Brightcom Group Limited

Communication Services — Advertising Agencies · NSE

₹9.11+₹0.09 (+1.00%)

DalalBaazaar Score

52 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:47 pm

Understanding the Business

Company site ↗

The 60-second version of Brightcom Group Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Brightcom Group Limited, together with its subsidiaries, provides digital marketing solutions to businesses, agencies, and online publishers worldwide. It operates through Digital Marketing (& Related) Services; and Software Development Services segments.

IndustryAdvertising Agencies

SectorCommunication Services

Annual revenue₹6,928 Cr

How does it make money?

Turns over ₹6,928 Cr a year. Of every ₹100 of sales, about ₹14 reaches shareholders as profit, with ₹25 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are BHARTI AIRTEL LIMITED, VODAFONE IDEA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 13.5% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE20.2%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -6% while net margin moved -25% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-6%

Margin effect-25%

DalalBaazaar Score

52/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 2.2% a year
✗ Profit has declined at 11.1% a year

Quality vs. Valuation

Company Quality

46/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

88/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

1.8x

3Y Median

2.8x

40 monthly readings · mean 2.7x · range 1.1x–4.6x

Sector Median

21.7x

median of 2 sector peers

🟢Current valuation is approximately 35% below its 3y median of 2.8x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 92% below the peer median of 21.7x.

vs. its own history

Cheap

2.8x median over 40 months · -35%

vs. sector peers

Cheap

21.7x median of 2 peers · -92%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

0.2x

PEG

0.07

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 19.6% to 9.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 27.1% to 13.5% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Receivables growing faster than salesFinancial
Receivables up 73% against revenue up -6% — sales are being booked faster than they are collected.
🟡Profit is decliningFinancial
Net profit is down 30% over 3 years.
🟡Margins are compressingFinancial
EBITDA margin is down 4.0 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 35% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 92% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 29.3% to 25.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 73% against revenue up -6%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 19.6% to 9.1%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 23%✓ 25.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹473 Cr
Profit that never becomes cash eventually stops being profit.
3ROCE stays above 11%✓ 13.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
4Valuation vs its own median of 2.8x✓ 1.8x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 5 neutral · 1 weak

Market Cap

₹1,839 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

1.8x

Cheap

Cheap against the generic band

P/B Ratio

0.17x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹5.02

Profitable

Profitable on a per-share basis

ROE

9.1%

Moderate

Moderate capital efficiency

ROCE

13.5%

Moderate

Moderate return on the capital in the business

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

20.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

25.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹473 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

21.5%

Good

Healthy core-business profitability

Net Margin

14.0%

Good

Strong bottom-line conversion

Current Ratio

6.71

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.70

Defensive

Steadier than the market

52W Range Position

19%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

9.3 / 9.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

35.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹7,397 Cr	₹4,662 Cr	₹5,147 Cr	₹6,928 Cr	-2.2%
EBITDA	₹2,166 Cr	₹1,239 Cr	₹1,322 Cr	₹1,752 Cr	-6.8%
EBITDA Margin	29.3%	26.6%	25.7%	25.3%	—
PAT (Net Profit)	₹1,371 Cr	₹688 Cr	₹710 Cr	₹962 Cr	-11.1%
EPS	₹6.79	₹3.41	₹3.52	₹4.77	-11.1%
ROE	19.6%	8.8%	8.2%	9.1%	—
ROCE	27.1%	12.2%	11.7%	13.5%	—
Free Cash Flow	₹437 Cr	-₹277 Cr	-₹204 Cr	-₹473 Cr	—

🔴 Revenue has shrunk at 2.2% a year over 3 years.

🔴 EBITDA has shrunk at 6.8% a year over 3 years.

🔴 EBITDA Margin has fallen from 29.3% to 25.3% over 3 years (-4.0 pts).

🔴 PAT (Net Profit) has shrunk at 11.1% a year over 3 years.

🔴 EPS has shrunk at 11.1% a year over 3 years.

🔴 ROE has fallen from 19.6% to 9.1% over 3 years (-10.5 pts).

🔴 ROCE has fallen from 27.1% to 13.5% over 3 years (-13.6 pts).

🔴 Free Cash Flow has turned negative, from ₹437 Cr to -₹473 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹11,989 Cr

Total Liabilities

₹1,418 Cr

Total Debt

—

Cash & Equivalents

₹1,415 Cr

Operating Cash Flow

₹103 Cr

Capex

-₹576 Cr

Shareholding (proxy)

Institutional Holding

1.3%

Insider Holding

23.7%

Corporate Actions

Ex-Dividend Date

22 Sept 2022

Peer Comparison

Company	P/E	ROE
BHARTI AIRTEL LIMITED	39.8x	20.2%
VODAFONE IDEA LIMITED	3.6x	—

Recent News

1 mixed1 negative4 general

Brightcom Group Share Price Target 2027, 2028 and 2030: Long Term Analyst Forecast

Univest, 06 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Brightcom Group Fake Bank Statements Fraud Explained

HDFC Sky, 06 AugRegulatory

🔴Potentially negativeRegulatory and legal actions carry a financial cost and a governance question. The second usually matters more than the first.

Brightcom Group 27th AGM: all six resolutions passed by shareholders

scanx.trade, 03 Oct

Brightcom Group Share Price: Buy or Sell

Univest, 11 Sept

Momentum Stocks: Pix Transmissions, Brightcom Group, Suven Life gain on sheer momentum

Moneycontrol.com, 10 Aug

Brightcom Group FY26 PAT rises 35.5% to ₹962.33 crore

scanx.trade, 07 Jun

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingBusiness Quality · Profitability

WeakGrowth · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 3 high-severity red flags sit above this conclusion and should be read first.

1 of 4 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑