Tera Software

NSE: TERASOFT · IT Enabled Services

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52W Range₹194 – ₹598

Snapshot

Unlock Tera Software's vital signs

Growth · Profitability · Valuation · Strength · Conviction

Company Overview

Business

Tera Software Limited is an IT services provider specialising in system integration, software development, and consultancy. The company delivers diverse technology solutions across sectors including banking, education, energy, and government-led infrastructure projects.

Business Model

The company generates revenue through the Integrated Solutions, Technical, and Projects divisions by providing end-to-end IT infrastructure, software implementation, and digitisation services. It leverages long-term contracts with government bodies and private enterprises to deliver specialised solutions like Aadhaar-related services and tax automation.

Growth Outlook

Growth is expected to be driven by continued participation in large-scale government digitisation projects and the expansion of its software consultancy services. The company aims to leverage its expertise in IoT and enterprise security to capture demand in the evolving digital infrastructure market.

Key Risks

  • Concentration Risk. Heavy reliance on government contracts and public sector projects exposes the company to risks associated with policy changes and delayed payment cycles.
  • Execution Risk. The complexity of large-scale national infrastructure projects may lead to cost overruns or operational delays that impact profitability.
  • Technological Obsolescence. Rapid advancements in the IT sector require constant investment in new technologies to remain competitive against larger, more agile global players.
  • Market Competition. The IT-enabled services sector in India is highly fragmented and competitive, putting pressure on margins for standard system integration services.

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Key Metrics

REVENUE

₹255 Cr

TTM · consolidated

+120.9%YoY

NET PROFIT

₹25 Cr

TTM · consolidated

+125.7%YoY

EPS

₹19.82

TTM · consolidated

+125.7%YoY

RETURN ON EQUITY

18.5%

TTM · consolidated

+9.5 ppYoY

RETURN ON CAPITAL EMPLOYED

28.2%

TTM · consolidated

+12.4 ppYoY

P/E

10.5×

Q1 FY27 · consolidated

10.5 vs 141.2x5Y avg

EV/EBITDA

8.0x

Q1 FY27 · consolidated

8.0 vs 19.5x5Y avg

EBITDA MARGIN

15.9%

TTM · consolidated

-1.8 ppYoY

NET PROFIT MARGIN

9.3%

Q1 FY27 · consolidated

-4.9 ppYoY

DEBT TO EQUITY

0.3x

Q1 FY27 · consolidated

+0.11xYoY

Peers · IT Enabled Services

CompanyMkt CapP/E (TTM)EV/EBITDARev Gr YoYEBITDA MgnROEROCE1Y Return
Tera SoftwareTERASOFT
₹289 Cr10.5×7.97120.9%15.9%18.5%28.2%-56.6%
Sigma SolveSIGMA
₹473 Cr14.8×11.0021.2%43.3%49.5%60.2%-92.3%
ACS Technologies LimitedACSTECH
₹465 Cr40.5×20.50140.7%7.5%10.0%15.4%+136.9%
Sattrix Information Security LimitedSATTRIX
₹424 Cr———20.5%——-2.5%
DiGiSPICE Technologies LimitedDIGISPICE
₹387 Cr18.5×5.31-3.0%10.7%8.5%13.2%-44.8%
Inspirisys Solutions LimitedINSPIRISYS
₹363 Cr8.5×8.6135.2%10.1%49.0%25.2%-10.9%

As of Q1 FY27

Financials