Panache Digilife Ltd. (PANACHE) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: N/A
• Average Volume (3M): N/A
• Price to Earnings (P/E): ―
• Beta (1Y): N/A
• Revenue Growth: 42.08%
• EPS Growth: 79.14%
• Country: IN
• Employees: 33
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.92
• Shares Outstanding: 15,228,000
• 10 Day Avg. Volume: N/A
• 30 Day Avg. Volume: N/A
• PEG Ratio: 0.06
• Price to Book (P/B): 6.06
• Price to Sales (P/S): 3.44
• P/FCF Ratio: -20.52
• 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: 55 Neutral
• Price Target: ―

The score is primarily held back by weak cash conversion and negative FY2025 operating/free cash flow despite higher reported earnings. Offsetting this are improved profitability and a stronger balance sheet with reduced leverage, while technical and valuation views cannot be confirmed due to missing inputs.

Positive Factors

Profitability Improvement

Improved profitability with increased revenue and net income indicates stronger operational efficiency and market position, supporting long-term growth.

Leverage Reduction

Reduced leverage enhances financial stability and flexibility, allowing the company to better navigate economic cycles and invest in growth opportunities.

Revenue Growth

Strong revenue growth reflects successful product adoption and market expansion, indicating a positive trajectory for future business development.

Negative Factors

Negative Cash Flow

Negative cash flow despite profitability raises concerns about cash management and operational efficiency, potentially limiting future investment capacity.

Gross Margin Compression

Declining gross margins may pressure profitability if cost controls are not effectively managed, impacting long-term earnings potential.

Volatile Cash Flow

Volatile cash flow history suggests inconsistent earnings quality, which could undermine investor confidence and strategic planning.

Panache Digilife Ltd. Business Overview & Revenue Model

Company Description

Panache Digilife Limited manufactures, distributes, sells, and services information, communication and technology, and Internet of Thing devices in India. The company provides smart compute devices, such as squair, clair, flair AIO, air, desair, and desktop PCs, as well as laptops and NUCs; and POS terminals, thermal printers, cash drawers, and touch monitors. It also offers smart education solutions, such as OPS, IFPD, AI4YOUTH, and squair PCs for classroom learning and teaching; and healthy living solutions, including Aquatatva that provides drinking water, and IoT ready smart metering solution to monitor water consumption patterns remotely. The company was formerly known as Vardhaman Technology Limited and changed its name to Panache Digilife Limited in February 2017. Panache Digilife Limited was incorporated in 2007 and is based in Mumbai, India.

How the Company Makes Money

Panache Digilife Ltd. generates revenue through multiple streams, primarily by offering software development services, digital marketing solutions, and e-commerce platforms. The company charges clients for custom software development projects, ongoing maintenance, and support services. Additionally, PANACHE earns money by providing digital marketing services such as search engine optimization (SEO), pay-per-click (PPC) advertising, and social media management. Furthermore, the company may have strategic partnerships with other tech firms and platforms, allowing it to expand its service offerings and reach new customer segments, thereby enhancing its revenue potential. Overall, the combination of service fees, project-based revenue, and potential affiliate earnings from partnerships contributes significantly to the company's financial growth.

Panache Digilife Ltd. Financial Statement Overview

Summary

Income statement and balance sheet improved (FY2025 profitability step-up and meaningfully lower leverage), but cash flow is a major weakness: operating and free cash flow turned materially negative in FY2025 and have been volatile historically, reducing confidence in earnings quality and near-term flexibility.

Income Statement

FY2025 shows a clear profitability step-up: revenue rose to ~1.16B (+4.8% YoY) and net income expanded to ~68.7M (net margin ~5.9%) versus a near-breakeven FY2024 (~0.6% net margin). Operating profitability also improved materially (EBIT margin ~8.8% in FY2025 vs ~4.1% in FY2024). Offsetting this, gross margin compressed versus FY2024 (~11.8% vs ~14.7%), and the longer-term revenue path has been choppy (declines in FY2023–FY2024), indicating less consistent top-line momentum.

Balance Sheet

Leverage improved meaningfully in FY2025, with debt-to-equity falling to ~0.32 from ~1.02 in FY2024 as equity increased sharply. Returns also strengthened (return on equity ~10.4% in FY2025 vs ~1.7% in FY2024), consistent with the earnings recovery. The main watch item is that leverage was elevated for several years prior (debt-to-equity ~0.8–1.1 historically), so the FY2025 improvement needs to prove durable through the cycle.

Cash Flow

Cash generation weakened significantly in FY2025: operating cash flow turned negative (~-179.3M) and free cash flow was also negative (~-194.5M), despite positive reported earnings (~68.7M). This divergence suggests working-capital or cash-collection pressure and reduces financial flexibility in the near term. While FY2024 showed positive operating and free cash flow, the multi-year pattern is volatile (negative operating/free cash flow also occurred in FY2023), raising the risk that profits do not consistently translate into cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.34B	1.16B	965.42M	1.12B	859.09M	775.80M
Gross Profit	193.98M	137.42M	141.54M	128.09M	113.46M	147.91M
EBITDA	122.85M	113.32M	48.82M	63.69M	62.43M	86.63M
Net Income	73.25M	68.67M	5.54M	8.24M	7.99M	3.59M
Balance Sheet
Total Assets	0.00	1.14B	967.08M	1.02B	969.06M	945.61M
Cash, Cash Equivalents and Short-Term Investments	10.53M	10.53M	5.94M	2.33M	9.06M	8.05M
Total Debt	0.00	207.68M	326.54M	353.42M	241.00M	285.91M
Total Liabilities	-658.70M	477.84M	648.36M	706.93M	664.72M	651.50M
Stockholders Equity	658.70M	658.87M	318.74M	314.42M	304.35M	294.11M
Cash Flow
Free Cash Flow	0.00	-194.48M	41.66M	-77.23M	71.76M	50.38M
Operating Cash Flow	0.00	-179.29M	48.34M	-66.07M	72.75M	56.39M
Investing Cash Flow	0.00	35.13M	85.39M	57.41M	56.10M	-11.06M
Financing Cash Flow	0.00	218.61M	-123.48M	-150.33M	-62.16M	-53.80M

Panache Digilife 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%
PANACHE	55 Neutral	―	―	―	―	42.08%	79.14%
MELSTAR	42 Neutral	₹61.70M	―	―	―	―	―
TECHIN	42 Neutral	₹217.33M	-43.19	―	―	―	―

Panache Digilife Ltd. Corporate Events

Panache Digilife Announces Corrigendum to EGM Notice

Panache Digilife Limited, a company listed on the National Stock Exchange of India, has published a corrigendum to the notice of its upcoming Extra-Ordinary General Meeting (EGM) scheduled for October 18, 2025. The announcement was made through newspaper advertisements in ‘The Financial Express’ and ‘Mumbai Lakshadeep’ and highlights the EGM will be conducted via video conferencing, ensuring accessibility for stakeholders.