California Software Co. Ltd. (CALSOFT) AI Stock Analysis

• Market Cap: ₹855.71M
• Dividend Yield: N/A
• Average Volume (3M): 12.99K
• Price to Earnings (P/E): 71.8
• Beta (1Y): 0.78
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 32
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.04
• Shares Outstanding: 61,828,423
• 10 Day Avg. Volume: 32,108
• 30 Day Avg. Volume: 12,987
• PEG Ratio: -1.91
• Price to Book (P/B): 2.80
• Price to Sales (P/S): 12.59
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: ₹14.50 ▼(-8.69% Downside)

The score is driven primarily by improved financial strength and a FY2025 operational rebound, supported by major deleveraging. This is tempered by weak valuation (very high P/E, no dividend data) and neutral-to-soft technical momentum with price below key mid-term averages.

Positive Factors

Material deleveraging / strong balance sheet

Sharp debt reduction and very low leverage materially improve financial flexibility. This durable balance sheet supports investment, M&A optionality, and resilience to downturns, lowering refinancing risk and enabling strategic choices over the next several quarters.

Revenue rebound with restored profitability

A 22% revenue rebound alongside positive net margins signals durable recovery in demand and core business viability. Sustained revenue growth with profitability provides a platform for reinvestment and margin recovery, improving long-term earnings stability if trends persist.

Improved operating cash generation

Return to positive operating cash flow marks a structural improvement in cash generation ability. Reliable operating cash reduces dependence on external financing and supports capex, working capital needs, and gradual debt repayment, enhancing sustainability of operations.

Negative Factors

Significant margin compression

Material decline in gross and net margins suggests weakening pricing power, adverse mix, or rising costs. Persistent margin compression would erode operating leverage and long-term profitability, making revenue growth less effective at driving shareholder returns over the medium term.

Weak free cash flow and poor cash conversion

Zero reported free cash flow and low cash conversion indicate earnings are not reliably converting to discretionary cash. That constrains dividends, buybacks, and reinvestment, forcing reliance on the balance sheet and limiting durable shareholder value creation.

Modest returns and historical revenue volatility

Low ROE reflects limited effectiveness in deploying a now-large equity base, while past sharp revenue swings highlight execution and demand cyclicality. Together these structural issues temper confidence in sustained high returns and predictable growth over the coming quarters.

California Software Co. Ltd. Business Overview & Revenue Model

Company Description

California Software Company Limited provides software development, business process outsourcing, and IT infrastructure services. It offers web, mobile, and IoT applications development services; UI-UX designing services; design and development solutions for point of sale platforms; and digital marketing solutions to enhance online presence and drive traffic sales to online businesses, including search engine optimization, app store optimization, social media marketing, and PPC campaign services. The company provides dSPEEDUp eCom, a digital commerce platform for B2B, B2C, and C2C ecommerce businesses; dINSPIRA PoS, a point of sale system for small retail businesses; dBOT, a conversational platform; and dULTIMA Omnichannel platfrom that provides an optimized and seamless consumer experience. It also offers CS- CTMS, a cloud based, configurable, and end-to-end clinical trials management system to manage various aspects of clinical trials; CS-eTrial, a configurable electronic trial master and remote monitoring platform in an electronic format to organize, store, verify, and review documents, images, and other digital content of clinical trials; CS-SAFETY, a cloud based and regulatory compliant end-to-end pharmacovigilance/drug safety system; CS-CLIDAC, a clinical data warehouse and analytics console; and CS- RMS, a clinical trial remote monitoring system. The company was incorporated in 1992 and is based in Chennai, India.

How the Company Makes Money

California Software Co. Ltd. Financial Statement Overview

Summary

FY2025 shows a turnaround with strong revenue growth (+22% YoY) and continued profitability, plus a materially stronger balance sheet after sharp debt reduction. Offsetting this are margin compression versus FY2024 and a still-mixed cash-flow profile with weak cash conversion and no reported free cash flow in FY2025.

Income Statement

Revenue rebounded strongly in FY2025 (+22.0% YoY) after a highly volatile multi-year path (including a sharp FY2022→FY2023 contraction). Profitability remains solid with FY2025 gross margin ~44.8% and net margin ~13.2%, but margins compressed versus FY2024 (gross ~57.2%, net ~14.6%), suggesting weaker pricing power/mix or higher costs. Overall, the company is profitable and growing again, but earnings quality is tempered by noticeable margin and revenue volatility.

Balance Sheet

The balance sheet strengthened materially in FY2025: debt fell sharply (total debt ~8.0M vs ~83.1M in FY2024) and leverage is now very low (debt-to-equity ~0.03), providing significant financial flexibility. Equity is sizable (~245.3M) relative to assets (~273.9M), which supports resilience. The main drawback is modest return on equity in FY2025 (~2.9%), indicating the stronger capital base is not yet translating into high shareholder returns.

Cash Flow

Cash generation improved in FY2025 with positive operating cash flow (~12.7M) after negative operating cash flow in FY2024 (~-19.6M). However, free cash flow is reported at 0 in FY2025 (after negative free cash flow in prior years), and cash conversion is mixed—operating cash flow is meaningfully lower than net income in FY2025 (coverage ~0.44). Overall cash flow is improving, but consistency and the ability to produce durable free cash flow remain key watch items.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	59.16M	54.46M	42.80M	27.64M	108.57M	14.55M
Gross Profit	22.66M	24.40M	24.47M	17.58M	95.11M	10.54M
EBITDA	15.91M	15.65M	15.65M	11.96M	74.28M	6.94M
Net Income	7.69M	7.19M	6.24M	2.21M	45.52M	1.94M
Balance Sheet
Total Assets	0.00	273.92M	218.99M	250.67M	262.06M	151.30M
Cash, Cash Equivalents and Short-Term Investments	20.49M	20.49M	504.00K	528.00K	387.43K	206.80K
Total Debt	0.00	8.02M	83.14M	63.66M	48.97M	17.00M
Total Liabilities	-245.31M	28.61M	96.91M	134.88M	117.40M	87.34M
Stockholders Equity	245.31M	245.31M	122.08M	115.80M	164.81M	63.96M
Cash Flow
Free Cash Flow	0.00	0.00	-19.57M	-14.65M	-31.79M	-5.58M
Operating Cash Flow	0.00	12.71M	-19.57M	-14.59M	-31.41M	52.22M
Investing Cash Flow	0.00	0.00	0.00	-65.00K	-378.00K	-57.81M
Financing Cash Flow	0.00	7.37M	19.48M	14.69M	31.97M	5.28M

California Software Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IZMO	64 Neutral	₹8.96B	29.59	―	―	13.77%	-42.68%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CALSOFT	60 Neutral	₹855.71M	71.79	―	―	―	―
MEGASOFT	60 Neutral	₹12.68B	8.84	―	―	―	―
SOFTTECH	54 Neutral	₹3.88B	280.32	―	―	27.33%	-61.23%
VIRINCHI	49 Neutral	₹2.13B	-14.82	―	―	-1.40%	-238.47%
SECURKLOUD	46 Neutral	₹735.37M	-0.49	―	―	-48.96%	-422.00%

California Software Co. Ltd. Corporate Events

California Software Closes Trading Window Ahead of Q3 FY2025 Results

California Software Company Limited has announced that its trading window for dealing in the company’s securities will be closed for all designated and connected persons starting January 1, 2026, in line with SEBI’s Prohibition of Insider Trading Regulations. The restriction will remain in force until 48 hours after the announcement of the unaudited financial results for the quarter ended December 31, 2025, and covers directors, key managerial personnel, designated employees, connected persons and their immediate relatives, with the board meeting date for considering these results to be communicated separately.

California Software Co. Ltd. Plans Strategic Financial and Expansion Initiatives

California Software Company Limited has announced a Board of Directors meeting scheduled for November 14, 2025, to discuss several key business decisions. The agenda includes approving unaudited financial results, raising funds through Qualified Institutional Placement, considering Foreign Direct Investment options, increasing authorized share capital, and exploring potential acquisitions. These strategic moves aim to enhance the company’s financial position and support its growth and expansion plans, potentially impacting stakeholders positively.