated over multiple quarters.
11. IPO — Completed
Xtranet Technologies completed its IPO in July 2026.
IPO Details
| Particular | Details |
|---|---|
| Issue Size | ₹166.80 Cr |
| Issue Type | Fresh Issue |
| Shares Issued | ~1.31 Cr |
| Price Band | ₹120–₹127 |
| Final Issue Price | ₹127 |
| Lot Size | 110 shares |
| IPO Opening | 23 July 2026 |
| IPO Closing | 27 July 2026 |
| Listing | 30 July 2026 |
| Exchanges | NSE & BSE |
The entire IPO was a fresh issue, meaning the proceeds went to the company rather than existing shareholders.
The issue was subscribed approximately 12.24x overall, with particularly strong NII participation.
12. Use of IPO Proceeds
The IPO was primarily designed to strengthen the balance sheet and fund growth.
| Use | Approx. Amount |
|---|---|
| Working Capital | ₹102 Cr |
| Debt Repayment | ~₹22 Cr |
| Systems & Hardware Capex | ~₹7.3 Cr |
| General Corporate Purposes | ~₹35.5 Cr |
Working capital represented the largest allocation, accounting for more than 60% of the issue proceeds.
This is important because the company’s rapid growth requires additional capital to support execution.
13. Current Share Price & Market Capitalisation
Xtranet is now a listed company, so the valuation should be based on the exchange-traded price, not unlisted-market quotations.
The BSE share closed at approximately:
₹285.35 on 10 September 2026
The stock had closed at ₹292.60 on 9 September following several strong sessions.
With approximately 5.23 Cr shares outstanding after the IPO, the implied market capitalisation is roughly:
₹1,490 Cr
This is substantially above the IPO valuation.
14. Valuation
At the IPO price of ₹127, Xtranet was valued at approximately:
16.3x post-issue FY26 earnings.
At approximately ₹285/share today, the valuation has expanded considerably.
Using FY26 post-issue EPS of approximately ₹7.79:
Approximate trailing FY26 P/E ≈ 36–37x
This is a significant premium to the IPO valuation.
Therefore, while the business continues to grow, the margin of safety has reduced considerably after the post-listing price appreciation.
Valuation Perspective
| Parameter | Approx. |
|---|---|
| IPO Price | ₹127 |
| Sep 10, 2026 Price | ₹285.35 |
| Market Cap | ~₹1,490 Cr |
| FY26 EPS | ~₹7.79 |
| FY26 P/E at current price | ~36–37x |
| FY26 EBITDA Margin | ~17.3% |
| ROCE | ~32.5% |
| Debt/Equity | ~0.63x |
The company can potentially justify a premium multiple if growth and margins remain strong, but at ~36–37x FY26 earnings, future execution is already being priced in to a meaningful degree.
15. Investment Positives
1. Strong Revenue Growth
Revenue increased from ₹233 Cr in FY24 to ₹366 Cr in FY26.
2. Strong PAT Growth
PAT increased from ₹10.9 Cr to ₹40.7 Cr over the same period.
3. Attractive Order Visibility
The company had a ₹356.96 Cr unexecuted order book as of April 2026, roughly equivalent to a full year’s FY26 revenue.
4. Data-Centre Exposure
India’s data-centre expansion provides a structural growth opportunity for companies providing infrastructure and lifecycle services.
5. Improving Services Mix
A higher contribution from services can potentially improve margins and revenue visibility.
6. Fresh IPO Capital
The company raised ₹166.8 Cr of fresh capital, with a large portion earmarked for working capital and debt reduction.
7. Strong Return Ratios
ROCE and RoNW remain healthy based on FY26 figures.
16. Key Risks
1. Valuation Risk
The most important issue after listing is valuation.
At ~₹285, the stock trades at a substantial premium to its IPO valuation.
2. Working-Capital Intensity
The fact that ₹102 Cr of IPO proceeds was earmarked for working capital highlights the capital requirements of the company’s growth model.
3. Rising Borrowings
Borrowings increased to approximately ₹85.45 Cr by FY26.
4. Customer Concentration
Government/PSU exposure provides opportunity but can also lead to:
- Tender dependency
- Delayed payments
- Project delays
- Concentration risk
5. Competitive Industry
IT services, system integration and data-centre services are highly competitive markets.
Larger players have significantly greater financial resources and technological capabilities.
6. Execution Risk
A large order book is positive only if the company can execute projects on time and maintain margins.
7. Cash Conversion
Rapid growth in IT infrastructure projects can create a gap between accounting profit and actual cash generation.
Investors should therefore monitor:
PAT vs Operating Cash Flow
rather than relying solely on headline profit growth.
17. Competitive Position
Xtranet does not currently possess the scale or moat of companies such as Coforge or larger IT-service providers.
However, it can potentially compete effectively in selected niches through:
- Government relationships
- Data-centre expertise
- Integrated IT solutions
- Managed services
- Proprietary platforms
- Local execution capability
- Cost competitiveness
The company’s future valuation will increasingly depend on whether it can transition from a smaller IT-services integrator into a higher-value digital infrastructure and recurring-services provider.
18. Growth Drivers
The key long-term growth drivers include:
Data Centres
Expansion of India’s data-centre capacity should increase demand for lifecycle services.
AI Infrastructure
AI workloads are increasing demand for computing, storage, networking and data-centre infrastructure.
Government Digitisation
Government departments continue to invest in digital platforms and IT infrastructure.
Managed Services
Recurring managed-service contracts can improve revenue visibility.
Cybersecurity
Increasing digital adoption is creating additional demand for security and compliance solutions.
Enterprise Transformation
Companies continue to modernise legacy IT infrastructure and applications.
19. What Investors Should Monitor
For FY27–FY28, the most important metrics are:
- Revenue growth
- EBITDA margin
- PAT growth
- Services revenue contribution
- Data-centre revenue
- Order-book conversion
- ₹1,200 Cr bid-pipeline conversion
- Working-capital days
- Operating cash flow
- Borrowings
- Customer concentration
- ROCE
- Return on fresh IPO capital
The most important KPI:
Cash-flow conversion + sustainable margins
If Xtranet can maintain 20%+ operating margins while converting a growing portion of PAT into cash, the current premium valuation becomes easier to justify.
20. Investment View
Digital Infrastructure & Data-Centre Services — Growth-Oriented Listed Technology Company
Xtranet’s investment story has strengthened operationally.
The company has delivered:
Strong revenue growth + strong PAT growth + expanding margins + sizeable order book + increasing data-centre exposure.
The ₹166.8 Cr IPO also strengthened the balance sheet and provided substantial working-capital support.
However, the stock’s post-listing re-rating is the key consideration today.
At the IPO price of ₹127, the valuation was approximately 16.3x post-issue FY26 earnings. At around ₹285, the implied multiple is now roughly 36–37x FY26 earnings.
Therefore, the question has changed from:
“Is Xtranet a good growth company?”
to:
“Can Xtranet grow fast enough to justify the valuation now being assigned to it?”
That distinction is important.
Overall Assessment
| Factor | Assessment |
|---|---|
| Revenue growth | ⭐⭐⭐⭐⭐ |
| Profit growth | ⭐⭐⭐⭐⭐ |
| Data-centre opportunity | ⭐⭐⭐⭐⭐ |
| Order visibility | ⭐⭐⭐⭐ |
| Services opportunity | ⭐⭐⭐⭐ |
| Return ratios | ⭐⭐⭐⭐ |
| Balance sheet | ⭐⭐⭐ |
| Cash-flow visibility | ⭐⭐⭐ |
| Competitive moat | ⭐⭐⭐ |
| Current valuation | ⭐⭐ |
| Overall Risk | Medium–High |
21. Final Research View
Xtranet Technologies has emerged as an interesting small/mid-cap technology and digital-infrastructure company with strong recent financial momentum.
The company’s exposure to data centres, managed IT services, enterprise technology and digital transformation places it in several attractive structural growth markets.
FY26 demonstrated strong operating momentum, while Q1 FY27 continued to show growth and margin improvement. The sizeable order book and ₹1,200 Cr bid pipeline provide additional visibility, although conversion remains the key variable.
The main concern is now valuation rather than business momentum.
After the share price more than doubled from the ₹127 IPO price, investors need significantly stronger future earnings growth to support the current multiple.
Our View:
Business: Positive
Growth: Strong
Industry Tailwinds: Strong
Balance Sheet: Improving
Valuation: Demanding
Risk: Medium–High
Long-Term Potential: Attractive, but price-sensitive
For UnlistedCart, I would move Xtranet out of the unlisted section and position it under:
“Recently Listed — Data Centre & Digital Infrastructure Growth Story”
That positioning is more accurate now that the company has been listed on both NSE and BSE since July 30, 2026.
Disclaimer
This report is for research and informational purposes only and does not constitute investment advice, an offer to buy or sell securities, or a guarantee of future returns. Market prices and valuation multiples change continuously. Investors should independently review the company’s latest exchange filings, financial statements, shareholding, order book, cash flows and valuation before making any investment decision.
For more such unlisited stocks visit https://unlistedcart.com/unlisted-shares/
