Diginex Ltd. (DGNX) AI Stock Analysis

• Market Cap: $114.77M
• Dividend Yield: N/A
• Average Volume (3M): 733.60K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.07
• 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: 8.20
• 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: 42 Neutral
• Price Target: $0.53 ▼(-95.37% Downside)
• Action: Reiterated Date: 03/04/26
• Date: Action: Reiterated 03/04/26

The score is driven primarily by weak financial quality: heavy ongoing losses and sustained cash burn outweigh the FY2025 revenue rebound and improved leverage. Technicals are also very weak with the stock far below major moving averages and negative MACD, while valuation is constrained by negative earnings and no dividend support.

Positive Factors

Revenue Rebound

A 57% rebound in FY2025 revenue signals renewed product-market traction and revenue scalability. For a software application business, sustained top-line recovery provides the runway to leverage fixed-cost base, improving the odds of moving toward operating leverage and eventual profitability over months.

Low Leverage

Very low debt-to-equity (~0.05) materially reduces default and interest-rate risk, giving management flexibility to fund operations or invest in growth without immediate refinancing. This stronger capitalization supports survival during continued cash burn and allows strategic options over the medium term.

High Gross Margin Profile

A 100% gross margin indicates a highly scalable software/app business model where incremental revenue is largely pure margin. If revenue growth continues, the firm can more readily deploy incremental revenue to absorb fixed operating costs, creating a credible path to margin improvement and durable profitability gains.

Negative Factors

Severe Operating Losses

Extremely negative operating and net margins reflect a structural cost base far above current revenues. Such outsized losses weaken profitability fundamentals, constrain reinvestment capacity, and create a high bar to reach breakeven, making profitability recovery uncertain without meaningful cost or revenue scale changes.

Persistent Cash Burn

Consistent negative operating and free cash flow, and a worsening FY2025 FCF, create ongoing funding pressure. Durable cash burn elevates financing risk, can force dilution or costly borrowing, and limits the firm’s ability to invest in product, sales, or R&D needed to sustain growth over the next several months.

Historical Capital Stress

Prior periods of negative equity and a deeply negative ROE indicate historical capital erosion and past reliance on corrective financing. That legacy weakens stakeholder confidence and raises the prospect of future dilution or restrictive financing terms, which can hinder medium-term strategic execution.

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

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Diginex Ltd. Financial Statement Overview

Summary

FY2025 revenue rebounded strongly (+57% YoY) and leverage improved (debt-to-equity ~0.05), but fundamentals remain weak due to very large operating and net losses (EBIT margin ~-235%, net margin ~-255%) and persistent negative operating/free cash flow with worsening FY2025 free cash flow.

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	47 Neutral	$3.22B	-2.43	-30.59%	―	53.51%	112.53%
DGNX	42 Neutral	$114.77M	―	56.50%	―	―	―