Incorporated in 1994, Tera Software Ltd is a prominent player in India's e-governance sector, specializing in IT & Integrated Related Services. Founded by Mr. Gopichand Tummala and his family members, who collectively held 47.53% shareholding as of March 31, 2023, the Hyderabad-based company provides services across critical domains such as E-Governance and the development of enterprise information systems for Sales Tax/GST, Public Distribution System, Registration, Education, Road Transports, Electricity Billing, UIDAI (AADHAAR), and National Population Register (NPR).
Tera Software operates with the unique distinction of being a pure and dedicated Indian e-Governance company, focusing exclusively on government digitization projects. Its operations span IT, ITeS, and various e-governance projects for Public Sector Undertakings, State Governments, and the Central Government of India, often implementing projects as a System Integrator or through PPP models (BOOT, BOO, BOMT).
As a professional service provider in the IT industry, TSL has executed Build-Own-Operate-Transfer (BOOT) projects across 22 states in India, establishing over 3,000 outlets nationwide. The company provides hardware and software services through long-term contracts to government organizations. TSL operates through three primary business segments: Projects, Technical Services, and Systems Integration.
Its comprehensive service portfolio covers sectors including transportation, land registration, public distribution systems, tax automation, education, power, common service centers, SWAN banking, telecom, healthcare, and identity management. Additionally, TSL offers system integration and networking services, hardware/software integration, smart card solutions, biometrics, kiosk software maintenance, facility management, and various IT-enabled services.
Tera Software Ltd has demonstrated significant growth and market presence, particularly in its niche. As of the latest available data, its market capitalization stands at approximately ₹380.36 Crore (as of Jul 14, 2025, 04:01 PM). The company has experienced substantial stock appreciation, with its share price increasing by 71.85% over the past 6 months and an impressive 326.37% in the last year.
- Market Capitalization: ₹380.36 Crore (as of Jul 14, 2025)
- 1-Year Growth: Over 326%
- 6-Month Growth: Over 71%
FY25 Full Year Results (Year ended March 2025):
- Net Profit: ₹9.41 Crore, a 140.66% increase compared to ₹3.91 Crore in FY24.
- Revenue: ₹107.26 Crore, a 26.96% increase compared to ₹84.48 Crore in FY24.
Q4 FY25 Results (Quarter ended March 2025):
- Net Profit: ₹2.95 Crore, a 56.91% increase compared to ₹1.88 Crore in Q4 FY24.
- Revenue: ₹33.56 Crore, a 45.03% increase compared to ₹23.14 Crore in Q4 FY24.
Q3 FY25 Results (Quarter ended December 2024):
- Net Profit: ₹2.13 Crore, a 91.89% increase compared to ₹1.11 Crore in Q3 FY24.
- Revenue: ₹23.89 Crore, a 15.24% increase compared to ₹20.73 Crore in Q3 FY24.
- Revenue (FY25): ₹108 Crore
- Profit (FY25): ₹9.42 Crore
- Stock P/E: 41.6
- Book Value: ₹97.9
- ROCE: 11.2%
- ROE: 8.04%
Tera Software has secured significant contracts, highlighting its expanding market presence in the e-governance sector.
- BharatNet Project: In partnership with ITI Limited, the company received an Advance Work Order worth ₹1,901.10 Crore for comprehensive infrastructure development of the Middle Mile Network.
- Utility Billing Services: The company received Letters of Intent (LOIs) totaling ₹273.12 Crore (excluding GST) from Madhyanchal Vidyut Vitran Nigam for door-to-door meter reading, spot bill generation, bill distribution, and collection services in Uttar Pradesh.
- Promoter Holding: 47.53% (as of Mar 2025), showing stable promoter confidence and commitment. This holding has remained consistent from June 2024 to March 2025.
- Exchange Listing: NSE / BSE
- Stock Symbol: TERASOFT
- 52-Week High: ₹325.90
- 52-Week Low: ₹66.55
Tera Software Ltd presents an interesting investment profile with strong growth indicators, particularly in its e-governance focus.
- Positives:
- Significant recent financial performance growth (profit and revenue).
- Demonstrated ability to win large projects (e.g., BharatNet).
- Reduced debt, enhancing financial health.
- Stable promoter holding indicates confidence.
- Challenges/Points to Note:
- The company is not currently paying dividends, as profits are being reinvested for business expansion.
- While reporting profits, investors should note a historical poor sales growth of -16.7% over the past five years.
- The company has high debtors (462 days), indicating potential working capital management issues that require monitoring.
The company's strategic focus on e-governance solutions positions it well to capitalize on India's ongoing digital transformation initiatives across various government sectors.
