BSE: 544361
COVANCE SOFTSOL LIMITED
Provides IT and IT-enabled services through its Hyderabad-based Indian operations and a wholly-owned US subsidiary, Softsol Resources Inc. The entity was carved out via the September 2024 demerger of the IT/ITES business from Softsol India Limited and listed on BSE on 20 February 2025. Revenue is generated from software services delivered through both the Indian standalone entity and the US arm, with the US subsidiary contributing ₹25.96 crore of revenue in a single recent quarter. Standalone Indian revenue from operations stood at ₹36.18 crore in Q2 FY26, while consolidated FY26 revenue was ₹145.96 crore. The cost base is dominated by employee expenses at 44.4% of revenue, with materials at nil and capex at 0.4% of revenue, making it an asset-light services model. A ₹7.38 crore rights issue in September 2025 was used to repay dues to Softsol India Limited and for general corporate purposes. AR · MarketPing reader · 2026-08-03
Revenue streams, as the annual report describes them. IT/ITES services — Indian standalone operations, IT/ITES services — US subsidiary (Softsol Resources Inc.). Asset-light IT/ITES services company
Exhibit 1: Financial summary, FY25–FY26 (all audited; no estimate years)
| ₹ crore · consolidated | FY25 | FY26 |
|---|---|---|
| Revenue | 102 | 146 |
| EBITDA (ex other income) | 12 | 42 |
| margin % | 11.8 | 28.7 |
| Owners' profit | 0 | 70 |
| EPS, as reported (₹) | 8.21 | 18.46 |
| ROE % · ROCE % | 13.3 · 13.1 | 20.4 · 24.7 |
| Debt / equity (x) | 0.00 | 0.00 |
| Cash from operations | 18 | 4 |
| Capex | (0) | (1) |
Exhibit 2: Quarterly performance, last 7 quarters
| ₹ crore | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 |
|---|---|---|---|---|---|---|---|
| Revenue | 34 | 24 | 33 | 33 | 37 | 43 | 29 |
| Profit before tax | 3 | 0 | 10 | 10 | 15 | 11 | 16 |
| Net profit | 1 | (2) | 8 | 8 | 13 | 6 | 13 |
| EPS (₹) | 0.63 | 1.30 | 5.27 | 4.96 | 5.70 | 2.85 | 5.71 |
Exhibit 3: Peers — basic industry group, by market cap
| Company | M.cap ₹ cr | P/E | P/B | EV/EBITDA | ROE % | ROCE % | Rev CAGR 5y % | EBITDA m. % |
|---|---|---|---|---|---|---|---|---|
| TATA CONSULTANCY SERV LT | 8,97,036 | 18.0 | 8.27 | 12.3 | 45.6 | 53.9 | 10.2 | 26.9 |
| INFOSYS LIMITED | 4,63,479 | 15.4 | 4.97 | 9.7 | 31.6 | 38.6 | 12.2 | 25.7 |
| HCL TECHNOLOGIES LTD | 3,81,159 | 21.8 | 5.07 | 13.7 | 22.1 | 26.2 | 11.5 | 20.9 |
| WIPRO LTD | 1,88,266 | 15.1 | 2.13 | 9.0 | 15.0 | 17.1 | 8.4 | 22.9 |
| TECH MAHINDRA LIMITED | 1,73,421 | 30.5 | 5.77 | 19.4 | 16.0 | 18.8 | 8.5 | 16.8 |
| LTM LIMITED | 1,21,203 | 23.2 | 5.03 | 14.6 | 20.7 | 24.8 | 27.9 | 20.0 |
| PERSISTENT SYSTEMS LTD | 92,757 | 47.7 | 11.83 | 31.8 | 23.8 | 28.5 | 28.6 | 17.8 |
| COFORGE LIMITED | 86,819 | 39.9 | 8.97 | 30.9 | 18.0 | 17.2 | 28.6 | 18.6 |
Exhibit 4: Where the company sits in its group
| Metric | Company | Group median | Rank | Better than |
|---|---|---|---|---|
| P/E (TTM) | 9.9 | 15.7 | 11 of 65 | 84% |
| P/B | 2.5 | 2.6 | 30 of 65 | 55% |
| ROCE | 22.0 | 14.2 | 17 of 76 | 79% |
| ROE | 20.4 | 11.5 | 12 of 64 | 83% |
| Debt / Equity | 0.0 | 0.0 | 1 of 65 | 67% |
| EBITDA margin | 58.1 | 18.4 | 2 of 65 | 98% |
| Revenue growth | (12.1) | 10.6 | 53 of 63 | 16% |
| Profit growth | 62.6 | 6.7 | 10 of 62 | 85% |
| Market cap | 421 | 426 | 39 of 76 | 49% |
Exhibit 5: Filings of the last 90 days, with the measured price reaction
| Date · filing | Category | Importance | Next day % | 5-day % |
|---|---|---|---|---|
| 16 Oct 2026 · Routine RTA certificate for Q2 FY27 demat requests | compliance | minimal | — | — |
| 1 Oct 2026 · AGM results: All resolutions passed with 100% approval | board shareholder meetings | medium | — | — |
| 30 Sept 2026 · 3rd AGM held on Sept 30, 2026 — financial statements and director re-appointment | board shareholder meetings | low | — | — |
| 26 Sept 2026 · Trading window closure from Oct 1 for Q2 FY26-27 results | compliance | minimal | — | — |
| 9 Sept 2026 · Promoter Durga VLK Madala gifts 20.88% stake to promoter group member | ownership changes | low | — | — |
| 8 Sept 2026 · 3rd AGM notice, e-voting details and book closure | compliance | minimal | — | — |
| 7 Sept 2026 · Covance SoftSol sends 3rd Annual Report FY26 and AGM Notice | board shareholder meetings | medium | — | — |
| 7 Sept 2026 · Covance Softsol 3rd AGM on September 30, 2026 via video conference | board shareholder meetings | low | — | — |
| 1 Sept 2026 · Promoter gifts 46.24 lakh shares to family member under SAST exemption | ownership changes | low | — | — |
| 31 Aug 2026 · Promoter group member acquires 20.88% stake via gift from relative | ownership changes | high | — | — |
How to read this document
| Where a broker report shows | This document shows | Why |
|---|---|---|
| A rating (BUY / ADD / REDUCE / SELL) | A state: the latest filed quarter and the measured reactions | an event is a fact; a rating is an opinion that requires SEBI RA registration |
| A target price and upside | The current price and the multiples against the group | a target is a forecast; a multiple is a measurement |
| Estimate years marked E | More audited years; no estimates | MarketPing publishes no forecasts — your own model lives on the Models page |
Sources, method and disclosures
This document is a statistical summary of publicly filed information and market data, prepared by software from primary sources: SEBI results XBRL filed with BSE and NSE, LODR disclosures, shareholding patterns, exchange price data. It contains no research recommendation, no price target and no opinion on the merits of any security, and is not a research report within the meaning of the SEBI (Research Analysts) Regulations, 2014, Regulation 2(1)(w)(vii). Financial statements are as filed (consolidated where the company files consolidated results). Ratios are computed over filed lines. Where a figure is unavailable the table shows a dash rather than an estimate. The business brief is written by MarketPing's reader from the annual report and checked against it; no figure in a table was generated by a model. Nothing here constitutes investment advice, an offer or a solicitation; readers should consult a SEBI-registered adviser before acting. MarketPing is not a SEBI-registered intermediary.