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XELPMOC - Xelpmoc Design

📊 NSE: XELPMOC 🏢 Computers - Software - Medium / Small 📅 Last Updated: 12/14/2025 15:19

📢 Recent Corporate Announcements

Xelpmoc Files Appeal Against Rs 66.9 Lakh GST Demand Order

🟡 NEUTRAL ⭐ 4/10

LEGAL 📅 13 Feb 2026, 08:32 PM

Xelpmoc Design and Tech Limited has filed an appeal with the Joint Commissioner of Commercial Taxes (Appeals) against a GST demand order totaling Rs 66.93 lakhs. The demand, pertaining to FY 2021-22, includes a tax component of Rs 36.32 lakhs, interest of Rs 26.83 lakhs, and a penalty of Rs 3.77 lakhs. The dispute involves the classification of outward supplies as zero-rated and alleged short payment under the Reverse Charge Mechanism (RCM). The company has stated that this litigation does not impact its operational activities.

Total financial implication of the GST demand is Rs 66,93,513 for FY 2021-22.
Demand consists of Rs 36,32,575 tax, Rs 26,83,528 interest, and Rs 3,77,410 penalty.
The appeal was filed on February 13, 2026, against the order dated December 30, 2025.
Dispute centers on incorrect classification of supplies and RCM tax shortfalls.
Company confirms no impact on operations or other business activities.

💡 Investors should treat this as a routine legal proceeding regarding tax interpretation; the amount is not large enough to significantly impact the company's valuation.

Xelpmoc Q3 FY26 Revenue Up 34.5% YoY to Rs 11.2 Mn; Operating Losses Narrow

🔵 WATCH ⭐ 6/10

EARNINGS 📅 12 Feb 2026, 06:05 PM

Xelpmoc Design and Tech reported a 34.5% YoY increase in operating revenue to Rs 11.2 million for Q3 FY26, driven by traction in proprietary products. While the company remains loss-making at the operating level, the Adjusted Operating EBITDA loss narrowed to Rs 14.9 million from Rs 19.8 million in the previous year's corresponding quarter. A significant asset for the company remains its portfolio investments, which have a fair value of Rs 703.4 million as of December 31, 2025. Management expects revenue momentum to continue as pilot projects transition to full rollouts in the coming quarters.

Revenue from operations grew 34.5% YoY to Rs 11.2 million in Q3 FY26.
Adjusted Operating EBITDA loss narrowed to Rs 14.9 million from Rs 19.8 million in Q3 FY25.
Sequential revenue growth was strong at 47.4% compared to Rs 7.6 million in Q2 FY26.
The fair value of the company's startup portfolio investments is valued at Rs 703.4 million.
ESOP expenses for the quarter stood at Rs 2.5 million, impacting the reported EBITDA.

💡 Investors should monitor the company's ability to scale its small revenue base and the eventual monetization of its Rs 703.4 million investment portfolio. Given the continued operating losses, this remains a high-risk play on the AI and Data Science startup ecosystem.

Xelpmoc Design and Tech Approves Q3 and 9M FY26 Financial Results

🟡 NEUTRAL ⭐ 7/10

EARNINGS 📅 12 Feb 2026, 05:16 PM

Xelpmoc Design and Tech Limited has officially approved its unaudited standalone and consolidated financial results for the third quarter and nine months ended December 31, 2025. The board meeting was held on February 12, 2026, and concluded within 45 minutes, signaling a routine approval process. The company has submitted these results along with the statutory auditor's Limited Review Report to the BSE and NSE. Investors should now review the detailed financial tables to assess the company's operational efficiency and revenue trajectory for the fiscal year.

Board approved unaudited standalone and consolidated results for the period ended December 31, 2025.
The board meeting was conducted on February 12, 2026, between 3:30 P.M. and 4:15 P.M.
Submission includes the mandatory Limited Review Report from the Statutory Auditors.
Compliance maintained under SEBI Regulations 30 and 33 for financial disclosures.

💡 Investors should examine the detailed profit and loss statements for the nine-month period to identify trends in technology service margins. Monitor the company's cash flow and debt levels as reported in the consolidated results.

Xelpmoc Design And Tech Complies With SEBI Regulation 74(5) For Q3 FY26

🟡 NEUTRAL ⭐ 2/10

ROUTINE 📅 16 Jan 2026, 02:37 PM

Xelpmoc Design And Tech Limited has submitted its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by KFin Technologies Limited, confirms that all security certificates received for dematerialization during the quarter ended December 31, 2025, were processed within the mandated 15-day timeframe. The Registrar and Share Transfer Agent (RTA) verified that physical certificates were mutilated and cancelled, and the depository's name was updated in the records. This is a standard procedural filing ensuring the integrity of the company's shareholding records.

Compliance confirmed for the quarter ended December 31, 2025.
KFin Technologies Limited (RTA) verified the dematerialization process.
All requests were processed within the statutory limit of 15 days of receipt.
Physical certificates were mutilated, cancelled, and substituted with the depository's name.

💡 No action is required as this is a routine regulatory filing. Investors should continue to monitor the company's operational performance and upcoming financial results.

Xelpmoc Design and Tech Receives GST Demand Order of ₹66.94 Lakh for FY 2021-22

🔴 NEGATIVE ⭐ 4/10

REGULATORY 📅 30 Dec 2025, 08:18 PM

Xelpmoc Design and Tech Limited has received a GST demand order totaling ₹66,93,513 from the Karnataka tax authorities for the financial year 2021-22. The demand consists of a tax component of ₹36.33 lakh, interest of ₹26.84 lakh, and a penalty of ₹3.77 lakh. The order alleges incorrect classification of outward supplies as zero-rated and short payment of taxes under the Reverse Charge Mechanism. The company is currently consulting with tax experts to pursue legal remedies and states that there is no impact on its business operations.

Total GST demand of ₹66,93,513 issued by the Assistant Commissioner of Commercial Taxes, Bengaluru.
Demand includes ₹36,32,575 in tax, ₹26,83,528 in interest, and ₹3,77,410 in penalty.
Allegations involve incorrect zero-rated supply classification and RCM shortfalls for FY 2021-22.
The company plans to challenge the order through appropriate legal channels.
Management confirms no impact on the company's operational activities.

💡 Investors should monitor the progress of the legal appeal as the financial impact is currently limited to the demand amount. While negative, the scale of the demand is unlikely to fundamentally alter the company's long-term investment thesis.

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💰 Financial Performance

Revenue Growth by Segment

The Corporate segment contributed 100% of revenue in Q2 FY26, reflecting a strategic pivot away from the startup segment. Standalone revenue from operations decreased by 39.75% YoY to INR 3.90 Cr in FY25 from INR 6.47 Cr in FY24. Consolidated revenue for Q2 FY26 was INR 0.76 Cr, a 53.7% YoY decline from INR 1.63 Cr in Q2 FY25.

Profitability Margins

Net Profit Margin stood at -2.07% in FY25 compared to -2.15% in FY24. Operating Profit Margin was -2.04% in FY25 vs -1.90% in FY24. The company reported a standalone net loss of INR 8.62 Cr in FY25, an improvement from a loss of INR 10.13 Cr in FY24.

EBITDA Margin

Operating EBITDA margin was -140.70% of operating income in FY25. Adjusted Operating EBITDA for Q2 FY26 was negative INR 1.61 Cr, compared to negative INR 1.02 Cr in Q2 FY25, primarily due to the revenue decline during the transition to corporate-focused services.

Credit Rating & Borrowing

The company is debt-free as of FY25, with an Interest Coverage Ratio of -76.64 due to the absence of debt and presence of operating losses.

⚙️ Operational Drivers

Raw Materials

Human Capital/Employee Benefits (ESOP expenses represented INR 0.25 Cr in Q2 FY26) and Technology Infrastructure.

Import Sources

Not applicable as the company provides professional and technical consulting services.

Key Suppliers

Not applicable; the company operates as a technology partner and consultant.

Capacity Expansion

Current team size is 54 members as of September 30, 2025, down from 64 clients served in FY25. The company is focusing on scaling in-house products like Rely and DocuXray rather than physical capacity.

Raw Material Costs

Employee benefit expenses are the primary cost driver; ESOP expenditure was INR 0.25 Cr in Q2 FY26, up from INR 0.01 Cr in Q2 FY25.

Manufacturing Efficiency

Not applicable; service-based model focused on client delivery and product development.

📈 Strategic Growth

Growth Strategy

The company is transitioning from a startup-heavy revenue model to a corporate-focused model, targeting 100% corporate revenue. Growth is driven by the monetization of in-house products like 'Rely' and 'DocuXray' (BFSI automation), and a pilot project in 'AgeTech' expected to monetize by Q3/Q4 FY26. The goal is to reach EBITDA breakeven within 1-2 quarters.

Products & Services

Professional and technical consulting in product development, data science, and analytics; AI/ML technology specializing in Natural Language Processing; SaaS platforms; and automated document classification for BFSI.

Brand Portfolio

Rely, DocuXray, Xelpmoc.

New Products/Services

AgeTech pilot project (expected monetization Q3/Q4 FY26); DocuXray for automated document sorting and data extraction in the insurance sector.

Market Expansion

Focusing on the BFSI and Insurance sectors for automation products; expanding corporate segment reach globally from offices in Bengaluru, Hyderabad, and Mumbai.

Strategic Alliances

Technology partner for 12 investee companies including Mihup Communication (Fair Value INR 42.93 Cr) and One Point Six Technologies (Pencil) where it holds a 7.9% stake.

🌍 External Factors

Industry Trends

The industry is shifting toward AI/ML and automated data science services. Xelpmoc is positioning itself as a 'leveraged mutual fund' for technology, aiming to profit from the 'wealth at the bottom of the pyramid' by providing global-standard tech to underserved sectors.

Competitive Landscape

Competes with specialized tech consultants and AI/ML service providers; differentiates through its equity-for-tech business model.

Competitive Moat

The moat is built on a 'leveraged mutual fund' model where the company gains equity in high-potential startups in exchange for tech services. This provides long-term upside through portfolio appreciation (Fair Value of INR 70.34 Cr as of Sept 2025) while maintaining a debt-free balance sheet.

Macro Economic Sensitivity

Highly sensitive to the startup funding ecosystem and venture capital availability, which impacts the ability of early-stage clients to sustain operations and pay for tech services.

Consumer Behavior

Increased demand for automation in BFSI and insurance to reduce human error and manual sorting costs.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with Indian Accounting Standards (IND AS) and the Companies Act, 2013. Products like DocuXray are designed to help clients ensure compliance with regulatory standards in the BFSI sector.

⚠️ Risk Analysis

Key Uncertainties

The primary risk is the financial instability of startup clients; if they do not receive timely funding, they may fail to sustain operations, impacting Xelpmoc's receivables and equity value.

Geographic Concentration Risk

Operations are concentrated in India with offices in Bengaluru, Hyderabad, and Mumbai, though it has a UK subsidiary (Xelpmoc Design and Tech UK Limited).