Megasoft Limited is a technology company specializing in the telecommunications sector, providing services and solutions to clients worldwide. Incorporated on June 29, 1999, the company is an intellectual property-driven, product-based technology firm that initially focused its expertise on the telecom sector. Megasoft provides global telecom services under its brand XIUS-bcgi. Additionally, it offers Outsourcing, Off-shoring, and back-office services to other product companies in areas such as Product Life Cycle Management (PLM) and Application Development & Maintenance Services (ADMS) through its subsidiary, BlueAlly.
The company boasts strong product engineering and development capabilities, holding Capability Maturity Model (CMM) Level 5 certification. Megasoft operates internationally with presences in India, the U.S., UK, Singapore, Malaysia, and Germany. Founded in 1994, it has grown through strategic acquisitions and mergers to become a significant player in the telecom solutions space.
Megasoft's core business involves delivering comprehensive telecom solutions and IT services to a global clientele. The company is strategically focusing on the Pharma, Aerospace, and Defense Electronics areas and is in the process of acquiring new companies. The aim is to provide centralized corporate, technology, finance, and leadership/management support services to these subsidiaries/associate companies.
The company operates through various service verticals, primarily concentrating on telecom billing, revenue management, and customer care solutions. Megasoft provides these solutions through its subsidiary, XIUS, which develops products for mobile operators, MVNOs, and other telecom service providers. Beyond telecom, Megasoft also delivers tailored software solutions to enterprises, aimed at enhancing business processes, analytics, and customer engagement.
As of July 2025, Megasoft Ltd has a market capitalization of ₹723 crore, classifying it as a small-cap company in the Indian stock market, as per Value Research. The company’s P/B ratio is 6.24 times as on July 11, 2025, which represents a 34% premium to its peers' median range of 4.64 times.
On a consolidated basis, Megasoft Ltd reported a profit of ₹3.44 crore on a total income of ₹12.66 crore for the quarter ended in 2025. Over the trailing twelve months (TTM), the company has shown mixed financial performance, reporting a TTM profit after tax of ₹-30 crore, indicating challenges in profitability. Megasoft's operating revenue on a trailing 12-month basis was ₹41.71 crore.
- Annual Revenue Growth: 11% (considered good)
- Return on Equity (ROE): -20% (indicates a need for improvement)
- Debt-to-Equity Ratio: 90% (considered slightly high)
- P/B Ratio: 6.24 times (as of 11-Jul-2025)
Megasoft Ltd's 52-week high share price is ₹110.75, and its 52-week low is ₹49.90. The stock has exhibited significant volatility over the past year.
- Last Month: Down by 2.33% on BSE
- Last Three Months: Up by 68.42% on BSE
- Last Twelve Months: Up by 37.80% on BSE
- Last Three Years: Up by 148.36% on BSE, demonstrating strong long-term performance despite short-term volatility.
Promoter holding in Megasoft Ltd decreased from 42.77% in June 2024 to 35.07% as of March 2025. The promoter of Megasoft Ltd is RAMANAGARAM ENTERPRISES PRIVATE LIMITED, which owns 35.07% of the total equity. Importantly, there is no promoter pledging in Megasoft Ltd, which is a positive indicator for corporate governance.
Megasoft has been actively pursuing strategic restructuring and expansion. The company plans to sell a 36.52% stake in Extrovis AG for approximately $15 million, with the sale agreement and shareholder approval pending.
The company filed its first motion for the merger scheme of Sigma Advanced Systems and Megasoft with the NCLT on June 16, 2025, indicating ongoing efforts to consolidate and expand operations through strategic acquisitions.
- Strong Foothold in Telecom Solutions: Through its subsidiary XIUS, Megasoft is well-entrenched in telecom solutions, providing specialized billing and revenue management systems—a high-demand sector driven by 5G growth and digital transformation.
- Diverse Global Client Base: The company serves clients across multiple regions including the US, Latin America, and Asia, which diversifies revenue streams and offers growth opportunities in emerging markets.
- Industry Concentration: A significant portion of revenue is tied to the telecom industry. Regulatory changes, technological shifts, or a slowdown in this sector could adversely impact the company.
- Competitive Market: Megasoft operates in highly competitive markets, facing challenges from both global giants and specialized niche players, which could affect its market share and pricing power.
From a technical standpoint, the stock is comfortably positioned above its key moving averages, approximately 20% and 31% from the 50-Day Moving Average (50DMA) and 200-Day Moving Average (200DMA), respectively. This suggests a relatively strong technical position.
Megasoft Limited presents a mixed investment proposition. While it boasts strong long-term returns and an established position in the telecom solutions market with a global presence, it faces near-term profitability challenges. Investors should consider the cyclical nature of the telecom industry and competitive pressures when evaluating the stock.
