ISFT - Intrasoft Tech.

📊 NSE: ISFT 🏢 Miscellaneous 📅 Last Updated: 12/14/2025 8:24

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue for Q2 FY26 grew 5.53% YoY to INR 132.51 Cr from INR 125.57 Cr. Standalone revenue, primarily from services and investments, saw a significant increase of 116.61% in FY25, reaching INR 12.78 Cr compared to INR 5.90 Cr in FY24.

Geographic Revenue Split

Not specifically disclosed in available documents, though the company operates an international e-commerce platform with a vendor-direct model.

Profitability Margins

Gross Profit margin for Q2 FY26 stood at 35.8% (INR 47.46 Cr). However, Profit After Tax (PAT) margin declined to 2.57% (INR 3.41 Cr) from 3.12% (INR 3.92 Cr) in the previous year's corresponding quarter due to rising operational costs.

EBITDA Margin

EBITDA margin for Q2 FY26 was 3.1% (INR 4.11 Cr), a decrease from 4.14% (INR 5.19 Cr) in Q2 FY25, reflecting a 20.8% YoY drop in EBITDA value.

Capital Expenditure

Standalone purchase of property, plant, and equipment was INR 0.27 Cr in FY25, up from INR 0.01 Cr in FY24. A major capital allocation of INR 108.06 Cr was made towards investments in equities of subsidiaries during FY25.

Credit Rating & Borrowing

Standalone finance costs increased by 27.4% to INR 1.61 Cr in FY25 from INR 1.27 Cr in FY24. Consolidated finance costs for Q2 FY26 were INR 0.25 Cr, down 22.5% from INR 0.32 Cr YoY.

⚙️ Operational Drivers

Raw Materials

Cost of Goods Sold (COGS) represents the primary operational cost at 64.2% of total revenue (INR 85.06 Cr in Q2 FY26).

Key Suppliers

Not disclosed in available documents; however, the company utilizes a 'vendor-direct model' involving multiple brand partners.

Capacity Expansion

The company is focusing on 'bandwidth and scalability' and 'automation levels' to handle increased transaction volumes rather than physical manufacturing capacity.

Raw Material Costs

COGS increased by 7.18% YoY in Q2 FY26, rising from INR 79.36 Cr to INR 85.06 Cr, which slightly outpaced the 5.53% revenue growth.

Manufacturing Efficiency

Focus is on 'Automation levels' and 'Security' to manage e-commerce transactions efficiently.

Logistics & Distribution

Shipping and Handling expenses accounted for 15.4% of revenue in Q2 FY26 (INR 20.43 Cr), while Sales & Marketing expenses accounted for 14.8% (INR 19.67 Cr).

📈 Strategic Growth

Expected Growth Rate

5.10%

Growth Strategy

The company is transforming into a technology-driven platform by investing in systems and processes. It aims to achieve growth through its vendor-direct model, nurturing brand partnerships, and focusing on smarter, sustainable growth through operational excellence and innovation.

Products & Services

E-commerce platform services, vendor-direct retail transactions, and technology-driven logistics/marketing support for brand partners.

Brand Portfolio

IntraSoft Technologies, ISFT.

New Products/Services

Transforming into a dynamic technology-driven platform to create enduring value for brand partners.

Market Expansion

Laying groundwork for smarter growth by investing in people and systems to scale the e-commerce platform.

Strategic Alliances

Nurturing long-term partnerships with brand partners to facilitate the vendor-direct model.

🌍 External Factors

Industry Trends

The industry is shifting toward technology-driven, automated e-commerce platforms. ISFT is positioning itself by moving away from traditional models toward a vendor-direct, high-automation platform to handle scalability and security.

Competitive Landscape

Operates in the competitive e-commerce and technology platform sector, competing with both large-scale marketplaces and niche technology providers.

Competitive Moat

The company's moat is built on its proprietary technology platform, automation levels, and established vendor-direct relationships. These are sustainable as they create high switching costs for brand partners and operational efficiencies that are difficult for smaller players to replicate.

Macro Economic Sensitivity

Highly sensitive to e-commerce consumer spending trends and global logistics costs.

Consumer Behavior

Shift toward smarter, sustainable growth and high-quality service expectations from brand partners and customers.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with the Companies Act, 2013 and IT Act regarding MAT (Minimum Alternate Tax) credit utilization. Auditors identified MAT credit utilization as a Key Audit Matter due to the subjectivity of future profit estimates.

Taxation Policy Impact

Consolidated tax expense for Q2 FY26 was INR 0.28 Cr on a PBT of INR 3.69 Cr (effective rate of ~7.5%). Standalone deferred tax (including MAT credit reversal) was INR 1.16 Cr in FY25.

Legal Contingencies

No material uncertainty exists regarding the company's ability to continue as a going concern as of March 31, 2025. No specific pending court case values were disclosed.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the utilization of MAT credit, which depends on achieving projected future taxable profits. Failure to meet growth projections could lead to the non-utilization of these tax assets.