Colab Platforms Limited

Communication Services — Entertainment · BSE

₹126.05₹0.00 (0.00%)

DalalBaazaar Score

49 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

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

What does this company do?

Colab Platforms Limited provides information technology, esports, and gaming related services in India. It offers sports marketplace, content, media, infrastructure, marketing, and IP management solutions; and athlete management, smart stadium, and digital marketing solutions.

IndustryEntertainment

SectorCommunication Services

Employees6

Annual revenue₹158 Cr

How does it make money?

Turns over ₹158 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹4 left at the operating level before interest, tax and depreciation. Each of its 6 employees supports ₹26.38 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹26.38 Cr

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?Some evidence

ROCE of 20.8% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE20.2%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +10480% while net margin moved -95% 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+10480%

Margin effect-95%

DalalBaazaar Score

49/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ P/E of 137.0x is demanding — it needs sustained high growth to justify
✗ P/E is 153% above its own historical median of 54.2x — expensive by its own standards
✗ P/B of 87.17x is a steep premium to book

Quality vs. Valuation

Company Quality

56/ 100

Average

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

Valuation

26/ 100

Expensive

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

137.0x

3Y Median

54.2x

40 monthly readings · mean 414.5x · range 7.1x–1418.6x

Sector Median

21.7x

median of 2 sector peers

⚠️Current valuation is approximately 153% above its 3y median of 54.2x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 530% above the peer median of 21.7x.

vs. its own history

Expensive

54.2x median over 40 months · +153%

vs. sector peers

Expensive

21.7x median of 2 peers · +530%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

396.5x

PEG

1.81

What's Good / What's Bad

🟢 What's Going Well4

Return on equity is rising
ROE has improved from 4.3% to 15.8%.
Return on capital is rising
ROCE has improved from 5.8% to 20.8%.
High return on capital employed
ROCE of 20.8% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

5 items require attention · 4 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 1179% over 3 years, from ₹0 Cr to ₹4 Cr.
🔴High leverageFinancial
Debt/Equity of 6.42x — earnings must service borrowings before shareholders see anything.
🔴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.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 72.4 points, from 76.5% to 4.1%.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹0 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 20.8% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
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 76.5% to 4.1%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 6.42x. Interest is payable whether or not the business has a good year.
The price already assumes success
The stock trades 153% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
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.

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

1Revenue growth stays above 280% a year✓ 373.0% CAGR
Latest reported year was 49.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 2%✓ 4.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹0 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 18%✓ 20.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 11 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ 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 · 2 neutral · 4 weak

Market Cap

₹2,571 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

137.0x

Expensive

Expensive — verify against sector peers

P/B Ratio

87.17x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹0.92

Profitable

Profitable on a per-share basis

ROE

15.8%

Strong

Strong capital efficiency

ROCE

20.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

6.42x

High

High leverage

Revenue Growth (YoY)

49.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

18.6%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.03%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹0 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

0.5%

Weak

Thin margins leave little room for error

Net Margin

2.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.19

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.20

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

128.1 / 132.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

0.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1 Cr	₹2 Cr	₹69 Cr	₹158 Cr	+373.0%
EBITDA	₹1 Cr	₹2 Cr	₹4 Cr	₹6 Cr	+78.2%
EBITDA Margin	76.5%	112.0%	5.6%	4.1%	—
PAT (Net Profit)	₹1 Cr	₹2 Cr	₹3 Cr	₹5 Cr	+75.9%
EPS	₹0.21	₹0.88	₹0.14	₹0.23	+3.1%
ROE	4.3%	8.2%	11.7%	15.8%	—
ROCE	5.8%	8.3%	15.7%	20.8%	—
Total Debt	₹0 Cr	—	₹0 Cr	₹4 Cr	+133.9%
Free Cash Flow	-₹15 Cr	₹2 Cr	₹4 Cr	-₹0 Cr	—

🟢 Revenue has grown at 373.0% a year over 3 years.

🟢 EBITDA has grown at 78.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 76.5% to 4.1% over 3 years (-72.4 pts).

🟢 PAT (Net Profit) has grown at 75.9% a year over 3 years.

🟢 EPS has grown at 3.1% a year over 3 years.

🟢 ROE has risen from 4.3% to 15.8% over 3 years (+11.6 pts).

🟢 ROCE has risen from 5.8% to 20.8% over 3 years (+15.0 pts).

🔴 Total Debt has grown at 133.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹43 Cr

Total Liabilities

₹14 Cr

Cash & Equivalents

₹9 Cr

Operating Cash Flow

-₹0 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

79.7%

Corporate Actions

Dividend Rate

₹0.04

Ex-Dividend Date

20 Aug 2025

Peer Comparison

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

Recent News

1 positive3 mixed2 general

Colab Platforms Q3 Results 2026 - Find Colab Platforms Q3 Earnings Result | Colab Platforms Q3 results

Livemint, 12 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Colab Cloud Platforms (COLA) Share Price near 52-week low as COLA trades at Rs 126.05

Univest, 13 Oct

Colab Platforms consolidated net profit rises 18.33% in the June 2026 quarter

Business Standard, 10 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Colab Platforms reports consolidated PAT of ₹142.46 lakh in Q1FY27

scanx.trade, 11 Aug

Colab Platforms Share Price Soars As Smallcap Rally Extends

Samco, 04 NovPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Colab Platforms Q1 Results 2026 - Find Colab Platforms Q1 Earnings Result | Colab Platforms Q1 results

Livemint, 12 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongProfitability

MiddlingBusiness Quality · Growth

WeakFinancial Health · Valuation · 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. 4 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑