Xchanging Solutions Limited is an India-based information technology (IT) services provider. Established in 2002 and headquartered in Bengaluru, India, the company was formerly known as Cambridge Solutions Limited, changing its name to Xchanging Solutions Limited in June 2012. It operates in India and internationally through its subsidiaries in the United States and Singapore, focusing entirely on the Software Services segment.
XSL provides IT Software, IT Hardware & IT-enabled services (ITES), and computer programming services. The company serves a diverse range of industries, including aerospace and defense, automotive, banking and capital markets, consumer and retail, energy, utilities, oil and gas, healthcare, insurance, life sciences, manufacturing, public sector, technology, media, and telecommunication, and travel, transportation, and hospitality industries.
Xchanging Solutions Limited operates as a subsidiary of Xchanging (Mauritius) Limited. Its corporate structure includes key subsidiaries such as Nexplicit Infotech India Private Limited, Xchanging Solutions (Singapore) Pte Limited, and Xchanging Solutions (USA) Inc. The company maintains a strong promoter holding, with the Promoter holding in Xchanging Solutions Ltd remaining consistently at 75.00% as of March 2025, which also reflects the holding as of June 2024.
As of July 3rd, 2025, Xchanging Solutions Ltd (XCHANGING) has a market capitalization of ₹1,106.13 crore. The stock has experienced mixed performance, with its 52-week high at ₹142.95 and a 52-week low at ₹79.44. The company's valuation metrics include a P/E (price-to-earnings) ratio of 22.31 and a P/B (price-to-book) ratio of 3.13.
The company has demonstrated encouraging recent financial results. For the year ended March 2025, sales rose by 6.01% to ₹184.90 crore, compared to ₹174.42 crore in the previous year ended March 2024. Significantly, net profit saw a remarkable increase of 261.90%, reaching ₹49.58 crore in March 2025, up from ₹13.70 crore in March 2024.
Quarterly performance also showed positive momentum. Sales increased by 14.13% to ₹50.74 crore in the quarter ended March 2025, against ₹44.46 crore in the previous quarter ended March 2024. Quarterly net profit also grew robustly by 18.34% to ₹14.65 crore in March 2025, compared to ₹12.38 crore in March 2024.
Xchanging Solutions exhibits solid financial fundamentals. While an annual revenue growth of 3% might be considered modest, the company boasts a strong pre-tax margin of 34% and a good Return on Equity (ROE) of 13%. Furthermore, the company maintains a reasonable debt-to-equity ratio of 18%, indicating a healthy balance sheet position.
• Market Capitalization: ₹1,106.13 Crore (as of July 2025)
• FY2024-25 Sales: ₹184.90 Crore (up 6.01% YoY)
• FY2024-25 Net Profit: ₹49.58 Crore (up 261.90% YoY)
• Q4 FY2024-25 Sales: ₹50.74 Crore (up 14.13% QoQ)
• Q4 FY2024-25 Net Profit: ₹14.65 Crore (up 18.34% QoQ)
• Pre-tax Margin: 34%
• Return on Equity (ROE): 13%
• Debt to Equity: 18%
• Promoter Holding: 75.00% (as of March 2025)
Xchanging Solutions has an attractive dividend policy for its shareholders. The Board of Directors, at their meeting on May 21, 2025, recommended a final dividend of ₹2 per equity share (i.e., 20%), subject to shareholder approval. This aligns with the company's consistent approach to dividend distribution, as demonstrated by a dividend of ₹2.00 declared in the quarter ending March 2024, translating to a dividend yield of 34.24%. The record date for the final dividend payment of ₹2 per share has been fixed as July 11, 2025.
Despite challenges in past sales growth, Xchanging Solutions is well-positioned to capitalize on ongoing digital transformation trends. The increasing demand for IT solutions and Business Process Outsourcing (BPO) services is expected to drive revenue growth for the company. Its strategic positioning under the DXC Technology umbrella further enhances its growth opportunities, providing strong backing to leverage digital transformation trends and meet the global demand for IT services.
While Xchanging Solutions has shown strong recent financial performance, investors should consider several factors. The company has delivered a poor sales growth of 0.29% over the past five years, though the recent uptick suggests a potential turnaround. From a technical perspective, the stock is currently trading below its 200-day moving average (200DMA) and close to its 50-day moving average (50DMA). For significant upward movement, it needs to break above and sustain above the 200DMA levels.
The company's registered office is located at Vaishnavi Tech Park, South Tower, 3rd floor, Sarjapur Main Road, Bellandur, Bengaluru – 560103, Karnataka. For investors seeking exposure to the IT services sector with a focus on digital transformation and business process outsourcing, Xchanging Solutions presents a compelling opportunity, particularly given its recent financial turnaround and strong dividend policy.
