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: Stock Analysis & Fundamentals
Updated this weekSahana Systems Ltd (IT - Software) — fundamental analysis, earnings data, and key metrics. PE: 11.5. ROE: 30.5%. This stock is not currently in the Nifty 500 momentum outperformers list.
Sahana Systems Ltd Key Facts
What's Happening
👔Promoter stake down 3.8% this quarter
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
Current Price
₹820
Dividend Yield
0.12%
Market Cap
725 Cr
Valuation
N/AWhy 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
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
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Frequently Asked Questions: Sahana Systems Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Sahana Systems Ltd's latest quarterly results?
Sahana Systems Ltd's latest quarterly results (Sep 2025) show
- PAT Growth YoY: +100.0%
- Revenue Growth YoY: +115.1%
- Operating Margin: 33.0%
What is Sahana Systems Ltd's current PE ratio?
Sahana Systems Ltd's current PE ratio is 11.5x.
- Current PE: 11.5x
- Market Cap: 725 Cr
- Dividend Yield: 0.12%
What is Sahana Systems Ltd's price-to-book ratio?
Sahana Systems Ltd's price-to-book ratio is 3.6x.
- Price-to-Book (P/B): 3.6x
- Book Value per Share: ₹228
- Current Price: ₹820
Is Sahana Systems Ltd a fundamentally strong company?
Sahana Systems Ltd's fundamental strength based on key financial ratios
- Return on Capital (ROCE): 42.0%
Is Sahana Systems Ltd debt free?
Sahana Systems Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹12 Cr
What is Sahana Systems Ltd's return on equity (ROE) and ROCE?
Sahana Systems Ltd's return ratios over recent years
- FY2023: ROCE 76.0%
- FY2024: ROCE 55.0%
- FY2025: ROCE 42.0%
Is Sahana Systems Ltd's cash flow positive?
Sahana Systems Ltd's operating cash flow is negative (FY2025).
- Cash from Operations (CFO): ₹-48 Cr
- Free Cash Flow (FCF): ₹-83 Cr
- CFO/PAT Ratio: -123% (weak cash conversion)
What is Sahana Systems Ltd's dividend yield?
Sahana Systems Ltd's current dividend yield is 0.12%.
- Dividend Yield: 0.12%
- Current Price: ₹820
Who holds Sahana Systems Ltd shares — promoters, FII, DII?
Sahana Systems Ltd's shareholding pattern (Mar 2026)
- Promoters: 57.3%
- FII (Foreign): 0.7%
- DII (Domestic): 0.6%
- Public: 41.4%
Is promoter holding increasing or decreasing in Sahana Systems Ltd?
Sahana Systems Ltd's promoter holding has remained stable recently.
- Current Promoter Holding: 57.3% (Mar 2026)
- Previous Quarter: 57.3% (Dec 2025)
- Change: 0.00% (stable)
Is Sahana Systems Ltd a new momentum entry or an established outperformer?
Sahana Systems Ltd is an established outperformer with 1 weeks of consecutive Nifty 500 outperformance.
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 — Shortlisted for multiple tenders where the chance of winning is estimated at more than 80%.
- Geographical Expansion — Expanding into Southeast Asia (Thailand), African subcontinent, and Latin American markets for fintech and defense-aided tech.
- Regulatory Approval Or License Win — Patents allow for the resale of curated solutions in the market, shifting from pure services to product-led revenue.
- Value Added Product Mix Shift — Moving toward high-margin electronic warfare and information warfare projects like the SAMVAD tool for the Ministry of Information Broadcast.
What are the key risks in Sahana Systems Ltd?
Sahana Systems Ltd has 2 key risks worth monitoring
- [MEDIUM] Negative cash flow intensity in service-driven business lines due to high workin — Service-driven business requires higher cash flow intensity compared to product-driven business.
- [LOW] Dependency on government tender timelines and mobilization advances for revenue — Revenue recognition in H2 is often bulky due to government agencies exhausting budgets before the financial year-end.
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. ..."
What is Sahana Systems Ltd's management guidance for growth?
Sahana Systems Ltd's management has provided the following forward guidance for FY28
- Revenue outlook: ₹500 Cr
- Margin outlook: PAT will increase slightly over the next three years.
- Management tone: bullish
- Milestone: [LOWERED] FY28 Revenue: ₹1,000 Cr → ₹500 Cr
What sector-specific metrics matter most for Sahana Systems Ltd?
Sahana Systems Ltd's most important sub-sector-specific KPIs from the latest concall
- Order Book Visibility: 1.5 to 2 years — Shortlisted for multiple large-scale tenders with high win probability.
- Government/Defense Revenue Mix: 60% (YoY -5%) — The company maintains a heavy focus on government defense and aided ecosystems.
- New Client Acquisition (Standalone): 24% — Aggressive expansion into new defense and edutech marquee customers.
- Total Group Headcount: 1,500+ — Includes full-time employees, subsidiaries, and vendor/subcontractor resources.
- Core Tech Team Size: 450 (YoY +180) — Increased from 250-270 last year to support potential growth.
- Patents Applied: 12 — Strategic move to productize solutions curated from system integration projects.
Is Sahana Systems Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Sahana Systems Ltd may be worth studying
- Currently showing mixed signals — monitor for clearer trend confirmation
What is the investment thesis for Sahana Systems Ltd?
Sahana Systems Ltd investment thesis summary:
Research Signals (Bull Case)
- Growth catalyst: Order Book Or Contract Wins
Risk Factors (Bear Case)
- Key risk: Negative cash flow intensity in service-driven business lines due to high workin
What is the future outlook for Sahana Systems Ltd?
Sahana Systems Ltd's forward outlook based on current data signals
- Key Catalyst: Order Book Or Contract Wins
- Key Risk: Negative cash flow intensity in service-driven business lines due to high workin
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.