Company Overview

Incorporated in 1990, Adroit Infotech Ltd is primarily engaged in the business of SAP Support Services. Adroit is a Specialist SAP Consulting Company that helps organizations through internal process improvements using SAP products and solutions. The company underwent a significant transformation when, pursuant to the approval of the merger of M/s. Sphere Global Services Limited and its wholly-owned subsidiary M/s. Adroit Infotech Private Limited effective from 1st day of April, 2017, the Registrar of Companies, Andhra Pradesh & Telangana, approved the name change of the Company from 'Sphere Global Services Limited' to 'Adroit Infotech Limited' w.e.f. 21st Day of February, 2018. Following this restructuring, in 2020 their equity shares were listed for trading in both BSE and NSE.

Business Services and Operations

Adroit Infotech Limited operates as an SAP consulting company in India and internationally. It offers a range of business solutions, including business and technology consulting, enterprise solutions, systems integration, custom application development, application maintenance and production support, infrastructure management, cloud ecosystem integration, product engineering and lifecycle solutions, business process management, and business platforms and solutions, as well as offers software products.

The company has positioned itself strategically in the market by focusing on Large Enterprises & Mid-Market. It helps customers design, implement, and integrate SAP solutions, optimize business processes, and provide strategic business consultation. The company also provides migration to HANA; conventional SAP ECC; and S/4 HANA enterprise management data analytics and mobility solutions.

Beyond its core SAP offerings, it offers other products, including Ariba (a cloud procurement solution), CRM (a customer relationship and engagement platform), SRM (a procure-to-pay processes solution with SAP relationship management), SuccessFactors (a cloud-based resources information system), and SAP Cloud Platform (an open platform-as-a-service that integrates data).

Market Position and Capitalization

The Market Capitalization of Adroit Infotech Ltd (ADROITINFO) is ₹84.24 Cr as of 10th June 2025. The company operates as a small-cap entity in the competitive IT services sector. The 52-week high of Adroit Infotech Ltd (ADROITINFO) is ₹30.40 and the 52-week low is ₹10.16.

Promoter Holding in Adroit Infotech Ltd has gone down to 37.37% as of Mar 2025 from 39.06% as of Sep 2024. This decline in promoter shareholding is noteworthy as promoter holding has decreased over the last 3 years (-14.8%).

Financial Performance

#### Recent Quarterly Results

The company's financial performance has shown mixed results in recent quarters. Adroit Infotech reported a Net Loss of ₹0.79 Cr in the quarter ended March 2025, as against a Net Profit of ₹1.83 Cr during the previous quarter ended March 2024. However, revenue growth remained positive as sales rose 34.89% to ₹10.40 Cr in the quarter ended March 2025, as against ₹7.71 Cr during the previous quarter ended March 2024.

#### Annual Financial Performance

For the full fiscal year, the company faced profitability challenges. For the full year, Net Profit declined 77.00% to ₹0.69 Cr in the year ended March 2025, as against ₹3.00 Cr during the previous year ended March 2024. Despite profit compression, sales rose 27.55% to ₹31.71 Cr in the year ended March 2025, as against ₹24.86 Cr during the previous year ended March 2024.

#### Key Financial Metrics

- Revenue (Q1 FY25): ₹10.40 Cr

- Net Profit (Q1 FY25): -₹0.79 Cr (Loss)

- Annual Revenue (FY25): ₹31.71 Cr

- Annual Net Profit (FY25): ₹0.69 Cr

- Revenue Growth (FY25): 27.55%

Valuation Metrics

The P/E (Price-to-Earnings) ratio of Adroit Infotech Ltd (ADROITINFO) is 122.09. This elevated P/E ratio reflects the market's expectations and the company's current profitability levels. The P/B ratio of Adroit Infotech Ltd is 1.45 times as on 16-Aug-2024, a 76% discount to its peers' median range of 6.15 times. The P/E ratio of Adroit Infotech Ltd is 30.35 times as on 16-Aug-2024, a 23% discount to its peers' median range of 39.56 times.

Global Presence and Subsidiaries

The company has established an international footprint with operations extending beyond India. The company has two subsidiaries as on 31 March 2020, both established in the Middle East:

i. iSphere Global Services FZ LLC

ii. Adroit Infotech DMCC

This Middle Eastern presence positions the company to serve clients in the lucrative Gulf markets and demonstrates its commitment to geographical diversification.

Operational Challenges and Concerns

While the company maintains its market position, certain operational metrics indicate areas requiring attention. The company has a low Return on Equity (ROE) of 4.94% over the last 3 years. Additionally, the company has high debtors of 151 days. Working capital days have increased from 182 days to 290 days.

The company's stock performance has been under pressure, with Adroit Infotech Ltd share price moving down by 40.52% on BSE over the last 12 months. However, it showed resilience over longer periods, with Adroit Infotech Ltd share price moving up by 98.77% on BSE over the last 3 years.

Adroit Infotech Ltd represents a specialized player in the SAP consulting space with established credentials and an international presence. While facing near-term profitability pressures, the company's revenue growth trajectory and specialized service offerings in the enterprise software implementation domain position it within a critical segment of the IT services industry.