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Tera Software Limited
(TERASOFT)
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Rating:55Neutral
Price Target:
₹321.00
▲(7.95% Upside)
Action:Reiterated
Date:08/25/26
The score is held back primarily by weak cash conversion (negative FY2026 operating and free cash flow despite strong reported growth) and bearish technicals (below key moving averages with negative MACD). These are partly offset by improving profitability, a reasonably supported balance sheet, and a fair-looking P/E, though the dividend yield is minimal.
Positive Factors
Strong Revenue Growth
The sharp acceleration in revenue indicates stronger business activity and improved market traction. If sustained, expanding sales can provide operating scale, support reinvestment, and strengthen the company’s competitive position over the next several quarters.
Negative Factors
Weak Cash Conversion
Negative operating and free cash flow despite stronger reported earnings raises concern about earnings quality and the timing of cash realization. Persistent weak conversion could increase reliance on external funding and constrain investment, dividends, or debt reduction.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth
The sharp acceleration in revenue indicates stronger business activity and improved market traction. If sustained, expanding sales can provide operating scale, support reinvestment, and strengthen the company’s competitive position over the next several quarters.
Read all positive factors
Tera Software Limited (TERASOFT) vs. iShares MSCI India ETF (INDA)
Market Cap
₹3.56B
Dividend Yield0.35%
Average Volume (3M)3.05K
Price to Earnings (P/E)14.2
Beta (1Y)1.17
Revenue Growth120.86%
EPS Growth125.66%
CountryIN
Employees899
SectorGeneral
Sector StrengthN/A
IndustryInformation Technology Services
Share Statistics
EPS (TTM)19.82
Shares Outstanding12,511,875
10 Day Avg. Volume2,613
30 Day Avg. Volume3,047
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...
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 | 2.55B | 2.38B | 1.07B | 844.83M | 1.17B | 1.27B |
| Gross Profit | 800.59M | 415.27M | 888.07M | 658.40M | 258.23M | 107.20M |
| EBITDA | 382.76M | 367.00M | 163.01M | 92.63M | 152.94M | 86.48M |
| Net Income | 248.00M | 248.01M | 94.15M | 34.41M | 34.66M | -13.02M |
Balance Sheet | ||||||
| Total Assets | 0.00 | 3.25B | 2.13B | 2.07B | 1.97B | 2.74B |
| Cash, Cash Equivalents and Short-Term Investments | 53.05M | 53.05M | 217.65M | 202.89M | 160.08M | 100.41M |
| Total Debt | 0.00 | 394.01M | 199.27M | 334.59M | 241.53M | 605.42M |
| Total Liabilities | -1.46B | 1.79B | 908.60M | 948.31M | 893.93M | 1.67B |
| Stockholders Equity | 1.46B | 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
Negative
297.35
Price Trends
369.04
Negative
371.98
Negative
390.59
Negative
Market Momentum
-27.08
Positive
26.17
Positive
11.99
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TERASOFT, the sentiment is Negative. The current price of 297.35 is below the 20-day moving average (MA) of 325.78, below the 50-day MA of 369.04, and below the 200-day MA of 390.59, indicating a bearish trend. The MACD of -27.08 indicates Positive momentum. The RSI at 26.17 is Positive, neither overbought nor oversold. The STOCH value of 11.99 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:TERASOFT.
Tera Software Limited Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
86 Outperform | ₹4.83B | 15.16 | ― | 0.11% | 21.23% | 53.75% | |
66 Neutral | ₹4.04B | 13.08 | ― | 15.09% | 4.74% | -11.10% | |
61 Neutral | ₹3.61B | 9.34 | ― | 4.39% | 35.17% | 9.87% | |
60 Neutral | ₹4.66B | 12.58 | ― | 3.07% | -2.21% | -53.12% | |
56 Neutral | ₹4.00B | 20.47 | ― | 7.63% | -2.98% | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
55 Neutral | ₹3.56B | 14.23 | ― | 0.35% | 120.86% | 125.66% |
* General Sector Average
IN:TERASOFT
Tera Software Limited
284.50
-76.65
-21.22%
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17.05
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IN:INSPIRISYS
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IN:SIGMA
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Tera Software Limited Corporate Events
Tera Software Sets AGM Date, Opens Remote E-Voting for Shareholders
Sep 7, 2026
Tera Software Limited has convened its 32nd Annual General Meeting for September 29, 2026, at its registered office in Hyderabad, alongside circulation of the annual report for financial year 2025-26 to shareholders via electronic means. The compa...
Tera Software Sets Record Date and AGM Schedule for 2026 Dividend
Sep 7, 2026
Tera Software Limited has scheduled its 32nd Annual General Meeting for September 29, 2026, at its registered office in Hyderabad, with a record date and voting cut-off set for September 22, 2026. The record date will determine shareholder eligibi...
Tera Software CFO D. Pravallika Resigns, Transition Underway
Jun 26, 2026
Tera Software Limited has announced that its Chief Financial Officer and key managerial personnel, D. Pravallika, has resigned from her role due to personal reasons, with effect from the close of business hours on June 30, 2026. The company has st...
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.