Kore Digital Limited

Sector n/a · NSE

₹1,624.00−₹47.00 (−2.81%)

DalalBaazaar Score

56 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, 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, 6:07 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

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

How does it make money?

Turns over ₹408 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹14 left at the operating level before interest, tax and depreciation.

EBITDA margin13.9%

Net margin8.8%

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 34.3%. Returns that high normally get competed away; when they persist, something is protecting them. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE34.3%

ROE25.2%

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 +1819% while net margin moved -42% 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+1819%

Margin effect-42%

DalalBaazaar Score

56/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

62/ 100

Average

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

Valuation

18/ 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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

P/E (Trailing)

—

P/B

—

EV/EBITDA

34.2x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
High return on capital employed
ROCE of 34.3% 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 Attention4

Margins are compressing
EBITDA margin has slipped from 22.1% to 13.9% over 3 years.
Debt is rising
Total debt is up 191% over 3 years — worth checking what it funded.
Return on equity is falling
ROE has dropped from 56.1% to 25.2% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 54.8% to 34.3% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 3 high

🔴Debt has risen sharplyFinancial
Total debt is up 191% over 3 years, from ₹2 Cr to ₹6 Cr.
🔴High leverageFinancial
Debt/Equity of 4.19x — earnings must service borrowings before shareholders see anything.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 8.2 points, from 22.1% to 13.9%.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 34.3% 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 22.1% to 13.9%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 4.19x. Interest is payable whether or not the business has a good year.
Returns on shareholder capital are falling
ROE has dropped from 56.1% to 25.2%. 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.
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 126% a year✓ 167.7% CAGR
Latest reported year was 24.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 12%✓ 13.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹10 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 31%✓ 34.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 9 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
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 5 neutral · 1 weak

Market Cap

₹1,953 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

25.2%

Strong

Strong capital efficiency

ROCE

34.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

4.19x

High

High leverage

Revenue Growth (YoY)

24.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

13.4%

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

₹10 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹1,624

Gross Margin

15.9%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

8.8%

Average

Average bottom-line conversion

Current Ratio

1.35

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

48.3 / 75.1

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	₹21 Cr	₹104 Cr	₹328 Cr	₹408 Cr	+167.7%
EBITDA	₹5 Cr	₹15 Cr	₹49 Cr	₹57 Cr	+129.5%
EBITDA Margin	22.1%	14.9%	14.9%	13.9%	—
PAT (Net Profit)	₹3 Cr	₹11 Cr	₹32 Cr	₹36 Cr	+123.4%
EPS	₹3.05	₹34.5	—	—	—
ROE	56.1%	15.4%	29.8%	25.2%	—
ROCE	54.8%	21.8%	38.8%	34.3%	—
Total Debt	₹2 Cr	₹1 Cr	₹7 Cr	₹6 Cr	+42.8%
Free Cash Flow	-₹3 Cr	-₹16 Cr	-₹44 Cr	₹10 Cr	—

🟢 Revenue has grown at 167.7% a year over 3 years.

🟢 EBITDA has grown at 129.5% a year over 3 years.

🔴 EBITDA Margin has fallen from 22.1% to 13.9% over 3 years (-8.2 pts).

🟢 PAT (Net Profit) has grown at 123.4% a year over 3 years.

🔴 ROE has fallen from 56.1% to 25.2% over 3 years (-30.9 pts).

🔴 ROCE has fallen from 54.8% to 34.3% over 3 years (-20.6 pts).

🔴 Total Debt has grown at 42.8% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹3 Cr to ₹10 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹310 Cr

Total Liabilities

₹166 Cr

Total Debt

₹6 Cr

Cash & Equivalents

₹11 Cr

Operating Cash Flow

₹43 Cr

Capex

-₹33 Cr

Recent News

2 mixed1 negative3 general

Solid Earnings May Not Tell The Whole Story For Kore Digital (NSE:KDL)

Simply Wall Street, 10 JunResults

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

Kore Digital Ltd Locks at Lower Circuit With 4.84% Loss — Sellers Queue, No Buyers in Sight

MarketsMojo, 16 Oct

KORE Digital Signs ₹5,000 Crore MOU For 1,560 MW AI Data Center In Navi Mumbai

Sahi, 03 Jul

Kore Digital Signs Phase-I Data Centre MoU; Shares Rise 3.51%

HDFC Sky, 03 JulPrice 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.

Kore Digital shares crash 10% as Sebi alleges Rs 541 cr revenue misstatement, bars CEO, CFO and MD from ca

The Economic Times, 18 SeptResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Kore Digital Ltd Key Financial Ratios – Valuation, Profitability & More

Value Research, 30 Aug

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
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

🟡Business QualityAdequate12.6/20

🟡Financial HealthAdequate11.5/20

🟡GrowthModest12.9/20

🟡ProfitabilityModerate9.3/15

🟡ValuationFair7.5/15

🔴RiskHigh2.4/10

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.

This thesis breaks if

✓Revenue growth stays above 126% a year167.7% CAGR
✓EBITDA margin holds above 12%13.9%
✓Free cash flow remains positive₹10 Cr
✓Debt / EBITDA stays below 2x0.1x
✓ROCE stays above 31%34.3%