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Megasoft Limited (IN:SIGMAADV)
:SIGMAADV
India Market
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Megasoft Limited (SIGMAADV) AI Stock Analysis

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IN:SIGMAADV

Megasoft Limited

(SIGMAADV)

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Neutral 57 (OpenAI - Gpt-5.6Sol)
Rating:57Neutral
Price Target:
₹1,056.00
▲(409.04% Upside)
Action:Reiterated
Date:10/01/26
The score is held back mainly by weak financial quality signals—especially the sharp FY2026 cash flow reversal (negative operating and free cash flow despite strong net income) and high multi-year volatility—despite strong headline profitability. Technicals are supportive due to a powerful uptrend, but overbought readings add near-term risk. Valuation is a meaningful headwind given the very high P/E.
Positive Factors
FY2026 Revenue Expansion
FY2026's sharp scale-up, with revenue growth of about 165.7%, indicates substantial expansion in the latest reported year. If the enlarged revenue base is sustained, it can improve operating leverage and provide a stronger platform for continued investment and customer delivery.
Negative Factors
Negative Cash Generation
FY2026 operating cash flow of about -2.25B and free cash flow of about -2.90B diverge sharply from strong net income. Persistent conversion weakness would reduce internally generated funding, increase reliance on financing, and make reported earnings less dependable over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
FY2026 Revenue Expansion
FY2026's sharp scale-up, with revenue growth of about 165.7%, indicates substantial expansion in the latest reported year. If the enlarged revenue base is sustained, it can improve operating leverage and provide a stronger platform for continued investment and customer delivery.
Read all positive factors

Megasoft Limited (SIGMAADV) vs. iShares MSCI India ETF (INDA)

Megasoft Limited Business Overview & Revenue Model

Company Description
Sigma Advanced Systems Limited does not have significant operations. Previously, the company was engaged in the IT business in India. The company focused on pharma, aerospace, and defense electronics areas. The company was formerly known as Megaso...

Megasoft Limited Financial Statement Overview

Summary
Income statement is strong in FY2026 (sharp revenue ramp and very high reported margins), and the balance sheet is serviceable with moderate leverage (~0.71x debt/equity) and meaningful equity. However, the latest cash flow is a major red flag: FY2026 operating cash flow (~-2.25B) and free cash flow (~-2.90B) are deeply negative despite strong reported net income, raising earnings-quality and funding-risk concerns. Multi-year volatility (including zero/near-zero revenues in FY2024–FY2025) further reduces confidence in trend durability.
Income Statement
64
Positive
Balance Sheet
58
Neutral
Cash Flow
34
Negative
BreakdownMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue4.92B0.000.0019.71M523.96M
Gross Profit3.07B-44.66M-1.99M-18.93M94.58M
EBITDA3.33B311.29M284.73M251.10M109.89M
Net Income2.68B-299.37M-127.47M88.29M46.21M
Balance Sheet
Total Assets10.59B3.64B3.66B3.77B2.86B
Cash, Cash Equivalents and Short-Term Investments244.18M95.46M170.49M22.86M352.43M
Total Debt3.32B1.39B1.47B1.46B290.32M
Total Liabilities5.91B2.21B1.85B1.84B1.02B
Stockholders Equity4.68B1.44B1.81B1.93B1.85B
Cash Flow
Free Cash Flow-2.90B194.75M163.77M136.85M153.23M
Operating Cash Flow-2.25B367.40M275.63M152.28M164.74M
Investing Cash Flow-61.65M-187.29M97.23M-1.33B-100.52M
Financing Cash Flow2.42B-258.90M-174.48M851.73M220.53M

Megasoft Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price207.45
Price Trends
50DMA
763.72
Positive
100DMA
620.55
Positive
200DMA
406.07
Positive
Market Momentum
MACD
87.98
Negative
RSI
82.51
Negative
STOCH
100.00
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SIGMAADV, the sentiment is Positive. The current price of 207.45 is below the 20-day moving average (MA) of 890.86, below the 50-day MA of 763.72, and below the 200-day MA of 406.07, indicating a bullish trend. The MACD of 87.98 indicates Negative momentum. The RSI at 82.51 is Negative, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:SIGMAADV.

Megasoft Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
₹13.92B6.81―0.67%35.35%59.52%
74
Outperform
₹65.05B20.59―1.31%7.88%-1.77%
69
Neutral
₹17.09B15.93―1.96%1.66%-37.05%
60
Neutral
₹6.55B7.29―0.46%9.34%2.71%
57
Neutral
₹203.45B131.68―――-48.55%
56
Neutral
₹20.56B50.03――15.71%―
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:SIGMAADV
Megasoft Limited
1,127.30
977.60
653.04%
IN:INFOBEAN
InfoBeans Technologies Ltd.
148.08
18.35
14.14%
IN:KELLTONTEC
Kellton Tech Solutions Ltd.
12.18
-11.80
-49.21%
IN:NEWGEN
Newgen Software Technologies Limited
458.95
-413.67
-47.41%
IN:NUCLEUS
Nucleus Software Exports Limited
637.80
-345.47
-35.13%
IN:RAMCOSYS
Ramco Systems Limited
555.70
47.35
9.31%

Megasoft Limited Corporate Events

Sigma Advanced Systems Announces Investor Plant Visit Under SEBI Disclosure Norms
Sep 11, 2026
Sigma Advanced Systems Limited has notified the exchange that investors will conduct a visit to its plant, in compliance with Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The intimation, filed by the...
Sigma Advanced Systems Wins £125m Rolls-Royce Deal After Bromford Acquisition
Aug 25, 2026
Sigma Advanced Systems has deepened its partnership with Rolls-Royce Aerospace UK via a new long-term contract worth nearly £125 million secured through its recently acquired UK subsidiary Bromford Precision Solutions. The deal builds on a pr...
Sigma Advanced Systems posts strong Q1 FY2027 and deepens global aerospace and defence footprint
Aug 13, 2026
Sigma Advanced Systems reported robust Q1 FY2027 results, with consolidated operational revenue rising 16% quarter-on-quarter to ₹374 crore, operational EBITDA up 11% to ₹61 crore, and profit after tax from continuing operations at &#8...
Sigma Advanced Systems Wins $104.9 Million Export Order for Advanced Artillery Shells
Jul 27, 2026
Sigma Advanced Systems has secured a USD 104.9 million export order from a North American customer to supply 147,000 next-generation 155mm base bleed artillery shell bodies over the next six to twelve months. The deal underscores strong global dem...
Sigma Advanced Systems Completes Full Acquisition of UK Firm Bromford Precision
Jul 22, 2026
Sigma Advanced Systems Limited has completed the acquisition of 100% stake in Bromford Precision Solutions Limited in the United Kingdom. The deal follows a previously announced share purchase agreement and the fulfillment of all conditions preced...
Sigma Advanced Systems Files SEBI Dematerialisation Compliance Certificate
Jul 14, 2026
Sigma Advanced Systems Limited, formerly Megasoft Limited, is a publicly listed Indian company with its operational base in Hyderabad and registered office in Chennai. The company’s shares trade on BSE and the National Stock Exchange of Indi...
Sigma Advanced Systems to Acquire UK-Based Bromford Precision Solutions
Jul 14, 2026
Sigma Advanced Systems Limited, formerly Megasoft Limited, is an aerospace and defence company focused on precision-engineered parts for major OEMs, and is expanding its global footprint via its UK subsidiary, Sigma Advanced Systems UK Limited. Th...
Sigma Advanced Systems to Acquire UK Aeroengine Specialist Bromford for INR 153 Crore
Jul 14, 2026
Sigma Advanced Systems Limited has announced the acquisition of Bromford Precision Solutions, a UK-based specialist manufacturer of complex aeroengine rings and engine structures, for about GBP 11.89 million, or INR 153 crore. The deal, expected t...
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.Date of analysis: Oct 01, 2026