Order Book Or Contract Wins
Expected: Next 24 monthsHIGH confidence
What: Order Visibility: 1.5 to 2 years
“I have the confirmation of order book for next 1 year, 1.5 years or 2 years... chances of winning would be more than 80%.”
Sahana Systems Ltd: Is It a Deep Value Opportunity?
StrongSteady Growth
As of , Sahana Systems Ltd (IT - Software) has a deep value score of 60/100 (rated Strong). Earnings are accelerating. 1Y return vs Nifty 500: -44%.
Sahana Systems Ltd Key Facts
- PE Ratio
- 11.5x
- Market Cap
- ₹725 Cr
- Value Score
- 60/100
- Margin of Safety
- 166%
- PAT Growth YoY
- +100%
- Revenue Growth YoY
- +115%
- OPM
- 33.0%
PE: Cycle BottomStrong Opportunity
What's Happening
💎PE falling while earnings hold — value emerging
👔Promoter stake down 3.8% this quarter
💰Trading 166% below estimated fair value — significant discount
Earnings Acceleration Triggers
1. Order Book Or Contract Wins
Next 24 monthsHIGH
2. Geographical Expansion
Near futureMEDIUM
3. Regulatory Approval Or License Win
OngoingMEDIUM
Key Risks
1. Negative cash flow intensity in service-driven business lines due to high workin
MEDIUM2. Dependency on government tender timelines and mobilization advances for revenue
LOWSector-Specific Signals
Order Book Visibility1.5 to 2 years
Government/Defense Revenue Mix60%-5%
New Client Acquisition (Standalone)24%
Total Group Headcount1,500+
Key Numbers
PAT Growth YoY
+100%
Stable
Revenue YoY
+115%
Stable
Operating Margin
33.0%
-500 bps YoY
PE Ratio
11.5
PEG Ratio
0.13
Current Price
₹820
Dividend Yield
0.12%
3Y PAT CAGR
+80%
Market Cap
725 Cr
Valuation
Significantly UndervaluedWhy Are Sahana Systems Ltd's Earnings Accelerating?
Based on Q2 FY26 earnings • Updated Apr 18, 2026
Geographical Expansion
Expected: Near futureMEDIUM confidence
What: Overseas Revenue: ₹20 Cr
“we have closed around INR20 crores worth of business from the overseas market... couple of good opportunities coming in African subcontinent and Latin American subcontinent.”
Regulatory Approval Or License Win
Expected: OngoingMEDIUM confidence
What: Patents Awarded: 2
“totally applied 12 patents last year out of which 6 has already been under the process of positive note and two has been awarded to us.”
Value Added Product Mix Shift
Expected: 3 yearsMEDIUM confidence
What: Defense Revenue Share: 60%
Impact: PAT increase
“overall aspect of the margin, sir, eventually in defense ecosystem, the margin will get increased... overall PAT will little bit increase.”
Client Mining Cross Selling Wallet Share
Expected: H1 FY26LOW confidence
What: Existing Client Revenue: 76%
“for Sahana as a standalone, we have achieved 76% of the revenue from our existing customers.”
PAT Margin expansion to 24%
HIGH confidence
What: PAT Margin expansion to 24%
“our EBITDA has been 33% and our PAT has increased 1 more percent to 24%.”
What Are the Key Risks for Sahana Systems Ltd?
Earnings deceleration risks from management commentary
Negative cash flow intensity in service-driven business lines due to high workin
MEDIUMTrigger: Service-driven business requires higher cash flow intensity compared to product-driven business.
Management view: Planning to use OD/CC facilities with banks for large-scale projects and designing milestones to minimize cash flow pressure.
Monitor: labor
Dependency on government tender timelines and mobilization advances for revenue
LOWTrigger: Revenue recognition in H2 is often bulky due to government agencies exhausting budgets before the financial year-end.
Management view: Management monitors mobilization advances to predict H2 performance.
Monitor: regulatory
What Is Sahana Systems Ltd's Management Saying?
Key quotes from recent conference calls
“Sir, in the last con-call, the projection was given in FY '26, INR230 crores, INR650 crores in FY '27 and in FY '28 INR1,000 crores. [Previous Revenue Guidance FY26 guidance]”
“If we talk about achieving the 5,000 crores, you can consider 2 more years on top of it, sir. In around 6 financial years. [Initiative: Vision 5000]”
“per charging, whatever revenue comes in, there is a bifurcation of the revenue, which comes to us, which comes to the particular authority in Andhra. [Initiative: Andhra Pradesh EV Charging Rollout]”
“If it is a service-driven business, the cash flow intensity will be more... we might opt for certain enhancement of OD and CC aspect. [Risk (labor): MEDIUM]”
What Did Sahana Systems Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹114 Cr
Why: Tremendous growth was achieved through the acquisition of new customers and enhancing revenue from existing enterprise and government projects.
Consolidated revenue reached ₹114 Cr for H1 FY26, showing significant scale compared to the previous year's full-year consolidated revenue of ₹167 Cr.
EBITDA
₹37.6 Cr
Margin 33%
Why: The margin remained steady as the company balanced high-margin defense projects with steady-margin system integration business.
EBITDA margin of 33% is slightly lower than the 34% reported for the full year of FY25.
PAT
₹27.4 Cr
Why: PAT increased by 1% due to improved operational efficiencies and a higher contribution from high-margin segments.
PAT margin improved to 24% in H1 FY26 from 23% in the previous full year.
Other Highlights
• Standalone revenue for H1 FY26 stood at ₹69 Cr with 19% PAT.
• Acquired 24% of revenue from new customers in the standalone entity.
• Awarded 2 patents out of 12 applied, with 6 more in positive note process.
What Sector Metrics Matter for Sahana Systems Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Order Book Visibility
1.5 to 2 years
Why: Shortlisted for multiple large-scale tenders with high win probability.
Government/Defense Revenue Mix
60%
YoY -5%
Why: The company maintains a heavy focus on government defense and aided ecosystems.
New Client Acquisition (Standalone)
24%
Why: Aggressive expansion into new defense and edutech marquee customers.
Total Group Headcount
1,500+
Why: Includes full-time employees, subsidiaries, and vendor/subcontractor resources.
Core Tech Team Size
450
YoY +180
Why: Increased from 250-270 last year to support potential growth.
Patents Applied
12
Why: Strategic move to productize solutions curated from system integration projects.
Overseas Revenue Closed
₹20 Cr
Why: Expansion into US and Southeast Asian markets for digital product engineering.
Consolidated EBITDA Margin
33%
YoY -1%
Why: Slight compression compared to full-year FY25 due to service-mix intensity.
What Is Sahana Systems Ltd's Management Guidance?
Forward-looking targets from management for FY28
Revenue Outlook
₹500 Cr
Margin Outlook
PAT will increase slightly over the next three years.
Management Tone: BULLISH
Guidance Changes
LOWERED
FY28 Revenue: ₹1,000 Cr → ₹500 Cr
How Fast Is Sahana Systems Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +115% | +80% | Stable |
| PAT (Net Profit) | +100% | +80% | Stable |
| OPM | 33.0% | -500 bps | Volatile |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Other Deep Value Stocks in IT - Software
Frequently Asked Questions: Sahana Systems Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What is Sahana Systems Ltd's deep value score?
Sahana Systems Ltd has a deep value score of 60/100 (rated Strong). This score is calculated from three components
- Earnings Score: 27/40 — measures PAT growth momentum across quarters
- Underperformance Score: 23/35 — how much the stock trails Nifty 500 (deeper underperformance = higher contrarian signal)
- Quality Score: 6/25 — operational quality (margins, revenue growth, valuation)
Is Sahana Systems Ltd fundamentally improving?
Sahana Systems Ltd's quarterly profit (PAT) growth trajectory
- Latest Quarter PAT Growth (QoQ): +10%
- Previous Quarter PAT Growth (QoQ): +77%
- 2 Quarters Ago PAT Growth (QoQ): +3%
- PAT Acceleration: +3.5pp (profits are accelerating)
- 3 consecutive quarters of positive PAT growth
Why is Sahana Systems Ltd underperforming despite good earnings?
Sahana Systems Ltd is underperforming the market despite improving earnings — this is the core deep value thesis
- 1-Year Return vs Nifty 500: -44%
- 6-Month Return vs Nifty 500: -24%
- 3-Month Return vs Nifty 500: -11%
- Yet average quarterly PAT growth is +30% — earnings are improving
- The market often takes time to re-rate stocks with improving fundamentals. This gap between price performance and earnings improvement is what deep value research seeks to identify.
What is the earnings momentum for Sahana Systems Ltd?
Sahana Systems Ltd's earnings momentum is Steady — consistent growth.
- PAT QoQ progression: +3% → +77% → +10% (2Q ago → 1Q ago → latest)
- Acceleration: +3.5pp
- PAT YoY Growth: +100%
Is Sahana Systems Ltd undervalued?
Sahana Systems Ltd's valuation metrics
- Price-to-Earnings (PE): 13.4x
- Price-to-Book (PB): 4.1x
- PEG Ratio: 0.1x
- Margin of Safety: +187% (appears undervalued)
What are the revenue and margin trends for Sahana Systems Ltd?
Sahana Systems Ltd's revenue and margin trends
- Latest Quarter Revenue Growth (QoQ): -1%
- Average Quarterly Revenue Growth: +45%
- Revenue Acceleration: -8.9pp
- Latest OPM Change: +1.4pp (margins expanding)
- Average OPM Change: -1.6pp
- Revenue YoY: +115%
What sector does Sahana Systems Ltd belong to?
Sahana Systems Ltd key facts
- Sector: IT - Software
- Market Cap: ₹725 Cr
- Rank in IT - Software: #1 by value score
- Overall rank among all deep value stocks: #19
Is Sahana Systems Ltd a good deep value opportunity to study?
Sahana Systems Ltd shows strong deep value signals — good score (60/100), accelerating earnings, and significant underperformance vs Nifty.
- Value Score: 60/100 (Strong)
- Earnings: Accelerating
- 1Y Underperformance: -44% vs Nifty 500
What is the bull and bear case for Sahana Systems Ltd?
Research Signals (Bull Case)
- Earnings accelerating — profit growth speeding up
- 3 consecutive quarters of positive PAT growth
- Appears undervalued based on fair value analysis
Risk Factors (Bear Case)
- Significant underperformance (-44% vs Nifty 1Y)
- Margin pressure warning
- Operating margins contracting
Which other IT - Software stocks are deep value opportunities?
Other deep value stocks in IT - Software
- Mastek Ltd — Score 58/100, Average
- Infosys Ltd — Score 54/100, Average, earnings accelerating
- String Metaverse Ltd — Score 47/100, Average
- Sonata Software Ltd — Score 41/100, Average, earnings accelerating
How does the IT - Software sector look for deep value?
IT - Software deep value sector overview
- 5 deep value stocks in this sector
- Average value score: 52/100
- Avg PAT acceleration: +2.3pp
- Top pick: Sahana Systems Ltd
What is deep value investing?
Deep value investing studies stocks that are underperforming the market despite showing improving fundamentals. The thesis is that the market has not yet recognized the earnings recovery, creating a potential valuation gap. It requires patience — recovery can take several quarters.
How is the deep value score calculated?
The deep value score (0-100) combines three factors:
- Earnings (0-40 pts): PAT growth across last 3 quarters, acceleration, and consecutive growth - Underperformance (0-35 pts): How much the stock trails Nifty 500 over 1Y, 6M, 3M (deeper underperformance = higher score) - Quality (0-25 pts): Revenue growth, margin trends, and valuation metrics (PEG, P/B)
Higher score indicates a stronger contrarian research signal.
What are the growth catalysts for Sahana Systems Ltd?
Sahana Systems Ltd has 6 key growth catalysts identified from recent earnings analysis
- Order Book Or Contract Wins
- Geographical Expansion
- Regulatory Approval Or License Win
- Value Added Product Mix Shift
What are the key risks in Sahana Systems Ltd?
Sahana Systems Ltd has 2 key risks worth monitoring
- Negative cash flow intensity in service-driven business lines due to high workin
- Dependency on government tender timelines and mobilization advances for revenue
What did Sahana Systems Ltd's management say in the latest earnings call?
In Q2 FY26, Sahana Systems Ltd's management highlighted
- "Sir, in the last con-call, the projection was given in FY '26, INR230 crores, INR650 crores in FY '27 and in FY '28 INR1,000 crores. [Previous Revenu..."
- "If we talk about achieving the 5,000 crores, you can consider 2 more years on top of it, sir. In around 6 financial years. [Initiative: Vision 5000]"
- "per charging, whatever revenue comes in, there is a bifurcation of the revenue, which comes to us, which comes to the particular authority in Andhra. ..."
The above FAQs are generated from publicly available earnings data. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.