Diginex Ltd. (DGNX) AI Stock Analysis

• Market Cap: $133.13M
• Dividend Yield: N/A
• Average Volume (3M): 733.60K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.19
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 19
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): N/A
• Shares Outstanding: 208,670,430
• 10 Day Avg. Volume: 373,407
• 30 Day Avg. Volume: 733,604
• PEG Ratio: -3.62
• Price to Book (P/B): 207.03
• Price to Sales (P/S): 462.42
• P/FCF Ratio: -123.01
• Enterprise Value/Market Cap: 7.07
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: $0.61 ▼(-94.68% Downside)
• Action: Reiterated Date: 02/21/26
• Date: Action: Reiterated 02/21/26

The score is held down primarily by weak financial quality—very large operating losses and sustained cash burn—despite improved leverage and a FY2025 revenue rebound. Technicals add additional downside pressure with a clear downtrend, while valuation is constrained by ongoing losses and no dividend support.

Positive Factors

Revenue Rebound

A strong FY2025 revenue rebound indicates increasing market demand and product traction versus the prior year. If sustained, this revenue growth improves scalability prospects, reduces reliance on financing to fund growth, and creates a clearer path to leverage fixed-costs into operating leverage.

Improved Leverage

Material reduction in debt and a low debt-to-equity ratio materially improves financial flexibility. Lower leverage reduces interest obligations and refinancing risk, giving management capacity to invest in growth or survive extended ramp periods without immediate solvency pressure.

Strategic Sustainable Finance Engagement

Formal engagement with Abu Dhabi's sustainable finance ecosystem creates structural market access into the UAE and GCC sustainability initiatives. This can yield recurring data/reporting contracts, partnerships, and regulatory-aligned solutions, strengthening long-term product-market fit in ESG.

Negative Factors

Persistent Large Operating Losses

Very large, persistent operating and net losses indicate the current business scale cannot cover operating costs. Structural profitability will require either substantial revenue scale, meaningful margin expansion, or cost restructuring; until then the loss profile undermines long-term self-sufficiency.

Negative Free Cash Flow / Cash Burn

Consistent negative operating and free cash flow, worsening in FY2025, creates durable funding risk. Persistent cash burn forces reliance on external financing or dilutive capital raises, limiting runway and constraining the ability to invest in product development or sales sustainably.

Prior Balance Sheet Stress & Weak ROE

Historical negative equity and a deeply negative ROE reflect prolonged earnings erosion and previous capital shortfalls. Even with lower debt today, legacy equity deficits and poor returns on capital impede credibility with non-dilutive lenders and signal structural difficulty in converting assets into profitable returns.

Diginex Ltd. Business Overview & Revenue Model

Company Description

Diginex Limited, through its subsidiaries, engages in the provision of environmental, social, and governance (ESG) reporting solution services, advisory services, and developing customization solutions in Hong Kong, the United Kingdom, and the United States. Its suite of products includes digninexESG, a cloud based ESG platform that offers end to end reporting from topic discovery, data collection, and collaborative report publishing services; diginexLUMEN that allows companies to execute supply chain risk assessments; diginexAPPRISE, a multilingual application that collects standardized, actionable data related to working conditions directly from workers in supply chains; diginexCLIMATE, a carbon footprint calculator based on the GHG protocols; diginexADVISORY that provides clients strategy and advisory support for credible reporting; diginexPARTNERS that develops white label versions of diginexESG and diginexLUMEN; and diginexMANAGEDSERVICES that provides oversight and support to clients. The company was founded in 2020 and is headquartered in Telegraph Bay, Hong Kong.

How the Company Makes Money

Diginex Ltd. Financial Statement Overview

Summary

Revenue rebounded strongly in FY2025, and leverage improved with much lower debt. However, results are dominated by very large, persistent operating and net losses and continued negative free cash flow, keeping execution and funding risk elevated.

Income Statement

Revenue rebounded in FY2025 (+57% YoY) after a decline in FY2024, but profitability remains very weak. Despite 100% gross margin, operating losses are large and persistent (FY2025 EBIT margin ~-235%) and net losses continue (FY2025 net margin ~-255%), indicating the cost structure is far above the current revenue base.

Balance Sheet

Leverage improved materially: total debt fell sharply from FY2024 to FY2025, and FY2025 shows low debt relative to equity (debt-to-equity ~0.05). However, the balance sheet was stressed in prior years with negative equity (FY2022–FY2024), and profitability on equity is deeply negative in FY2025 (return on equity about -114%), highlighting ongoing earnings pressure despite improved capitalization.

Cash Flow

Cash generation is a key weakness: operating cash flow and free cash flow are negative across all years, and FY2025 free cash flow deteriorated further (down ~31% YoY). Cash burn is not being offset by earnings improvement, keeping funding risk elevated until the business scales revenue or reduces operating costs.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	2.04M	1.30M	1.63M	1.12M
Gross Profit	2.04M	1.30M	1.63M	1.12M
EBITDA	-4.68M	-4.21M	-9.04M	-12.97M
Net Income	-5.21M	-4.87M	-9.26M	-12.97M
Balance Sheet
Total Assets	6.24M	974.42K	1.59M	1.79M
Cash, Cash Equivalents and Short-Term Investments	3.11M	76.62K	1.18M	1.27M
Total Debt	237.68K	7.53M	6.74M	0.00
Total Liabilities	1.69M	23.98M	21.07M	12.60M
Stockholders Equity	4.56M	-23.01M	-19.48M	-10.81M
Cash Flow
Free Cash Flow	-7.67M	-5.86M	-6.59M	-6.48M
Operating Cash Flow	-7.67M	-5.86M	-6.59M	-6.47M
Investing Cash Flow	-10.03K	0.00	0.00	-5.04K
Financing Cash Flow	10.72M	4.75M	6.50M	7.45M

Diginex Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
MARA	53 Neutral	$3.04B	4.75	23.13%	―	53.51%	112.53%
DGNX	41 Neutral	$133.13M	-14.92	―	―	―	―