YUDIZ - Yudiz Solutions

📊 NSE: YUDIZ 🏢 Computers - Software - Medium / Small 📅 Last Updated: 12/14/2025 15:21

💰 Financial Performance

Revenue Growth by Segment

Standalone revenue decreased by 14.25% YoY from INR 27.96 Cr to INR 23.97 Cr. Consolidated revenue for the first year of consolidation was INR 24.04 Cr, representing a single reportable segment in Information Technology.

Geographic Revenue Split

The company has expanded operations to the GCC region to broaden its reach; however, the specific percentage contribution from each region is not disclosed in available documents.

Profitability Margins

Standalone Net Profit Ratio improved from -10.99% in FY24 to -2.68% in FY25. The consolidated Net Profit Ratio for FY25 was -8.17%, reflecting the impact of first-year consolidation and subsidiary losses.

EBITDA Margin

Standalone ROCE improved significantly from -2.00% in FY24 to 5.22% in FY25, indicating improved core operational efficiency. Consolidated ROCE for FY25 was 2.89%.

Capital Expenditure

The company is investing in R&D and upgrading technological infrastructure to meet evolving market needs in AI and Blockchain, though specific INR values for planned CAPEX are not disclosed.

Credit Rating & Borrowing

The company maintains a very low Debt-Equity ratio of 0.01, indicating minimal reliance on external borrowing. Standalone Debt Service Coverage Ratio (DSCR) was 0.45 in FY25 compared to 1.33 in FY24.

⚙️ Operational Drivers

Raw Materials

Technical talent and manpower specialized in Blockchain, AI, ML, and Gaming represent the primary input costs for the company's service-based model.

Import Sources

Talent is primarily sourced from India, with operational expansion into the GCC region for international service delivery.

Key Suppliers

Not applicable as the company is a service provider; primary inputs are human capital and software infrastructure.

Capacity Expansion

The company is expanding its global reach through the GCC region and has proposed a strategic plan to deploy unutilized IPO proceeds into technology-driven entities by December 2029.

Raw Material Costs

Employee salaries increased by an average of 5% YoY, while managerial remuneration increased by 0.11%, reflecting a strategy to retain technical talent while controlling executive costs.

Manufacturing Efficiency

Not applicable for the IT services sector; however, the company focuses on R&D and technological infrastructure upgrades to maintain service efficiency.

Logistics & Distribution

Not disclosed in available documents (Service-based business).

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

Growth will be achieved by redeploying unutilized IPO proceeds into strategic technology-driven entities by December 2029, expanding into the GCC region, and intensifying R&D in high-growth sectors like AI, ML, and Blockchain. The company is also seeking acquisition opportunities and forming partnerships in the e-sports and casual gaming sectors.

Products & Services

Blockchain consulting and development, game development, enterprise software, mobile applications, AI/ML integrated systems, and FinTech software solutions.

Brand Portfolio

Yudiz, Insightly Dataworks, ABCM App.

New Products/Services

Innovative products leveraging AI and ML are being offered to meet escalating demand for intelligent systems; specific revenue contribution percentages are not disclosed.

Market Expansion

Expansion into the GCC region and enhancement of global marketing efforts to build a stronger international brand presence.

Strategic Alliances

Forming stronger partnerships in the e-sports and casual gaming sectors to capitalize on favorable government policies in India.

🌍 External Factors

Industry Trends

The IT industry is shifting towards decentralized solutions (Blockchain) and intelligent systems (AI/ML), with Yudiz positioning itself to capture market share in finance, healthcare, and supply chain management.

Competitive Landscape

The IT services sector is highly competitive, with larger players commanding substantial resources, exerting pressure on profit margins and market share.

Competitive Moat

The company's moat is built on specialized expertise in emerging technologies like Blockchain and AI/ML, sustained through continuous R&D and a focus on high-growth niches like e-sports.

Macro Economic Sensitivity

The business is sensitive to global IT spending trends and economic fluctuations, which contributed to a 14.25% decline in standalone revenue in FY25.

Consumer Behavior

Increasing demand for digitalization and decentralized applications is driving businesses towards Yudiz's blockchain and AI solutions for enhanced profitability.

Geopolitical Risks

Global inter-trade tariffs and geo-political challenges present ongoing risks to international expansion and service delivery.

⚖️ Regulatory & Governance

Industry Regulations

Operations are influenced by government policies in the gaming industry and global inter-trade tariffs affecting cross-border service delivery.

Environmental Compliance

The company maintains policies for health and safety as part of its commitment to a positive work culture, though specific ESG costs are not disclosed.

Legal Contingencies

No penalties or prosecutions were initiated by authorities such as SEBI, Stock Exchange, RBI, or ROC during the financial year ended March 31, 2025.

⚠️ Risk Analysis

Key Uncertainties

The implementation of AI poses a risk to the traditional manpower-heavy business model, potentially impacting margins if talent is not upskilled at the pace of technological change.

Geographic Concentration Risk

The company is primarily India-based but is actively diversifying its geographic revenue mix through expansion into the GCC region.

Technology Obsolescence Risk

Rapid technological evolution in AI and Blockchain poses a high risk of obsolescence for existing service offerings if R&D and talent development do not keep pace.