DiGiSPICE Technologies Ltd. (DIGISPICE) AI Stock Analysis

• Market Cap: ₹4.23B
• Dividend Yield: N/A
• Average Volume (3M): 56.43K
• Price to Earnings (P/E): 53.0
• Beta (1Y): 1.77
• Revenue Growth: 9.93%
• EPS Growth: -161.98%
• Country: IN
• Employees: 44
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.11
• Shares Outstanding: 234,471,100
• 10 Day Avg. Volume: 6,373
• 30 Day Avg. Volume: 56,428
• PEG Ratio: 0.03
• Price to Book (P/B): 2.44
• Price to Sales (P/S): 1.09
• P/FCF Ratio: 188.21
• Enterprise Value/Market Cap: N/A
• 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: 53 Neutral
• Price Target: ₹18.50 ▼(-20.16% Downside)
• Action: Reiterated Date: 01/24/26
• Date: Action: Reiterated 01/24/26

The score is held back mainly by weak technicals (downtrend across moving averages and negative MACD) and ongoing profitability issues (negative net margin/ROE). These are partially offset by a relatively stable balance sheet with low leverage and a strong cash position, but the negative P/E and lack of dividend data limit valuation support.

Positive Factors

Low leverage and strong cash position

A low debt-to-equity ratio (0.37) and a strong cash position give DiGiSPICE durable financial flexibility. This reduces refinancing and interest risk, supports working capital and opportunistic investments, and cushions the business through cyclical IT spending downturns without immediate capital raises.

Improved gross and EBIT margins

Rising gross and EBIT margins reflect lasting improvements in cost management or pricing power. If sustained, higher core operating margins can amplify returns on future revenue, provide funding for strategic initiatives, and make the business more resilient to revenue volatility over the medium term.

Positive operating cash generation

Positive operating cash flow and a strong OCF-to-net-income ratio indicate the core services business converts revenues into cash reliably. Durable operating cash generation supports reinvestment, working capital needs and reduces dependence on external financing for routine operations.

Negative Factors

Negative net margin and ROE

Persistent negative net margins and a turned-negative ROE signal the company is not generating shareholder returns from current operations. Over months, this erodes retained earnings, limits reinvestment without external capital, and may pressure strategic options or capital structure.

Inconsistent revenue with recent declines

Volatile and recently declining revenue undermines the sustainability of margin gains and makes capacity planning difficult. Without steady top-line growth, operating leverage is limited and profitability improvements may prove temporary if demand or client retention issues persist.

Weakened free cash flow conversion

Declining free cash flow and poor FCF-to-income conversion reduce the firm's ability to self-fund growth, pay down liabilities, or return capital. If structural, this forces greater reliance on cash reserves or external financing, constraining strategic flexibility over months.

DiGiSPICE Technologies Ltd. Business Overview & Revenue Model

Company Description

DiGiSPICE Technologies Limited operates as an information and communication technology company in India and internationally. It operates through two segments, Digital Technology Services and Financial Technology Services. The company provides value added and mobile content services to the telecom operators, as well as develops and sells telecom related software. It offers Horizon, an enabling platform for network operators, and acts as a gateway for their content and service partners; Mziiki, a music app and mobisite that provides African music experience; CNema, a video on demand mobile app; My Studio, a music service app; and NextGen CRBT platform for 4G and LTE networks that helps to provide video RBT, HD Audio RBT, Live Streaming RBT, and Social RBT to end users. The company also provides UNIGOV, a digital government solution, which offers citizen-centric services; Spice Money, a merchant-only mobile wallet; and DiGiMoney, a mobile wallet. In addition, it offers robotic process automation solutions; pView, an enterprise platform that simplifies operations by capturing, processing, and reporting data; Cognitive Engagement Platform for telecom operators; and DiGi Identifier, an AI driven remote biometric digital authentication on boarding technology platform that helps enterprises speed up customer on-boarding through automated document collection, authentication, and verification process. The company was formerly known as Spice Mobility Limited and changed its name to DiGiSPICE Technologies Limited in August 2019. The company was incorporated in 1986 and is based in Noida, India. DiGiSPICE Technologies Limited is a subsidiary of Spice Connect Private Limited.

How the Company Makes Money

DiGiSPICE generates revenue through several key streams. Primarily, the company earns income by licensing its software solutions to telecommunications companies and content providers, which pay for access to its technology and ongoing support services. Additionally, it offers consulting and implementation services, providing tailored solutions that help clients integrate and optimize DIGISPICE products within their existing systems. The company may also engage in revenue-sharing agreements with partners, where it earns a percentage of sales generated through its platform. Strategic partnerships with telecom operators and content distributors further enhance its market reach and contribute to its financial performance, as well as the potential for new customer acquisition and upselling of additional services.

DiGiSPICE Technologies Ltd. Financial Statement Overview

Summary

Mixed fundamentals: improved gross/EBIT margins and a strong cash position support stability, but negative net margin/ROE and inconsistent revenue (including a recent decline) weigh on overall financial quality. Cash generation is positive but free cash flow has weakened.

Income Statement

DiGiSPICE Technologies Ltd. has shown volatility in its income statement. The gross profit margin has improved to 20.1% in the most recent year, reflecting better cost management, albeit with a declining revenue trend. However, the net profit margin is negative, indicating profitability challenges. Revenue growth has been inconsistent, with a decline of 5.2% in recent years. Despite an improvement in EBIT margin to 20.1%, the EBITDA margin has significantly dropped, suggesting issues in operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial structure with a manageable debt-to-equity ratio of 0.37, indicating low leverage risk. However, the return on equity has turned negative due to net losses, affecting investor returns. The equity ratio remains healthy at approximately 29.8%, suggesting a solid equity base relative to total assets. The company's cash position is strong, contributing positively to overall financial stability.

Cash Flow

Cash flow analysis shows a mixed picture with a decline in free cash flow over the past year but a positive operating cash flow. The operating cash flow to net income ratio is strong, indicating efficient cash generation relative to earnings. However, the free cash flow to net income ratio indicates challenges in converting income into free cash. The company should focus on stabilizing cash outflows to enhance liquidity further.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	4.62B	4.73B	4.39B	4.32B	9.91B	7.12B
Gross Profit	756.18M	704.90M	726.28M	487.71M	910.53M	679.32M
EBITDA	-135.74M	-173.86M	733.12M	243.93M	333.65M	363.23M
Net Income	-360.96M	-391.39M	116.75M	-206.00M	54.24M	114.64M
Balance Sheet
Total Assets	0.00	7.13B	6.49B	7.08B	7.00B	5.31B
Cash, Cash Equivalents and Short-Term Investments	3.84B	4.76B	3.75B	3.83B	2.56B	1.53B
Total Debt	0.00	789.72M	260.40M	837.06M	540.66M	338.10M
Total Liabilities	-2.16B	4.96B	4.02B	4.75B	4.47B	2.90B
Stockholders Equity	2.16B	2.13B	2.45B	2.32B	2.47B	2.38B
Cash Flow
Free Cash Flow	415.78M	27.52M	331.68M	-60.52M	1.34B	1.13B
Operating Cash Flow	457.44M	116.00M	417.55M	59.52M	1.49B	1.19B
Investing Cash Flow	-104.36M	137.30M	54.94M	-373.82M	-1.19B	-826.29M
Financing Cash Flow	180.98M	483.21M	-557.17M	260.78M	-79.34M	3.26M

DiGiSPICE Technologies Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.17
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:DIGISPICE, the sentiment is Negative. The current price of 23.17 is above the 20-day moving average (MA) of 19.82, above the 50-day MA of 21.68, and below the 200-day MA of 23.74, indicating a bearish trend. The MACD of -0.69 indicates Positive momentum. The RSI at 26.28 is Positive, neither overbought nor oversold. The STOCH value of 20.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:DIGISPICE.

DiGiSPICE Technologies Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CYBERTECH	72 Outperform	₹3.35B	17.18	―	13.69%	4.44%	21.20%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
INSPIRISYS	61 Neutral	₹3.34B	4.73	―	―	-1.07%	187.83%
TERASOFT	60 Neutral	₹4.27B	19.62	―	0.23%	71.84%	138.63%
3IINFOLTD	55 Neutral	₹2.82B	40.24	―	―	-6.88%	―
DIGISPICE	53 Neutral	₹4.23B	53.00	―	―	9.93%	-161.98%
FCSSOFT	52 Neutral	₹2.60B	-39.66	―	―	―	―

DiGiSPICE Technologies Ltd. Corporate Events

DiGiSPICE Publishes Investor Call Recording and Presentation Online

DiGiSPICE Technologies has notified the stock exchanges that the audio-video recording of its investors and analysts conference call held on 19 February 2026 is now available on the company’s website. The move enhances transparency for stakeholders by allowing broader access to the discussion, with the associated investor presentation also uploaded online after being submitted to both major Indian exchanges.

The conference call, which ran from 3:30 p.m. to 4:23 p.m. IST on the same day, focused on engaging the financial community through detailed disclosures. By archiving both the recording and the presentation, DiGiSPICE is aligning with regulatory requirements while strengthening its communication with investors and analysts.

DiGiSPICE Files SEBI Dematerialisation Compliance Certificate for December Quarter

DiGiSPICE Technologies Limited has submitted to the stock exchanges a compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended 31 December 2025, as provided by its registrar and share transfer agent, MAS Services Limited. MAS Services confirmed that all securities received for dematerialisation during the quarter were processed, confirmed or rejected, and reflected in the depositories and the company’s register of members within the mandated 15-day period, signalling continued adherence to regulatory requirements and reinforcing operational transparency for shareholders and market participants.

DiGiSPICE Closes Trading Window Ahead of December 2025 Financial Results

DiGiSPICE Technologies Limited has announced the closure of its trading window for designated persons and their immediate relatives from 1 January 2026 until two days after the board meeting at which the financial results for the quarter and nine months ended 31 December 2025 will be considered. The move, made in line with SEBI’s Prohibition of Insider Trading Regulations and the company’s internal code of conduct, is a standard governance measure aimed at preventing insider trading and ensuring fair disclosure to all market participants, with the exact board meeting date to be communicated later.