Genpact Limited (G) | Investment Case

1. Company Snapshot

1.a. Company Description

Genpact Limited provides business process outsourcing and information technology (IT) services in India, rest of Asia, North and Latin America, and Europe.It operates through three segments: Banking, Capital Markets and Insurance; Consumer Goods, Retail, Life Sciences and Healthcare; and High Tech, Manufacturing and Services.The company offers CFO advisory services; and environmental, social, and governance (ESG) services, such as data management, carbon accounting, human rights assessment, sustainability diligence, and ESG reporting.

It also provides finance and accounting services, which include accounts payable, such as document management, invoice processing, approval and resolution management, and travel and expense processing; invoice-to-cash services, including customer master data management, credit and contract management, fulfillment, billing, collections, and dispute management services; record to report services comprising accounting, treasury, tax, product cost accounting, and closing and reporting services; financial planning and analysis consisting of budgeting, forecasting, and business performance reporting; and enterprise risk and compliance services, including operational risks and controls.In addition, the company provides supply chain advisory services, and after-sales services; sourcing and procurement services comprising direct and indirect strategic sourcing, category management, spend analytics, procurement operation, and master data management; and sales and commercial services, including campaign, order, and dispute management, lead generation, pricing, and promotion optimization.Further, it offers IT services, which comprise end-user computing support, infrastructure management, application production support, and database management services; and transformation services that include digital solutions, consulting services, and analytics services and solutions.

The company was founded in 1997 and is based in Hamilton, Bermuda.

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1.b. Last Insights on G

Genpact's recent momentum is driven by its strong Q3 earnings beat, with net revenues up 6.6% and adjusted diluted EPS increasing 14.1%. The company's Advanced Technology Solutions segment saw a 20% revenue growth, while its Data-Tech-AI segment rose 9.3%. Genpact's transition to a digital transformation partner, with ATS driving higher-quality revenue growth, supports margin expansion and a more resilient business model, as noted in its Q3 2025 earnings report.

1.c. Company Highlights

Last Price	38.93
Change Percentage	0.18%
Open	38.7
Previous Close	38.86
Market Cap ( Millions)	6712
Volume	2202545
Year High	54
Year Low	34.79
M A 50	44.55
M A 200	43.5

FCF Yield	10.90%
Dividend Yield	1.75%
ROE	21.81%
Debt / Equity	74.36%
Net Debt / EBIDTA	121.09%
Price To Book	2.62
Price Earnings Ratio	12.11
Price To FCF	9.17
Price To sales	1.32
EV / EBITDA	9.01

2. Genpact's Strong FY2025 Results: A Robust Start to a New Era of Growth

Genpact Limited reported a robust close to a record year in 2025, with $5.08 billion in revenue, up 6.6% year over year. Advanced Technology Solutions revenue grew 17% to $1.2 billion, accounting for 24% of total revenue. Gross margin expanded 60 basis points, and adjusted operating income margin improved 40 basis points. Adjusted diluted EPS increased 11% to $3.65, growing faster than revenue for the fifth consecutive year. In the fourth quarter, total revenue increased 5.6% to $1.319 billion, with adjusted diluted EPS increasing 6.6% to $0.97, beating analyst estimates of $0.93.

Publication Date: Feb -15

                                    📋 Highlights
                                    2025 Revenue & Advanced Solutions Growth::
                                                Total revenue reached $5.08 billion (+6.6% YoY), with Advanced Technology Solutions contributing $1.2 billion (+17% YoY), 24% of total revenue.
Margin Expansion & EPS Growth::
                                                Gross margin expanded 60 bps to 36.5%, adjusted operating margin up 40 bps; adjusted diluted EPS rose 11% to $3.65.
New Bookings & Client Acquisition::
                                                $5.5 billion in new bookings, with Advanced Technology Solutions exceeding 33% of total bookings and 40% of TCV from new clients.
Partner Revenue & AI Investments::
                                                Partner-related revenue surged 50% YoY; 7,000+ AI builders and 20,000+ practitioners deployed, with 400+ GenAI solutions in the market.
2026 Guidance & Shareholder Returns::
                                                Targets 7% revenue growth, 10% adjusted EPS growth, and 50% capital return to shareholders, including a 10% dividend increase to $18.75/quarter.

                                

Growth Drivers

The company's growth was driven by its advanced technology solutions, which are now accounting for more than a third of total bookings. Genpact won 16 large deals and made progress with the next generation of market disruptors. The company's AI Gigafactory continues to scale, with over 400 GenAI solutions in the market. Partner-related revenue grew nearly 50% year over year, with partnerships with companies like AWS, Microsoft, and Databricks accelerating Genpact's ability to drive AI-led transformation.

Outlook and Valuation

Looking ahead to 2026, Genpact expects to deliver another year of strong, high-quality results, with revenue growth of at least 7% year over year. The company's valuation metrics, such as a P/E Ratio of 11.62 and an EV/EBITDA of 8.7, suggest that the market is pricing in a reasonable growth trajectory. With a ROE of 21.81% and an ROIC of 12.2%, Genpact is demonstrating its ability to generate strong returns on capital.

Margin Expansion and Client Adoption

The company's margin expansion is driven by the shift to advanced technology solutions, which provide higher value to clients and higher revenue for the company. Genpact is seeing a significant increase in conversations with clients about advanced technology solutions, with 40% of TCV for the AP suite coming from new clients. The addressable market is expanding, with new clients and existing clients adopting Genpact's finance stack.

Long-term Durability

Genpact expects long-term durability in demand for their services, as they help clients implement solutions that replace manual labor. Once a solution is implemented, Genpact sees recurring annual revenues, with clients benefiting from agentic operations in areas like finance, supply chain, and claims operation. The company believes this will drive long-term growth and change their business in a significant way.

3. NewsRoom

53,323 Shares in Genpact Limited $G Bought by Aurora Investment Counsel

Feb -22

Source: defenseworld.net

Is Genpact Stock a Buy After Nalanda Increased Its Stake by 1 Million Shares?

Feb -20

Source: fool.com

Genpact: ATS Growth And Margin Expansion Strengthen The Investment Case

Feb -19

Source: seekingalpha.com

Genpact Limited: Strategic Transformation Driving Strong Performance And Valuation Upside

Feb -17

Source: seekingalpha.com

MindBridge Announces Global Partnership with Genpact to Elevate Audit Analytics and Risk Consulting

Feb -17

Source: businesswire.com

Genpact Limited $G Shares Acquired by Envestnet Asset Management Inc.

Feb -14

Source: defenseworld.net

G vs. DT: Which Stock Is the Better Value Option?

Feb -12

Source: zacks.com

Genpact (NYSE:G) Hits New 52-Week Low After Analyst Downgrade

Feb -12

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.48%)

6. Segments

High Tech and Manufacturing

Expected Growth: 4.5%

Genpact's High Tech and Manufacturing segment growth of 4.5% is driven by increasing demand for digital transformation, IoT, and Industry 4.0 solutions. Additionally, the company's expertise in operational excellence, supply chain optimization, and data analytics is fueling growth in this segment.

Consumer and Healthcare

Expected Growth: 4.2%

Genpact's 4.2% growth in Consumer and Healthcare segments is driven by increasing demand for digital transformation, cost optimization, and regulatory compliance. The company's expertise in analytics, automation, and process optimization has enabled clients to improve customer experience, reduce costs, and enhance operational efficiency. Additionally, the growing need for healthcare providers to adopt digital technologies and comply with regulations has fueled growth in this segment.

Financial Services

Expected Growth: 4.8%

Genpact's 4.8% growth in Financial Services is driven by increasing demand for digital transformation, regulatory compliance, and cost optimization. The company's expertise in risk management, mortgage services, and capital markets is also contributing to growth. Additionally, Genpact's investments in AI, automation, and analytics are enhancing operational efficiency and driving innovation for clients.

7. Detailed Products

Digital Transformation

Genpact's digital transformation services help clients navigate the complexities of digital adoption, leveraging technologies like AI, automation, and cloud to drive business outcomes.

Intelligent Operations

Genpact's intelligent operations services use AI, analytics, and automation to drive efficiency, reduce costs, and improve customer experience across various industries.

Customer Experience

Genpact's customer experience services help clients design and deliver personalized, omnichannel experiences that drive loyalty and revenue growth.

Risk and Compliance

Genpact's risk and compliance services help clients navigate complex regulatory requirements, mitigate risk, and ensure compliance across various industries.

Procurement and Supply Chain

Genpact's procurement and supply chain services help clients optimize procurement processes, reduce costs, and improve supply chain resilience.

8. Genpact Limited's Porter Forces

Forces Ranking

Threat Of Substitutes

Genpact Limited operates in the business process outsourcing industry, where there are limited substitutes for its services. However, the company faces competition from other BPO providers, which could lead to a moderate threat of substitutes.

Bargaining Power Of Customers

Genpact Limited's customers have significant bargaining power due to their large size and global presence. This gives them the ability to negotiate prices and terms, which could negatively impact the company's revenue and profitability.

Bargaining Power Of Suppliers

Genpact Limited has a diverse supplier base, which reduces the bargaining power of individual suppliers. The company's large scale of operations also gives it negotiating power over its suppliers.

Threat Of New Entrants

The business process outsourcing industry has high barriers to entry, including significant capital requirements and the need for specialized skills and expertise. This makes it difficult for new entrants to compete with established players like Genpact Limited.

Intensity Of Rivalry

The business process outsourcing industry is highly competitive, with many players competing for market share. Genpact Limited faces intense competition from other BPO providers, which could lead to pricing pressure and reduced profitability.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	37.13%
Debt Cost	3.95%
Equity Weight	62.87%
Equity Cost	9.34%
WACC	7.34%
Leverage	59.07%

11. Quality Control: Genpact Limited passed 5 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Leidos

A-Score: 6.0/10

Value: 4.6

Growth: 6.6

Quality: 5.9

Yield: 2.0

Momentum: 8.0

Volatility: 9.0

1-Year Total Return ->

Genpact

A-Score: 5.7/10

Value: 5.4

Growth: 6.2

Quality: 6.9

Yield: 3.0

Momentum: 5.0

Volatility: 7.3

1-Year Total Return ->

Jack Henry

A-Score: 5.5/10

Value: 2.5

Growth: 5.7

Quality: 8.4

Yield: 2.0

Momentum: 5.0

Volatility: 9.7

1-Year Total Return ->

CACI

A-Score: 5.3/10

Value: 3.8

Growth: 6.2

Quality: 5.2

Yield: 0.0

Momentum: 9.0

Volatility: 7.7

1-Year Total Return ->

CGI

A-Score: 5.0/10

Value: 5.4

Growth: 5.9

Quality: 6.8

Yield: 0.0

Momentum: 2.0

Volatility: 9.7

1-Year Total Return ->

ASGN

A-Score: 4.1/10

Value: 7.7

Growth: 6.2

Quality: 5.2

Yield: 0.0

Momentum: 0.0

Volatility: 5.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-5.05%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.34%

Genpact Limited - BMG3922B1072

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on G

1.c. Company Highlights

Less Volatile

Better Quality

Average Yield

Earnings Beats

Revenues Beats

Higher Yield

Average Quality

Earnings Miss

Stable Momentum

Strong Momentum

2. Genpact's Strong FY2025 Results: A Robust Start to a New Era of Growth

Growth Drivers

Outlook and Valuation

Margin Expansion and Client Adoption

Long-term Durability

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.48%)

6. Segments

High Tech and Manufacturing

Expected Growth: 4.5%

Consumer and Healthcare

Expected Growth: 4.2%

Financial Services

Expected Growth: 4.8%

7. Detailed Products

Digital Transformation

Intelligent Operations

Customer Experience

Risk and Compliance

Procurement and Supply Chain

8. Genpact Limited's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Genpact Limited passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

38.93$

Current Price

38.93$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA