Tera Software Limited (TERASOFT) AI Stock Analysis

• Market Cap: ₹7.01B
• Dividend Yield: 0.2%
• Average Volume (3M): 4.52K
• Price to Earnings (P/E): 63.8
• Beta (1Y): 0.76
• Revenue Growth: 71.84%
• EPS Growth: 138.63%
• Country: IN
• Employees: 899
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 5.25
• Shares Outstanding: 12,511,875
• 10 Day Avg. Volume: 2,246
• 30 Day Avg. Volume: 4,519
• PEG Ratio: 0.18
• Price to Book (P/B): 1.93
• Price to Sales (P/S): 2.20
• P/FCF Ratio: 35.07
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ₹584.00 ▲(18.33% Upside)

Tera Software Limited's overall stock score is driven by strong technical indicators and a positive financial trajectory, despite high valuation concerns. The absence of earnings call and corporate events data limits the analysis to these key factors.

Positive Factors

Revenue Growth

The company experienced a robust revenue growth rate of approximately 27% in the most recent year, reflecting strong business expansion and market demand.

Profitability Improvement

Improved net profit margins indicate better cost management and pricing strategies, enhancing the company's ability to generate profits sustainably.

Balance Sheet Health

A strong equity ratio and reduced debt-to-equity ratio suggest a solid financial foundation, reducing financial risk and supporting long-term growth.

Negative Factors

Operational Performance Fluctuations

Inconsistent operational performance could impact profitability and growth, requiring management focus to stabilize and optimize operations.

Cash Flow Volatility

Volatile cash flow generation may pose challenges for future capital investments and strategic initiatives, impacting long-term financial planning.

Leverage Risks

High leverage can strain financial flexibility and increase vulnerability to economic downturns, necessitating careful debt management.

Tera Software Limited Business Overview & Revenue Model

Company Description

Tera Software Limited (TERASOFT) is a technology-driven company specializing in software solutions and IT services. Focused on sectors such as data management, cloud computing, and enterprise applications, TERASOFT provides innovative products and services designed to enhance operational efficiency for businesses. The company's core offerings include data analytics platforms, software development services, and IT consulting, catering to a diverse clientele ranging from small enterprises to large corporations across various industries.

How the Company Makes Money

Tera Software Limited generates revenue through multiple streams, primarily by offering software licenses, subscription-based services, and consulting engagements. The company's key revenue model includes selling proprietary software solutions that address specific business needs, enabling clients to improve productivity and decision-making. Additionally, TERASOFT earns income from ongoing maintenance and support services for its software products, as well as customized IT consulting services aimed at optimizing clients' technology infrastructure. Strategic partnerships with other technology firms and system integrators further enhance its revenue potential by broadening its market reach and facilitating joint ventures on large-scale projects.

Tera Software Limited Financial Statement Overview

Summary

Tera Software Limited shows strong revenue growth and improved profitability metrics. The balance sheet is stable with a healthy equity ratio and reduced debt-to-equity ratio. However, fluctuations in EBIT, EBITDA, and cash flow growth rates suggest some instability and potential leverage risks.

Income Statement

Tera Software Limited has shown a commendable improvement in profitability metrics over the years. The gross profit margin has increased significantly from previous years, indicating better cost management or pricing strategies. The company also experienced a robust revenue growth rate of approximately 27% in the most recent year, reflecting strong business expansion. Net profit margin has improved considerably, showcasing enhanced operational efficiency. However, fluctuations in EBIT and EBITDA margins suggest some instability in operational performance, which might need addressing.

Balance Sheet

The company's balance sheet is relatively stable with a healthy equity ratio of around 57%, indicating a solid financial foundation. The debt-to-equity ratio has been reduced over the years, which is a positive sign of decreasing financial risk. Return on equity has improved, showing that the company is using its equity base effectively to generate profits. Nonetheless, the presence of significant liabilities in relation to assets suggests potential leverage risks that need careful management.

Cash Flow

Cash flow analysis reveals mixed results. The company has managed to turn around its free cash flow from previous deficits to a positive figure, indicating improved cash management. The operating cash flow to net income ratio is favorable, suggesting strong cash generation from operations. Yet, the fluctuations in free cash flow growth rates over the years indicate potential volatility in cash generation, which may pose challenges for future capital investments.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.16B	1.07B	844.83M	1.17B	1.27B	1.61B
Gross Profit	962.13M	888.07M	658.40M	258.23M	107.20M	125.33M
EBITDA	200.22M	163.01M	92.63M	152.94M	86.48M	82.83M
Net Income	109.92M	94.15M	34.41M	34.66M	-13.02M	8.43M
Balance Sheet
Total Assets	0.00	2.13B	2.07B	1.97B	2.74B	2.98B
Cash, Cash Equivalents and Short-Term Investments	103.90M	217.65M	202.89M	160.08M	100.41M	137.74M
Total Debt	0.00	199.27M	334.59M	241.53M	605.42M	546.15M
Total Liabilities	-1.22B	908.60M	948.31M	893.93M	1.67B	1.90B
Stockholders Equity	1.22B	1.22B	1.12B	1.08B	1.07B	1.09B
Cash Flow
Free Cash Flow	0.00	67.35M	-50.26M	325.27M	-212.41M	-368.82M
Operating Cash Flow	0.00	68.10M	-48.76M	327.62M	-212.41M	-368.82M
Investing Cash Flow	0.00	6.27M	6.55M	32.33M	5.37M	11.65M
Financing Cash Flow	0.00	-173.24M	64.48M	-300.27M	169.72M	336.30M

Tera Software Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 493.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TERASOFT, the sentiment is Neutral. The current price of 493.55 is below the 20-day moving average (MA) of 527.89, above the 50-day MA of 492.12, and above the 200-day MA of 319.29, indicating a neutral trend. The MACD of 4.13 indicates Positive momentum. The RSI at 47.16 is Neutral, neither overbought nor oversold. The STOCH value of 55.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:TERASOFT.

Tera Software Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DCI	68 Neutral	₹4.04B	22.64	―	―	20.39%	11.63%
TERASOFT	66 Neutral	₹7.01B	63.77	―	0.20%	71.84%	138.63%
DEVIT	62 Neutral	₹2.27B	2.95	―	0.50%	30.15%	330.45%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
INSPIRISYS	61 Neutral	₹3.66B	10.36	―	―	-1.07%	187.83%
AARTECH	56 Neutral	₹1.74B	63.92	―	0.24%	9.12%	22.53%

Tera Software Limited Corporate Events

Tera Software Limited Announces Actions Initiated or Orders Passed

Tera Software Limited has informed the Exchange about certain actions initiated or orders passed, although the specific details of these actions or orders are not clearly outlined in the release. The announcement’s impact on the company’s operations, industry positioning, or implications for stakeholders is not explicitly mentioned, leaving stakeholders without a clear understanding of the potential consequences.

Tera Software Limited Reports Positive Financial Results for September 2025

Tera Software Limited announced the approval of its unaudited financial results for the quarter and half-year ending September 30, 2025, during a board meeting held on November 11, 2025. The results, which will be published in newspapers, indicate a positive financial performance with substantial profits, reflecting the company’s robust operations and potential positive implications for stakeholders.