Digitide Solutions Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Digitide Solutions Ltd trades at ₹101, in a downtrend and 52 weeks into that stage. That is −13.8% against its own 200-day average. It sits at 22% of a 52-week range of ₹73 to ₹201. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 4 straight weeks.

Today the stock is in a downtrend — week 52 of stage 4, confirmed. At ₹101 it trades −13.8% versus its 200-day average and sits at 22% of its 52-week range (₹73–₹201).

Against the market, two honest reads. Cumulative: over the last 1.1 years the stock moved −56% while the NIFTY 500 moved +2% — behind the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 4 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Digitide Solutions Ltd trades at 1,337.0× P/E, about the priciest it has ever traded. Its long-run median P/E is 127.5×, measured across 0.2 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 1,337.0× is about the priciest it has ever traded, against a long-run median of 127.5× measured over 0.2 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Put together: the multiple is full against its own past, so the story rests on the earnings line underneath it, not the multiple.

Stage: No read Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read.

Digitide Solutions Ltd reads as no read on its fundamental arc. Under eight usable quarters on the growth trio — not enough history for an honest trajectory read. The read is built from 4 quarters across 0 curves, on partial evidence.

Why it matters: with too little history, an honest page says so instead of guessing a trajectory.

One or more growth curves carry a base-effect spike — a large year-on-year move off a near-zero or loss-making comparable quarter. Those spikes are capped before the classifier reads the trajectory, and shown pinned on the chart, so a single distorted quarter does not drive the stage call.

Fewer than eight usable quarters on the growth curves — this page will not guess a trajectory from a stub of history.

4-Factor Sector Score

26.2/100 — rank 4 of 6 in IT Enabled Services/Business Process Outsourcing · 61% evidence confidence

Digitide Solutions Ltd scores 26.2 out of 100 against the 6 companies it is compared with in IT Enabled Services/Business Process Outsourcing, ranking 4. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 6 + 4.2 + 8.5 + 7.5 = 26.2. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Digitide Solutions Ltd reported ₹775 Cr of revenue in the Jun 26 quarter, +5.3% year on year. That is the 3rd straight quarter of year-on-year growth. Over 2 years it has compounded at 10.2% a year. The last full year, FY26, came in at ₹3,080 Cr. The last four reported quarters add to ₹3,120 Cr.

FY26 revenue came in at ₹3,080 Cr (+21.5% on the year), capping 2 years at 10.2% compound. The latest quarter (Jun 26) printed ₹775 Cr, +5.3% year on year — the 3rd consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +7.0% growth against the decade's 10.2% — the current year is running slower than its own long-run rate.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Digitide Solutions Ltd's operating margin is 9.9% in the Jun 26 quarter, −1.3 percentage points against the same quarter a year ago.

The latest quarter's operating margin is 9.9%, −1.3 pp against the same quarter a year ago. Across 2 fiscal years the operating margin has ranged 11.0%–15.0%.

🚨 Why the margin moved: operating margin went −1.3 pp year on year while gross margin went +0.0 pp — the loss came mostly below the gross line: operating leverage, with costs spread over a bigger revenue base.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Digitide Solutions Ltd earned ₹2.9 Cr of net profit in the Jun 26 quarter, −69.8% year on year. Full-year FY26 profit was ₹6.0 Cr. The 2-year compound rate is −79.2%. That is 0.4% of the quarter's revenue. The same quarter a year earlier earned ₹9.7 Cr. 3 of the last 8 reported quarters were loss-making.

Jun 26 profit was ₹2.9 Cr, −69.8% year on year. On the full year, FY26 printed ₹6.0 Cr (−95.7%), and the 2-year compound rate is −79.2%.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 2 fiscal years 343% of Digitide Solutions Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹263 Cr of operating cash against ₹6.0 Cr of profit. After ₹401 Cr of capital spending, ₹−138 Cr was left as free cash.

FY26: operating cash of ₹263 Cr against reported profit of ₹6.0 Cr, leaving free cash of ₹−138 Cr after ₹401 Cr of capital spending. Across the last 2 fiscal years the conversion rate is 343% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 343%: the cash cycle tightened 31 days between Dec 24 and FY26 — cash that used to wait in the cycle now reaches the bank sooner.

Router verdict: the bigger cash user is investment — capital spending ran 1.9× depreciation over three years, so the next section's job is to check what that build-out is buying.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Digitide Solutions Ltd's cash conversion cycle runs 53 days in FY26, down from 84 days in Dec 24. Capital spending ran ₹401 Cr over the last 1 years. At FY26 sales of ₹3,080 Cr each day of that cycle holds about ₹8.4 Cr, so roughly ₹447 Cr sits inside the business at any moment.

FY26: debtors at 53 days (an asset-light business — no inventory to speak of) — for a full cycle of 53 days, tighter than Dec 24's 84.

In money terms: at FY26 sales of ₹3,080 Cr, each day of the cycle holds about ₹8.4 Cr — so the 53-day loop keeps roughly ₹447 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹401 Cr over the last 1 fiscal years against ₹212 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹2.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.⚠ unverified

Digitide Solutions Ltd earns a ROCE of 11% in FY26. Return on invested capital clears the cost of that capital by −12.5 percentage points, so growth here is not yet paying for the capital it uses. The wiring behind it is 0.2% net margin on 1.51× asset turns.

FY26 ROCE is 11%.

🚨 Why the return is what it is — the wiring (FY26): 0.2% net margin × 1.51× asset turns × 2.43× balance-sheet leverage ≈ 0.7% on equity. Margin does its share; leverage is a meaningful part of the equation.

The capstone test — ROIC − WACC: −0.5% − 12.0% = a −12.5 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Negative — growth at these returns destroys value until the returns recover.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.⚠ unverified

Digitide Solutions Ltd carries total debt of ₹531 Cr against shareholder equity of ₹916 Cr as of Mar 26, a debt-to-equity of 0.58. On the annual view that ratio went from 0.39 in FY25 to 0.58 in FY26. Read the returns elsewhere on this page with that leverage in mind.

Mar 26: total debt of ₹531 Cr against shareholder equity of ₹916 Cr — a debt-to-equity of 0.58. On the annual view, debt-to-equity went from 0.39 (FY25) to 0.58 (FY26). Read the returns on this page with that leverage in mind.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Foreign institutions cut 2.3 points of Digitide Solutions Ltd over 4 quarters, the biggest move on the register. That takes foreign institutions to 7.1% of the company. Domestic institutions moved −1.3 points over the same window, to 11.3%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Foreign institutions: −2.3 points over 4 quarters to 7.1%; Domestic institutions: −1.3 points over 4 quarters to 11.3%; Promoters: +0.4 points over 4 quarters to 57.3%.

🚨 Why the register moved: foreign institutions drove it (−2.3 points), alongside domestic institutions (−1.3 points) — distribution into the market’s bid.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Digitide Solutions Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

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