ENFUSE - Enfuse

📊 NSE: ENFUSE 🏢 Computers - Software - Medium / Small 📅 Last Updated: 12/13/2025 21:52

💰 Financial Performance

Revenue Growth by Segment

Not applicable as the company operates in a single operational activity segment focused on integrated digital enterprise solutions.

Profitability Margins

Net Profit Ratio declined from 13% in FY 2023-24 to 7% in FY 2024-25, representing a 46.2% decrease in margin efficiency. Return on Equity (ROE) also dropped significantly from 0.28 to 0.10 (64.3% decrease) due to higher operational and finance costs.

EBITDA Margin

EBITDA (Profit before Interest, Depreciation & Tax) grew from INR 9.01 Cr to INR 11.66 Cr, a 29.4% YoY increase, indicating strong core operational performance before accounting for capital intensity and debt servicing.

Capital Expenditure

Depreciation and Amortization expenses surged from INR 1.45 Cr to INR 4.31 Cr (197% increase), reflecting significant capitalization of software development costs as internally generated intangible assets under AS 26.

Credit Rating & Borrowing

Borrowing costs (Finance Cost) increased by 180.8% from INR 0.84 Cr to INR 2.35 Cr. The Debt-Equity ratio rose from 0.28 to 0.72, indicating increased leverage to fund growth or software development.

⚙️ Operational Drivers

Raw Materials

Primary input is Human Capital/Talent (100% of service delivery cost) as a digital enterprise.

Import Sources

Not disclosed; talent is primarily sourced from India (Mumbai based).

Capacity Expansion

Not applicable for a digital service provider; however, the company is strengthening its top and middle management bench to support growth.

Raw Material Costs

Not applicable; focus is on employee welfare and competitive compensation to maintain the talent pool.

Manufacturing Efficiency

Not applicable; service efficiency is monitored through project-based internal controls.

Logistics & Distribution

Not applicable for digital services.

📈 Strategic Growth

Growth Strategy

Growth will be achieved by focusing on specific domain expertise, strengthening the management bench, and maintaining a performance-driven work culture. The company is also capitalizing on internally generated software to create technical feasibility and future economic benefits.

Products & Services

Integrated digital enterprise solutions and software development services.

Brand Portfolio

Enfuse Solutions.

New Products/Services

Internally generated software projects currently being capitalized under AS 26.

Market Expansion

Management expects growth subject to favorable market conditions and stable economic policies.

🌍 External Factors

Industry Trends

Growing demand for integrated digital enterprise solutions and domain-specific digital transformation.

Competitive Moat

Moat is built on a specialized talent pool and domain-specific expertise in digital enterprise solutions, though sustainability depends on maintaining technical feasibility in software development.

Macro Economic Sensitivity

Growth is subject to stable economic policies and favorable market conditions.

Consumer Behavior

Shift toward integrated digital services in specific industry domains.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with Section 197 of the Companies Act, 2013 regarding managerial remuneration; the company exceeded the prescribed limit by INR 1.21 Cr during the year.

Taxation Policy Impact

Effective tax rate is approximately 20% based on PBT of INR 5.00 Cr and Income Tax provision of INR 1.00 Cr.

Legal Contingencies

The company reported zero pending litigations as of March 31, 2025.

⚠️ Risk Analysis

Key Uncertainties

Risk of development costs being capitalized when AS 26 criteria (technical feasibility/future economic benefit) are not met, which could lead to future write-offs.