Xtranet Technologies IPO Review: Price Band, GMP, Financials, Subscription Recommendation

Xtranet Technologies Limited is launching its Mainboard IPO on July 23, 2026, to raise ₹166.80 crore through a fresh issue. The Bhopal-based IT solutions company provides digital transformation, cloud services, enterprise software, managed IT services, ERP implementation, and infrastructure management solutions to government departments, PSUs, and private enterprises. With India's digital transformation market expanding rapidly, the company aims to strengthen its business through higher working capital, technology investments, and business expansion.

The company has reported strong financial growth over the last three years, supported by improving profitability and a healthy order book of ₹356.96 crore. According to the IPO report, the proceeds will be used for working capital, repayment of debt, capital expenditure, and general corporate purposes, positioning the company for future growth.

Xtranet Technologies IPO Details

Particulars	Details
IPO Type	Mainboard IPO
Issue Opens	July 23, 2026
Issue Closes	July 27, 2026
Tentative Listing	July 30, 2026
Price Band	₹120 – ₹127 per share
Lot Size	110 Shares
Minimum Investment	₹13,970
Issue Size	₹166.80 Crore
Fresh Issue	₹166.80 Crore
Offer for Sale	Nil

About Xtranet Technologies

Founded in 2002, Xtranet Technologies Limited is an IT and digital transformation company headquartered in Bhopal, Madhya Pradesh. The company offers enterprise software, managed IT services, cloud integration, application development, ERP implementation, cybersecurity, and infrastructure management solutions for government and private sector clients.

Its customer base includes government departments, PSUs, banking, education, automotive, and enterprise businesses. The company also owns proprietary platforms such as Synergy, XtraTrust, eatNstay, and Peddle Point, creating opportunities for recurring software revenue.

Business Model

Xtranet Technologies earns revenue through multiple business segments, reducing dependence on a single source.

Revenue Source	Contribution
Fixed Price Projects	45%
Managed Services	33%
Time & Material Projects	22%

Nearly 50% of the company's revenue comes from government departments and public sector enterprises, providing stable long-term business opportunities.

IPO Objectives

The company plans to utilize the IPO proceeds for the following purposes:

Purpose	Amount
Working Capital Requirements	₹102.00 Crore
Repayment of Borrowings	₹21.99 Crore
Capital Expenditure	₹7.30 Crore
General Corporate Purposes	Remaining Amount

A major portion of the funds will be used to strengthen working capital and support future business growth.

Financial Performance

Xtranet Technologies has delivered steady growth in revenue and profitability over the past three financial years.

Financials (₹ Crore)	FY24	FY25	FY26
Revenue from Operations	232.94	276.08	365.29
Total Income	233.26	276.53	366.01
Profit Before Tax	15.33	40.07	52.13
Profit After Tax	10.94	30.03	40.73
EPS (₹)	3.17	8.15	10.40

Revenue increased by more than 56% between FY24 and FY26, while net profit nearly quadrupled during the same period. The company has also improved its operating efficiency, leading to better profitability and earnings growth.

Key Financial Highlights

Metric	Performance
Revenue CAGR	25.3%
PAT CAGR	92.7%
FY26 Revenue	₹366.01 Crore
FY26 Net Profit	₹40.73 Crore
FY26 EPS	₹10.40
Order Book	₹356.96 Crore

The strong order book provides healthy revenue visibility, while the high profit CAGR highlights improving operating leverage.

Key Strengths

Xtranet Technologies has built a diversified business across enterprise software, cloud services, managed IT solutions, ERP implementation, and proprietary digital platforms. Its balanced revenue mix and long-standing relationships with government departments and enterprises provide stable business opportunities. The company also generated positive operating cash flow in FY26 and is expected to retain strong promoter ownership after the IPO, reflecting confidence in its long-term growth strategy.

Key Risks

The company faces competition from larger IT services firms and remains exposed to customer concentration risks. It is also involved in an ongoing trademark-related legal dispute. Future growth will depend on successful execution of large projects, continued customer additions, and expansion of its proprietary software platforms.

Valuation Analysis

Metric	Value
P/E Ratio	16.3x
Peer Average P/E	42.57x
Grey Market Premium	13.40%
Analyst Recommendation	Subscribe

At a P/E of 16.3x, the IPO is priced below the industry peer average of 42.57x, making the valuation relatively attractive. The reported Grey Market Premium of 13.40% also reflects positive investor sentiment ahead of listing.

Should You Subscribe to the Xtranet Technologies IPO?

Xtranet Technologies offers a combination of strong financial growth, improving profitability, a healthy ₹356.96 crore order book, diversified revenue streams, and attractive valuation compared to industry peers. While investors should monitor competition, customer concentration, and legal risks, the company's consistent earnings growth, expanding digital business, and reasonable pricing make it a promising opportunity for medium- to long-term investors. Based on the available IPO analysis, the overall recommendation is Subscribe.

What is the Xtranet Technologies IPO issue size and price band?

The IPO is a ₹166.80 crore fresh issue with a price band of ₹120 to ₹127 per share.

When will the Xtranet Technologies IPO open and close?

The IPO opens on July 23, 2026, and closes on July 27, 2026.

What does Xtranet Technologies do?

The company provides IT services, enterprise software, cloud solutions, ERP implementation, cybersecurity, managed IT services, and digital transformation solutions for government and enterprise clients.

How did Xtranet Technologies perform in FY26?

The company reported ₹365.29 crore in revenue and ₹40.73 crore in net profit during FY26, reflecting strong growth in both revenue and earnings.

Should investors subscribe to the Xtranet Technologies IPO?

The IPO offers strong financial growth, a robust order book, improving profitability, and attractive valuation, making it suitable for investors with a medium- to long-term investment horizon.