Pakka Ltd (PAKKA) AI Stock Analysis

• Market Cap: ₹3.93B
• Dividend Yield: N/A
• Average Volume (3M): 16.14K
• Price to Earnings (P/E): 16.8
• Beta (1Y): 1.23
• Revenue Growth: -11.28%
• EPS Growth: -62.38%
• Country: IN
• Employees: 508
• Sector: Services
• Sector Strength: N/A
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 1.57
• Shares Outstanding: 44,948,100
• 10 Day Avg. Volume: 7,834
• 30 Day Avg. Volume: 16,140
• PEG Ratio: -1.27
• Price to Book (P/B): 1.58
• Price to Sales (P/S): 1.76
• P/FCF Ratio: -3.99
• 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: 46 Neutral
• Price Target: ₹82.00 ▼(-23.86% Downside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

The score is held down primarily by weak financial performance, especially negative free cash flow and poor cash conversion alongside a sharp revenue decline and margin pressure. Technicals also remain bearish with the stock trading below all key moving averages and a negative MACD, despite early signs of being near oversold. Valuation is only middling (P/E 24.52) and does not strongly compensate for the fundamental and trend risks.

Positive Factors

Stable capital structure

A low debt-to-equity (0.46) and a 61.2% equity ratio signal conservative leverage and a stable capital base. This reduces refinancing and solvency risk, giving management flexibility to fund working capital or investments and to endure cyclical headwinds over coming months.

High gross margins

A gross margin near 59% indicates strong unit economics or favorable product mix in paper and molded-fiber products. This margin buffer helps absorb selling/overhead pressure and supports longer-term margin recovery if revenue stabilizes or fixed costs are reallocated.

Sustainable packaging focus

Strategic orientation toward compostable and paper-based packaging aligns with durable regulatory and consumer trends toward sustainable packaging. This structural demand tailwind can support differentiated customer relationships and long-term volume growth if execution and supply meet demand.

Negative Factors

Sharp revenue decline

A near-60% drop in revenue materially erodes scale, weakens bargaining power with suppliers, and impairs fixed-cost absorption. Sustained top-line contraction makes margin recovery and investment funding difficult and increases execution risk over the next several quarters.

Weak cash generation

Very low operating cash conversion (0.075) and negative FCF signal poor cash conversion and potential liquidity pressure. This undermines the firm's ability to self-fund capex, inventory build or debt service, raising financing risk and constraining strategic flexibility.

Compressed profitability and returns

Declining operating and net margins reduce return on capital and limit retained earnings for reinvestment. Lower profitability erodes ROE and weakens the case for capital allocation, making it harder to restore growth or compete on price without structural cost actions.

Pakka Ltd Business Overview & Revenue Model

Company Description

Pakka Limited manufactures and sells paper and moulded products in India. The company operates through Paper, Pulp, and Other Products; and Moulded Products segments. It offers molded food service ware products under the CHUK brand; bleached and unbleached agricultural pulp products; and bleached, unbleached, and colored kraft products, as well as flexible packaging. The company also exports its products. The company was formerly known as Yash Pakka Limited and changed its name to Pakka Limited in July 2023. Pakka Limited was incorporated in 1981 and is based in Ayodhya, India.

How the Company Makes Money

Pakka Ltd generates revenue through multiple channels, primarily by offering subscription-based services and licensing its software products to businesses. The company charges clients a recurring fee for access to its software platforms and cloud services, which provides a stable income stream. Additionally, PAKKA earns revenue from consulting services, where it helps organizations implement and optimize its software solutions. Significant partnerships with industry leaders in technology and finance further bolster its earnings by expanding its market reach and enhancing product offerings. The company also benefits from revenue-sharing agreements with partners, contributing to its overall financial performance.

Pakka Ltd Financial Statement Overview

Summary

Overall fundamentals are weak: revenue fell sharply (-59.3%) and profitability compressed (net margin 9.2% with declining EBIT/EBITDA margins). Balance sheet leverage is better (debt-to-equity 0.46; equity ratio 61.2%), but ROE is down (8.3%). Cash flow is the biggest concern with negative free cash flow and very low operating cash conversion (operating cash flow to net income 0.075; FCF to net income -16.1).

Income Statement

Pakka Ltd has experienced a significant decline in revenue growth, with a negative growth rate of -59.3% in the latest year. The gross profit margin remains relatively strong at 58.8%, but the net profit margin has decreased to 9.2%. The EBIT and EBITDA margins have also declined, indicating reduced operational efficiency. Overall, the income statement reflects challenges in maintaining revenue and profitability.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.46, indicating better leverage management. However, the return on equity has decreased to 8.3%, reflecting lower profitability relative to shareholder equity. The equity ratio stands at 61.2%, suggesting a stable capital structure. Despite improvements in leverage, the reduced profitability impacts the overall balance sheet strength.

Cash Flow

Pakka Ltd faces significant challenges in cash flow management, with a negative free cash flow and a concerning free cash flow to net income ratio of -16.1. The operating cash flow to net income ratio is low at 0.075, indicating insufficient cash generation from operations. The negative free cash flow growth highlights potential liquidity issues.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	4.06B	4.05B	4.08B	2.91B	1.84B
Gross Profit	2.39B	2.47B	1.12B	1.75B	1.12B
EBITDA	744.05M	891.92M	886.18M	693.78M	425.46M
Net Income	375.20M	434.03M	460.43M	357.10M	167.21M
Balance Sheet
Total Assets	7.38B	5.07B	3.73B	3.24B	2.62B
Cash, Cash Equivalents and Short-Term Investments	767.18M	563.54M	21.01M	49.69M	2.02M
Total Debt	2.06B	1.84B	1.04B	1.04B	939.41M
Total Liabilities	2.86B	2.55B	1.67B	1.59B	1.32B
Stockholders Equity	4.52B	2.51B	2.06B	1.65B	1.30B
Cash Flow
Free Cash Flow	-1.80B	-126.37M	122.35M	32.14M	137.60M
Operating Cash Flow	111.56M	469.56M	513.71M	324.72M	274.06M
Investing Cash Flow	-1.78B	-686.49M	-382.41M	-293.44M	-116.05M
Financing Cash Flow	1.78B	758.67M	-170.98M	16.43M	-158.89M

Pakka Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 107.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PAKKA, the sentiment is Negative. The current price of 107.7 is above the 20-day moving average (MA) of 89.93, above the 50-day MA of 95.45, and below the 200-day MA of 144.69, indicating a bearish trend. The MACD of -2.19 indicates Positive momentum. The RSI at 36.94 is Neutral, neither overbought nor oversold. The STOCH value of 12.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:PAKKA.

Pakka Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RPPINFRA	62 Neutral	₹3.61B	186.32	―	0.47%	-7.32%	-26.92%
ROHLTD	61 Neutral	₹9.52B	31.71	―	0.61%	10.77%	-4.40%
ZEEMEDIA	57 Neutral	₹4.99B	2.64	―	―	3.58%	18.64%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
PAKKA	46 Neutral	₹3.93B	16.80	―	―	-11.28%	-62.38%
DISHTV	39 Underperform	₹4.84B	-0.66	―	―	-22.62%	66.73%

Pakka Ltd Corporate Events

Pakka Limited Publishes Q3 and Nine-Month FY26 Earnings Call Transcript

Pakka Limited has released the transcript of its Q3 and nine-month FY 2026 earnings conference call, during which management discussed the company’s financial performance for the period ended 31 December 2025. The transcript, published in compliance with SEBI’s disclosure regulations, has been made available on the company’s website, underscoring Pakka’s ongoing efforts to maintain transparency and timely communication with its shareholders and market stakeholders.

Pakka Ltd Releases Q3 and Nine-Month FY 2025-26 Investor Presentation

Pakka Ltd has released an investor presentation detailing its financial performance for the third quarter and nine months ended 31 December 2025, in line with its disclosure obligations under SEBI’s Listing Regulations. The presentation, which will be used during a scheduled group video conference investor call on 2 February 2026, is also available on the company’s website, providing shareholders and market participants with updated financial information and reinforcing the company’s ongoing engagement with investors and regulators.

Pakka Reschedules Q3 FY26 Investor Call to 2 February 2026

Pakka Limited has revised the schedule of its analyst and investor video conference call, which will now be held on Monday, 2 February 2026 at 4:00 p.m. IST to discuss the company’s financial performance for the third quarter and nine months ended 31 December 2025. The rescheduled group call, to be attended by key business, regional, finance, and legal executives, underscores the company’s ongoing engagement with the investment community and provides stakeholders an opportunity to gain insight into operational performance and strategic developments across its global and food services businesses.

Pakka Limited Files SEBI Regulation 74(5) Compliance Certificate for Q3 FY2025-26

Pakka Limited has submitted a compliance certificate for the quarter ended 31 December 2025 under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, as issued by its SEBI-registered registrar and share transfer agent, Skyline Financial Services Private Limited. The filing, which has been shared with both NSE and BSE and posted on the company’s website, underscores Pakka’s adherence to depository-related regulatory requirements and provides assurance to shareholders and market participants regarding the company’s ongoing compliance with securities market norms.

Pakka Limited Advances Merger with Subsidiary Following NCLT Approval

Pakka Limited has received approval from the National Company Law Tribunal (NCLT) in Allahabad for the first motion petition regarding the merger of its wholly-owned subsidiary, Pakka Impact Limited, with itself. This approval marks a significant step in the company’s strategic plan to consolidate its operations, potentially strengthening its market position and operational efficiency. The company will proceed with the necessary steps to obtain final approval for the merger, which is expected to have implications for its stakeholders.