Synopsis: Tera Software Limited, an IT Stock, reports 181.88% YoY revenue growth and a 420.63% YoY net profit surge in Q2 FY26 results.
This Micro-cap stock, engaged in providing IT and integrated services, specializing in e-Governance solutions, enterprise information systems, and smart city technologies for government and public sector clients across India, hit a 5 percent upper circuit after the company reported September quarterly results with a 420.63 percent YoY increase in net profit.
With a market capitalization of Rs. 687.40 crores, the shares of Tera Software Limited hit a 5 percent upper circuit of Rs. 549.40 per share on Wednesday, up from its previous closing price of Rs. 523.25 per share.
Q2 FY26 Result Walkthrough:
Coming into the quarterly results of Tera Software Limited, the company’s consolidated revenue from operations increased by 181.88 percent YOY, from Rs. 25.34 crore in Q2 FY25 to Rs. 71.43 crore in Q2 FY26, and grew by 118.17 percent QoQ from Rs. 32.74 crore in Q1 FY26.
Tera Software Limited generated 29.21 percent of its revenue from the Technical Division Segment and 70.79 percent from the Projects Division segment in Q2 FY26.
In Q2 FY26, Tera Software Limited’s consolidated net profit increased by 420.63 percent YOY, reaching Rs. 6.56 crore compared to Rs. 1.26 crore during the same period last year. As compared to Q1 FY26, the net profit has increased by 41.08 percent, from Rs. 4.65 crore.
The basic earnings per share increased by 418.81 percent and stood at Rs. 5.24 as against Rs. 1.01 recorded in the same quarter in the previous year, FY2025.
In terms of return ratios, the company’s ROCE and ROE stand at 11.3 percent and 8.04 percent, respectively. Tera Software Limited has an earnings per share (EPS) of Rs. 13.1, and its debt-to-equity ratio is 0.22x.
Company Overview:
Tera Software Limited was established in 1994 and is an Indian IT company focused on delivering software solutions primarily to government and public sector clients. It has grown steadily over the years by specializing in technology-driven services that support governance, administration, and smart city initiatives across India.
The company provides e-Governance solutions, enterprise information management systems, and software integration services. Its offerings include application development, system maintenance, IT consulting, and digital transformation services that help government agencies improve efficiency and transparency.
Tera Software’s products and services cater to varied sectors such as urban development, public administration, transport, and utilities. By leveraging advanced technologies, the company helps implement large-scale projects like smart city infrastructure, municipal services automation, and information portals.
Written By – Nikhil Naik
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