Tera Software Ltd (TERASOFT)
🎯 Key Takeaways
- Tera Software Ltd appears to be in a mature, cash-generative phase with signs of controlled growth and governance stabilization. The company has declared a dividend and appointed a new CFO, signaling confidence in near-term cash flows and leadership continuity.
- Revenue declined 33.3% QoQ to ₹50 in Q1FY27.
- ⚠️ Revenue contraction across consecutive quarters raises concerns about demand sustainability or execution in core segments.
- Market Cap
- ₹272
- P/E Ratio
- 11.0
- P/B Ratio
- 1.86
- ROE
- 17.0%
- ROCE
- 21.4%
- Debt/Equity
- 0.27
- Promoter
- 47.5%
📖 The Story
Tera Software Ltd appears to be in a mature, cash-generative phase with signs of controlled growth and governance stabilization. The company has declared a dividend and appointed a new CFO, signaling confidence in near-term cash flows and leadership continuity. Despite flat promoter holding and minimal institutional interest, its strong ROCE and low debt suggest financial discipline. However, revenue volatility and lack of foreign investor interest raise questions about scalability.
📰 What's Happening
In the most recent board meeting on August 11, 2026, Tera Software approved unaudited Q1 FY26 results and declared a dividend of Rs.1.20 per share, subject to shareholder approval at the upcoming AGM on September 25, 2026. The board also appointed G. Anil Kumar as the new CFO, effective September 7, 2026. This sequence of actions — dividend declaration, CFO appointment, and AGM scheduling — reflects management’s focus on shareholder returns and governance continuity. Earlier, on July 16, 2026, the company filed its quarterly share capital reconciliation, confirming no changes in shareholding and full regulatory compliance. These moves underscore a strategic emphasis on stability and transparency.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|
| Revenue | 71 | 59 | 75 | 50 |
| Operating Profit | 9 | 10 | 10 | 7 |
| OPM % | 13.3% | 16.3% | 12.7% | 13.9% |
| Net Profit | 7 | 6 | 7 | 5 |
| EPS | ₹5.25 | ₹5.09 | ₹5.77 | ₹3.71 |
Tera Software’s quarterly revenue has shown signs of softening, declining from a high of ₹75 crore in Q3 FY26 to ₹50 crore in Q1 FY27, despite stable operating margins. While profitability remains healthy with OPM hovering around 13-16%, net profit and EPS have dipped in tandem with revenue, indicating sensitivity to top-line fluctuations. The company has maintained consistent margins over the past year, suggesting cost discipline, but the downward revenue trend may pressure future earnings if not reversed. Management has not yet highlighted specific growth drivers to counter this, making the near-term outlook cautiously optimistic but dependent on execution.
🔮 Management Outlook & What's Next
Management has not provided explicit forward guidance on revenue or margin expectations in the available filings. However, the dividend declaration and CFO appointment suggest confidence in cash flow stability. The upcoming AGM on September 25, 2026, will be a key event where shareholders will vote on the dividend and hear from the new CFO, potentially offering early signals about future capital allocation and operational priorities.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 13 | 13 | 13 | 13 |
| Reserves | 110 | 105 | 133 | 121 |
| Borrowings | 20 | 29 | 39 | 29 |
| Total Liabilities | 213 | 211 | 325 | 290 |
| Fixed Assets | 27 | 27 | 29 | 29 |
| Investments | 0 | 0 | 0 | 0 |
| Total Assets | 213 | 211 | 325 | 290 |
The balance sheet shows a stable capital structure with equity and reserves growing steadily from ₹123 crore in March 2025 to ₹146 crore in March 2026, while borrowings remain low at ₹39 crore. Total assets have increased from ₹213 crore to ₹325 crore over two years, indicating asset base expansion without aggressive leverage. This conservative financial profile supports the company’s ability to sustain dividends and invest selectively, though the pace of asset growth has slowed recently.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2025 | Mar 2026 |
|---|---|---|
| Operating | +7 | -14 |
| Investing | +1 | -2 |
| Financing | -17 | +11 |
| Net Cash Flow | -10 | -5 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 47.5% | 47.5% | 47.5% | 47.5% |
| FII | 0.0% | 0.1% | 0.1% | 0.0% |
| DII | 0.0% | 0.0% | 0.0% | 0.0% |
| Public | 43.5% | 43.9% | 44.4% | 44.4% |
| # Shareholders | 15,502 | 15,857 | 15,286 | 14,787 |
Promoter holding remains unchanged at 47.53% across all recent quarters, indicating no dilution or stake sales. Institutional interest is minimal, with FII ownership flat at 0.08% in Q4 FY26 and DII at 0%. However, the number of public shareholders has gradually increased from 15,502 to 14,787 (though this may reflect reporting nuances), suggesting retail participation is stable. Overall, the shareholding pattern reflects a stable but largely domestically concentrated ownership with little foreign inflows.
⚖️ 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. Revenue contraction across consecutive quarters raises concerns about demand sustainability or execution in core segments. 2. Absence of institutional investor interest may limit liquidity and valuation re-rating potential. 3. Dividend sustainability depends on continued cash flow, which is vulnerable if revenue does not stabilize. 4. Low trading volume and narrow float could lead to heightened volatility around corporate actions like the AGM.
📋 Recent Filings
- Board Meeting2026-09-25Tera Software Ltd announced the closure of its insider trading window effective October 1, 2026, until 48 hours after releasing unaudited standalone a…
- 🔴 Announcement2026-09-16Tera Software announced the resignation of its CFO G. Anit Kumar effective September 15, 2026, creating a vacancy in the Chief Financial Officer role.…
- 🟡 Board Meeting2026-09-07Tera Software Limited announced its 32nd Annual General Meeting (AGM) scheduled for Tuesday, September 29, 2026, at 03:00 p.m. IST at its registered o…
- 🔴 annual report2026-09-07Tera Software Limited announced its 32nd AGM on September 26, 2026, alongside the FY 2025-26 annual report, confirming dividend eligibility on the Sep…
- 🔴 annual report2026-09-07Tera Software Limited reported a 12% dividend payout ([amount context mismatch] per share) for FY2026, driven by strong project execution in e-governa…
- 🟡 Board Meeting2026-09-07Tera Software Limited announced its 32nd AGM scheduled for September 29, 2026, to approve the audited financial statements for FY2025-26, declare a fi…
- 🔴 Corporate Action2026-09-07Tera Software announced September 22, 2026 as the record date for dividend eligibility on the FY2026 financial year results, with the cut-off date set…
- 🟡 Board Meeting2026-08-12Tera Software Limited announced the outcome of its August 11, 2026 board meeting, approving unaudited Q1 results, declaring a Rs.1.20 per share divide…
- 🟡 Board Meeting2026-08-11The board approved unaudited Q1 FY26 results, declared a Rs.1.20 per share dividend pending shareholder approval, appointed G. Anil Kumar as CFO effec…
- 🔴 Corporate Action2026-08-11Tera Software Limited announced the outcome of its August 11, 2026 board meeting, approving unaudited Q1 FY2026 financial results, declaring a Rs.1.20…
🧠 Analyst's Read
Tera Software is demonstrating financial discipline and governance maturity, but its growth trajectory remains constrained by flat revenue trends and minimal institutional engagement. Investors should monitor the September AGM for updates on operational outlook and the new CFO’s integration, as well as quarterly revenue trends to assess whether the recent softness is temporary or structural.
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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