Tridhya Tech Limited

Sector n/a · NSE

₹30.15−₹0.45 (−1.47%)

DalalBaazaar Score

41 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

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

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

The 60-second version of Tridhya Tech 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 ₹28 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹44 left at the operating level before interest, tax and depreciation.

EBITDA margin44.2%

Net margin2.5%

What is its competitive advantage?Little sign of one

Returns on capital of 8.0% 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.

ROCE8.0%

ROE1.6%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +29% while net margin moved -83% 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+29%

Margin effect-83%

DalalBaazaar Score

41/ 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

41/ 100

Weak

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

Valuation

60/ 100

Fair

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

Weak on business quality and not cheap enough to compensate.

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

11.9x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 36.2% to 44.2% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.

🔴 What Needs Attention3

Debt is rising
Total debt is up 104% over 3 years — worth checking what it funded.
Return on equity is falling
ROE has dropped from 15.4% to 1.6% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 11.8% to 8.0% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 104% over 3 years, from ₹37 Cr to ₹76 Cr.
🔴High leverageFinancial
Debt/Equity of 1.75x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.1x — little room if earnings dip.
🟡Profit is decliningFinancial
Net profit is down 79% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 36.2% to 44.2%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 6.2x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Returns on shareholder capital are falling
ROE has dropped from 15.4% to 1.6%. 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.
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 42%✓ 44.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 6.2x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ 1.1x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 7% a year✓ 8.7% CAGR
Latest reported year was -23.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹21 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

3 / 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

2 good · 5 neutral · 4 weak

Market Cap

₹70 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

1.6%

Weak

Weak capital efficiency

ROCE

8.0%

Weak

Low return on total capital employed

Debt/Equity

1.75x

High

High leverage

Revenue Growth (YoY)

-23.0%

Shrinking

Sales are contracting

Profit Growth (YoY)

119.1%

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

₹21 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹30.15

Gross Margin

32.9%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

2.5%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.85

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

6.9 / 7.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

25.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹22 Cr	₹35 Cr	₹36 Cr	₹28 Cr	+8.7%
EBITDA	₹8 Cr	₹6 Cr	₹6 Cr	₹12 Cr	+16.2%
EBITDA Margin	36.2%	16.7%	17.6%	44.2%	—
PAT (Net Profit)	₹3 Cr	-₹0 Cr	-₹4 Cr	₹1 Cr	-40.2%
EPS	₹1.37	₹-0.21	—	—	—
ROE	15.4%	-1.1%	-8.3%	1.6%	—
ROCE	11.8%	4.9%	3.5%	8.0%	—
Total Debt	₹37 Cr	₹38 Cr	₹100 Cr	₹76 Cr	+26.8%
Free Cash Flow	-₹28 Cr	-₹19 Cr	-₹55 Cr	₹21 Cr	—

🟢 Revenue has grown at 8.7% a year over 3 years.

🟢 EBITDA has grown at 16.2% a year over 3 years.

🟢 EBITDA Margin has risen from 36.2% to 44.2% over 3 years (+8.0 pts).

🔴 PAT (Net Profit) has shrunk at 40.2% a year over 3 years.

🔴 ROE has fallen from 15.4% to 1.6% over 3 years (-13.8 pts).

🔴 ROCE has fallen from 11.8% to 8.0% over 3 years (-3.8 pts).

🔴 Total Debt has grown at 26.8% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹28 Cr to ₹21 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹126 Cr

Total Liabilities

₹82 Cr

Total Debt

₹76 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹25 Cr

Capex

-₹4 Cr

Recent News

1 mixed5 general

Tridhya Tech Limited Company Information

Simply Wall Street, 15 Jul

Tridhya Tech Q4 FY26 Results: Revenue, PAT, Net Profit and Key Highlights

Univest, 29 MayResults

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

IPOs this week: ideaForge Tech, Cyient DLM, PKH Ventures, others. Check details here

Livemint, 25 Jun

Tridhya Tech returns to profitability with net profit of ₹68.15 lakh in FY26

scanx.trade, 27 May

Tridhya Tech Files DRHP with SEBI for Rs 35 Crore IPO

Equitypandit, 15 Apr

RADIOWALLA Stock Price and Chart — NSE:RADIOWALLA

TradingView, 24 Apr

Watch Items

Revenue growth is negative (-23.0%) on the latest reported period — check if this is one-off or a trend.
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 QualityWeak8.8/20

🟡Financial HealthAdequate9.6/20

🔴GrowthWeak7.7/20

🔴ProfitabilityWeak4.6/15

🟡ValuationFair7.5/15

🔴RiskHigh2.4/10

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 42%44.2%
✗Debt / EBITDA falls below 3x6.2x
✗Interest cover stays above 3x1.1x
✓Revenue growth stays above 7% a year8.7% CAGR
✓Free cash flow remains positive₹21 Cr