ABM Knowledgeware Ltd (ABMKNO)
🎯 Key Takeaways
- ABMKnowledgeware Ltd appears to be a small-cap IT software company operating in a mature or potentially distressed phase, with declining revenue trends and low profitability metrics despite a high P/E ratio. The company maintains a debt-free balance sheet but shows signs of operational stagnation, with flat promoter holding and no institutional investor participation.
- Revenue grew 2.5% QoQ to ₹26 in Q1FY27.
- ⚠️ The company faces significant revenue volatility and declining profitability trends, with margins under pressure despite occasional spikes in operatin
- Market Cap
- ₹344
- P/E Ratio
- 38.9
- P/B Ratio
- 1.42
- ROE
- 3.5%
- ROCE
- 6.6%
- Debt/Equity
- 0.00
- Div Yield
- 0.70%
- Promoter
- 66.9%
📖 The Story
ABMKnowledgeware Ltd appears to be a small-cap IT software company operating in a mature or potentially distressed phase, with declining revenue trends and low profitability metrics despite a high P/E ratio. The company maintains a debt-free balance sheet but shows signs of operational stagnation, with flat promoter holding and no institutional investor participation.
📰 What's Happening
Management has not announced any new strategic initiatives or major contracts in recent filings, with no mention of expansion, product launches, or client wins in the latest quarterly results. The company continues to operate with a stable but stagnant client base, reporting flat revenue sequentially in Q1FY27 (₹26 crore) compared to the previous quarter. There has been no change in management or board composition disclosed in the filings.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|
| Revenue | 25 | 22 | 31 | 26 | 26 |
| Operating Profit | 5 | 2 | 4 | 3 | 5 |
| OPM % | 18.1% | 9.9% | 13.0% | 11.0% | 18.0% |
| Net Profit | 5 | 1 | 3 | 1 | 5 |
| EPS | ₹1.87 | ₹1.01 | ₹0.96 | ₹1.08 | ₹1.37 |
Revenue has declined from a peak of ₹31 crore in December 2025 to ₹22 crore in September 2025 before stabilizing at ₹26 crore in the last two quarters, indicating weak demand or pricing pressure. Operating margins have fluctuated between 9.9% and 18.1%, but the recent 18% margin in June 2026 appears to be an outlier rather than a sustainable trend, especially as profitability dipped to ₹1 crore in March 2026 from ₹5 crore in June 2025. EPS has also declined from ₹1.87 in June 2025 to ₹1.37 in June 2026, reflecting weakening bottom-line performance.
🔮 Management Outlook & What's Next
Management has not provided any forward guidance or strategic outlook in the latest available filings, with no commentary on future growth drivers, market opportunities, or investment plans in the quarterly results or accompanying statements.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 10 | 10 | 10 | 10 |
| Reserves | 224 | 217 | 232 | 228 |
| Borrowings | 0 | 0 | 0 | 0 |
| Total Liabilities | 281 | 278 | 286 | 277 |
| Fixed Assets | 42 | 41 | 53 | 42 |
| Investments | 120 | 109 | 110 | 113 |
| Total Assets | 281 | 278 | 286 | 277 |
The balance sheet remains extremely conservative, with zero borrowings and equity of just ₹10 crore, but reserves have plateaued at approximately ₹230 crore, suggesting limited reinvestment or value creation. Total assets have shown minimal growth over the past two years, hovering between ₹277–286 crore, indicating a stagnating asset base without significant capital expenditure or acquisitions.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2026 |
|---|---|
| Operating | -11 |
| Investing | +7 |
| Financing | -3 |
| Net Cash Flow | -7 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 66.9% | 66.9% | 66.9% | 66.9% |
| FII | 0.0% | 0.0% | 0.0% | 0.0% |
| DII | 0.0% | 0.0% | 0.0% | 0.0% |
| Public | 17.9% | 17.8% | 17.9% | 17.9% |
| # Shareholders | 5,210 | 5,117 | 4,856 | 4,714 |
Promoter holding remains stable at 66.92% with no pledging disclosed, but institutional ownership is effectively zero, as FII and DII holdings are consistently reported at 0%. The number of public shareholders has gradually declined from 5,210 to 4,714 over the past year, suggesting retail interest is eroding without any institutional catalyst to replace it.
⚖️ Peer Comparison — IT - Software
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| TCS | 7.50 L Cr | 15.1 | 63.2% | — | 0.00 |
| INFY | 4.07 L Cr | 13.5 | 44.9% | — | 0.00 |
| HCLTECH | 3.40 L Cr | 19.5 | 31.6% | — | 0.00 |
| WIPRO | 1.60 L Cr | 12.8 | 18.1% | — | 0.19 |
| TECHM | 1.51 L Cr | 26.6 | 24.8% | — | 0.00 |
| LTM | 1.21 L Cr | 23.2 | 30.5% | — | 0.00 |
| OFSS | 94,385 | 27.6 | 60.3% | — | 0.00 |
| PERSISTENT | 83,939 | 43.2 | 32.7% | — | 0.00 |
| COFORGE | 78,489 | 36.0 | 25.6% | — | 0.04 |
| MPHASIS | 42,582 | 22.3 | 22.3% | — | 0.17 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
The company faces significant revenue volatility and declining profitability trends, with margins under pressure despite occasional spikes in operating performance. There is a complete absence of institutional investor interest, which may limit liquidity and future valuation support. The lack of strategic updates or growth initiatives raises concerns about long-term relevance in a competitive IT software sector.
📋 Recent Filings
- 🔴 Insider Trading2026-09-29ABM Knowledgeware disclosed an off-market transfer of equity shares by a designated person to her immediate relative as a gift, submitted via Form C u…
- Announcement2026-09-25ABM Knowledgeware Limited has closed its trading window effective October 1, 2026, until 48 hours after the release of un-audited quarterly results fo…
🧠 Analyst's Read
ABMKnowledgeware appears to be a cash flow-negative, stagnant micro-cap IT firm with no visible growth trajectory or institutional confidence, making it a high-risk holding with limited upside catalysts currently in sight.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-29.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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