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Tera Software Limited (TERASOFT) AI Stock Analysis
Tera Software Limited
(NSE:TERASOFT)
The overall score of 57 reflects a company with significant operational risks. The primary concern is the severe deterioration in cash flow and gross margins, which undermines otherwise solid revenue growth and a healthy balance sheet. The stock's technical trend is weak, trading well below its long-term averages, though its low P/E ratio provides some valuation support. The lack of positive catalysts from earnings calls or corporate events leaves the outlook cautious.
Tera Software Limited (TERASOFT) vs. iShares MSCI India ETF (INDA)
- Market Cap
- INR 3.01B
- Dividend Yield
- 0.49%
- Average Volume (3M)
- 4,017
- Price to Earnings (P/E)
- 12.2
- Beta (1Y)
- 1.49
- Revenue Growth
- 120.86%
- EPS Growth
- 125.67%
- Country
- India
- Employees
- 4,336
- Sector
- General
- Sector Strength
- 55
- Industry
- Information Technology Services
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 divisio...
Tera Software Limited Financial Statement Overview
Summary
Financial performance is mixed. The balance sheet is strong (Score 85) with low debt and improving ROE. However, the income statement (Score 55) shows robust revenue growth overshadowed by a severe gross margin collapse, and the cash flow (Score 35) is deeply negative, indicating poor earnings quality. The overall financial health is weighed down by cash conversion issues.
Income Statement
55NeutralBalance Sheet
85Very PositiveCash Flow
35Negative| 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 | 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 | 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
Price Trends
Market Momentum
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 242.30 is above the 20-day moving average (MA) of 228.47, below the 50-day MA of 247.63, and below the 200-day MA of 343.58, indicating a neutral trend. The MACD of 0.31 indicates Negative momentum. The RSI at 51.75 is Neutral, neither overbought nor oversold. The STOCH value of 69.46 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
Overall Rating
IN:SIGMA86Outperform
IN:INSPIRISYS69Neutral- IN:TERASOFT57Neutral
IN:CYBERTECH55Neutral
IN:3IINFOLTD44Neutral
IN:DIGISPICE39Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| IN:SIGMA | 86Outperform | INR 4.23B | 14.05 | ― | 1.16% | 21.23% | 53.75% |
| IN:INSPIRISYS | 69Neutral | INR 3.29B | 8.85 | ― | ― | 35.17% | 9.87% |
| IN:TERASOFT | 57Neutral | INR 3.19B | 12.22 | ― | 0.49% | 120.86% | 125.67% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| IN:CYBERTECH | 55Neutral | INR 3.72B | 12.19 | ― | 18.82% | 10.49% | -9.67% |
| IN:3IINFOLTD | 44Neutral | INR 3.97B | 18.18 | ― | ― | -0.84% | -79.45% |
| IN:DIGISPICE | 39Underperform | INR 3.79B | 19.40 | ― | ― | -2.98% | ― |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| IN:TERASOFT | Tera Software Limited | 242.10 | -315.29 | -56.57% | |
| IN:3IINFOLTD | 3i Infotech Limited | 19.50 | 2.23 | 12.91% | |
| IN:CYBERTECH | CyberTech Systems & Software Ltd. | 127.05 | -52.25 | -29.14% | |
| IN:DIGISPICE | DiGiSPICE Technologies Ltd. | 15.88 | -10.11 | -38.90% | |
| IN:INSPIRISYS | lnspirisys Solutions Limited | 87.42 | -5.03 | -5.44% | |
| IN:SIGMA | Sigma Solve Ltd | 42.95 | -14.52 | -25.26% |
Tera Software Limited Corporate Events
Tera Software Attributes Share Price Volatility to Market Forces, Denies Undisclosed Material Events
Tera Software Limited has responded to queries from BSE and NSE after a significant movement in its share price, stating it has been regular and prompt in disclosing all material events and price-sensitive information under SEBI’s listing regul...
Tera Software Files SEBI Depository Compliance Certificate for Q2 2026
Tera Software Limited has submitted to the stock exchanges a compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended September 30, 2026. Its registrar and share transfer agent,...
Tera Software Sets AGM Date, Opens Remote E-Voting for Shareholders
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 company...
Tera Software Sets Record Date and AGM Schedule for 2026 Dividend
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 eligibilit...
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 29, 2026