1. At a Glance – Blink and You’ll Miss the Business Model
Softsol India Ltd, currently priced at ₹229 with a market capitalisation of roughly ₹338 crore, is one of those companies that refuses to fit neatly into a single Excel cell. In the last three months, the stock is down about 7.6%, while the one-year return is a painful -28%, which already tells you this isn’t a momentum trader’s favourite Netflix series. The company reported Q2 FY26 standalone revenue of ₹3.39 crore, net profit of ₹1.86 crore, and an operating margin of 64%, which is the kind of margin that makes even SaaS founders spit out their kombucha. Stock P/E stands at 33.4x, ROCE at 9.74%, ROE at 7.33%, and debt is a proud zero. Sounds rich, safe, boring, confusing, and oddly profitable — all at once. Add to this a completed ₹35 crore buyback in FY23 and a proposed name change to Madala Holdings Limited, and you start wondering whether this is an IT company slowly becoming a landlord, or a landlord cosplaying as an IT company. Curious yet? Good. You should be.
2. Introduction – A Software Company That’s Slowly Turning Into a Building With Wi-Fi
Softsol India was incorporated in 1990, back when “cloud” meant actual clouds and “AI” meant a grade your parents weren’t happy with. Over the years, it positioned itself as an IT services company with certifications like CMMi Level 3, ISO 9001, ISO 27001, and partnerships with AWS and Microsoft. On paper, it ticks all the classic IT checkboxes. In reality, the revenue numbers quietly whisper something else.
FY25 total sales are just ₹13 crore, while quarterly sales hover around ₹3–3.5 crore. Yet profits exist, margins are chunky, and other income keeps casually walking into the P&L like an uninvited but very rich uncle. The real plot twist arrived with the demerger of the software business into Covance SoftSol Limited, approved by NCLT in September 2024. Post-demerger, Softsol India is supposed to become an infrastructure-focused entity dealing with property development and leasing, while software moves elsewhere.
So when you look at current financials, you’re essentially analysing a company mid-identity crisis. Is it still an IT services firm? Is it a real estate holding company? Or is it just a very patient family office listed on BSE? Before judging, let’s dissect the beast properly. Ready to put on the detective hat?
3. Business Model – WTF Do They Even Do?
Let’s simplify Softsol’s business model without pretending it’s simpler than it is.
Historically, Softsol offered business process transformation, enterprise application modernisation, data transformation, and tool-assisted modernisation. Fancy words, but basically: helping clients upgrade old software, migrate databases, modernise applications, and sprinkle some AI/ML fairy dust on top. Clients came from government, healthcare, insurance, manufacturing, media — the usual IT services buffet.
Alongside this, Softsol also owned properties and earned rental income, which in FY23 formed around 14% of revenue, while software services contributed about 86%.
Now comes the Bollywood-style interval twist. The company created a wholly owned subsidiary, Covance SoftSol Limited, and approved a scheme to demerge the entire software business into it. Once fully operational, Softsol India (soon Madala Holdings) will largely remain a property and infrastructure leasing
