PDS Limited (PDSL) AI Stock Analysis

• Market Cap: ₹49.67B
• Dividend Yield: 0.91%
• Average Volume (3M): 9.95K
• Price to Earnings (P/E): 45.8
• Beta (1Y): 1.14
• Revenue Growth: 11.49%
• EPS Growth: -32.79%
• Country: IN
• Employees: 10,143
• Sector: Services
• Sector Strength: N/A
• Industry: Specialty Business Services
• EPS (TTM): 2.10
• Shares Outstanding: 141,378,390
• 10 Day Avg. Volume: 12,288
• 30 Day Avg. Volume: 9,954
• PEG Ratio: 9.08
• Price to Book (P/B): 3.61
• Price to Sales (P/S): 0.47
• P/FCF Ratio: -46.75
• 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: 66 Neutral
• Price Target: ₹414.00 ▲(8.08% Upside)

PDS Limited's strong revenue growth and improving gross margins are significant strengths, but negative cash flow metrics pose liquidity risks. The technical indicators suggest a positive trend, though the high P/E ratio indicates overvaluation. The stock's overall score reflects these mixed factors.

Positive Factors

Revenue Growth

Strong revenue growth indicates PDS Limited's ability to expand its market presence and enhance product adoption, supporting long-term business sustainability.

Gross Margin Improvement

Improving gross margins reflect effective cost control and pricing strategies, enhancing profitability and competitive positioning over time.

Balance Sheet Health

A strong balance sheet with reduced leverage enhances financial stability and flexibility, supporting long-term strategic initiatives and growth.

Negative Factors

Negative Cash Flow

Negative cash flow from operations suggests potential liquidity challenges, which could impact the company's ability to fund growth and meet obligations.

Free Cash Flow Concerns

Negative free cash flow indicates insufficient cash generation to cover investments, potentially limiting future growth opportunities and financial resilience.

Low Return on Equity

Low ROE suggests the company may not be efficiently using its equity base to generate profits, which could affect investor confidence and long-term value creation.

PDS Limited Business Overview & Revenue Model

Company Description

PDS Limited (PDSL) is a prominent company operating primarily in the technology and digital services sector. The company specializes in providing innovative solutions related to software development, IT consulting, and system integration. PDSL caters to various industries, including finance, healthcare, and retail, offering a suite of products that enhance operational efficiency and drive digital transformation for its clients.

How the Company Makes Money

PDSL generates revenue through multiple streams, including software licensing, consulting fees, and maintenance contracts. The company charges clients for bespoke software solutions and ongoing support services, which form a significant portion of its income. Additionally, PDSL engages in strategic partnerships with technology firms to enhance its service offerings and reach a broader market. These collaborations often lead to joint ventures or co-developed products that further contribute to its earnings. Moreover, the company may also earn revenue from training programs and workshops aimed at helping clients maximize the use of its software solutions.

PDS Limited Financial Statement Overview

Summary

PDS Limited shows strong revenue growth and improving gross margins, which are promising. However, negative cash flow metrics indicate potential liquidity challenges, and the net profit margin suggests room for improvement. The balance sheet is robust with manageable leverage.

Income Statement

PDS Limited has demonstrated strong growth and profitability. The company showed a remarkable revenue growth rate, particularly from 2024 to 2025 with over 21% increase. Gross profit margin improved to approximately 20.1% in 2025, up from 10.0% in 2024, indicating effective cost management. The net profit margin is stable at around 1.25% over recent years. Despite a dip in EBIT margin from 3.8% in 2023 to 2.8% in 2024, there's a recovery to 2.8% in 2025. EBITDA margin remains steady at around 3.6%. Overall, PDS Limited's revenue growth and improving gross margins are significant strengths, although the net profit margin indicates room for improvement.

Balance Sheet

PDS Limited's balance sheet reflects prudent financial management with a modest leverage profile. The debt-to-equity ratio increased to 0.75 in 2025 from 0.90 in 2024, showing improved financial leverage. The equity ratio of 34.8% in 2025 reflects a solid equity base. Return on equity (ROE) is relatively low, at 9.5% in 2025, indicating moderate return on shareholders' equity. The company's growing stockholders' equity and reduced net debt are positive indicators, though the company could benefit from further improving its ROE.

Cash Flow

PDS Limited's cash flow situation presents challenges. The operating cash flow turned negative in 2025, contrasting with positive values in previous years, indicating potential operational cash generation issues. Free cash flow also turned negative in 2025, primarily due to increased capital expenditures. The free cash flow to net income ratio reveals a worrying trend, with negative values in 2025, highlighting pressures on cash flows. The company should focus on improving cash generation to support sustainable growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	129.56B	125.78B	103.73B	105.77B	88.28B	62.13B
Gross Profit	22.07B	12.01B	10.31B	17.71B	13.86B	10.23B
EBITDA	5.04B	5.06B	4.33B	5.26B	4.19B	2.79B
Net Income	1.50B	1.57B	1.44B	2.65B	2.48B	843.17M
Balance Sheet
Total Assets	47.14B	47.38B	40.62B	31.09B	33.98B	23.46B
Cash, Cash Equivalents and Short-Term Investments	6.59B	7.75B	6.98B	8.69B	5.49B	3.69B
Total Debt	9.55B	12.32B	10.54B	7.19B	7.41B	5.62B
Total Liabilities	-17.16B	30.22B	28.16B	19.96B	24.62B	16.30B
Stockholders Equity	17.16B	16.50B	11.66B	10.54B	8.72B	6.47B
Cash Flow
Free Cash Flow	-1.93B	-1.28B	229.77M	4.51B	3.58B	3.53B
Operating Cash Flow	-1.40B	-365.52M	1.90B	5.10B	4.03B	3.79B
Investing Cash Flow	-331.59M	-2.58B	-3.14B	-1.37B	-2.28B	-831.24M
Financing Cash Flow	5.58B	4.03B	-384.75M	-3.37B	-264.92M	-3.47B

PDS Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 383.05
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PDSL, the sentiment is Negative. The current price of 383.05 is above the 20-day moving average (MA) of 365.21, above the 50-day MA of 367.92, and above the 200-day MA of 369.50, indicating a bearish trend. The MACD of -1.32 indicates Positive momentum. The RSI at 42.72 is Neutral, neither overbought nor oversold. The STOCH value of 37.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:PDSL.

PDS Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VRLLOG	73 Outperform	₹45.06B	19.29	―	2.79%	4.74%	176.63%
ZAGGLE	72 Outperform	₹41.12B	36.51	―	―	47.25%	45.37%
ICRA	72 Outperform	₹58.57B	31.05	―	0.97%	8.06%	24.52%
AHLUCONT	68 Neutral	₹61.78B	23.52	―	0.06%	5.56%	-22.59%
PDSL	66 Neutral	₹49.67B	45.79	―	0.91%	11.49%	-32.79%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
TVSSCS	47 Neutral	₹47.25B	82.72	―	―	5.13%	90.30%

PDS Limited Corporate Events

PDS Limited Sheds UK Step-Down Associate in Corporate Restructuring Move

PDS Limited has rationalised its corporate structure by having its UK subsidiary, Poetic Brands Limited, divest its entire 20% equity stake in Mambo Leisure Masters Limited, a UK-based step-down associate, effective 6 January 2026. The non-related-party transaction, conducted for approximately ₹1.58 million, removes Mambo Leisure from PDS’s consolidated associate portfolio, though the unit contributed a negligible share to group turnover and net worth, underscoring that the move is more about strategic and economic optimisation than about balance-sheet impact for shareholders.

PDS Reshapes Manufacturing Leadership to Scale Operations and Deepen Customer Ties

PDS Limited has strengthened its manufacturing leadership as part of a strategy to scale operations, deepen customer relationships and move up the fashion supply chain value curve. Following a multi-year turnaround in its manufacturing segment, which saw revenues rise from ₹285 crore and a PBT loss in FY21 to ₹788 crore of revenue and a positive PBT in FY25, the company plans to align customer engagement and operational best practices across its units in Bangladesh and India while maintaining them as independent profit centres. The appointment of Abhishek Nawani as CEO – Manufacturing, with responsibility for customer engagement, growth initiatives and the segment’s P&L, is intended to unify and better showcase PDS’s combined capabilities, drive cost efficiencies and synergies, and support sustainable, long-term growth and improved returns for stakeholders across its manufacturing operations.

PDS Limited Announces Investor Meeting on December 19, 2025

PDS Limited has announced an upcoming investor meeting scheduled for December 19, 2025, to be held in-person. The company has assured that no unpublished price-sensitive information will be disclosed during these meetings, and discussions will rely on publicly available information. This meeting is part of the company’s efforts to maintain transparency and engage with its stakeholders effectively.

PDS Limited Schedules Investor Meetings for December 2025

PDS Limited has announced that it will be conducting group meetings with investors on December 8, 2025. These meetings will be held in person and will focus on publicly available information, ensuring that no unpublished price-sensitive information is disclosed. The investor presentation is accessible on the company’s website, and the meeting schedule is subject to change based on the availability of the investors or the company.

PDS Limited Opens Special Window for Share Transfer Requests

PDS Limited has announced the publication of a newspaper advertisement regarding the opening of a special window for re-lodgement of transfer requests for physical shares. This disclosure is made under Regulation 30 of the SEBI Listing Regulations and is aimed at ensuring transparency and compliance with the regulatory framework. The advertisement was published in Business Standard and Mumbai Lakshadweep and is available on the company’s website. This step is part of the company’s efforts to facilitate shareholder engagement and streamline share transfer processes.

PDS Limited’s Annual Report Wins Gold at LACP 2025, Achieves Global Rank 46

PDS Limited’s Annual Report for FY 2024-25 has won the Gold Award at the 2025 Spotlight Awards by the League of American Communications Professionals, achieving a global rank of 46, up from 74 in 2023. This accolade highlights the company’s excellence in corporate communications and reflects its commitment to transparency and world-class reporting standards, enhancing its reputation in the global fashion supply chain industry.