Tera Software Limited (IN:TERASOFT)
:TERASOFT
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Tera Software Limited
(TERASOFT)
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Rating:62Neutral
Price Target:
₹478.00
▲(8.38% Upside)
Action:Reiterated
Date:06/04/26
The score is held back primarily by weak cash flow quality in FY2026 (negative operating and free cash flow despite stronger earnings), partly offset by strong upward price momentum and a moderate valuation.
Positive Factors
Revenue growth & profitability
A sharp re-acceleration in FY2026 revenue alongside material profitability improvement indicates strengthening core demand and better operational leverage. Over 2–6 months this supports repeatable contract wins, scale economics on projects and a firmer earnings base if cash conversion stabilizes.
Negative Factors
Negative cash conversion
Negative operating and free cash flow in FY2026 despite higher earnings signals weak cash conversion, likely from working-capital build or timing. Persisting cash deficits raise funding and execution risk, constrain reinvestment, and make growth reliant on external financing.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth & profitability
A sharp re-acceleration in FY2026 revenue alongside material profitability improvement indicates strengthening core demand and better operational leverage. Over 2–6 months this supports repeatable contract wins, scale economics on projects and a firmer earnings base if cash conversion stabilizes.
Read all positive factors
Tera Software Limited (TERASOFT) vs. iShares MSCI India ETF (INDA)
Market Cap
₹5.46B
Dividend Yield0.23%
Average Volume (3M)4.52K
Price to Earnings (P/E)22.4
Beta (1Y)1.19
Revenue Growth121.14%
EPS Growth173.12%
CountryIN
Employees899
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)13.03
Shares Outstanding12,511,875
10 Day Avg. Volume2,246
30 Day Avg. Volume4,519
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)2.55
Price to Sales (P/S)1.57
P/FCF Ratio-15.99
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Tera Software Limited Business Overview & Revenue Model
Company Description
Established in 1994 and headquartered in Hyderabad, India, Tera Software Limited delivers a comprehensive suite of information technology and integrated solutions to clients worldwide. The company's operations are organized into three primary divi...
How the Company Makes Money
Tera Software Limited generates revenue primarily through its e-governance projects, which involve providing IT solutions and services to government organizations for streamlining their operations. This includes system integration services, softwa...
Tera Software Limited Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
70
Positive
Cash Flow
34
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.62B | 2.38B | 1.07B | 844.83M | 1.17B | 1.27B |
| Gross Profit | 865.39M | 415.27M | 888.07M | 658.40M | 258.23M | 107.20M |
| EBITDA | 277.05M | 367.00M | 163.01M | 92.63M | 152.94M | 86.48M |
| Net Income | 162.98M | 248.01M | 94.15M | 34.41M | 34.66M | -13.02M |
Balance Sheet | ||||||
| Total Assets | 2.90B | 3.25B | 2.13B | 2.07B | 1.97B | 2.74B |
| Cash, Cash Equivalents and Short-Term Investments | 829.94M | 53.05M | 217.65M | 202.89M | 160.08M | 100.41M |
| Total Debt | 289.37M | 394.01M | 199.27M | 334.59M | 241.53M | 605.42M |
| Total Liabilities | 1.56B | 1.79B | 908.60M | 948.31M | 893.93M | 1.67B |
| Stockholders Equity | 1.34B | 1.46B | 1.22B | 1.12B | 1.08B | 1.07B |
Cash Flow | ||||||
| Free Cash Flow | -97.37M | -233.06M | 67.35M | -50.26M | 325.27M | -212.41M |
| Operating Cash Flow | -72.93M | -206.28M | 68.10M | -48.76M | 327.62M | -212.41M |
| Investing Cash Flow | -22.31M | -26.78M | 6.27M | 6.55M | 32.33M | 5.37M |
| Financing Cash Flow | 54.12M | 182.23M | -173.24M | 64.48M | -300.27M | 169.72M |
Tera Software Limited Technical Analysis
Positive
441.05
Price Trends
351.40
Positive
366.93
Positive
404.70
Positive
Market Momentum
29.47
Negative
73.34
Negative
76.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TERASOFT, the sentiment is Positive. The current price of 441.05 is above the 20-day moving average (MA) of 370.32, above the 50-day MA of 351.40, and above the 200-day MA of 404.70, indicating a bullish trend. The MACD of 29.47 indicates Negative momentum. The RSI at 73.34 is Negative, neither overbought nor oversold. The STOCH value of 76.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:TERASOFT.
Tera Software Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ₹4.29B | 14.13 | ― | 13.69% | 0.53% | -12.90% | |
74 Outperform | ₹4.14B | 17.32 | ― | 0.09% | 25.53% | 24.97% | |
67 Neutral | ₹4.67B | 11.44 | ― | ― | 22.60% | 29.03% | |
62 Neutral | ₹5.46B | 22.37 | ― | 0.23% | 121.14% | 173.12% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | ₹4.89B | 26.20 | ― | ― | 3.61% | ― | |
55 Neutral | ₹3.43B | 9.94 | ― | ― | -4.46% | -36.03% |
* Technology Sector Average
IN:TERASOFT
Tera Software Limited
451.15
170.61
60.81%
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IN:CYBERTECH
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138.00
-24.72
-15.19%
IN:DIGISPICE
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20.50
-3.06
-12.99%
IN:INSPIRISYS
lnspirisys Solutions Limited
115.25
9.95
9.45%
IN:SIGMA
Sigma Solve Ltd
39.53
2.55
6.90%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.