Pakka Ltd (PAKKA) AI Stock Analysis

• Market Cap: ₹4.13B
• Dividend Yield: N/A
• Average Volume (3M): 16.14K
• Price to Earnings (P/E): 25.8
• Beta (1Y): 1.22
• 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: 44 Neutral
• Price Target: ₹86.00 ▼(-20.15% Downside)

Pakka Ltd's overall stock score is primarily impacted by its weak financial performance and bearish technical indicators. The company's financial challenges, including declining revenue and liquidity issues, are significant concerns. Additionally, the technical analysis suggests a strong downward trend, further weighing on the stock's attractiveness. The valuation component indicates the stock may be overvalued, adding to the negative outlook.

Positive Factors

High gross profit margin

A ~58.8% gross margin provides a durable cushion against revenue volatility, enabling the business to cover variable costs and maintain contribution even with lower volumes. Persistently strong gross margins support reinvestment in product development and margin recovery strategies over months.

Improved leverage and stable capital structure

A lower debt-to-equity (0.46) and a 61.2% equity ratio reduce solvency risk and preserve borrowing capacity. This structurally improves financial flexibility, making it easier to fund working capital, capex or strategic initiatives without immediate refinancing stress over the next several months.

Focus on compostable and paper-based packaging

Strategic focus on compostable, biodegradable and paper packaging aligns with long-term regulatory and consumer shifts toward sustainable materials. This structural positioning supports durable demand from consumer goods and food-service customers and aids differentiation versus commodity packaging players.

Negative Factors

Steep revenue decline

A severe year-over-year revenue drop of ~59% erodes scale and fixed-cost absorption, weakening unit economics. Sustained top-line contraction reduces pricing power and investment headroom, making multi-month recovery harder and risking market share loss in core segments.

Weak cash generation and negative free cash flow

Negative free cash flow and an operating cash flow to net income ratio near 0.075 indicate poor cash conversion. This structural cash weakness constrains working capital and capex, increases reliance on external funding despite lower leverage, and raises liquidity risk over coming months.

Declining profitability metrics

Lower ROE (~8.3%) and a reduced net margin (~9.2%), with shrinking EBIT/EBITDA margins, signal diminished capital efficiency and operating performance. Persistently compressed margins limit retained earnings and slow balance sheet rebuild, hampering sustained recovery efforts.

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

Pakka Ltd is facing significant financial challenges with declining revenue and profitability. The income statement shows a negative revenue growth rate and reduced profit margins. Although leverage management has improved, liquidity issues are evident with negative free cash flow.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.06B	4.06B	4.05B	4.08B	2.91B	1.84B
Gross Profit	2.39B	2.39B	2.47B	1.12B	1.75B	1.12B
EBITDA	744.05M	744.05M	891.92M	886.18M	693.78M	425.46M
Net Income	375.20M	375.20M	434.03M	460.43M	357.10M	167.21M
Balance Sheet
Total Assets	7.38B	7.38B	5.07B	3.73B	3.24B	2.62B
Cash, Cash Equivalents and Short-Term Investments	767.18M	767.18M	563.54M	21.01M	49.69M	2.02M
Total Debt	2.06B	2.06B	1.84B	1.04B	1.04B	939.41M
Total Liabilities	2.86B	2.86B	2.55B	1.67B	1.59B	1.32B
Stockholders Equity	4.52B	4.52B	2.51B	2.06B	1.65B	1.30B
Cash Flow
Free Cash Flow	0.00	-1.80B	-126.37M	122.35M	32.14M	137.60M
Operating Cash Flow	0.00	111.56M	469.56M	513.71M	324.72M	274.06M
Investing Cash Flow	0.00	-1.78B	-686.49M	-382.41M	-293.44M	-116.05M
Financing Cash Flow	0.00	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: Negative
• RSI: Neutral
• STOCH: Neutral

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 94.13, above the 50-day MA of 102.14, and below the 200-day MA of 152.07, indicating a bearish trend. The MACD of -4.09 indicates Negative momentum. The RSI at 43.31 is Neutral, neither overbought nor oversold. The STOCH value of 47.15 is Neutral, 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
ROHLTD	61 Neutral	₹10.12B	21.37	―	0.61%	10.77%	-4.40%
RPPINFRA	60 Neutral	₹4.53B	6.92	―	0.47%	-7.32%	-26.92%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
ZEEMEDIA	47 Neutral	₹5.13B	-6.14	―	―	3.58%	18.64%
PAKKA	44 Neutral	₹4.13B	25.80	―	―	-11.28%	-62.38%
DISHTV	38 Underperform	₹6.30B	-0.93	―	―	-22.62%	66.73%

Pakka Ltd Corporate Events

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.

Pakka Ltd Releases Q2 Financial Performance Presentation

Pakka Ltd has released an investor presentation detailing its financial performance for the second quarter and half-year ending September 30, 2025. This presentation, which is part of the company’s compliance with SEBI regulations, was discussed during an investor call held via video conference. The release of this information is significant for stakeholders as it provides insights into the company’s financial health and strategic direction.