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SoftTech Engineers Ltd. (SOFTTECH) AI Stock Analysis

IN:SOFTTECH

SoftTech Engineers Ltd.

(NSE:SOFTTECH)

Select Model
Rating:63Neutral
Price Target:INR 501.00â–²(21.91% Upside)
Action:reiterated
Date:08/28/26

The score is primarily supported by strong revenue growth, improving leverage, and a meaningful recent improvement in free cash flow. Offsetting this, margins and net profitability remain weaker than earlier years, and the very high P/E valuation is a major constraint. Technical indicators are broadly neutral, suggesting no strong momentum-driven tailwind at present.

Positive Factors
Strong Revenue GrowthSustained double-digit revenue growth indicates solid demand for the company’s engineering and technical services and demonstrates consistent execution. Continued expansion can support operating scale, strengthen market position, and provide a durable base for future earnings growth if profitability is preserved.
Negative Factors
Margin CompressionOperating margins remain materially below earlier years, showing that revenue growth has not translated proportionately into operating profit. Persistent margin compression could limit earnings scalability, reduce the benefit of additional sales, and leave results more sensitive to cost increases or changes in project economics.

SoftTech Engineers Ltd. (SOFTTECH) vs. iShares MSCI India ETF (INDA)

-40%-20%0%20%40%60%IN:SOFTTECH+16.40%INDA-12.02%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
INR 5.74B
Dividend Yield
―
Average Volume (3M)
223
Price to Earnings (P/E)
113.9
Beta (1Y)
1.07
Revenue Growth
35.77%
EPS Growth
200.01%
Country
India
Employees
487
Sector
General
Sector Strength
55
Industry
Software - Application

SoftTech Engineers Ltd. Business Overview & Revenue Model

Company Description

SoftTech Engineers Limited develops software products and solutions for the architecture, engineering, operations, and construction sectors in India and internationally. The company offers CivitPlan for AI-powered design validation; CivitPermit for a...

How the Company Makes Money

SOFTTECH primarily makes money by charging fees for professional services delivered on a project-by-project basis. Key revenue streams include (1) geotechnical investigation and soil testing services—earning revenue from conducting field investigatio...

SoftTech Engineers Ltd. Financial Statement Overview

Summary

Strong and consistent revenue growth (~20%+ annually, FY26 ~25%) and improving balance-sheet leverage (debt-to-equity down to ~0.23) support a solid financial foundation. However, profitability is a key constraint: gross and operating margins are below earlier-year levels, and net margin remains relatively low despite FY26 improvement. Cash flow has recently improved with positive free cash flow in FY25–FY26, but prior multi-year negative FCF and uneven consistency keep the score from being higher.

Income Statement

72Positive

Balance Sheet

78Positive

Cash Flow

70Positive
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue1.39B1.33B952.50M787.76M654.05M574.57M
Gross Profit713.37M597.78M346.15M322.67M406.86M389.20M
EBITDA378.69M340.96M245.11M237.93M209.48M172.75M
Net Income50.37M49.41M13.14M35.78M39.98M47.87M
Balance Sheet
Total Assets02.54B2.48B1.95B1.63B1.34B
Cash, Cash Equivalents and Short-Term Investments358.03M358.03M410.56M112.11M95.47M63.68M
Total Debt0388.33M419.17M385.04M480.91M354.10M
Total Liabilities-1.70B831.31M801.28M699.43M599.09M491.05M
Stockholders Equity1.70B1.72B1.69B1.26B1.04B847.04M
Cash Flow
Free Cash Flow63.98M288.29M233.90M-34.80M-91.89M-46.21M
Operating Cash Flow71.74M308.99M242.78M187.00M74.08M115.96M
Investing Cash Flow-84.47M-159.34M-645.84M-221.11M-247.16M-163.87M
Financing Cash Flow11.61M-50.54M415.27M40.11M175.55M51.62M

SoftTech Engineers Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price410.95

Price Trends

50DMA446.08Negative
100DMA429.93Negative
200DMA372.06Positive

Market Momentum

MACD-7.95Positive
RSI40.45Neutral
STOCH53.55Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SOFTTECH, the sentiment is Negative. The current price of 410.95 is below the 20-day moving average (MA) of 444.18, below the 50-day MA of 446.08, and above the 200-day MA of 372.06, indicating a neutral trend. The MACD of -7.95 indicates Positive momentum. The RSI at 40.45 is Neutral, neither overbought nor oversold. The STOCH value of 53.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SOFTTECH.

SoftTech Engineers Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

IN:SOFTTECH against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
IN:NEWGENIN:NEWGEN82OutperformINR 63.05B19.58―1.36%6.49%-3.73%
IN:KELLTONTECIN:KELLTONTEC67NeutralINR 5.79B6.53――9.34%2.71%
IN:INFOBEANIN:INFOBEAN65NeutralINR 13.31B9.09―0.72%35.59%40.03%
IN:SOFTTECHIN:SOFTTECH63NeutralINR 5.69B113.86――35.77%200.01%
IN:NUCLEUSIN:NUCLEUS63NeutralINR 16.94B16.30―1.95%1.66%-37.05%
IN:INTELLECTIN:INTELLECT60NeutralINR 70.88B19.90―0.79%16.99%-12.47%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%

* General Sector Average

Performance Comparison

-50%-25%0%25%50%IN:SOFTTECHIN:INFOBEANIN:INTELLECTIN:KELLTONTECIN:NEWGENIN:NUCLEUSDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
IN:SOFTTECH and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
IN:SOFTTECHSoftTech Engineers Ltd.410.9549.1013.57%
IN:INFOBEANInfoBeans Technologies Ltd.137.29-19.18-12.26%
IN:INTELLECTIntellect Design Arena Ltd504.60-683.25-57.52%
IN:KELLTONTECKellton Tech Solutions Ltd.10.90-10.65-49.42%
IN:NEWGENNewgen Software Technologies Limited442.45-541.23-55.02%
IN:NUCLEUSNucleus Software Exports Limited643.45-375.81-36.87%

SoftTech Engineers Ltd. Corporate Events

SoftTech Engineers Wins Rs. 92.95 Crore AI-Driven Digital Twin Project at JNPA

Sep 17, 2026

SoftTech Engineers Limited has secured a Rs. 92.95 crore contract from Jawaharlal Nehru Port Authority to design, build and operate an AI/ML-enabled, cyber-aware Digital Twin and a 24×7 Command & Control Centre for port operations. The syste...

SoftTech Engineers drives digital compliance ahead of 30th AGM

Sep 7, 2026

SoftTech Engineers Ltd. has notified stock exchanges that it has sent letters to shareholders who have not registered their email addresses, providing them with a web link to access the company’s Annual Report for the financial year 2025-26 and...

SoftTech Engineers’ Company Secretary and Compliance Officer to Step Down in October

Aug 21, 2026

SoftTech Engineers Ltd. has announced the resignation of company secretary and compliance officer Aadishri Apte, who serves as key managerial personnel for regulatory and disclosure matters. Her departure, effective after business hours on October 16...

SoftTech Engineers’ Company Secretary and Compliance Officer Resigns

Aug 21, 2026

SoftTech Engineers Ltd. has announced that Company Secretary and Compliance Officer Ms. Aadishri Apte has tendered her resignation to pursue professional opportunities outside the company. Her resignation has been accepted, and she will remain in off...

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: Aug 28, 2026