PDS Limited (PDSL) AI Stock Analysis

• Market Cap: ₹53.37B
• Dividend Yield: 0.94%
• Average Volume (3M): 9.95K
• Price to Earnings (P/E): 49.2
• Beta (1Y): 1.00
• 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: 141,349,640
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ₹384.00 ▲(8.00% Upside)

PDS Limited's strong revenue growth and improving gross margins are significant strengths, but negative cash flow metrics and high valuation raise concerns. Technical indicators suggest caution, with the stock trading below key moving averages.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market presence and successful product offerings, which are crucial for long-term business sustainability.

Gross Margin Improvement

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

Balance Sheet Health

A healthier balance sheet with reduced leverage enhances financial stability, providing flexibility for future investments and growth.

Negative Factors

Negative Cash Flow

Negative cash flow indicates potential liquidity issues, which could constrain operations and limit the ability to invest in growth opportunities.

Free Cash Flow Challenges

Negative free cash flow, driven by high capital expenditures, may pressure financial resources, impacting long-term investment capacity.

Low Return on Equity

A low ROE suggests inefficiencies in generating returns from equity, potentially affecting investor confidence and capital attraction.

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: 355.55
• 50DMA: Positive
• 100DMA: Positive
• 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:PDSL, the sentiment is Negative. The current price of 355.55 is below the 20-day moving average (MA) of 377.04, above the 50-day MA of 346.32, and below the 200-day MA of 380.97, indicating a neutral trend. The MACD of 2.47 indicates Positive momentum. The RSI at 43.82 is Neutral, neither overbought nor oversold. The STOCH value of 8.63 is Positive, 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	₹47.42B	20.30	―	2.77%	4.74%	176.63%
ZAGGLE	72 Outperform	₹48.61B	48.05	―	―	47.25%	45.37%
ICRA	72 Outperform	₹62.63B	33.20	―	0.97%	8.06%	24.52%
AHLUCONT	68 Neutral	₹61.49B	27.61	―	0.06%	5.56%	-22.59%
PDSL	65 Neutral	₹53.37B	49.21	―	0.94%	11.49%	-32.79%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
TVSSCS	47 Neutral	₹47.85B	84.52	―	―	5.13%	90.30%