Tera Software

NSE: TERASOFT · IT Enabled Services

52W Range₹283 ₹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.

Price

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Key Metrics

REVENUE

₹238 Cr

TTM · consolidated

+121.2%YoY

NET PROFIT

₹25 Cr

TTM · consolidated

+173.1%YoY

EPS

₹19.83

TTM · consolidated

+173.5%YoY

RETURN ON EQUITY

19.3%

TTM · consolidated

+11.4 ppYoY

RETURN ON CAPITAL EMPLOYED

30.0%

TTM · consolidated

+16.6 ppYoY

P/E

20.2x

Q4 FY26 · consolidated

20.2 vs 293.2x5Y avg

EV/EBITDA

13.3x

Q4 FY26 · consolidated

13.3 vs 34.7x5Y avg

EBITDA MARGIN

17.1%

TTM · consolidated

+1.9 ppYoY

NET PROFIT MARGIN

9.7%

Q4 FY26 · consolidated

+0.9 ppYoY

DEBT TO EQUITY

0.3x

Q4 FY26 · consolidated

+0.11xYoY

Peers · IT Enabled Services

CompanyMkt Cap (Cr)P/EEV/EBITDARev Gr YoYEBITDA MgnROEROCE1Y Return
Tera SoftwareTERASOFT
37820.2013.25121.2%17.1%19.3%30.0%+31.8%
Onward TechnologONWARDTEC
52214.687.5510.7%14.5%19.1%22.4%-24.1%
Sattrix Infor.SATTRIX
42620.5%+147.0%
Sigma SolveSIGMA
4035.3611.5325.5%34.3%42.3%51.4%-90.3%
DigiSpice Tech.DIGISPICE
39720.747.083.6%9.7%8.8%13.4%-15.0%
Exato TechnologiesEXATO
35814.0%

As of Q4 FY26

Financials