1. ✈️ At a Glance
Accelya Solutions is a B2B SaaS company powering the backend of global airlines – billing, cargo, ticketing, revenue accounting, etc. With a massive 4.5% dividend yield, 42% ROE, and zero serious debt, it’s the dream of every dividend-hungry retiree. But with revenue stuck in economy class and a post-COVID contract hiccup (Air India breakup, anyone?), the stock has gone from ₹1,980 to ₹1,432. Can this sleeping beauty get an upgrade?
2. 🔍 Introduction with Hook
- Remember the travel tech boom? Cleartrip, MakeMyTrip, and then… Accelya?
- Not your flashy travel unicorn — this is the uncle in the back office making sure Emirates gets paid correctly for your ₹12,000 flight to Goa.
- Accelya isn’t building travel apps. It’s building the core finance engine for over 200 airlines.
- Think SAP, but for airplanes. Think slow growth, fat cash flows, and uncle-style dividends.
3. 💼 Business Model – WTF Do They Even Do?
Accelya provides mission-critical financial software for the global airline industry. Its solutions cover:
✈️ Passenger Revenue Accounting (PRA)
📦 Cargo Revenue Management
📊 Analytics for Airlines
📉 Financial Reconciliation & Settlement
🧾 Order Accounting (FLX product suite)
Most of these run on long-term contracts, giving it SaaS-like revenue visibility (though it’s more “Subscription-as-a-Stability” than “SaaS-as-a-Startup”).
🛫 Clients include major international and domestic airlines, including pre-Tata Air India, Indigo, Emirates, and Lufthansa.
4. 📈 Financials – Profit, Margins, ROE, Growth
Let’s split the flight path:
| Metric | FY21 | FY22 | FY23 | FY24 | TTM |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 290 | 368 | 469 | 511 | 525 |
| Net Profit (₹ Cr) | 42 | 76 | 127 | 94 | 126 |
| OPM (%) | 29% | 36% | 40% | 38% | 36% |
| ROE (%) | 28% | 51% | 85% | 62% | 42% |
| Dividend Payout | 184% | 121% | 77% | 103% | 😵💫 |
✅ High-margin, capital-light
✅ High ROE, high dividend
⚠️ Low topline growth (3–5% CAGR)
5. 🧮 Valuation – Is It Cheap, Meh, or Crack?
- Current Price: ₹1,432
- TTM EPS: ₹84.60
- P/E: ~16.9x
- Book Value: ₹193 → P/B: ~7.4x
- Dividend Yield: ~4.5%
So, the yield’s fat, the PE’s modest, but the P/B is rich. Why?
Because Accelya isn’t about assets. It’s a service business with zero debt and sticky clients. But…
📉 Stock is down 27% from peak due to:
- The non-renewal of Air India’s contract in May 2023.
- Cybersecurity incident in Mar 2024.
- General market meh-ness around small IT players.
6. 🍜 What’s Cooking – News, Triggers, Drama
🔥 FLX Order Accounting launched in late 2024 – cloud-native product, future-proofing the biz
💔 Air India break-up in 2023 hurt both revenue and sentiment
🛡️ SEBI warning letter for LODR non-compliance – slap on the wrist
💻 Cybersecurity incident – IT infra affected, but biz continuity managed
🧮 Dividend bonanza continues – 100%+ payout remains the norm
Triggers to watch:
- New FLX product wins?
- Return of air traffic to pre-COVID levels globally
- Airline consolidation = bigger clients?
7. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
📊 Debt: Practically zero (₹29 Cr borrowings, but net cash positive)
💼 Reserves: ₹273 Cr
🪙 Total Assets: ₹404 Cr
🏢 Fixed Assets: ₹65 Cr (this is a SaaS business, not a factory)
Zero balance sheet stress. Just cash flows and quarterly pressure to declare dividends.
8. 💸 Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | FCF (Approx) |
|---|---|---|
| FY22 | 118 | ~100 |
| FY23 | 133 | ~110 |
| FY24 | 156 | ~130 |
📥 Capex is minimal (< ₹30 Cr/year)
📤 Most of CFO goes into dividend payouts
That’s why Accelya is loved by yield-hunters and ignored by growth bros.
9. 📊 Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROE | 42.2% |
| ROCE | 57.0% |
| Dividend Yield | 4.54% |
| OPM | 36% |
| Working Capital Days | 44 |
| Debtor Days | 55 |
| Interest Coverage | Infinite (barely any interest) |
Conclusion: This is a profit-puking, margin-hugging, debt-free machine. But the growth engine? Still refueling.
10. 📜 P&L Breakdown – Show Me the Money
Let’s simplify FY24:
- Revenue: ₹511 Cr
- Expenses: ₹319 Cr
- Operating Profit: ₹193 Cr
- Net Profit: ₹94 Cr
- EPS: ₹62.88
- Dividends Paid: ₹97 Cr 😲
Yup, dividends exceeded net profit last year. Not sustainable long-term, but great for now.
11. 🔁 Peer Comparison – Who Else Is in the Game?
| Company | P/E | ROE | Div Yield | M-Cap (Cr) |
|---|---|---|---|---|
| TCS | 25.4x | 52% | 1.76% | ₹12.3L Cr |
| Infosys | 25.5x | 29% | 2.64% | ₹6.7L Cr |
| Persistent | 67x | 24% | 0.6% | ₹91K Cr |
| Accelya | 17x | 42% | 4.54% | ₹2,136 Cr |
Accelya is a small-cap dividend beast in a field full of IT unicorns. Totally different species.
12. 🧩 Miscellaneous – Shareholding, Promoters
- Promoters: 74.66% (consistent for years)
- FIIs + DIIs: Tiny stakes, barely care
- Retail/Public: ~22%, increasing slightly
- No. of Shareholders: ~36,000 and rising
🧑💼 Parent: Vista Equity Partners, a global private equity firm, owns the parent Accelya Group (Spain), and indirectly controls Accelya India.
13. 🧑⚖️ EduInvesting Verdict™
“If your heart beats faster at the sight of fast growth, skip this. But if you like getting paid while doing nothing — Accelya’s like sipping champagne in business class while the plane taxis.”
✅ High ROE, high payout
✅ Zero debt, great margins
⚠️ Limited growth triggers
⚠️ One customer (Air India) mattered too much
🎯 Fair Value Range (FY26E EPS = ₹90; Target P/E range = 18–22x):
🧮 ₹1,620 – ₹1,980
Tags: Accelya Solutions, Airline SaaS, Dividend Stocks, IT Smallcap, FLX Suite, Accelya India, EduInvesting, High ROE, Stock Analysis, Cybersecurity Incident, SEBI Warning, Air India Deal
✍️ Written by Prashant | 📅 July 8, 2025
