Vedavaag Systems

BSE: VEDAVAAG · IT Enabled Services

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Snapshot

Unlock Vedavaag Systems's vital signs

Growth · Profitability · Valuation · Strength · Conviction

Company Overview

Business

Vedavaag Systems is an Indian technology company specialising in e-governance and financial inclusion services. It operates a network of service centres that facilitate digital delivery of government services and banking solutions to rural and semi-urban populations.

Business Model

The company operates as a business correspondent for public sector banks and manages e-governance projects through its Customer Service Points and Varadhi centres. It generates revenue by acting as a technology-enabled intermediary between government agencies, financial institutions, and end-users.

Growth Outlook

Growth is driven by the ongoing digitisation of government-to-citizen services and the expansion of financial inclusion initiatives in rural India. The company aims to leverage its existing infrastructure to increase service penetration in underserved markets.

Key Risks

  • Policy Dependency. The company's revenue is heavily reliant on government e-governance mandates and public sector bank policies, which are subject to change.
  • Operational Concentration. Heavy reliance on rural and semi-urban infrastructure makes the business vulnerable to local economic fluctuations and connectivity issues.
  • Regulatory Compliance. Operating as a business correspondent requires strict adherence to evolving banking and financial regulations, increasing compliance costs.
  • Technological Obsolescence. The rapid pace of digital transformation may require continuous capital expenditure to upgrade service delivery platforms and maintain competitive relevance.

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Key Metrics

REVENUE

₹129 Cr

TTM · consolidated

+20.7%YoY

NET PROFIT

₹5 Cr

TTM · consolidated

-39.4%YoY

EPS

₹2.22

TTM · consolidated

-40.5%YoY

RETURN ON EQUITY

3.5%

TTM · consolidated

-2.7 ppYoY

P/E

9.5x

Q4 FY26 · consolidated

9.5 vs 8.4x5Y avg

EV/EBITDA

3.0x

Q4 FY26 · consolidated

3.0 vs 492.9x5Y avg

EBITDA MARGIN

9.7%

TTM · consolidated

-10.0 ppYoY

NET PROFIT MARGIN

0.4%

Q4 FY26 · consolidated

-1.3 ppYoY

DEBT TO EQUITY

0.0x

Q4 FY26 · consolidated

-0.01xYoY

Peers · IT Enabled Services

CompanyMkt CapP/EEV/EBITDARev Gr YoYEBITDA MgnROEROCE1Y Return
Vedavaag SystemsVEDAVAAG
₹43 Cr8.263.3520.7%9.7%3.5%5.2%-50.2%
Sigma SolveSIGMA
₹486 Cr2.7620.3834.6%45.1%42.0%-88.2%
DiGiSPICE Technologies LimitedDIGISPICE
₹401 Cr21.345.59-3.0%10.7%8.5%13.2%-33.7%
Sattrix Information Security LimitedSATTRIX
₹388 Cr20.5%+75.5%
Tera SoftwareTERASOFT
₹373 Cr15.0310.04120.9%15.9%18.5%28.2%-2.7%
Inspirisys Solutions LimitedINSPIRISYS
₹368 Cr9.458.7035.2%10.1%49.0%25.2%-5.5%

As of Q4 FY26

Financials