CG-VAK Software & Exports Ltd (CGVAK)
🎯 Key Takeaways
- CG-VAK Software & Exports Ltd is a micro-cap IT software services company operating in a highly commoditized segment with declining revenue trends and volatile profitability. The business appears to be in a mature or potentially distressed phase, marked by shrinking top-line momentum and inconsistent earnings, despite historically healthy margins and returns on capital.
- Revenue declined 5.3% QoQ to ₹18 in Q1FY27.
- ⚠️ 1) Persistent revenue stagnation with no visible catalysts for growth in a competitive IT services market. 2) Volatile and declining net profitability
- Market Cap
- ₹77
- P/E Ratio
- 8.9
- P/B Ratio
- 0.93
- ROE
- 10.5%
- ROCE
- 14.7%
- Debt/Equity
- 0.03
- Div Yield
- 0.66%
- Promoter
- 53.9%
📖 The Story
CG-VAK Software & Exports Ltd is a micro-cap IT software services company operating in a highly commoditized segment with declining revenue trends and volatile profitability. The business appears to be in a mature or potentially distressed phase, marked by shrinking top-line momentum and inconsistent earnings, despite historically healthy margins and returns on capital.
📰 What's Happening
Management has not announced any new strategic initiatives or major contract wins in the latest filings. The company continues to operate with a stable promoter holding at 53.87% over the past year, while institutional interest remains negligible. There have been no disclosed acquisitions, expansions, or leadership changes in recent quarters. The business model remains focused on traditional software exports with limited visibility into new growth vectors or digital transformation efforts.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|
| Revenue | 18 | 18 | 19 | 19 | 18 |
| Operating Profit | 4 | 4 | 4 | 3 | 3 |
| OPM % | 19.2% | 21.9% | 22.1% | 13.6% | 14.5% |
| Net Profit | 3 | 3 | 3 | -0 | 2 |
| EPS | ₹5.57 | ₹6.86 | ₹6.41 | ₹-0.04 | ₹3.84 |
Revenue has plateaued around ₹18-19 crore over the past year with no clear growth trajectory, while profitability has shown significant volatility — swinging from a ₹3 lakh net profit in Mar 2026 to ₹3 crore in Dec 2025. Operating margins have compressed from a peak of 22% in late 2025 to under 14% in Jun 2026, suggesting pricing pressure or margin erosion. Despite this, the company has maintained positive operating cash flow in most periods, indicating cost discipline in core operations.
🔮 Management Outlook & What's Next
There is no forward guidance or strategic outlook provided in the latest regulatory filings. Management commentary in the quarterly results filings is limited to routine operational updates without any discussion of future revenue targets, market expansion, or margin improvement plans. The absence of any growth narrative or capital allocation strategy suggests a lack of confidence in near-term recovery or reinvention of the business model.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 5 | 5 | 5 | 5 |
| Reserves | 67 | 62 | 77 | 74 |
| Borrowings | 0 | 3 | 2 | 3 |
| Total Liabilities | 80 | 76 | 94 | 88 |
| Fixed Assets | 34 | 34 | 33 | 33 |
| Investments | 21 | 15 | 38 | 31 |
| Total Assets | 80 | 76 | 94 | 88 |
The balance sheet remains extremely conservative, with negligible debt (₹2-3 crore in borrowings) and equity of just ₹5 crore, supported by substantial reserves of over ₹70 crore. Total assets have grown modestly to ₹94 crore, reflecting capital light operations. There is no evidence of aggressive reinvestment; instead, the company appears to be preserving capital, possibly funding limited reinvestment from reserves rather than external financing.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2025 |
|---|---|
| Operating | +13 |
| Investing | -17 |
| Financing | -2 |
| Net Cash Flow | -5 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 53.9% | 53.9% | 53.9% | 53.9% |
| FII | 0.0% | 0.0% | 0.0% | 0.0% |
| DII | 0.0% | 0.0% | 0.0% | 0.1% |
| Public | 38.4% | 38.3% | 38.4% | 38.3% |
| # Shareholders | 7,678 | 7,559 | 7,353 | 7,206 |
Promoter holding remains stable at 53.87%, indicating no immediate exit plans, but institutional ownership is effectively zero, with FII and DII holdings at 0% and only 0.09% held by DIIs recently. The growing number of public shareholders (7,206 to 7,678) suggests retail diffusion, but the lack of institutional accumulation raises concerns about liquidity and investor interest. No pledging activity is visible, but the shareholder base appears increasingly fragmented and passive.
⚖️ 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
1) Persistent revenue stagnation with no visible catalysts for growth in a competitive IT services market. 2) Volatile and declining net profitability, including a near-break-even quarter in Mar 2026, raising concerns about sustainability. 3) Absence of institutional or analyst coverage suggests limited transparency and market confidence. 4) Management provides no forward-looking guidance, leaving investors without visibility into strategic direction or recovery plans.
📋 Recent Filings
- 🟡 Board Meeting2026-09-28CG-VAK Software & Exports held its 31st AGM on 28 September 2026 via video conference, adopting audited standalone and consolidated financial statemen…
- 🟡 Board Meeting2026-09-28CG-VAK Software & Exports held its AGM on 28 September 2026, approving all seven resolutions via remote e-voting and in-person voting, including board…
- Announcement2026-09-23CG-VAK Software & Exports Ltd announced the closure of its insider trading window effective October 1, 2026, through 48 hours after reporting Septembe…
- 🔴 Corporate Action2026-09-05CG-VAK Software & Exports announced a dividend of Rs 1 per share (10% on equity) with a record date of 21 September 2026 and payment by 27 October 202…
- 🔴 annual report2026-09-03CG-VAK Software & Exports Ltd reported a consolidated revenue of Rs. 7,611.58 lakhs for FY 2025-26, up from Rs. 7,850.50 lakhs in the previous year, w…
- 🟡 Board Meeting2026-09-03CG-VAK Software & Exports announced its 31st Annual General Meeting on 28th September 2026, with book closure from 22nd to 28th September for dividend…
- 🔴 annual report2026-09-03CG-VAK Software & Exports announced its 31st Annual General Meeting will be held on 28 September 2026 at 3:00 PM via video conference, with notice and…
- 🟡 Board Meeting2026-09-03CG-VAK Software & Exports Ltd announced its 31st AGM on 28 September 2026 at 3:00 PM via VC/OAVM, with resolutions covering dividend declaration, inde…
🧠 Analyst's Read
CG-VAK presents a high-risk, low-visibility profile with no clear path to growth or margin expansion. The company operates with financial resilience but lacks the catalysts needed to transition from a cash cow or turnaround narrative. Investors should monitor for any signs of strategic shift, new client wins, or margin recovery, but current indicators suggest limited upside without fundamental changes in business execution.
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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